Bharti AXA Life Monthly Advantage Plan
Bharti AXA Life Monthly Advantage Plan is a traditional, participating insurance plan which provides protection through life coverage and also a series of regular income payouts payable monthly.
Key Features
Besides the inbuilt Accidental Total and Permanent Disability benefit, two riders are available under the plan for a more comprehensive protection. The available riders are:
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- Hospi Cash Rider
- Accidental Death Benefit Rider.
A grace period of 30 days is allowed for payment of premium after the due date for all modes of premium payment. The life cover under the policy would continue during the grace period.
A cooling off period or a free look period of 15 days (30 days for distance marketing modes) is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.
Benefits
When the plan matures and the premiums have been duly paid, the maturity benefit payable would be the accrued reversionary bonuses and any Terminal Bonus.
If the insured dies during plan term and the policy is in force, the death benefit payable would be highest of the following:
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- Sum Assured on death including the vested reversionary bonuses and any Terminal Bonus
- 105% of all premiums paid till death
The Sum Assured on death would be higher of the following:
- 12.5 times the annual premium for policy term of 12 years, 13.5 times the annual premium for a term of 16 years or 15.5 times the annual premium for a term of 24 years
- Absolute Sum Assured which would the amount of Sum Assured chosen at policy inception
- Sum Assured on Maturity which would be zero
The Sum Assured on death would be payable in equal monthly installments and the payouts would start from the next monthly anniversary following the date of death. However, the accrued bonuses and any Terminal Bonus would be paid immediately. The period for which the monthly payouts would be paid would depend on the policy tenure chosen and would be as follows:
| Plan term | Months for which the payouts would be made |
| 12 years | 72 months |
| 16 years | 96 months |
| 24 years | 144 months |
If the plan is in force and the insured suffers from an accidental death or total and permanent disability, the ATPD benefit would be payable under the plan. The ATPD benefit would be same as the death benefit payable under the plan. For the ATPD benefit, the disability or death must incur either immediately or within 90 days of the accident and the insured should be aged between 18 years and 70 years. The benefit is payable to the nominee who can also avail the benefit in lump sum rather than in specified monthly installments. The lump sum value of the benefit would be the aggregate value of the monthly installments discounted at the rate of 5%.
If the policyholder survives till the end of the premium paying term and if all due premiums have been paid the survival benefits would be paid. The survival benefit is paid monthly after the completion of the premium paying term until the plan maturity and depends on the plan tenure. The monthly amount payable as survival benefits is calculated as follows:
Monthly income on survival = (annual premium/12) * a specified percentage
The rate of monthly incomes payable for the corresponding policy terms are as follows:
| Policy Term | Months for which the benefit is payable | The % payable of (annual premium /12) |
| 12 years | 72 months | 105% |
| 16 years | 96 months | 110% |
| 24 years | 144 months | 120% |
Simple reversionary bonuses are declared under the plan every year staring from the end of the first policy year and till maturity, death or accidental total and permanent disability whichever is earlier. Bonuses are declared for plans where premiums are regularly paid. A terminal bonus may also be declared under the plan on maturity, death or accidental total and permanent disability depending on the company’s performance.
The policyholder can avail of a loan under the plan provided that the minimum amount of loan availed is Rs.15, 000 and the maximum amount availed is limited to 70% of the Surrender Value.
How it works
- The policyholder chooses the policy tenure, the premium paying frequency and the monthly income he wishes to receive. Based on the above criteria, gender and the insured’s age, the premium is calculated.
- Premiums are to be paid for a limited tenure which depends on the policy tenure chosen.
- Guaranteed monthly payouts are paid after the completion of the premium paying term till the end of the plan tenure.
- An accidental total and permanent disability benefit is payable in case of accidental death or disability.
- On death during the period, the death benefit is paid.
- On maturity, the maturity benefit is paid.
Tax Benefit
Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received and the survival benefit would also be tax exempt under Section 10(10D) of the Income Tax Act.
