COVER PAGE Life Maker Pensin Plan IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. A pensin plan that helps yu plan yur secnd innings. INSIDE PAGES The Life Maker Pensin Plan frm Max New Yrk Life Insurance C Ltd is a cmprehensive investment linked pensin plan t meet yur pst retirement financial needs, ensuring yu cmplete peace f mind. In this pensin plan, yu can direct yur investments in ur custmized unit linked funds, which ffer investments f different types: Fixed Incme (e.g. Gvt. Securities, Cmpany Debentures) and Equities (i.e. shares). These funds ffer yu different cmbinatins f fixed incme and equity assets ranging frm ptentially high-riskhigh-return t ptentially lw-risk-lw-return t match yur risk taking ability. FREQUENTLY ASKED QUESTIONS? Hw des the plan wrk? Life Maker Pensin Plan is a deferred annuity plan. A deferred annuity plan has tw parts: a deferment perid (during which yu accumulate yur savings) and a payut phase (during which yu use these accumulatins t buy an annuity frm a life insurance cmpany). This prduct cvers the accumulatin part, and ur Immediate Annuity prduct, which yu can subscribe t by using the maturity value f yur Life Maker Pensin Plan, cvers the payut phase. Yu can chse the deferment perid by selecting yur age when yu wish t retire, between the ages f 50 and 70 this desired retirement age (als knwn as the Vesting Age) minus yur current age will be yur Deferment Perid. The entry ages allwed fr this plan are 18 years t 65 years, and the Deferment Perids allwed are 5 years t 52 years. During this Deferment perid, yu will be required t pay us an annual target premium (ATP) as chsen by yu. The ATP will be directed t ur unit-linked funds as per yur chice. Yu have the ptin t pay yur ATP annually/ semi-annually/ quarterly r mnthly (direct debit nly). On the Vesting Date, yu can withdraw a maximum f ne third f yur maturity value, r such prprtin f Fund Value as permitted by the then prevailing laws, rules & regulatins withut attracting any tax. The balance will be used t buy yu an immediate annuity either frm us r frm any ther IRDA apprved annuity prvider that yu chse.
What is payable n death f the life insured? In case f yur unfrtunate death prir t yur retirement date, we will pay the value f units in yur plicy t yur nminee(s). If yur nminee is yur spuse, he/she may use the available Fund Value in any ne f the fllwing ways: Withdraw the lump sum in cash payment Purchase f an immediate annuity What is the benefits payable n maturity f my plicy? On survival t maturity (i.e. vesting date), yu can withdraw a maximum f ne third f yur maturity value, r such prprtin f Unit Value as permitted by the then prevailing laws, rules & regulatins withut attracting any tax. The balance will be used t buy yu an immediate annuity either frm us r frm any ther IRDA apprved annuity prvider that yu chse. In case yu decide t buy the annuity frm us, yu will have t enter int a fresh cntract with us, under which, we will pay yu a fixed peridic amunt fr the rest f yur life this amunt is called the annuity. This annuity will be based n yur age, the annuity ptin chsen by yu and the applicable annuity rates prevalent at that time, and will be payable t yu annually/ semi-annually/ quarterly/ mnthly as per yur chice. What are my Investment Optins? Yu have the flexibility t direct yur investments in any ne r mre f the fllwing fur unit linked investment funds f the Cmpany: SECURE, CONSERVATIVE, BALANCED and GROWTH. These funds invest in Fixed Incme and Equity assets as fllws: SECURE CONSERVATIVE BALANCED GROWTH INVESTMENT TYPE Gvernment Securities 50-100% 50-80% 20-50% 0-30% Crprate Bnds 0-50% 0-50% 20-40% 0-30% Mney Market Instruments / Cash 0-20% 0-20% 0-20% 0-20% Equities NIL 0 15% 10-40% 20-70% The investment bjectives f these funds are given belw: Secure Fund: The investment bjective f this fund is t prvide stable return by investing relatively lw risk assets. The fund will invest exclusively in fixed interest securities such as Gvernment Securities, Crprate bnds etc. Cnservative Fund: The investment bjective f this fund is t prvide stable return by investing in assets f relatively lw t mderate level f risk. The fund will invest primarily in fixed interest securities such as Gvernment Securities, Crprate bnds etc. Hwever the fund will als invest in equities but the ttal expsure in equity assets will nt exceed 15%. Balanced Fund: The investment bjective f the Balanced Fund is t prvide balanced returns frm investing in bth fixed incme securities (t target stability f returns) as well as in equities (t target grwth in capital value f assets).
