Max Life Monthly Income Advantage Plan Prospectus
Max Life Monthly Income Advantage Plan Prospectus
Max Life Monthly Income Advantage Plan Prospectus
PROSPECTUS
Life is all about fulfilling your dreams for your loved ones like providing for best of education & extra-
curricular activities for your child, adequate money to take care of your & your spouse‟s retirement expenses.
Thus, regular income is an eminent need for everyone at all stages of life.
Presenting Max Life Monthly Income Advantage Plan, a comprehensive savings & protection plan that
provides you guaranteed monthly income for 10 years to meet your recurring expenses and lump-sum benefit,
which comprises of non-guaranteed bonuses, at maturity to cater to your long term financial goals, thus,
ensuring that your dreams for your loved ones are addressed at all times.
KEY FEATURES & BENEFITS OF MAX LIFE MONTHLY INCOME ADVANTAGE PLAN
Max Life Monthly Income Advantage Plan is a non-linked participating savings insurance plan that offers:
Guaranteed monthly income for a period of 10 years immediately after the completion of Premium Payment
Term and;
Sum of accrued compound reversionary bonuses and terminal bonus on maturity i.e. completion of the Policy
Term
Where, monthly income payable is defined as one twelfth (1/12 th) of 10% of Sum Assured.
You have the option to choose from the following two variants available under the plan:
1. Premium Payment Term of twelve (12) years and Policy Term of twenty two (22) years;
2. Premium Payment Term of fifteen (15) years and Policy Term of twenty five (25) years
Risk coverage is available throughout the Policy Term where Policy Term is Premium Payment Term plus ten (10)
years benefit payout period.
Product Specifications
Modal Factors
Premium Mode Factor
Premium Payment Mode &
Modal Factors Annual 1.000
Semi-annual 0.520
Quarterly 0.265
Monthly 0.090
The Premium Payment mode can be changed during the Policy term.
Minimum Annual Premium ₹25,000excluding extra premium, modal extra, taxes, cesses and levies as imposed by
the Government from time to time
Maximum
No limit
Annual Premium
12 Pay variant : ₹ 3,24,000
Sum Assured Minimum: 15 Pay variant :₹ 4,05,000
(Subject to minimum No limit subject to the Board approved
premium limit) Maximum: underwriting policy of the Company
Guaranteed monthly income equal to one twelfth (1/12 th) of 10% of Sum Assured
Survival Benefit shall be payable for 10 years (120 months) at each monthly anniversary after
completion of the Premium Payment Term.
All the monthly payout transactions would be effected on date specific to policy
anniversary date i.e. monthly anniversary.
Risk coverage continues during the Survival benefit payout period of 10 years.
Accrued compound reversionary bonus (if any) plus terminal bonus (if any) shall be
payable on completion of the Policy Term where,
Compound Reversionary bonus shall be declared each year starting from the second
Policy anniversary
Maturity Benefit
Terminal Bonus is an additional bonus that shall be payable only ONCE on the earlier
of Surrender or Maturity provided the Policy has been in force for at least five years.
However, in case of Surrender, only the Surrender Value of Terminal Bonus shall be
payable
Following shall be payable on death of the Life Insured provided the policy has been
in-force:
1. Lump-sum Benefit –Death Benefit shall be payable on the Death of the Life
Insured, where,
Death Benefit is higher of :
- 11 times the Annualised Premium
- 105% of all the premiums paid till the date of death of the Life Insured
- Guaranteed Sum Assured on Maturity#
- Any absolute amount assured to be payable on death^
Premium rates and the benefits are uni-sex (same for both male and female) and uni-
smoker.
Rates
This plan can also be offered to sub standard lives with extra mortality charges subject
to Board approved underwriting policy of the Company
Case Study: Mr. Bajaj, aged 35 years, invests ₹75,000 in Max Life Monthly Income Advantage Plan on an
annual mode. He opts for 12 year Premium Payment Term (22 year Policy Term). Let‟s see how this plan would
work for him:
*Important Notes
1. Kindly note that the above case studies are only examples and do not in any way create any rights and/or
obligations. The actual experience of the policy may be different from what is shown above. The above
scenarios are depicted at assumed rate of returns with 4% and 8% and these are not the upper or lower limits of
what one can expect from this policy, as it is dependent on number of factors including future investment
performance.
