Guaranteed Monthly Income Plan

Benefits:

• Short Policy Terms
  The plan offers you flexibility to choose your policy terms. You can choose either 6 years or 11 -year policy terms depending on your financial goals.
• Guaranteed Monthly Income for a Payout Period of 10 years after your policy termIt is the number of years the policy will be active.
  The plan lets you choose the guaranteed monthly income you desire. This income is guaranteed to be paid for a period of 10 years (120 months) from the end of policy termIt is the number of years the policy will be active., payable at payout dates*.
• Monthly Income Boosters ("MIB") 12^th year onwards
  Over and above the guaranteed monthly income, the plan also offers MIB starting year 12, which are payable at payout dates. This ensures that your chosen monthly income is cushioned against inflation.
• Complete Safety of your investments and transparency of returns
  The investments will be made only in highly secure investments ensuring minimal risk and low volatility. A single Monthly Income Booster (MIB) rate is applied to renewal premiums received on all policies within a particular month. The MIB rate will be determined using the prevailing 5-year Government Security Benchmark Interest Rate as on the last working day (end of day) of the previous month, obtained from Fixed Income Money Market and Derivatives Association of India (FIMMDA).

*Note: In practice all the monthly payout transactions would be effected on selected payout dates, once per week or four times in a month. The payouts will happen, every month, on the next closest payout date following the monthly anniversary.

Key Features

Monthly Income Boosters (MIB):

From Policy Year 2 onwards, upon receipt of each due premiumA regular payment made to the insurance company to keep the policy in force., the policy will accrue Monthly Income Boosters till the end of policy termIt is the number of years the policy will be active.. For the purpose of applying Monthly Income Booster rates for renewal premiums received on policies, all the premiums received within a particular month will be applied a Monthly Income Booster Rate corresponding to FIMMDA 5-Year Government Security Benchmark Rate as on the last working day (end of day) of the previous month.

The following table illustrates the current benchmark rates for the past few months

MIB Rates will vary with Benchmark interest rate as per the table mentioned below:

5 Year G-Sec Benchmark rate in the past 10 years

Survival Benefits (Payable during the Payout Period of 10 years after the completion of Policy Term)

• For 6 Pay Variant: The monthly income booster accrued in year 2 will be payable along with monthly income of Year 12 only (starting from payout date in the 133^rd month till payout date of 144^th month) and monthly income booster accrued in Year 3 will be paid out with monthly income in Year 13 only (starting from payout date in the 145^th month till payout date of 156^th month) and so on and so forth. It is to be noted that for 5 years after the policy termIt is the number of years the policy will be active., i.e., from year 7 to year 11, only the Guaranteed Monthly Income (GMI) will be payable.

• For 11-Pay Variant: The monthly income booster accrued in year 2 will be payable along with guaranteed monthly income of year 12 only (starting from payout date in the 133^rd month till payout date of 144^th month) and monthly income booster accrued in year 3 will be paid out with guaranteed monthly income in year 13 only (starting from payout date in the 145^th month till payout date of 156^th month) and so on and so forth.

Guaranteed Terminal Benefit

For the 6-year variant, 150% of annual premiumA regular payment made to the insurance company to keep the policy in force. will be paid along with last guaranteed monthly income payment and for the 11-year variant, 200% of annual premiumA regular payment made to the insurance company to keep the policy in force. will be paid along with last guaranteed monthly income payment.

Death Benefit

• Death event before end of Policy Term/PremiumA regular payment made to the insurance company to keep the policy in force. Payment Term
  • All premiums paid by the policyholder prior to date of death are immediately paid to the NomineeA person or firm into whose name the policy is transferred in order to facilitate transactions, while leaving the customer as the actual owner..
  • The NomineeA person or firm into whose name the policy is transferred in order to facilitate transactions, while leaving the customer as the actual owner. will receive Guaranteed Monthly Income ("GMI") payable at payout date of every month from the Policy Anniversary following the date of intimation of death till the end of Policy Term.
  • The NomineeA person or firm into whose name the policy is transferred in order to facilitate transactions, while leaving the customer as the actual owner. will receive GMI along with Monthly Income Booster (MIB) as and when due during the Payout Period.
  • Guaranteed Terminal Benefit at the end of Payout Period.
  • MNYL will fund the remaining premiums on behalf of the policyholder.
• Death event After Policy Term/Payout Period
  • Guaranteed Monthly Income (GMI) along with Monthly Income Booster (MIB) will be paid as and when due for the outstanding Payout Period.
  • Guaranteed Terminal Benefit at the end of Payout Period.