Grwth Fund: The investment bjective f the Grwth Fund is t prvide ptentially higher returns t unit hlders by investing primarily in Equities (t target grwth in capital value f assets); hwever, the fund will als invest in Gvernment securities, crprate bnds and mney market instruments. What are my tax benefits? This plan entitles yu t certain tax benefits n yur premiums as well as n yur maturity value. U/s 80CCC(1) r u/s 80C f the Incme Tax act 1961, as the case may be, n yur annual target premium n yur plicy. Up t ne third f yur maturity value, if withdrawn n vesting date is tax free in yur hands. What are my premium payment ptins? Annual Target Premium: At inceptin, we will agree t the premium that yu wish t pay us every year during the plicy tenure (called the Annual Target Premium r ATP). Premium Payment Frequency: Yu have the ptin t chse any ne f the premium payment frequencies - Annual, Semi-annual, Quarterly r Mnthly. Yur premium payment dates will depend upn the frequency chsen by yu. Payment f Tp up Premium: A Tp up premium is an additinal amunt f premium ver and abve the Annual Target Premium as agreed at the cmmencement f the cntract. Yu have the ptin t pay Tp up premiums subject t a minimum f Rs.10, 000. Please nte that any premium payment in any plicy year will be first used t pay the ATP and the excess mney will be treated as tp-up premium. All premiums are subject t applicable taxes including service tax, which shall be t the accunt f the Plicyhlder. Allcatin f Premium: The premiums paid by yu will be allcated t the funds chsen by yu, after deducting the premium allcatin charge, and units will be issued t yur plicy accunt. Yu can determine the value f yur plicy any time by multiplying the number f units in yur plicy by its unit price. What flexibility d I have in my premiums? Tp ups: Yu can invest extra mney in yur plicy thrugh tp ups f any amunt yu want, at any time yu want. Yu can increase yur ATP (except in the last plicy year), subject t the fllwing cnditins: - Any change in ATP will be subject t ur administrative rules at the relevant time. - Premium Allcatin charges fr the increased prtin f the premium payable shall be same as fr a new plicy. - The increase in ATP shall be effective frm the plicy Anniversary ensuing Our acceptance f Yur request. Yu can decrease yur ATP (except in the first tw plicy years), subject t the fllwing cnditins:
- Decreased ATP shall be subject t minimum permissible limits fr ATP applicable frm time t time. - Premium Allcatin charge fr the decreased prtin f the premium payable shall be same as fr a new plicy. - The reductin in ATP will be prcessed n LIFO (Last in First Out) basis i.e, the last increase in ATP will be reduced first. What are the ther flexibilities available t me? Change vesting date: Prir t yur vesting (i.e. retirement) date, yu will have the right t alter yur retirement date nce t nt mre than age 70 and nt less than age 50 years. Switching: We prvide yu this facility t change the investment pattern by mving frm ne fund t ther fund(s) amngst the funds ffered under this cntract. Yu may need this facility under certain circumstances e.g. n change f yur persnal risk prfile r change in market cnditins. Every plicy year, we ffer yu 2 free switches. On receipt f yur switch request, we will cancel units in the fund yu wish t exit and purchase units in the fund yu wish t enter at the applicable unit prices f the respective funds. The minimum switch amunt will be Rs 5,000/-, which can be altered by the Cmpany frm time t time. Premium Re-directin: This is the facility that allws yu t mdify the allcatin f renewal premiums int a different investment pattern frm the ptin exercised at the inceptin f the cntract prvided the amunt paid int each fund meets ur minimum receipt requirements in frce at that time. Every plicy year, we ffer yu 3 free redirectins. Surrender: After first three plicy years, yu may fully surrender yur plicy at any time by giving us prir written ntice, and we will