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Max Life Group Gratuity Premier Plan and Policy

Max Life Group Gratuity Premier Plan and Policy - Max Life Insurance Company Ltd is a joint venture between Max India Ltd and Mitsui Sumitomo Insurance Co. Ltd. It is one of India's leading private life insurance providers and offers holistic insurance and retirement solutions. The objective of a gratuity scheme is for an employer to pay the employees a total sum at the time of gratuity, upon their exit from service due to resignation, retirement, termination from service and permanent total disablement or death whilst in service. Gratuity payment made by employers are not only an act of recognition for the service of the employee to the company but also acts as a motivator for the employee.

Key features - Max Life Group Gratuity Premier Plan and Policy

  • Max Life Group Gratuity Premier Plan offers 4 which are Conservative, Growth, Balanced and Bond fund.
  • The plan also offers some of the lowest charges in the market. Charges such as switching charge, premium allocation charge, premium redirection charge and policy administration charge have been waived. The only charges that are applicable mortality, fund management and surrender charges.
  • Max Life offers a guaranteed loyalty addition of 0.1% per annum as a percentage of unit fund. This percentage is added at the end of every month anniversary in cases where the fund value is equal to or above 10 crores.

Benefits - Max Life Group Gratuity Premier Plan and Policy

Benefits of Max Life Group Gratuity Premier Plan is as follows:

In the event of

When and how the benefits are payable

Size of the benefit/policy monies

Surrender or termination of the scheme.

The policy can be surrendered or terminated at any time by giving a notice 3 months prior.

Fund value after the applicable surrender charges are levied.

Maturity of the member.

Upon resignation or retirement of a member from employment.

The benefit payable is the accrued gratuity based on the salary at the time of retirement or resignation. It is subject to availability of funds in the scheme and subject to rules of the scheme.

Loyalty Additions.

Guaranteed loyalty payment is applicable and payable only if the policy is in force.

If the fund size at the time of loyalty addition is greater than or equal to Rupees 10 crores then loyalty addition is 0.1% per annum. If fund size is lower than 10 crores loyalty addition is nil.

Death of member.

Upon death of the member but applicable only is policy is in force.

The Benefit payable is subject to scheme rules. It is the accrued gratuity and is calculated based on the salary at the time of death. It is subject to availability of fund in the scheme along with an amount of RS 1000 from the compulsory insurance cover.

Eligibility Criteria - Max Life Group Gratuity Premier Plan and Policy

Below are the criteria for eligibility for Max Life Group gratuity Premier Plan:

Criteria

Minimum

Maximum

Group Size

Minimum size of group is 10

No Limit

Initial Contribution

Minimum Initial Contribution is RS 500,000

No Limit

Entry Age

Minimum age for entry is 18 years as at last birthday

Maximum age of entry is 74 years as at last birthday

Along with these, the other eligibility criteria are:

  • Term of policy: The term of the Max Life Group Gratuity Premier Plan is a 1 year renewable scheme
  • Assured Sum: The policy offers RS 1000 as fixed life insurance cover per member.
  • Cover ceasing age: The policy ceases to cover members upon them attaining 75 years of age.

Investment of funds - Max Life Group Gratuity Premier Plan and Policy

Below are the funds a policyholder may choose to invest in which can be amended at a later date:

  • Bond Fund: The Bond Fund's objective is to create higher returns in the fixed income space by utilizing a dynamic mix of investments in government securities and corporate bonds. It also draws liquidity support through a small proportion invested in mixed market instruments. The risk reward trade off between corporate bonds and government securities is used as a guiding factor deciding the mix of the 2 investment classes.
  • Conservative Fund: The Conservative Fund's objective is to minimize risk by investing in low risk assets. It does not invest in equities and only in government securities and corporate bonds.
  • Balanced Fund: The objective of this fund is to have a balanced risk return profile. It utilizes a balanced mix of investments in government securities, corporate bonds, money market instruments and equities.
  • Growth Fund: The fund's objective is to maximize growth. It utilizes a mix of government securities, money market instruments, corporate bonds and equities but devotes a relatively higher investment proportion towards equities since there is a higher returns expectation from the fund.

Below is the table depicting the investment mix of the funds:

Type of Asset

Bond fund

Conservative Fund

Balanced fund

Growth Fund

Government Securities

60 to 100

50 to 80

20 to 50

0 to 30

Corporate Bonds

60 to 100

0 to 50

20 to 40

0 to 30

Money Market Instruments

0 to 40

0 to 20

0 to 20

0 to 20

Equities

Nil

Nil

10 to 40

20 to 60

Risk factor

Low Risk

Low Risk

Medium Risk

High Risk

Charges - Max Life Group Gratuity Premier Plan and Policy

Type of Charge

Amount

Premium Allocation Charge

Nil

Switching Fee

Nil

Termination/Surrender Charge

Not applicable after completion of 3 policy years. 0.05% charge if fund is terminated or withdrawn before completion of 3 policy years subjected to a cap of RS 5,00,000

Fund Management Charge

Conservative Fund = 0.40% P.A

Growth Fund = 0.50% P.A

Balanced Fund = 0.45% P.A

Bond Fund = 0.40% P.A

Policy Administration Charge

Nil

Premium Redirection Charge

Nil

GST of 18% is applicable on life insurance effective from the 1st of July, 2017

Max Newyork Group Life Insurance Plans and Policy

 

Max Newyork Child Insurance Plans
Max Life Future Genius Education Plan
Max Shiksha plus Super Plan
Max Newyork Retirement Plans
Max Life Forever Young Pension Plan
Max Life Guaranteed Lifetime Income Plan
Max Life Life Perfect Partner Super Plan
Max Newyork Growth Insurance Plans
Max Life Fast Track Super Plan

Max Newyork Savings Plans
Max Life Guaranteed Income Plan
Max Life Whole Life Super
Max Life Life Gain Premier
Max Newyork Group Insurance Plans
Max Life Group Gratuity Premier Plan
Max Life Group Super Life Premier in lieu of EDLI
Max Life Group Super Life Premier