Bharti Axa Life Future Champs

Bharti AXA Life Future Champs is a Traditional Money Back Child Plan where the parent is the Life Insured but the plan is for the benefit of the child. In this plan if the Life Insured, i.e. the parent dies within the policy tenure, the nominee, i.e. the child would receive the Sum Assured to address the immediate needs of the family. The future premiums are waived but still the Survival Benefits are paid out as and when it is due so that the parent’s dream about the child’s future is not hampered under any circumstance.

• In this plan, Guaranteed Pay Back benefit amounting to 105% of promised sum assured
• There is also a choice of 2 options where you can choose when you want your money and how much, both totally upto 105% of the Sum Assured
• There is an additional 4% of the Sum Assured which is paid as a Guaranteed Welcome Additions, which is paid on maturity or on earlier death along with Annual and Terminal Bonus.
• In total the pay back is 109% of the Sum Assured
• There is an additional rider of Critical Illness Benefit
• There is a discount that is available for higher Sum Assured 

Death Benefit – In case of death of the parent (Life Insured), the child (Nominee/Beneficiary) would get Sum Assured + Guaranteed Welcome Addition + Vested Annual Bonuses (if any) + Terminal Bonus (if any) as Immediate Death Benefit. The future premiums would be waived and the child would also receive the future benefits as well.

Survival Benefit –

1.     Pay Back Option 1-

a.     Year 12- 20% of the Sum Assured

b.     Year 13- 20% of the Sum Assured

c.     Year 14- 30% of the Sum Assured

d.     Year 15 (Maturity)- 35% of the Sum Assured

2.     Pay Back Option 2-

a.     Year 10- 10% of the Sum Assured

b.     Year 12- 20% of the Sum Assured

c.     Year 14- 35% of the Sum Assured

d.     Year 15 (Maturity)- 40% of the Sum Assured

Maturity Benefit – The last instalment of the Guaranteed Pay Back Benefit is given + guaranteed Welcome Addition + vested Annual Bonuses + Terminal Bonus (if any) are paid on maturity.

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

Annual Premium = Rs. 25086

Age of Parent = 35 years

Age of Child = 4 years

Policy Term = 15 years

Premium Payment Term = 15 years

Sum Assured = Rs 3,00,000                                        

Total Investment = Rs 25086 X 15 years= Rs 3,76,290

Under Pay Back Option 1:

Guaranteed Pay Back in year 12= Rs 60,000

Guaranteed Pay Back in year 13= Rs 60,000

Guaranteed Pay Back in year 14= Rs 90,000

Guaranteed Pay Back in year 15= Rs 1,05,000

Guaranteed Welcome addition payable at Death/Maturity whichever is earlier = Rs 12,000

Hence, Total Guaranteed Payouts= Rs3,27,000

Riders – There is 1 additional rider available in this policy

1.     Critical Illness Benefit

You stop paying the premium - If the policy holder stops paying the premium, the insurance cover will cease and the policy will lapse. If three annual premiums are paid, then it can be converted into a paid up within the period allowed for reinstatement. It can be revived within 5 years from the first unpaid premium

You want to surrender the policy – Surrender is allowed after 3 annual premiums are paid.

Guaranteed Surrender Value = 30% of all premiums paid - 1^st years premium

You want a loan against your policy - There is loan available under this plan.