Max Life Insurance offers a unique savings plan called the “Sap Plan” which stands for “Systematic Accumulation Plan”. This plan is designed to help individuals accumulate savings over a period of time, while also providing life insurance coverage.
Here is a detailed note on the Max Life Insurance Sap Plan, including its features, benefits, and eligibility criteria.
1. Features of the Sap Plan:
– Premium payment options: The Sap Plan offers flexible premium payment options ranging from monthly, quarterly, half-yearly, and yearly.
– Premium payment term: The premium payment term can be chosen from 5 years, 10 years, 15 years, or 20 years, depending on the policyholder’s convenience and financial goals.
– Policy term: The policy term for the Sap Plan can range from 10 years to 30 years, allowing policyholders to choose the tenure that suits their needs.
– Guaranteed additions: The policy offers guaranteed additions in the form of a percentage of the sum assured, which is added to the policy at the end of every policy year.
– Maturity benefit: At the end of the policy term, policyholders receive the sum assured along with the accumulated guaranteed additions and bonuses, if any.
– Death benefit: In case of the policyholder’s untimely demise during the policy term, the nominee receives the sum assured along with the accumulated guaranteed additions and bonuses, if any.
2. Benefits of the Sap Plan:
– Savings: The Sap Plan is an excellent savings plan that helps individuals accumulate savings over a period of time. The policy offers guaranteed additions that increase the policy corpus, providing a stable savings option.
– Life insurance coverage: The Sap Plan offers life insurance coverage, providing financial protection to the policyholder’s family in case of the policyholder’s unfortunate demise.
– Tax benefits: Policyholders can avail of tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961, for the premium paid and the maturity/death benefit received, respectively.
3. Eligibility criteria for the Sap Plan:
– Minimum age at entry: The policyholder must be at least 18 years old to apply for the Sap Plan.
– Maximum age at entry: The policyholder must not be more than 60 years old at the time of applying for the Sap Plan.
– Minimum premium amount: The minimum premium amount for the Sap Plan is Rs. 25,000 per year.
– Maximum premium amount: The maximum premium amount for the Sap Plan is not limited, subject to underwriting guidelines.
In conclusion, the Max Life Insurance Sap Plan is an excellent savings plan that provides a combination of savings and life insurance coverage. The plan offers flexible premium payment options, guaranteed additions, and tax benefits, making it an ideal investment option for individuals looking to secure their financial future.