pay the fund value t yu. Please nte that yur plicy will nt acquire a surrender value unless yu have paid premiums (ATP r Tp Up) equivalent t at least 3 years ATP in the first 3 plicy years. {Please nte that u/s 80CCC (2) f the Incme Tax Act, surrenders are taxable as incme in yur hands}. What will happen if ne discntinues paying premiums? Discntinuatin f premiums after paying at least three cnsecutive years premium: If all the due ATP s have been paid fr at least three cnsecutive years and subsequent ATP s are unpaid, an pprtunity will be given t Yu t revive the plicy within the revival perid f 3 years but prir t vesting date. During the revival perid, all applicable charges wuld be levied. If the plicy is nt revived befre the expiry f the revival perid r vesting date whichever is earlier, the plicy will terminate and the Fund Value, if any will be paid. Hwever, we may instead f terminating the plicy, ffer t cntinue the plicy levying apprpriate charges until such time the fund value des nt fall belw an amunt equal t ne ATP. Discntinuance f premiums within three years f inceptin f the plicy: If all the ATP s have nt been paid fr at least 3 cnsecutive years frm the effective date f cverage, the plicy shall lapse n expiry f the grace perid. We will give yu an pprtunity t revive the plicy within the revival perid f 3 years but prir t vesting date.
If the plicy is nt revived befre the expiry f the revival perid r vesting date whichever is earlier, the plicy will terminate and the guaranteed surrender value, if any, shall be paid During the grace perid we will accept the lapsed ntice amunt withut interest. The plicy cntinues during this grace perid but in case f death f Life Insured during the grace perid, we will pay the Death Benefit as applicable. What are my eligibility cnditins? Entry Age (age as at last birthday) Chsen Vesting (i.e. Retirement) Age Deferment Perid Minimum ATP Between 18 t 65 years Between 50 t 70 years Any perid between 5 t 52 years (Subject t minimum vesting age) Rs 10,000 per annum What are the charges under my plicy? Premium Allcatin Charge: This charge is a charge expressed as a percentage f the ATP and Tp Up premium. This charge will be deducted frm the ATP and the Tp Up premiums received and the balance f ATP and Tp Up premium will be allcated t purchase the Units. The rate f this charge depends n the plicy year t which the premium pertains and the type f premium ATP r Tp up. Plicy Year Allcatin Charge 1 20% 2 10% 3 and subsequent 3% All Tp Ups 3% Fund Management Charge: This is a charge levied as a percentage f the value f assets and shall be apprpriated, usually daily, by adjusting the Net Asset Value f the fund. The annual rate f fund management charge fr Secure Fund and the Cnservative Fund is 0.90% p.a., Balanced Fund 1.10% p.a. and Grwth Fund 1.25% p.a. This charge may increase in future after clearance frm IRDA but shall nt be higher than 2% p.a. Plicy Administratin Charge - This charge is expressed as a fixed amunt. This charge is levied at the beginning f each plicy mnth frm the plicy fund by canceling units f equivalent amunt. The rate f the plicy administratin charge is a fixed amunt f Rs.50 per mnth, which will increase every year by 5% p.a., cmpunded annually. Switching Charges: This is a charge levied n switching f mnies frm ne fund t anther available fund(s) and is a fixed charge levied at the time f effecting a switch. We will nt charge n first 2 switches in every plicy year. Any subsequent switch will attract a charge f Rs.500 per transactin. We may review this charge in future after clearance frm IRDA but such charge shall nt exceed Rs.1000 per switch. Premium Redirectin Charge: This is a charge levied n a redirectin f premiums made by yu. There is n charge fr first three premium redirectins during a plicy year. Subsequent premium redirectin during a year will be charged at the rate f Rs.1000 per request. This charge is subject t increase after clearance frm IRDA but shall nt exceed Rs.2000.
