Policy opening date - 27th August 2010
Bharti AXA Life True Wealth Plan
This is a unit-linked insurance policy (ULIP) where the premium amount is invested in the markets (debt, equity and cash market instruments). The value of investments may go up or down, hence the risk in ULIPS is borne by the policy holder and not by the insurance company.
Key Features of Bharti AXA Life True Wealth Plan
§ Highest daily NAV Guarantee for the first 7 years on maturity or a minimum of Rs 12
§ Equity exposure with a capital guarantee.
§ 5 years payment option available
Benefits you get from Bharti AXA Life True Wealth Plan
Death Benefit – In case of death of the policy holder, the nominee gets
Option A - Sum Assured plus Fund Value
Option B - The higher of Sum Assured or Fund Value. (Option B is only available for premium of Rs 1,00,000 and above)
Maturity Benefit - If the policy holder survives the policy term, then he gets the Fund Value.
Fund Value is calculated according to the highest of the following:
· NAV at maturity
· Highest NAV achieved during the policy term
· NAV of Rs 12
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C. The maturity amounts you receive from this plan are exempt from tax under section 10(10D)
Eligibility conditions and other restrictions in Bharti AXA Life True Wealth Plan
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Minimum
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Maximum
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Sum Assured (in Rs.)
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If age at entry 8-44 years, SA = 10 X Annual Premium
If age at entry 45-60 years, SA= 7 X Annual Premium
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Policy Term (in years)
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10 years
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Premium Payment Term (in years)
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5 years
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Lock-in period
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5 years
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Entry Age of Policyholder
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8 years
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60 years
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Age at Maturity
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18 years
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70 years
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Regular premium
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Rs 18,000 p.a.
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No Limit
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Single premium
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Not Allowed
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Payment modes
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Annual, Semi-annual, quarterly and monthly
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Top-up premium
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Not allowed
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Sample illustration of returns in Bharti AXA Life True Wealth Plan
Male of age 35 years
Premium = Rs.25,000
Policy Term = 10 years
Sum Assured = Rs.2,50,000
Total Investment = Rs. 25,000 x 5 years = Rs.1,25,000
Additional Features and Benefits of Bharti AXA Life True Wealth Plan
Riders – There are no riders under this policy.
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Type of Rider
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Available with Policy
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Accidental death benefit
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No
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Permanent/Accidental disability benefit
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No
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Waiver of premium benefit
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No
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Critical illness (or dread diseases) benefit
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No
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Increased death benefit / Term rider
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No
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Hospital cash benefit
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No
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Life Guardian benefit
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No
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Investment Fund Options
The plan has only 1 investment option:
· True Wealth Fund
Top-up - You are not allowed to top up in this plan.
Switching - No switching allowed under this policy as there is only 1 fund option
Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years. The minimum amount of partial withdrawal should be Rs. 1,000 such that 120% of annual premium should be maintained after Partial Withdrawal. Maximum partial withdrawal allowed is 20% of Fund Value in any policy year.
You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The proceeds from this fund will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.
You want a loan against your policy – There is no loan facility in this product.
Alternate ULIPs from different insurance companies
Aviva Life Saver Advantage
Bajaj Allianz Max Advantage Insurance Plan
ICICI Prudential Life Link Wealth SP
Other plans from Bharti AXA Life Insurance Company Limited
Bharti AXA Life Bright Star Edge Plan