2. You may be entitled to certain applicable tax benefits on your premiums and Policy benefits. Please note that
all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by
you. Tax benefits are subject to change in tax laws. It is advisable to seek an independent tax advice.
3. Bonuses are non-guaranteed and are declared at the sole discretion of the Company.
For more information, please request for your Policy specific benefit illustration.
Scenario 2: Mr. Bajaj meets with an accident and dies in the 5th policy year i.e. after paying 5 premiums:
*Important Notes
1. Kindly note that the above case studies are only examples and do not in any way create any rights and/or
obligations. The actual experience of the policy may be different from what is shown above. The above
scenarios are depicted at assumed rate of returns with 4% and 8% and these are not the upper or lower limits of
what one can expect from this policy, as it is dependent on number of factors including future investment
performance.
2. You may be entitled to certain applicable tax benefits on your premiums and Policy benefits. Please note that
all the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by
you. Tax benefits are subject to change in tax laws. It is advisable to seek an independent tax advice
3. Bonuses are non-guaranteed and are declared at the sole discretion of the Company.
TAX BENEFIT
You may be entitled to certain applicable tax benefits on your premiums and Policy benefits. Please note that all
the tax benefits are subject to tax laws prevailing at the time of payment of premium or receipt of benefits by
you. Tax benefits are subject to change in tax laws. It is advisable to seek an independent tax advice.
Surrender Value is defined as the higher of Guaranteed Surrender Value (GSV) or Special Surrender Value
(SSV) where,
The Guaranteed Surrender Value of base shall be calculated using the following formula:
Maximum of [{GSV Factor X (Total Premiums paid less Extra Premium (if any)) Less Survival Benefit (if
already paid)}, 0]
Total Premium refers to total premium payable for the base policy including Extra Premium for higher mortality
rating (if any) and Modal Extra (if any).
Policy Year % of Total Premiums paid less Extra Premium (if any)
1-2 NIL
3 30%
4-7 50%
Graduating linearly from 50% to 90%
during the last two policy years
8+
Minimum (50% + [(40% X (N-7)) / (Policy Term - 8)], 90%)
N : Year of Surrender
Please Note : The SSV factors and Surrender Value factors for Reversionary Bonus and Terminal Bonus can be
changed by the Company with prior approval of the Authority.
Please note: Policy cannot be surrendered after your death and shall continue till the end of Policy Term. All
benefits shall be payable to the beneficiary as & when due.
In case the premium is not paid by the premium due date, a Grace Period of 30 days from the due date of first
unpaid premium will be allowed. During this Grace Period, the risk cover will continue.
In case the premium is not paid by the expiry of the Grace Period, the following provisions will apply:
A) Discontinuance of Payment of Premium before the Policy has acquired surrender value
If you don‟t pay the due premium during the grace period, on expiry of the grace period, the Policy shall
Lapse w.e.f. the due date of unpaid premium, insurance cover will be stopped and no benefits shall be
payable, however, you will have the option to revive the Policy within 2 years from the due date of unpaid
premium.
B) Discontinuance of Payment of Premium after the Policy has acquired surrender value
If you don‟t pay the due premium during the grace period, on expiry of the grace period, the Policy shall
become Reduced Paid Up (RPU) Policy w.e.f. the due date of unpaid premium.
Following benefits will be reduced and calculated using the formulae mentioned below:
RPU Sum Assured = [{Total Premiums Paid less Extra Premium (if any)} / {Total Premiums payable
less Extra Premium (if any)}] X Sum Assured
RPU Death Benefit = [{Total Premiums Paid less Extra Premium (if any)} / {Total Premiums payable
less Extra Premium (if any)}] X Death Benefit
The Death Benefit, Survival Benefit, Maturity Benefit and Surrender Benefit for a Policy in RPU mode will
be as follows:
Death Benefit for a RPU Policy: On death during the term of the Policy in RPU status, the following
benefits will be paid:
o RPU Death Benefit paid immediately on death, plus
o Outstanding Survival Benefit and Maturity Benefit (as defined below for a Policy in RPU mode)
payable as and when due.
Survival Benefit for a RPU Policy: Monthly Income payable shall be equal to one twelfth (1/12 th) of
10% of the RPU Sum Assured
Maturity Benefit for a RPU Policy: Accrued Compound Reversionary Bonus (if any) shall be
payable on date of maturity
Surrender Value for a RPU Policy: The surrender value of RPU policy will be determined using the
same methodology and SSV scales as above.
