Max Life Insurance
Max Life Forever Young Pension Policy

Max Life Forever Young Pension Plan

Max Life Forever Young Pension Plan provides the benefits of equity participation to build a large retirement corpus and, at the same time, offers a guarantee to protect savings from market downturns. It also offers additional benefits to safeguard the family of the insured person against unforeseen eventualities so that the policyholder and his/her loved one’s live life on their terms. This plan gives the flexibility to choose the vesting age as per the requirement and an option to guarantee the retirement benefit for his/her spouse in the unfortunate event of death if one has opted for Max Life Partner Care Rider. There is an option to Save More Tomorrow to enhance the retirement corpus through Top-up premiums in the later years. To know more about this pension plan, have a look at the following mentions.

Eligibility Criteria

Age of entry

Minimum: 30 years

Maximum: 65 years

Vesting age

Minimum: 50 years (55 years for policies sourced under Qualifying Recognized Overseas Pension Scheme (QROPS), as per prevailing Her Majesty’s Revenue & Customs (HMRC) regulations)

Maximum: 75 years

Premium payment modes

Regular Pay – Annual, Semi-Annual, Quarterly, and Monthly

Single Pay

Minimum premium

For Single Pay – Rs. 1,00,000

For Regular Pay – Rs. 25,000 per annum

Policy term

Vesting age less entry age, subject to the following conditions:

The maximum allowed policy term is 75 years, less entry age

The minimum policy term is 10 years

One has the option to opt for any vesting age as long as the vesting age is at least 50 years (55 years for policies sourced under QROPS).

What Are The Benefits and Key Features of The Max Life Forever Young Pension Plan?

This plan has come up with a sack full of benefits. Some of the important mentions are as follows.

Death Benefit:

It is higher of the Fund Value or 105% of the cumulative premiums paid, including top-up premiums (exclusive of rider charges, if any). The nominee shall have the option to utilize the death benefit in one of the following ways:

  • Utilize the entire proceeds of the policy or part thereof for purchasing an Immediate or Deferred annuity at the then prevailing rate of the Company. However, the claimant shall be given an option to purchase an annuity from any other insurer at the then prevailing annuity rate to the extent of the percentage stipulated by the IRDAI, currently 50%, of the entire proceeds of the policy net of commutation; or
  • Withdraw the entire proceeds of the policy. A settlement option will not be provided.

In case the proceeds of the policy are not sufficient to purchase a minimum annuity as required by IRDAI from time to time, the proceeds of the policy may be paid as lumpsum to the claimant.

Investment option available:

One has the option to choose from any one of the below-mentioned investment options.

  • Pension Maximiser Option – In case one opts for the Pension Maximiser Option, 100% of the premiums (including top-up premiums, if any) shall be invested in the Pension Maximiser Fund.
  • Pension Preserver Option – In case one opts for the Pension Preserver Option, 100% of your premiums (including top-up premiums, if any) shall be invested in the Pension Preserver Fund.

One can only choose the option at inception; no change in the option is allowed during the policy term.

Guaranteed Loyalty Additions:

The loyalty additions are payable only if the life insured is alive and all due premiums have been paid. 0.50% of the Fund Value shall be added to the fund by the creation of additional units at the end of every policy year starting end of the 10th policy year. The Guaranteed Loyalty Additions increase by 0.02% (absolute) each year from the 11th policy year. These Guaranteed Loyalty Additions shall be subject to the following:

  • Guaranteed Loyalty Additions will be payable only on premium-paying policies.
  • Guaranteed Loyalty Additions shall be payable both in the case of Regular Pay and Single Pay variants.
  • In case of revival of policies, the Guaranteed Loyalty Additions for previous years will be added based on the Fund Value prevailing at the revival date.

