Bharti AXA Life Monthly Income Plan

Bharti AXA Life Monthly Income Plan

Bharti AXA Life Monthly Income Plan is a Limited Premium payment, Traditional Participating Plan. Thus it is a Monthly Income Plan with Bonus Facility.
How it works – In this plan, premium needs to be paid till the end of the Premium Paying Term as selected by the Policyholder. The premium is calculated according to the Monthly Income payable.

In this plan, Guaranteed Monthly Income is paid to the Life Insured as Survival Benefit, after completion of the Premium Paying Term and continued till maturity. This income is tax free if all requirements of Section 10(10)D is fulfilled. The Annual Reversionary Bonuses would be paid on policy maturity as Maturity Benefit.

However, if the Life Insured dies before the policy matures, then the nominee would immediately receive the accrued Annual Reversionary Bonuses and the policy continues. Monthly Income is paid to the nominee from the next policy month onwards and continues for the next 8 or 15 years depending on the policy term option chosen at inception of the policy. This payout is made over and above the Monthly Income payouts made before the death of the Life Insured.

There are 2 additional riders available in this plan.

 Key Features of Bharti AXA Life Monthly Income Polic 

• This plan is a Traditional Participating Plan with Limited Payment Option
• In this Plan, premium is paid for 7,  10 or 15 years only while the policy continues thereafter
• The Monthly Income starts after the Premium Payment Term or death of the Life Insured, whichever is earlier
• Annual Reversionary Bonus is paid under this plan
• There is a discount in premium rate if a higher Monthly Income is chosen
• There are 2 additional riders available in this plan- Critical Illness Benefit Rider and Premium Waiver Rider

Benefits you get from Bharti AXA Life Monthly Income Plan

Death Benefit – In case of death of the Life Insured within the policy tenure, Guaranteed Monthly Income is paid to the nominee for 8 years from the year of death for a policy with PT=15 years and for 15 years for a policy with PT=25 or 30 years. This benefit is paid irrespective of the amount paid before death.

Survival Benefit— Monthly Income, as selected, is paid for the following:

Maturity Benefit – Annual Reversionary Bonuses (if any) are paid as Maturity Benefit under this plan.
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

Eligibility conditions and other restrictions in Bharti AXA Life Monthly Income Plan

Sample illustration of premium amount in Bharti AXA Life Monthly Income Plan 

The below illustration is for a healthy Male (non-tobacco user) opting for a Monthly Income = Rs. 5000 and Policy Term = 25 years

Additional Features and Benefits of Bharti AXA Life Monthly Income Plan

Riders – There are 2 additional riders available with this plan

1. Critical Illness Benefit Rider
2. Premium Waiver Rider

What happens if?

You stop paying the premium - If the policy holder stops paying the premium, then all benefits of the policy will cease after the expiry of the grace period of the unpaid premium due date. The policy can however be revived within 5 years from the first unpaid premium due date

If at least 3 years’ premiums have been paid, then the policy is converted to a Paid Up Value and continues with a reduced coverage.

You want to surrender the policy – There are Surrender Benefits under this term plan after premiums have been paid for first three policy years.

Guaranteed Surrender Value= 30% of all premiums paid – 1st years’ premium

You want a loan against your policy – Loan facility is available under this policy after the policy acquires Surrender Value.