Max life monthly income advantage is a money back life insurance plan. The usp of this plan is that it gives one a guaranteed monthly income for 10 years along with providing a life cover. So there's a regular income to take care of immediate financial requirements and there's also a life cover to provide protection in the event of untimely death.

Features and benefits

• One can choose a premium paying term of either 12 or 15 years for a policy term of 22 and 25 years respectively.
• Minimum annual premium (excluding extra premium and taxes) is Rs 50,000.
• While minimum sum assured for 12 year paying term is Rs 6,48,000, for 15 year paying term it is Rs 8,10,000. There's no limit on the maximum amount of sum assured.
• One can choose to pay premium in any of these methods - monthly, quarterly, half yearly or annually. One also has the option of paying a single premium.
• The policy can be surrendered only after it has acquired the surrender value.

Death benefit

In the event of death of the life insured, death benefit will be higher of 105% of the premiums paid until the death of the policyholder or eleven times of the annualised premium or guaranteed sum assured on maturity or any assured amount that has been earlier agreed to be paid in case of death

Future premium will be waived off and the policy will continue as it is.

Survival benefit

Survival benefit will be paid as a combination of income and maturity benefit i.E. Survival benefit = income benefit + maturity benefit

Now how is income benefit calculated here? so under Income benefit, a guaranteed monthly income will be paid which will be equal to 1/12^Th of 10% of the sum assured amount. This will be paid as discussed earlier i.e. Every month for 10 years starting immediately after the premium paying term is completed. Monthly income for both pay variants is one twelfth (1/12^Th) of 10% of the sum assured amount.

Let's understand with an illustration:

Mr. A's sum assured is Rs 6,48,000. So his monthly income will be -

10% of 6,48,000 * 1/12 i.E. = 64,800 * 1/12 = Rs 5,400

Now, how is maturity benefit calculated here?

Under Maturity benefit, accrued bonuses (mainly compound revisionary and terminal) will be paid once the policy matures.

Eligibility

Individuals seeking this plan for a 12 year premium paying term should fall within the age bracket of 18 to 55 years while for 15 year premium paying term s/he should be anywhere between 18 to 50 years.