If a lapsed policy is not revived within two years, the Policy shall be terminated and no value is payable to
you. However, if a Policy under Reduced Paid Up Mode is not revived within the Revival Period then, it
will not terminate and will continue to be under Reduced Paid Up Mode for the remaining part of the Policy
Term.
You paying all overdue premiums, together with interest and/or late fee as may be determined by the
Company from time to time;
The Life Insured producing an evidence of insurability at your own cost which is acceptable to the
Company; and
The revival of the Policy shall take effect only after revival of the Policy is approved by Max Life
Insurance basis the Board approved underwriting policy and communicated to you in writing. Once the
Policy has been revived, all the accrued bonuses and benefits will get reinstated to original levels,
which would have been the case had the Policy remained premium paying all throughout.
If a RPU Policy is not revived within two years of it becoming RPU, then the Policy cannot be revived and
will continue as RPU Policy for the rest of its Policy Term.
TERMINATION OF POLICY
This Policy will terminate upon the happening of any of the following events:
on the date on which We receive free look cancellation request;
the date of intimation of repudiation of the death claim by Us in accordance with the provisions of this
Policy;
on the expiry of the Revival Period, if the Lapsed Policy has not been revived. However, if a Policy under
Reduced Paid Up Mode is not revived within the Revival Period then, it will not terminate and will
continue to be under Reduced Paid Up Mode for the remaining part of the Policy Term;
on the date of surrender of this Policy; or
on the Maturity Date.
We urge you to read this prospectus and the benefit illustration, understand the plan details & how it works
before you decide to purchase this Policy.
Grace Period
A grace period of thirty (30) days from the due date for payment of each premium will be allowed for all
premium paying modes except for monthly mode, where a grace period of only fifteen (15) days will be
allowed.
During the grace period, the Company will accept the premium without interest.
The insurance coverage continues during the grace period but if the Life Insured dies during the grace period,
the Company shall be entitled to deduct the unpaid premium from the benefits payable under the Policy.
Exclusion
Notwithstanding anything stated herein, if the Life Insured, whether sane or insane, dies by suicide within 12
months of the effective date of risk commencement or the date of revival of policy, the policy shall terminate
immediately. In such cases, the Company shall pay either:
Higher of Special Surrender Value or total premiums paid (inclusive of extra premiums, if any, but
exclusive of taxes, cesses & levies as imposed by the Government from time time), in case the policy has
acquired a surrender value; or
Total premiums paid (inclusive of extra premiums, if any, but exclusive of taxes, cesses & levies as
imposed by the Government from time to time), in case the policy has not acquired a surrender value.
Section 45 of the insurance Act, 1938 as amended from time to time states that:
(1) No policy of life insurance shall be called in question on any ground whatsoever after the expiry of three
years from the date of the policy, i.e. from the date of issuance of the policy or the date of commencement
of risk or the date of revival of the policy or the date of the rider to the policy whichever is later.
(2) A policy of life insurance may be called in question at any time within three years from the date of issuance
of the policy or the date of commencement of risk or the date of revival of the policy or the date of the rider
to the policy, whichever is later, on the ground of fraud:
Provided that the insurer shall have to communicate in writing to the insured or the legal representatives or
nominees of the insured the grounds and materials on which such decisions are based.
Explanation I – For the purposes of this sub-section, the expression “fraud” means any of the following acts
committed by the insured or by his agent, with the intent to deceive the insurer or to induce the insurer to
issue a life insurance policy:
a) the suggestion, as a fact of that which is not true and which the insured does not believe to be true;
b) the active concealment of fact by the insured having knowledge or belief of the fact;
Explanation II – Mere silence as to facts likely to affect the assessment of the risk by the insurer is not
fraud, unless the circumstances of the case are such that regard being had to them, it is the duty of the
insured or his agent, keeping silence to speak, or unless his silence is, in itself, equivalent to speak.
(3) Notwithstanding anything contained in sub-section (2) no insurer shall repudiate a life insurance policy on
the ground of fraud if the insured can prove that the mis-statement of or suppression of a material fact was
true to the best of his knowledge and belief or that such mis-statement of or suppression of a material fact
are within the knowledge of the insurer:
Provided that in case of fraud, the onus of disproving lies upon the beneficiaries, in case the member is not
alive.
Explanation – A person who solicits and negotiates a contract of insurance shall be deemed for the purpose
of the formation of the contract, to be the agent of the insurer.
