Bharti AXA Life Elite Advantage

About Bharti AXA Life Elite Advantage Plan

Bharti AXA Life Elite Advantage is a traditional, non-participating endowment plan that provides guaranteed pay-outs along with comprehensive life protection. It offers guaranteed pay-outs of 8.5% to 9.5% from the end of the policy term and 100% sum assured on maturity.

The policyholder has the flexibility of choosing a premium payment term between 5, 7, and 12 years. Tax benefits (subject to a maximum of INR 1,50,000) are available in accordance with Section 80(C) and 10(10D) of the Indian Income Tax Act.

Before we dive into the details of Bharti AXA Life Elite Advantage, let’s get a gist of the plan:

How Does the Plan Work?

Let’s have a look at the working of Bharti AXA Life Elite Advantage.

Life Insurance Cover

The highest of these three is paid out as the basic life insurance cover to the nominee of the policyholder:

1. Sum assured on maturity
2. 11 times the base annualised premium
3. 105% of premiums paid until date of death

Maturity Benefit

If the policyholder outlives the policy period and all premiums are duly paid, then the maturity benefits will be paid as under:

• Guaranteed Pay-out – During the maturity pay-out period, a percentage of the sum assured on maturity shall be paid
• Sum Assured – At the end of the 20^th year, 100% of sum assured on maturity shall be paid

Let’s understand the benefits with the help of an illustration:

Nikhil is a 35-year old banker. To secure his family (comprisinghis spouse and a 5-year old son) financially, he purchases the Bharti AXA Life Elite Advantage plan.

He invests a total of INR 1,00,000 annually as premium under a Premium Payment Term (PPT) of 12 years. The guaranteed pay-out that he will receive annually from the end of the 12^th policy year to the end of the 19^th policy year will be INR 1,16,779 (assuming 9.5% of the maturity sum assured amount). The lump sum pay-out that Nikhil will stand to receive on maturity (at the end of the 20^th year) is INR 12,30,000.

Riders and Add-ons

Hospi Cash Rider – In the event of hospitalisation, the Hospi Cash rider provides both a lump sum amount on surgery and an amount in the form of daily cash along with ICU benefits to provide all-round protection. 

Why Should You Buy This Plan?

Read on to know whether this is the right plan for you:

• The plan, by paying a regular annual income from the end of the 12^th year, helps the policyholder secure various milestones in life, such as taking care of child’s education and planning a family vacation. It also helps in managing emergency expenses.
• Additionally, by paying the sum assured amount on maturity, it helps the policyholder take care of post-retirement expenses.
• By providing both maturity and death benefit, the plan provides peace of mind throughout its tenure.

Who Should Buy This Plan?

This plan can be bought by individuals who wish to secure their financial future, first by receiving an annual income at regular intervals during the policy term (from 12^th to 19^thyears from the commencement of the policy) and then a lump sum amount on maturity so that the golden years of their life is spent without financial strain.