Max Life Flexi Wealth Advantage Plan – How good is this ULIP?
Max Life has launched Flexi Wealth Advantage, a Unit Linked Insurance Plan few days back. This ULIP helps to develop wealth portfolio while continues to meet your aspirations and milestones. It comes with several exciting features and indicates that it would return policy charges deducted from your policy. What is the eligibility to take Max Life Flexi Wealth Advantage Plan? Should you buy Max Life Flexi Wealth Advantage Plan?
Key Features in Max Life Flexi Wealth Advantage Plan
Here are major features in this plan.
This is a Unit Linked Insurance Plan (ULIP). Generally ULIPs would provide insurance coverage and invest the balance insurance premiums in market linked plans.
This plan indicates return of charges on maturity.
This ULIP provides guaranteed loyalty additions to further enhance your fund value from 8th year onwards.
Auto debit boosters to boost up your fund value after completion of 5 policy years.
It comes with 2 Variants – Wealth and Whole Life and multiple premium payment options.
This ULIP comes with option of whole life cover with wealth growth.
Optional waiver of premium benefit.
This plan comes with a choice of 5 investment strategies and 11 funds to suit the individual investment style.
This plan provides a smart withdrawal option.
It comes with unlimited free switches and premium redirections.
Eligibility criteria in Max Life Flexi Wealth Advantage Plan
Minimum age of entry is 91 days.
Maximum age of entry would depend on cover multiple. It ranges between 30 years to 70 years.
Maximum age of maturity is 100 years in case of whole life variant.
Flexible premium payment options i.e. single pay or limited pay or regular premium payment options.
Policy term is 10 to 30 years.
How to plan your growth in this scheme?
You need to choose plan variant i.e. Wealth or whole life
Chose your premium amount, premium payment term and policy term based on your choice.
From the available 5 options, chose the investment strategy and chose a corresponding fund from a total of 11 available funds basis your investment style and risk appetite.
Benefits in Max Life Flexi Wealth Advantage Plan
Here are the major benefits of this plan.
#1 – Death Benefit
In case of unfortunate death of the life insured, the nominee would get the higher of following as death benefit:
105% of the premiums paid
#2 – Maturity Benefit
Maturity amount which is equal to units allocated x NAV value as on the date of maturity would be paid.
#3 – Survival Benefits
Based on the premium band applicable + variant of the policy, guaranteed loyalty additions would be paid from 8th policy year onwards. This ranges between 0.15% (Band-1) of the fund value to 0.9% (Band-6) of the fund value.
#4 – Auto Debit Booster
After successful completion of 5 annual premiums (excluding 1st premium), an amount equivalent to 0.75% of the premium would be added after 5 years from the completion of the policy term.
#5 – Surrender Benefit
In case you want to surrender the policy, an amount equivalent to units allocated x NAV as on that date minus any applicable surrender / discontinuance charges would be paid.
Positive Factors in Max Life Flexi Wealth Advantage Plan
Here are the major positive factors.
1) This ULIP comes with good features like guaranteed loyalty additions, flexible plan options etc.,
2) Based on the plan, the policyholder is eligible for a refund of all charges or some of the ULIP charges deducted in the policy. These are added back to the policy on the maturity.
3) The guaranteed loyalty addition of 0.15% to 0.9% paid from 8th policy year onwards.
4) The auto debit booster would provide 0.75% of the premium after completion of 5 years and after payment of 5 years premium excluding 1st premium.
5) Plan comes with 2 variants. Based on individual choice one can opt for wealth variant or whole life option.
6) It provides 5 Investment strategies and 11 different funds can help you to choose a fund that suits your investment style.
7) This ULIP plan provides flexibility to withdraw systematic withdrawal as per your wish.
Negative Factors in Max Life Flexi Wealth Advantage Plan
Here are some of the negative factors in this plan.
1) This ULIP comes with too many options which can confuse the policy holder.
2) While it indicates return of all policy charges, these are majorly applicable to higher band policy holders.
3) There are various charges applicable in this plan which includes premium allocation charges, policy administration charges, fund management charges, surrender / discontinue charges etc., Only specific charges that too for specific band are refunded. Remaining charges would continue as-is.
Also Read: Benefits of investing in ULIPs
Should you buy Max Life Flexi Wealth Advantage Plan?
This plan has flexible options and several unique features. Return of some of the policy charges are unique in this plan. However, even it contains several terms and conditions. One should understand that such ULIPs can provide 4% to 5.5% returns. The actual returns would vary due to several boosters, refunds that are being indicated and that too based on band and investment strategies chosen by the policyholder. Investors should understand all these positive and negative factors before considering such Unit Linked Insurance Plans.
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