Monday, 16 February 2015

Systematic Transfer Plan of Max Life Fast Track Super

Systematic Transfer Plan of Max Life Fast Track Super

Systematic Transfer Plan helps you replicate a rupee cost averaging method on your Annualized Premium. Where you have chosen the “Systematic Transfer Plan” option, the Annualized/Single Premium received net of Premium Allocation Charge shall be allocated first to the Secure Plus Fund to purchase Units. Immediately thereafter and on each subsequent monthly anniversary, Fund Value of [1/(13-month number in the policy year)] of the Units available at the beginning of the month shall be Switched to Growth Super Fund automatically by cancelling Units in the Secure Plus Fund till availability of Units in the Secure Plus Fund, and purchasing Units in the Growth Super Fund.

Policy Month 1: 1/(13-1)= 1/12th of the Units to be switched
Policy Month 2: 1/(13-2)= 1/11th of the Units to be switched
Policy Month 11: 1/(13-11)= 1/2 of the Units to be switched
Policy Month 12: 1/(13-12)= Balance Units to be switched

For Example: Assume number of Units in Secure Plus Fund in the first month is 120 units. The Amount switch from Secure Plus fund shall be [120/ (13-1)] = 10 * NAV of the units in Secure Plus Fund at the date of switching. However, the number of units shall be purchased at the then prevailing NAV of the Growth Super Fund and hence they could be more or less than 10 units.

Systematic Transfer Plan is available only in policies with Annual Premium payment mode. It is also available with Single Pay policies.

There shall be no Switch Charge to affect Switches under the Systematic Transfer Plan option. During the period when Systematic Transfer Plan is in force, Partial Withdrawal of Units shall not be permitted from the Secure Plus Fund. You may opt out of or opt for the Systematic Transfer Plan option by giving a written notice to the Company. Once accepted, the request shall be effective on and from the Policy Anniversary following the receipt such request.

In case you fail to pay the due Annualized Premium within the Grace Period, the Systematic Transfer Plan opted for shall cease to apply and Annualized Premium received after the expiry of the Grace Period shall be allocated to the Growth Super Fund or any other fund of your choice. The Systematic Transfer Plan option shall be automatically applied for all future Annualized Premiums received thereafter but within the Grace Period, unless advised otherwise.


Post a Comment