Surrender Benefit

The policy acquires a surrender value from the end of third policy year after three annual premiumA regular payment made to the insurance company to keep the policy in force.s have been paid. There is the Guaranteed Surrender Value (GSV), which is 30% of all premiumA regular payment made to the insurance company to keep the policy in force.s paid, excluding the first year premiumA regular payment made to the insurance company to keep the policy in force. and a Special Surrender Value (SSV).

In practice, a Special Surrender Value (SSV) will be paid to the policyholder, which will always be higher than the Guaranteed Surrender Value (GSV). The Special Surrender Value (SSV) can be changed by the Company (but will never be below GSV) basis changing investment returns and/or market values of underlying assets.

Guaranteed Monthly Income Plan allows you to choose your own PremiumA regular payment made to the insurance company to keep the policy in force. Payment Term between 6 Pay and 11 Pay options. Given below is an example of how the 11 Pay option works in different scenarios. Mr. Singh is 40 years old and runs a trading company. He wants to purchase a monthly income to plan for his retirement.

Example 1

Step 1: Mr. Singh decided that he needs an income of Rs. 6,500 after his retirement.

Step 2: Mr. Singh looks at both 6 year policy termIt is the number of years the policy will be active. variant as well as 11 year policy termIt is the number of years the policy will be active. variant. He decides that for his purpose the 11 year policy termIt is the number of years the policy will be active. is a better option.

Step 3: The PremiumA regular payment made to the insurance company to keep the policy in force. for his policy comes out to be Rs. 68,952.

If Mr. Singh pays all his Premiums and lives on till the end of the policy termIt is the number of years the policy will be active. he will get:

• Guaranteed Monthly Income of Rs. 6,500 starting year 12 till the end of the Payout Period.
• The accrued Monthly Income Boosters from year 12 till the end of the Payout Period.
• At the end of the 10 year Payout Period along with the last Guaranteed Monthly Income and Monthly Income Boosters, he will get a Guaranteed Terminal Benefit of 200% of the Annual PremiumA regular payment made to the insurance company to keep the policy in force. i.e. Rs. 1,37,904. The diagram given below depicts what Mr. Singh will get

Click here to view the diagram

*The Monthly Income Boosters (MIB) are variable payouts which accrue in your policy on payment of renewal premiumA regular payment made to the insurance company to keep the policy in force. from year 2 onwards.
MIB are declared as percentage of the Guaranteed Monthly Income and the applicable MIB rate depends on the 5 year G Sec benchmark rate, as declared by FIMMDA. Once accrued, MIB are guaranteed to be paid out, 10 years post accrual.

Example 2

If Mr. Singh pays his Premiums for 5 years but dies during the 5^th year, the nomineeA person or firm into whose name the policy is transferred in order to facilitate transactions, while leaving the customer as the actual owner. of Mr. Singh gets:

• All the 5 Premiums back as lump sum amount.
• Starting the next Policy Anniversary post intimation of death, the chosen Guaranteed Monthly Income of Rs. 6,500 starts and continues till the end of the payout period.
• The nomineeA person or firm into whose name the policy is transferred in order to facilitate transactions, while leaving the customer as the actual owner. also gets all the payouts that would have accrued to Mr. Singh had he continued to live and pay his Premiums.

The payouts to the nomineeA person or firm into whose name the policy is transferred in order to facilitate transactions, while leaving the customer as the actual owner. include Guaranteed Monthly Income, Monthly Income Boosters and Guaranteed Terminal Benefit.

Click here to view the diagram.

*The actual value of Monthly Income Boosters will be as per the accrued rates, dependant on FIMMDA 5 Year G-Sec Benchmark rate and MIB Rate.
Kindly note that the two scenarios shown above are only examples and do not in any way create any rights and/or obligations. The non-guaranteed low and high rates mentioned above relate to assumed investment returns at different rates and may vary depending upon market conditions. Premiums shown will be subject to service tax.

How do the Monthly Income Boosters Work?

For example, Mr. Singh who is a male customer, aged 35, selects a guaranteed monthly income of Rs. 4,000 and chooses a policy termIt is the number of years the policy will be active. of 6 years, below is a table showing how monthly income boosters would accrue to his policy:

Click here to view the table.

Click here to view the diagram.