Max Life Launches Flexi Wealth Advantage Plan – Refund of allocation charges – Should you invest?

Max Life Flexi Wealth Advantage Plan – Features, Eligibility, Positive Factors and Negative FactorsMax Life Launches Flexi Wealth Advantage Plan – Review

Few days back, Maxi Life Insurance has launched Flexi Wealth Advantage Plan. This is a Unit Linked Insurance Plan that comes with some unique features. The plan indicates that it would return the charges that are charged during the policy term. It provides an option to choose from 56 investment strategies and one can opt from 11 different funds. What are the key features of this plan? Should you invest in Max Life Flexi Wealth Advantage Plan?

Also Read: Should you continue life insurance even after achieving financial independence?

Major Features in Max Life Flexi Wealth Advantage Plan

Here are the main features in this plan.

This is a ULIP Plan that provides life Insurance coverage and also acts as savings scheme.

This plan provides guaranteed loyalty additions from 8th year onwards.

This scheme indicates that it would return all charges on maturity.

It comes with auto debit booster feature where a specific amount is added to the fund value after 5 years.

This plan has two variants – Wealth Plan and Whole Life Plan

It provides a waiver of premium benefit which is optional.

This ULIP comes with 5 investment strategies.

One can choose from 11 available funds based on individual investment style.

Smart withdrawal option is another unique feature in this ULIP Plan.

This plan provides unlimited free switches.

What are the eligibility criteria in Max Life Flexi Wealth Advantage Plan?

Here are the eligibility criteria to take this plan.

Min age of entry is 91 days.

Max age of entry ranges between 30 to 70 years, which depends on cover multiple.

Max age of maturity is 100 years for whole life variant.

This plan provides flexible premium payment options. One can opt for single pay, limited pay or regular premium payment option.

Policy term is between 10 to 30 years.

What are various benefits of Max Life Flexi Wealth Advantage Plan?

Here are the benefits available in this plan.

#1 – Death Benefit: If the policy holder dies, the nominee or family members would get the death benefit which would be higher of the following:

Sum Assured indicated in the policy

Fund Value as on the date of the death

105% of the premiums paid

#2 – Maturity Benefit:  An amount equal to units allocated and accumulated as on the date of maturity multiplied by the NAV value as of that date would be paid as maturity.

#3 – Survival Benefit: During the policy term and in case the life insured is survived, depending on the premium band applicable to the policy holder + variant taken, guaranteed loyalty additions would be paid from 8th policy year onwards. This guaranteed addition would range between 0.15% to 0.9% of the fund value and this depends on the band chosen by the policyholder.

#4 – Auto Debit Booster: This is a booster benefit where an amount equivalent to 0.75% of the premium amount would be added to the fund value after 5 years of the completion of the policy term.

#5 – Surrender Benefit: If you are not happy with the policy and want to surrender, total units allocated till the surrender date x NAV as on that date minus any applicable surrender / discontinuance charges would be paid.

What are the Positive Factors in Max Life Flexi Wealth Advantage Plan?

Here are the major positive factors.

1) This ULIP comes with several good features like guaranteed loyalty additions, auto debit booster, free switches etc.,

2) It plan comes with some unique features like choosing from 5 investment strategies and among 11 funds.

3) This scheme refunds all charges or some of the ULIP charges deducted in the policy and pays back on maturity.

4) This scheme adds guaranteed loyalty addition and auto debit booster.

5) It provides an option to withdraw systematic withdrawals as per policy holder choice.

7) Income tax relief available on the premiums paid up to Rs 1.5 Lacs paid during the financial year.

Major Negative Factors in this ULIP

Here are major negative factors in this plan.

1) This plan comes with several options, features, variants, investment strategies, different funds etc., While it looks comprehensive, it is also too complicated. We might find, difficult to choose from too many options available.

2) This scheme indicates that it would return all policy charges. In reality, only specific charges are returned that too who are in the higher band plan.

3) This plan has several charges like premium allocation charges, policy admin charges, management fund charges, discontinuance charges etc. These charges would eat away the premium and balance after deducting insurance coverage only would be converted to units and credited to policyholder account.

4) ULIP plans provide low returns. Typically, such returns vary between 4% to 5.5%.

Also Read: Best Health Insurance Policies in 2022

Should you invest in Max Life Flexi Wealth Advantage Plan?

This ULIP comes with several flexible options and unique features. Refund of policy charges is unique in this plan. Flexibility of having 5 investment strategies and choice over 11 different funds is really good features. However, ULIP comes with low returns which can range between 4% to 5.5%.  If you are a low risk investor and do not want to invest in direct equity or equity mutual funds, you can go for such ULIP plans. However, you need to compromise with low returns.

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Suresh KP

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