What is “Life Partner Plus Plan” from Max Newyork Life Insurance ???

POSTED BY Navit ON December 27, 2011 8:41 pm COMMENTS (10)

My brother (25 yrs), had recently bought a insurance cum pension plan “Life Partner Plus Plan” from Max NewYork for a premium of Rs. 25432.00/- yearly for 20 yrs. The Sum assured is 3,91000.00/- & maturity time written in the policy document is at age 75.
they have given a chart of premium to be paid & money back of the policy. the money back will start after age 60. but all other benefits like annual bonus they have mentioned under the category non-guaranteed.
Can you please explain about it?


10 replies on this article “What is “Life Partner Plus Plan” from Max Newyork Life Insurance ???”

  1. Sarath says:


    I too took this policy in 2009 and paid the premium of yearly 19.5K . After reviewing the bonus declared from last 5 years, the returns are terrible. I am planning to stop the premium but not surrendering. Is such option available?

    1. Yes, you can have that option as well..

  2. marck11 says:


    I know this is very old thread, but aren’t the critics being harsh on this policy by just considering the guaranteed amount (which is without the bonus) as the final amount and comparing that with the premium paid?

    I too have checked this policy and as per the illustration shown, a premium paid of 30000 per year for 20 years gives you a return of around 27 Lakhs (assuming the current age is 21) assuming 6% returns. This is quite a decent return for an insurance policy. Am I missing something here?

    1. Imanshu says:

      This 6 percent return is non guaranteed……..can u explain

    2. Imanshu says:

      This 6 percent return is non guaranteed……..can u explain
      How 6 percent is guaranteed

  3. Dear Navit, if your brother does not has a regular source of income as of now, it’s advisable to open a PPF account for him. The minimum amount to be deposited in a financial year is 500 Rs. only & max. is 1L Rs. The current rate of inrterest is 8.6% which ‘ll be revised every year by the Govt. of India. But the good part is, maturity amount is tax free as well as the investmed amount also earns the tax benefit under section 80C for the FY of investment.



  4. Navit says:

    Thanks for the great answers.
    I have read the policy document, you are very right Ashal.

    But another big question? As my brother does not have a stable source of income, I want his retirement to be safe & secure. Can you pls suggest any good investment for him?? that could give him a regular income.


  5. Dear Navit, The policy in question is a recipe to ruin the retired life of your brother. How? Instead of going here & there, let’s calculate how much your brother ‘ll earn from this policy as return? From age 61 to 75 i.e. for 15Y, he ‘ll receive gtd. return of 7.5% sum assured which is 29325 Rs. yly for 15Y or 439875 Rs. over the 15Y period. At the end of policy i.e. age 75, your brother ‘ll also get basic sum assured back i.e. 391000 Rs. So in total your brother ‘ll get next to nothing.

    If the 15day free look period is not over yet, surrender the policy immediately. Please check the plan yourself at the MNYL site. You ‘ll be shocked to know that for 1st 2Y paid prem. no bonus ‘ll be declared. In simple sense co. is just draining out from your pocket your hard earned money.



  6. Navit – This is an Endowment plan which provides cash back from ages 61 to 75. It is one nicely named policy but in reality an extremely inefficient use of money that will not even beat inflation. Historically endowment plan returns are between 4%-6%, if at all.

    Given only 1 premium has been paid thus far my recommendation would be junk this plan and get out at this early point itself. Consider the 25k spent as the cost of financial education.

    However if it is not 15 days since your brother got the policy papers ask him to contact MNYLI to cancel this plan ASAP.

    1. MNYL says:


      Thank you for writing into us.
      Life Partner Plus is a traditional participating plan. It offers bonuses that are dependent on the insurer’s performance. The same are illustrated assuming 6% and 10% return scenario. However, these bonuses are non guaranteed, which is in line with all other traditional participating plans in the industry. The actual bonuses in the last few years have been distributed at 7% (approx) return for Life Partner Plus.

      Max New York Life

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