Let's consider Mr. Sharma’s case to explain this plan. He is a 40 year old employee with an MNC and wants to retire at the age of 60. As his employer does not provide for any fixed pension, he wants to buy a pension solution with monthly premiums that will not only fulfill his retirement needs but also look after his wife even in case of his death. Below are the details:
Monthly Premium: Rs. 10,000
Premium Payment Term: 20 years
Policy Term: 20 years
Fund option: Max Life Pension Preserver Fund
Annuity Option: Joint Life
Let’s see how Max Life Forever Young Pension Plan works for him:
Scenario 1 - Vesting Benefit
Mr. Sharma chooses to invest in Max Life Forever Young Pension Plan and after 20 years chooses to invest entire corpus in Max Life Guaranteed Lifetime Income Plan with Joint Life with Return of Purchase Price option.
Total amount invested in Max Life Forever Young Pension Plan - Rs. 10,000 x 12 x 20 = Rs. 24,00,000
Guaranteed Retirement Corpus from Max Life Forever Young Pension Plan - Rs. 26,40,000
Retirement corpus from Max Life Forever Young Pension Plan* @4% is Rs. 30,03,623** and @8% is Rs. 46,26,551**
On maturity, Mr Sharma shall be entitled to exercise one of the following options with regards to the maturity benefit:
- Commute up to 60% of fund value and use remaining proceeds to purchase an immediate annuity or Deferred Annuity from Max Life at the then prevailing annuity rate or from another insurer (to the extent of 50% of the entire proceeds of the policy net of commutation as stipulated by IRDAI from time to time) or
- To utilize the entire proceeds to purchase an immediate annuity or deferred annuity from Max Life at the then prevailing annuity rate or from another insurer (to the extent of 50% of the entire proceeds of the policy net of commutation as stipulated by IRDAI from time to time); or
- Extend accumulation period or deferment period (Only in case of Single Pay) within the same policy with same terms & conditions as the original policy provided the life insured is less than age 60 years
•Annuity values as per Annuity Rates as on April 2019. The Annuity conversion rates are riot guaranteed and may vary from time to time.Please note all additional applicable taxes, cesses, and levies as imposed by the Government will be applicable as per prevailing rates on the purchase of Max Life Guaranteed Lifetime Income Plan.
Please note that above is only an example and does not create any rights and/or obligations. The assumed and non-guaranteed rates of return of 4% and 8% mentioned above relate to assumed investment returns at different rates and may vary depending upon the market conditions.
*The Fund Option assumed to be chosen in the above scenario is Max Life Pension Preserver Fund (SFIN - ULIFOIBIS!O2II3PENSPRESERIO4).
**These are not guaranteed and they are not the upper or lower limits of what your policy might earn as the value of your policy is dependent on a number of factors including the future investment performance scenario. For more information, please request for your policy specific benefit illustration.
Scenarion 2 - Death Benefit
In case, Mr. Sharma passes away at the age of 50 years, after paying the premium for 10 years, Total amount invested in Max Life Forever Young Pension Plan: Rs. 10,000 x 12 x 10 = Rs. 12,00,000 (12 lakhs)
His wife aged 50 years will get the following benefits:
Death Benefit (higher of the Fund value* or 105% of the cumulative premiums paid) with Max Life Partner Care Rider: @4% is Rs. 23,94.687** and @8% is Rs. 26,65,400**
*Please note that above is only an example and does not create any rights and or obligations. The assumed and non.guaranteed rates of return of 4% and 8% mentioned above relate to assumed investment returns at different rates and may vary depending upon the market conditions.
The Fund Option assumed to be chosen in the above scenario is Max Life Pension Preserver Fund (SFIN - ULlF0l8l5/02Il3PENSPR(SRl04).
** These are not guaranteed and they are not the upper or lower limits of what your policy might earn as the value of your policy is dependent on number of factors including the future investment performance scenario. For more information, please request for your policy specific benefit illustration.