Bharti AXA Life Secure Income Plan

Overview

This is an income plan of Bharti Axa Life Insurance that assures an annual income of up to 10% of the sum assured per annum. It comes with 3 along with death, maturity and tax benefits. The tax benefits available with this plan apply to both the premiums paid and the returns gained (subject to the prevailing provisions). The plan starts paying the monthly income once the premium paying term is over. It also features a reduced paid up feature that can convert policies, for which premiums have not been paid, into paid-up ones.

Eligibility Conditions of Bharti AXA Life Secure Income Plan

Entry age

The minimum and maximum entry age depends on the term of the policy and is:

Term

Min Age

Max Age

15 years

3 years

65 years

17 years

1 year

63 years

20 years

0 years

60 years

Maximum maturity age

80 years

Key Features of Bharti AXA Life Secure Income Plan

Type

Traditional non-participating limited pay policy

Sum assured

The minimum sum assured can be 11 to 13 times the base annual premium or 105% of the premiums paid.

Coverage

Death benefits: The death benefits under this plan can be slightly different according to tenure of the policy.

  • For 15 and 17 year policies the death benefit can be the higher of the sum assured plus the bonuses earned or 105% of all premiums paid or 11 times the annual premiums.
  • For 20 year policies they can be the higher of the sum assured plus the accrued bonuses or 105% of all premiums paid till date or 13 times the annual premiums.

Maturity benefits: The maturity benefits are the sum assured plus the guaranteed additions.

Survival benefits: The survival benefit will be the payment of the chosen monthly income from the time the premium paying term get over.

Basis

Individual

Premiums

The minimum premiums payable can differ with the tenure of the policy and the mode selected. They are:

Term

Monthly

Quarterly

Half-yearly

Yearly

15 years

Rs. 2,700

Rs. 8,100

Rs. 15,600

Rs. 30,000

17 years

Rs. 2,160

Rs. 6,480

Rs. 12,480

Rs. 24,000

20 years

Rs. 1,620

Rs. 4,860

Rs. 9,360

Rs. 18,000

Premium paying term

The premium paying term will depend on the policy terms.

  • For policy terms of 15 years the premium paying term will be 5 years.
  • For policy terms of 17 years the PPT will be 7 years.
  • For 20 year policy terms the PPT will be 10 years.

Premium paying modes

Monthly, quarterly, half-yearly, yearly.

Policy term

There are three policy terms available:

  • 15 years
  • 17 years
  • 20 years

Guaranteed additions

The guaranteed annual additions will be different for each policy term and will be applicable once the premium payment term is over.

Policy term

Guaranteed addition

15 years

7% of sum assured

17 years

8.5% of the sum assured

20 years

10% of the sum assured

Policy validity

The validity of the policy will be equal to the tenure of the policy.

Renewability

Not Applicable

Bonuses

There are no bonuses under this policy but it does offer a guaranteed addition.

Other features

  • Freelook period
  • Grace period
  • Lapsed policies

Add-on covers / Riders

This policy can be coupled with various riders to enhance the protection it provides.

Benefits/Advantages of Bharti AXA Life Secure Income Plan

  • The premiums paid and the income received are eligible for tax benefits under sections 80C and 10(10D) of the IT Act.
  • The policy can be surrendered at any time however if it is surrendered after 2 years then 30% to 100% of the premiums paid will be returned depending on the the number of years that it has been in force for.
  • Once the policy acquires a surrender value, policyholders can take loans against it to the tune of 70% of the surrender value.
  • The guaranteed income will be paid once the premium paying term is over and will be paid every month.
  • If the premiums are not paid and the policy has achieved a surrender value, instead of lapsing, it will be converted into a paid-up policy with a reduced value.
  • If the premiums are not paid the policy has not achieved its surrender value, the policy will lapse but can be reinstated within 2 years of lapsing.

How the Plan Works?

How this plan works is once the monthly income and the tenure of the policy is selected, the premiums payment begins for a term depending on the policy tenure. Once the policy is in force the following benefits will be available to policyholders.

  • Upon the death of the insured the death benefits, as applicable, will be paid.
  • Once the premium paying term is over, the payment of the monthly income will begin.
  • Once the policy matures, the applicable maturity benefits will become payable.
  • The monthly income benefit will be paid for a duration of 10 years for all policy tenures.

Premium Payment

The premium that needs to be paid will depend on the sum assured and the premium paying term and also on the age of the policyholder. The following table illustrates the range of the premium payable for each Rs. 1,000 of the sum assured.

Policy term

Premium paying term

Premium per thousand of sum assured

15 years

5 years

Rs. 327.40 to Rs. 384.03

17 years

7 years

Rs. 228.34 to Rs. 272.11

20 years

10 years

Rs. 156.19 to Rs. 184.75

* These figures are subject to change according to company policy.

Riders

The rider that can be taken with this policy is the Hospital Cash Rider which pays a fixed daily cash in case of hospitalisation and also a lump sum in case there is a need for a surgery.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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