Vesting Benefit:

It is higher than the Fund Value or guaranteed vesting benefit, where the guaranteed vesting benefit is defined as follows:

  • In case one opts for the Pension Maximiser Option – 101% of total premiums and Top-up premium paid (exclusive of rider charge, if any)
  • In case one opts for the Pension Preserver Option – 110% of total premiums and Top-up premium paid (exclusive of rider charge, if any)

Top-up Premiums:

One can pay a Top-up premium subject to the following conditions:

  • Top-up premiums can only be paid once all the due premiums have been paid
  • A maximum of twelve Top-ups are allowed in any policy year
  • The total Top-up premium in any policy year cannot be more than 150% of the Annual Premium paid
  • The minimum amount for the Top-up premium is Rs. 1,000
  • There is no Surrender Charge on Top-up Fund Value
  • The top-up premium shall be invested in the same fund as the base premium

Save More Tomorrow:

The Top up premium feature in this product will be used for the ‘Save More Tomorrow’ option, under which you can choose to save more by progressively paying a 5% (simple) additional Top up premium every year till the end of the policy term. The maximum Top up allowed in any policy year under the Save More Tomorrow option will be 150% of the regular premium. The option can be selected only at inception and you have the flexibility to discontinue the option from any policy year. The guarantee at vesting is also applicable on all Top-ups paid under the Save More Tomorrow option. However, you will have the option not to pay an additional Top-up premium in any year.

Riders Available With Max Life Forever Young Pension Plan

With this plan, the following rider is available to pay a little extra premium amount to strengthen the policy:

Max Life Partner Care Rider:

The rider provides an optional additional benefit in the unfortunate event of the death of Life Insured. The rider can be opted between ages 21 to 55 years and expires once the life insured attains the age of 60 years. The rider can only be opted for with the regular pay variant of the plan.

What Is The Surrender Benefit under Max Life Forever Young Pension Plan?

In case one decides to surrender the policy due to any reason, he/she may do so by giving us a prior written request at any time during the course of the policy.

Surrender within five years of the inception of the policy – In case the insured person surrenders the policy within the lock-in period of five years, the Company shall close the Unit Account and credit the Fund Value to the Pension Discontinuance Policy Fund after deducting the applicable Surrender Charges. The Pension Discontinuance Policy Fund shall be a unit fund with the following asset categories.

  • Money Market Instruments: 0% to 40%
  • Government Securities: 60% to 100%

The Fund Management Charge under this fund is 0.5% per annum. The minimum guaranteed return on this fund is 4.0% per annum, which will be reflected in the NAV of the fund. The proceeds of the Pension Discontinuance Policy Fund can be utilized by you at the end of the lock-in period in the following ways:

  • To commute up to 60% of the fund value and utilize the balance amount to purchase an Immediate or Deferred Annuity from the same insurer at the then prevailing annuity rates or from another insurer (to the extent of 50% of the entire proceeds of the policy net of commutation as stipulated by the IRDAI) or
  • To utilize the entire proceeds to purchase an Immediate annuity or deferred annuity from the same insurer 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 the IRDAI)

Surrender after five years of the inception of the policy – In case of surrender after the lock-in period, the surrender value can be utilized by you by exercising one of the following options:

  • To commute up to 60% of the fund value and utilize the balance amount to purchase an Immediate or Deferred Annuity from the same insurer at the then prevailing annuity rates or from another insurer (to or
  • To utilize the entire proceeds to purchase an Immediate annuity or deferred annuity from the same insurer 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 the IRDAI)

For policies sourced under QROPS through the transfer of UK tax-relieved assets, the option to surrender will be available only on or after the life insured attains 55 years of age.

Illustration Of Max Life Forever Young Pension Plan

Mr. Ganguly, a 40-year-old businessman, has purchased Max Life Forever Young Pension Plan. let us find out what benefits he will reap under this plan for the given data.

DataDetails
Age40 years
Vesting age60 years
Premium typeRegular pay
Premium payment duration20 years
Policy term20 years
Yearly premium amountRs. 2 lakhs
Premium payment modeAnnual
Choice of fundPension preserver option
Save More TomorrowYes
Annuity optionSingle life
Fund value of vesting accumulated

@4% – Rs. 74,29,535.581

@8% – Rs. 1,11,45,435.213

Annuity amount payable

@4% – 4,37,233.278

@8% – 9,34,552.406

General Exclusions of Max Life Forever Young Pension Plan

While the plans come with a bundle of benefits, at the same time, they have some exclusions as well, for which they do not offer any benefit. Therefore, to avoid future complications and claim denial, here are the general exclusions Max Life Forever Young Pension Plan.