Eligibility
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
| Minimum | Maximum | |
| Entry age (Last Birthday) | Term 12 years – 6 years Term 16 years – 2 years Term 24 years – 91 days |
Term 12 and 16 years – 65 years Term 24 years – 60 years |
| Maturity Age (Last Birthday) | NA | Term 12 years – 77 years Term 16 years – 78 years Term 24 years – 84 years |
| Plan tenure | 12, 16 and 24 years | |
| Premium payable annually | Term 12 years – Rs.10,600 Term 16 years – Rs.7000 Term 24 years – Rs.3700 |
Depends on age, term and Sum Assured |
| Premium Paying Term (PPT) | 6, 8 and 12 years | |
| Sum Assured | Rs.50,000 | No limit |
| Monthly Income | Term 12 years – Rs.928 Term 16 years – Rs.642 Term 24 years – Rs.370 |
No limit |
| Premium payment mode | Monthly, half-yearly, quarterly and annually | |
Let's Understand The Plan With An Example:
35 year old Advait, works with an MNC, while his homemaker wife takes care of their 5 year old daughter. He wishes to secure his family's future by making a provision for monthly income, in case something unfortunate were to happen to him. So he chooses our Bharti AXA Life Monthly Advantage for 16 years with a Sum Assured of Rs.2,50,000. He invests Rs.37,405 for 8 years to receive a steady flow of monthly income.
Premium Illustration
The graph below shows the premiums payable at different combinations of plan tenures, Premium paying terms (PPT), Sum Assured and age of the life insured who is a male. The premiums mentioned are exclusive of any taxes.
The associated premium table is as follows:
| Age | Policy Term - 12 years PPT - 6 years | Policy Term - 16 years PPT - 8 years | Policy Term - 24 years PPT - 12 years | |||
| Sum Assured - 2 lakhs | Sum Assured - 5 lakhs | Sum Assured - 2 lakhs | Sum Assured - 5 lakhs | Sum Assured - 2 lakhs | Sum Assured - 5 lakhs | |
| 35 years | 45,588 | 113,970 | 29,924 | 74,810 | 16,022 | 40,055 |
| 40 years | 47,462 | 118,655 | 30,884 | 77,210 | 16,478 | 41,195 |
Surrender Value
Surrender is allowed only after the policy becomes paid-up, i.e. after 2or 3 years’ premiums have been paid.
Exclusions
- If the policyholder commits suicide within a year of policy issuance 80% of the premiums paid would be returned and no death benefit would be payable.
- If suicide is committed within a year of policy revival, higher of 80% of the premiums paid till death or the Surrender Value acquired would be paid provided the policy is in force.
- For the Accidental Total and Permanent Disability benefit, disability or death due to suicide, self-inflicted injury, pre-existing illnesses up to 4 years from plan commencement, HIV/AIDS infection, non-adherence to medical practitioner’s advice, war, terrorism, civil commotion, riots, radiation, defense activity, criminal acts, participation in hazardous activities or sports would be excluded.
FAQs
What happens if Non-Payment of premium in Bharti AXA Life Monthly Advantage Plan ?Premiums have to be paid for at least 2 yearsfor a premium paying term of 6 and 8 years and for at least 3 years for a premium paying term of 12 years. If the required premiums are not paid, the policy would lapse without accruing any benefits if it is not revived within the revival period. If the first 2 or 3 years’ premiums and have been paid and later premiums are not paid, the policyholder can surrender the policy or make it paid-up.
Making the policy Paid-up
If at least2 or 3 full years’ premium has been paid, the policy would become a paid-up policy if future premiums are not paid. The Sum Assured under the plan would be reduced and would be called Paid-up Sum Assured. Future bonuses would not be declared under the plan and the Paid-up Sum Assured would be calculated as follows:
Paid-up Sum Assured = Sum Assured * (number of premiums paid/ number of premiums payable)
- Death Benefit or Accidental Total and Permanent Disability Benefit– Paid-up Sum Assured payable as annual installments from the next policy anniversary following death or disability. The benefit would be payable for 6 years for a term of 12 years, 8 years for a term of 16 years and 12 years for a term of 24 years. The vested reversionary bonuses and any Terminal Bonus would be paid immediately on death or accidental disability.
- Survival Benefits – If the policy has lapsed and the premium payment term is also completed, the survival benefit is paid annually from the next year. The benefit paid would be reduced in proportion to the premiums paid to the premiums payable and would be as follows:
| Policy Term | Years for which the benefit is payable | The income expressed as a percentage of the annual premium |
| 12 years | 6 years | 105% * (number of premiums paid/ number of premiums payable) |
| 16 years | 8 years | 110% * (number of premiums paid/ number of premiums payable) |
| 24 years | 12 years | 120% * (number of premiums paid/ number of premiums payable) |