(4) A policy of the life insurance may be called in question at any time within three years from the date of
issuance of the policy or the date of commencement of risk or the date of revival of the policy or the date of
the rider to the policy, whichever is later, on the ground that any statement of or suppression of a fact
material to the expectancy of the life of the insured was incorrectly made in the proposal or other document
on the basis of which the policy was issued or revived or rider issued:
Provided that the insurer shall have to communicate in writing to the insured or the legal representatives or
noinees of the insured the grounds and material on which such decision to repudiate the policy of life
insurance is based:
Provided further that in case of repudiation of the policy on the ground of misstatement or suppression of a
material fact, and not on the ground of fraud, the premiums collected on the policy till the date of
repudiation shall be paid to the insured or the legal representatives or nominees of the insured within a
period of ninety days from the date of such repudiation
Explanation – For the purposes of this sub-section, the mis-statement of or suppression of fact shall not be
considered material unless it has a direct bearing on the risk undertaken by the insurer, the onus is on the
insurer to show that had the insurer been aware of the said fact no life insurance policy would have been
issued to the insured.
(5) Nothing in this section shall prevent the insurer from calling for proof of age at any time if he is entitled to
do so, and no policy shall be deemed to be called in question merely because the terms of the policy are
adjusted on subsequent proof that the age of the life insured was incorrectly stated in the proposal.
Prohibition of Rebates: Section 41 of the Insurance Act, 1938 as amended from time to time states:
(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take
or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any
rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy,
nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as
may be allowed in accordance with the published prospectuses or tables of the insurer:
(2) Any person making default in complying with the provisions of this section shall be liable for a penalty
which may extend to ten lakh rupees.
Nomination
Nomination shall be applicable in accordance with provisions of Section 39 of the Insurance Act 1938
respectively, as amended from time to time.
Assignment
Assignment shall be applicable in accordance with provisions of Section 38 of the Insurance Act 1938
respectively, as amended from time to time.
Important Notes:
This is only a prospectus. It does not purport to be a contract of insurance and does not in any way create
any rights and/or obligations. All the benefits are payable subject to the terms and conditions of the Policy.
Extra Premium may be charged for sub-standard lives.
Benefits are available provided all premiums are paid, as and when they are due.
Taxes, cesses & levies as imposed by the Government from time to time would be levied as per applicable
laws.
Insurance is the subject matter of solicitation.
Life Insurance Coverage is available in this Product.
All Policy benefits are subject to policy being in force.
“We”, “Us”, “Our” or “the Company” means Max Life Insurance Company Limited.
“You” or “Your” means the Policyholder.
Policyholder and Life Insured cannot be different under this product.
Should you need any further information from us, please do not hesitate to contact on the below mentioned
address and numbers. We look forward to have you as a part of the Max Life family.
For other terms and conditions, request your Agent Advisor or intermediaries for giving a detailed presentation
of the product before concluding the sale.
CONTACT DETAILS OF THE COMPANY
Office Address
Max Life Insurance Company Limited
Plot No. 90A, Sector 18,
Gurugram – 122015, Haryana, India.
Tel No.: 0124-4219090
Disclaimers:
Max Life Insurance Company Limited is a Joint Venture between Max Financial Services Limited and Mitsui
Sumitomo Insurance Co. Ltd. Max Life Insurance Co. Ltd., 11th Floor, DLF Square Building, Jacaranda Marg,
DLF City Phase II, Gurugram (Haryana) – 122002. For more details on risk factors, terms and conditions,
please read the prospectus carefully before concluding a sale. You may be entitled to certain applicable
tax benefits on your premiums and policy benefits. Please note all the tax benefits are subject to tax laws
prevailing at the time of payment of premium or receipt of benefits by you. Tax benefits are subject to changes
in tax laws. Insurance is the Subject matter of solicitation. Trade logos displayed above belong to Max Financial
Services Limited and Mitsui Sumitomo Insurance Co. Ltd. respectively and are used by Max Life Insurance Co.
Ltd under a license. You can call us on our customer helpline no. 1860-120-5577.
IRDAI - Registration No. 104. ARN: MaxLife/Ads/Prospectus/MIAP/July2018
IRDAI is not involved in activities like selling insurance policies, announcing bonus or
investment of premiums.
Public receiving such phone calls are requested to lodge a police complaint