  • Anything that does not satisfy the terms and conditions of the company, as well as of the policy, will be considered as exclusion.
  • If there is any kind of breach of law or foul play, that will be permanently excluded from the policy.
  • If the life insured commits suicide, whether sane or insane, within one year from the date of commencement of the policy or from the date of revival of this policy, as applicable, all risks under the policy shall come to an end simultaneously. In such an event, the company will pay only the Fund Value, as on the date of intimation of the death, to the nominee. Any charges other than Fund Management Charges and Guarantee charges recovered subsequent to the date of death shall be added back to the fund value as available on the date of intimation of death.

Buying Process of Max Life Forever Young Pension Plan

This policy is available offline. One can buy this policy by visiting one of the official branches of the company. Their customer executives are experienced enough to guide you through the buying process seamlessly. In this case, one has to carry a few documents such as a valid ID card, address proof, bank details, and any other as required by the company.

Frequently Asked Questions

The following options are available on vesting of policy:

  • To commute up to 60% of the fund value and to utilize the balance amount to purchase an immediate annuity or Deferred Annuity from Max Life, at the then prevailing annuity rates of the Company, or from another insurer (to the extent of 50% of the entire proceeds of the policy net of commutation as stipulated by IRDAI time-to-time) or
  • To extend the accumulation period or deferment period within the same policy with the same terms & conditions as the original policy subject to the age of the Life Insured being less than 60 years (last birthday) or
  • To utilize the entire proceeds to purchase an immediate annuity or deferred annuity from the company at the then prevailing annuity rate or from other insurers (to the extent of 50% of the entire proceeds of the policy net of commutation as stipulated by IRDAI time-to-time) The above options are applicable for both Regular Pay & Single Pay variants.

The Premium Allocation Charge expressed as a percent of the premium paid is depicted in the table below:

YearPremium allocation charge
Single Pay (as a % of Single Premium)NIL
Regular Pay (as a % of Annual Premium)

Year 1 to 10 – 2% p.a. for annual mode

Year 1 to 10 – 1.25% p.a. for non-annual modes

Year 11 onwards – Nil for all modes

Allocation Charge on Top-up Premium1% of Top Up Premium

Conditions with respect to the choice of investment option and respective maturity guarantee are as follows:

  • The policyholder shall have the option to choose from the following two investment options: Pension Maximiser Option and Pension Preserver Option. This option shall only be available at the inception of the policy and cannot be changed during the policy term.
  • The guarantee maturity benefit will be payable only upon maturity of the policy. No guarantee maturity benefit shall be payable in cases where the policy has been surrendered/terminated prior to the maturity /vesting date, irrespective of the same being premium paying or not. Guarantee charges shall continue to apply during the policy term.
  • This guarantee is also applicable on all top-ups paid by the policyholder under the ‘Save More Tomorrow’ option or otherwise.

Loans are not allowed for this product.

It provides stable returns by investing in assets of relatively low to moderate levels of risk. The fund will invest primarily in fixed-interest securities such as Government Securities, Corporate bonds, etc. However, the fund may also invest in Equities.

You can opt to extend the accumulation period prior to the vesting of the policy, subject to your age being less than 60 years.

Partial withdrawal can be made up to a maximum of 3 times during the entire policy term subject to the following conditions:

  • Partial withdrawal can be made only after completion of the lock-in period
  • Each partial withdrawal made shall not exceed 25% of the fund value at the time of partial withdrawal
  • Partial withdrawal shall be allowed only against the stipulated reasons:
    1. Higher education for children
    1. Marriage of children
    1. For the purchase or construction of the residential house
    1. For treatment of critical illnesses of self or spouse.

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