Max Life Insurance Co. Ltd today announced the launch of ‘Max Life Saral Pension’, a non-linked, individual immediate annuity plan. It means that you pay a lump sum as a purchase price and get a fixed payment at regular intervals for the rest of your life.
“It is a simple, immediate annuity product guaranteeing a regular stream of income during the retirement period. This plan offers customers a chance to maintain their lifestyle pre- and post-retirement with the assurance of guaranteed income as long as the policyholder lives,” according to Max Life Insurance.
The product has been launched at a time when a large section of society is showing an inclination towards securing their future financial stability, the insurer said.
Option to receive income under two variants
The plan is available to customers in the entry age group of 40-80 years, there are two options available under the policy, i.e., single life and joint-life annuity.
Under single life annuity, a fixed income guaranteed at the policy inception will be paid to the annuitant throughout life; income payment will cease on the death of the annuitant and 100% of the purchase price shall be paid to the nominee on death of the annuitant. Under the joint-life option, a fixed income guaranteed at the policy inception will be paid as long as at least one of the annuitants is alive. Income payment will cease on the death of the last survivor and death benefit, 100% of the purchase price, shall be paid to the nominee on death of the last survivor (annuitants).
Option to choose payout mode
The plan further offers customers the flexibility to choose from any of the four annuity payout modes available – monthly, quarterly, half-yearly or yearly. As per the Insurance Regulatory and Development Authority of India (Irdai), “The payments will be in arrears only, which means that the first annuity payment will start after the modal duration; for example, after three months in the case of quarterly mode. Modal factors to be derived with an interest rate consistent with pricing rate of interest.”
Option to surrender on the diagnosis of critical illness
The product also offers a ‘Surrender Benefit’ – an option to surrender on the diagnosis of critical illness – if the annuitant or spouse or any of the children of the annuitant is diagnosed with any of the covered critical illnesses as specified (under the plan), then the annuitant will have an option to withdraw 95% of the purchase price (single premium) as a surrender benefit.