Hw is the Unit Price f a fund calculated? Unit price f a fund will be determined by dividing the net asset value f the fund by the utstanding number f units n the fund valuatin date. The value f a Fund will be determined and based n the market value/ fair value at which assets referenced t such Fund can be respectively purchased r sld, plus the respective cst f purchasing r minus the cst f selling the assets, plus the value f current assets, plus any accrued incme net f fund management charges, less the value f current liabilities, less prvisins, if any. The value f Funds may increase, decrease r remain unchanged. Sample Example This table shws the illustrative maturity value at retirement ages 50, 60 and 70 if yu pay a annual target premium f Rs 10,000 and assuming the rate f return f n investment f funds @ 6% and 10% p.a. respectively: Entry Age (Years) 30 40 Assumed rates f Maturity Value n retirement at age (in Rs) return n investment f funds p.a. 50 years 60 years 70 years 6% 3,07,514 6,15,281 11,11,996 10% 4,41,721 10,98,262 25,24,999 6% 1,16,469 3,07,514 6,15,281 10% 1,38,418 4,41,721 10,98,262 Please nte that the abve-assumed rates f return f @ 6% and 10% p.a. respectively are nly scenaris f what yur plicy will lk like at these rates after recvering all applicable charges. These are nt guaranteed and they are nt the upper r lwer limits f what yur plicy might earn, as the value f yur plicy is dependent n a number f factrs including future investment perfrmance. Exclusins If the life insured dies by suicide, whether sane r insane, within ne year frm the date f acceptance f risk r the date f any revival f this plicy effected in the first 3 years, all risks under the plicy shall cme t an end simultaneusly. In such an event, we will nly refund the fund value f the plicy. Free Lk perid Yu have the freedm t cancel this Plicy by returning the riginal Plicy with a written request t us within 15 (fifteen) days frm the date f receipt f this Plicy, in which case yur Premium less allwable expenses and adjusted fr adverse mvements f unit price, if any, will be refunded withut interest A wrd n the risks f investment in the units f this plicy Life Maker Pensin Plan is a Unit linked Individual Pensin Plan. Unit linked insurance prducts are different frm the traditinal insurance prducts and are subject t investment risk. Life Maker Pensin Plan is nly the name f the plicy and des nt in any way indicate the quality f the plicy, its future prspects r returns. The names f the Funds as shwn in the Schedule d nt in any manner indicate the quality f the Funds, their future prspects r returns.
We d nt guarantee the value f Unit. Depending n market risk and the perfrmance f the Funds t which the Units are referenced, the value f Units may fall, rise r remain unchanged. There can be n assurance that the bjectives f any f the Funds will be achieved and nne is given by Us. The past perfrmance f Funds is nt necessarily indicative f the future perfrmance f any f these Funds. The Funds d nt ffer a guaranteed r assured return. All benefits payable under the plicy are subject t applicable laws (financial r therwise), as they exist frm time t time. BACK PAGE A prfessinal pedigree that s secnd t nne: Insurance slutins frm Max New Yrk Life bring prven expertise t the Indian life insurance arena. As yur partner fr life, we bring yu innvative life insurance slutins based n New Yrk Life's glbal experience f ver 160 years and Max India's deep understanding f Indian market. Expert Advice at Yur Drstep: Our Agent Advisrs have been prfessinally trained t understand and evaluate yur unique financial requirements, and recmmend a plicy which best meets yur needs. With experienced agents, supprted by a team f specialists, we are fully resurced t help yu achieve yur life s financial bjectives. Please call us tday. We wuld be delighted t meet yu. < Natinal Cntact Details incl. Full Name f the Cmpany and its registered address)> Insurance is the subject matter f the slicitatin Sectin 41 : n persn shall allw r ffer t allw, either directly r indirectly, as an inducement t any persn t take r renew r cntinue an insurance in respect f any kind f risk relating t lives, r prperty, in India, any rebate f whle r part f the cmmissin payable r any rebate f the premium shwn n the plicy, nr shall any persn taking ut r renewing r cntinuing a plicy accept any rebate, except such rebate as may be allwed in accrdance with the published prspectuses r tables f insurer.