Policyholder has to fill up an `Application form/ proposal form with accurate medical history along with the address proof and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person. Case Study: Mr Bose is 47 years of age and works in private sector. He wants a guaranteed yearly income of about Rs. 50,000 soon after stopping to pay the Premiums and he also wishes to increase the income by approx by another Rs. 50,000. Consequently, he decided to purchase Max Life Guaranteed Income Plan for a term of 6 years, and the yearly premium was Rs. 1,00,000. He nominated his wife as the nominee of the policy he purchased. Now let us discuss two scenarios that might occur under this plan: Case 1 (Survival Benefit): Mr Bose was quite regular when it came to paying all the Premiums of the Policy, and the best part is that he survived until the end of the Policy Term. So, in this scenario, he will get to receive the survival benefits. Case 2 (Death Benefit): Another case is that Mr Bose passes away after paying Premiums for two times. In this scenario, his wife who happens to be his nominee will have the option to choose between two Death Benefit options offered by this policy. These options are as followed: Option 1 – The first option for the nominee is that they get to choose Lump-sum Death Benefit. This option allows her to get a payment of Rs. 12,75,000/- which will be a one-time payment ( 12.75 times of one Yearly Premium). Option 2 – Another option is that Mrs Gupta can opt for Income Death Benefit option. In this the monthly income computed as the Yearly Premium (165%/12) which can be paid for ten years. Commutation Option The policyholder can exercise the commutation option whenever he feels like during the Survival Benefit payout or the nominated person can do so when the Insured passes away so as to get the lump sum of the present value of the additional Survival and Death Benefit. The Policy gets terminated after receiving the Commuted Value. You can derive the Commuted Value at a discounted rate of 5.7% every year that starts from the date of receiving the commutation request. However, this discount rate is subjected to change depending on the approval of IRDA that changes returns in the investment. Annualised Premium does not include Rider Premium, extra Premium, and Service Tax or numerous other taxes, cesses or levies, present out there. Death Benefit will be higher of: a) 10 times the Annualised Premium; b) 105% of Total Premiums Paid; c) Guaranteed Maturity Sum Assured (GMSA) d) Guaranteed Death Sum Assured (GDSA) Point to be Noted: If the Life Insured passes away during the period of Payout, the nominee has the option to receive the Commuted Value or can go for Income Benefit and even for one – time Terminal Benefit for the same. You may also compare: Max Life Investment Plans