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Max Life re-invents pension planning

India Infoline News Service | Mumbai |

Max Life Insurance announced the launch of the ‘Max Life Forever Young Pension plan’ and ‘Max Life Guaranteed Life Time Income Plan’

Max Life Insurance, one of the leading life insurer in India, announced the launch of the ‘Max Life Forever Young Pension plan’ and ‘Max Life Guaranteed Life Time Income Plan’- a unique pension planning solution, with features based on extensive consumer research. This solution ensures a carefree and financially-secured retirement for an individual and the spouse.


Speaking at the launch, Rajesh Sud, CEO & Managing Director, Max Life Insurance, said “In a proprietary study conducted by us, we unearthed an unaddressed consumer need that planning for retirement is complete only if the pension solution caters to the need of self and spouse. Additionally, the research also revealed that the consumer is concerned about the impact of inflation on retirement corpus. Through these products, we have tried to address these needs by introducing features like ‘Max Life Partner Care Rider’ and the ‘Save More Tomorrow’ option.”


“At a yield of 8% in the accumulation phase and our current annuity rates in the pension payout phase, a 35-year old individual, who invests in this plan and pays around Rs. 5,000 per month for 25 years, is likely to get an income of Rs. 20,000 per month as lifelong pension. This pension will continue up to the time the customer or his/her spouse are alive. Additionally, a legacy gift of around Rs.35 lakh would be payable to the nominee, in-case he chooses the Return of purchase price option,” he further added.


The ‘Max Life Forever Young Pension Plan’ is a unit-linked plan with a minimum guaranteed return of premiums that helps in accumulating a retirement corpus. The ‘Max Life Guaranteed Life Time Income Plan’ is an annuity plan that helps utilize the retirement corpus to guarantee an income for life. Together this retirement solution provides guaranteed lifetime income for an individual and his/her spouse.


The pension plan exhibits unique features – ‘Max Life Partner Care Rider,’ a rider benefit offered by Max Life Insurance, which will safeguard the completion of the plan for the spouse in case of an untimely death of an individual during the accumulation phase. The‘Save More Tomorrow’ option will enable the individual to increase her/his savings component in a disciplined manner every year to mitigate the effects of inflation on the pension.


Max Life Forever Young Pension Plan offers two fund options – Maximizer (maximum investment in equity up to 60%) and Preserver (maximum investment in equity up to 35%).

Max Life Guaranteed Life Time Income Plan offers four annuity options with combinations of single or joint life pension and with or without Return of Premium.


Product Features

  • Guaranteed pension for self and spouse for life – Max Life Forever Young Pension Plan allows policyholders to utilize the maturity corpus for various annuity options and get regular income during their retirement
  • Guaranteed pension for your spouse in your absence - Upon choosing the Max Life Partner Care Rider, in case of unfortunate event of death of policyholder, all future premiums payable up to age 60 years and an amount equal to higher of 105% of all premiums paid or fund value will be paid by the Company to the nominee. This corpus can be utilized to purchase an annuity
  • Benefit of equity combined with minimum guarantee of return - The plan offers a maturity benefit equal to higher of fund value or guaranteed maturity benefit (101% of all premiums paid in case of Pension Maximiser Option (up to 60% equity exposure) or 110% of all premiums paid in case of Pension Preserver Option (up to 35% equity exposure)
  • “Save More Tomorrow” Option – Max Life Forever Young Pension Plan allows a unique feature to increase your premium contribution each year. It enables the customer to enter the plan at a lower premium and subsequently keep increasing the contribution by 5% (of the initial premium) in the form of top-ups every year over the policy term. This ensures that an individual is able to start retirement planning early and reach retirement goals in a smoother way along with his/her increasing income. The retirement corpus built up over a 25-year period increases by nearly 50% by choosing the “Save More Tomorrow” option
  • Loyalty bonus - Guaranteed loyalty additions equal to 0.5% of the fund value will be added to the fund starting from 11th year of the policy as a reward for staying invested. These additions will increase by 0.02% every year

Four Annuity options from Max Life Guaranteed Lifetime Income Plan

  • Single Life Annuity for life - A fixed amount, guaranteed at the policy inception, will be paid to the annuitant throughout his/her life
  • Single Life Annuity for life with return of purchase price (ROP) payable on death - A fixed amount, guaranteed at the policy inception, will be paid to the annuitant throughout his life. On death, 100% of the purchase price (excluding Service Tax) shall be paid to the nominee
  • Joint Life Annuity for life (without any death benefit) - A fixed amount, guaranteed at the policy inception, will be paid as long as at least one of the annuitants is alive. Payments will cease on the death of the last survivor (annuitant)
  • Joint Life Annuity for life with return of purchase price (ROP) payable on death of the last survivor - A fixed amount, guaranteed at the policy inception, will be paid as long as at least one of the annuitants is alive. On death of the last survivor, 100% of the purchase price (excluding Service Tax) shall be paid to the nominee.
 

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