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Max Life Insurance recently launched its Smart Capital <a target="_blank" href="https://mintgenie.livemint.com/news/personal-finance/is-it-prudent-for-retail-investors-to-explore-guaranteed-return-plans-by-insurers-151658150228359">Guarantee Plan</a> that offers the promise of guaranteed return along with an opportunity to participate in market-linked incentives.

This plan is a blend of two existing plans: Smart Wealth Plan and Flexi Wealth Advantage Plan. The Smart Wealth Plan gives guaranteed maturity benefits, while the flexi wealth advantage plan gives investors an opportunity to grow your investment by developing a wealth portfolio for yourself and family.

Max Life Smart Capital Guarantee Solution is a combination of ULIP (<a target="_blank" href="https://mintgenie.livemint.com/news/personal-finance/what-is-ulip-and-how-does-it-work-151641404875432">Unit linked insurance plan</a>) and non-participating traditional savings plan. The plan ensures that the total paid premium is returned (via Smart Wealth Plan) along with an opportunity to grow the residual investment (via Flexi Wealth Advantage Plan).

Wealth advisors usually do not advise investors to buy insurance plans that double as retirement schemes since the returns of these products are low and pension is also taxable. Read <a target="_blank" href="https://www.livemint.com/money/personal-finance/why-smart-customers-dodge-the-investment-cum-insurance-policy-trap-11598979971575.html">this</a> for more details.

However, having plenty of investment choices for retail investors is not bad either.

<h2>How does it work?</h2>It helps investors secure the financial future through guaranteed returns. It offers benefits, flexibility to choose among several options as per policy holders’ needs. It also offers a comprehensive death benefit in case the policyholder passes away during the policy term.

Under Smart Capital Guarantee Solution, the premium is split between Smart Wealth Plan and Flexi Wealth Advantage Plan.

With the portion allocated to the latter, policy holder can earn returns from market-linked incentives while the former will give guaranteed returns which will be equal to total invested capital in the solution.

The plan is meant for salaried individuals who are looking to fulfil short-term or long-term financial goals and who want guarantee and growth under a single product.

<h2>There are five different combinations of this plan:</h2>1. Milestone (10 years) - lumpsum: Under this plan, the investor needs to pay the premium for five years and will receive a 100 percent capital return through the maturity benefit. Maturity benefits will give market-linked returns at the end of the policy term, which is 10 years.

2. Milestone (12 years)- lumpsum: Under this variant, the investor needs to pay the premium for five years and will receive a 100 percent capital return through the maturity benefit.

Maturity benefits will give market-linked returns at the end of the policy term, which is 12 years.

3. Milestone (15 years)- lumpsum: The investor needs to pay the premium for five years and will receive a 100 percent capital return through the maturity benefit.

Maturity benefits will give market-linked returns at the end of the policy term, which is 15 years.

4. Whole life: As an investor, one needs to pay the premium for eight years, and you will receive a 100 percent capital guarantee through guaranteed income for 8 years.

Customer will have an option to do partial withdrawals from fund value till 100 years of age.

5. Regular income: The investor needs to pay the premium for six years and receive a guaranteed income for 30 years. After income period is over, customer will also get return of premium to ensure 100 percent capital return that was invested in Smart Capital Guarantee Solution.

Customer will also get maturity benefit of Flexi Wealth Advantage Plan after 16 years, giving market linked returns.

Max Life Insurance launches Smart Capital Guarantee Solution plan

It is a combination of ULIP and non-participating traditional savings plan which ensures that the total paid premium is returned along with an opportunity to grow the residual investment

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