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Bharti AXA Life Power Kid Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

 

 

Bharti AXA Life Power Kid Plan

 

Bharti AXA Life Power Kid Insurance Plan is a Unit Linked Child Plan. This is a Non-Traditional Plan without Bonus facility. In this plan, the life of the parent is insured but the plan is for the benefit of the child.

 

In this plan the premium needs to be paid till the end of the Policy Term. There are 2 options for Death Benefit- with Education Allowance of 10% of the Sum Assured will be paid every year till the end of the policy tenure to take care of school fees, etc and Without Education Allowance.

 

Thus, 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 and paid by the insurer so as to continue the plan till the end. If Education Allowance Benefit has been opted for, then 10% of the Sum Assured will be paid every year till the end of the policy tenure to take care of school fees, etc. Finally on maturity of the plan, the Fund Value would be paid as Maturity Benefit.

 

There is an option to take the 15% of the remaining Fund Value every year for the last 5 policy years as partial withdrawal so as to support Career Development of the child. The remaining Fund Value would be paid as Maturity Benefit when the policy tenure ends.

 

 

Key Features of Bharti AXA Life Power Kid Insurance Plan

 

  • This is a Unit Linked Insurance Plan with both Death and Maturity Benefit.
  • There are 2 options for Death Benefit
    • With Education Allowance of 10% of the Sum Assured will be paid every year till the end of the policy tenure to take care of school fees, etc
    • Without Education Allowance
  • Death Benefit is Sum Assured + 10% of the Sum Assured will be paid every year till the end of the policy tenure to take care of school fees, etc (if Education Allowance Benefit has been opted for). + The Fund Value would be paid out on maturity along with Loyalty Additions
  • Emergency Allowance: Rs 100,000 will be paid within 48 hours of the submission of all the relevant claim documents to take care of immediate requirements
  • The Fund Value is paid as Maturity Benefit.
  • Career Development Allowance Benefit: To support career development, 15% of the remaining Fund Value can be opted to be paid out at the beginning of each of the last 5 years as Partial Withdrawal. The remaining Fund Value after adjusting Career Development Allowance Benefit would be paid out on maturity.
  • There is an Accidental Death Benefit rider inbuilt in the plan
  • There is an option of Systematic Transfer Plan available in this plan
  • There is a facility of Secure Fund Transfer, which helps to beat the market volatility and safeguard your funds in the last 4 Policy Years.

 

COMPARE THIS PLAN WITH OTHER ULIP PLANS

 

Benefits you get from Bharti AXA Life Power Kid Insurance Policy

 

Death Benefit – There are 2 options for Death Benefit:

  • Option A: With Education Allowance
  • Option B: Without Education Allowance

If the Life Insured dies within the policy tenure, then  is Sum Assured + 10% of the Sum Assured will be paid every year till the end of the policy tenure to take care of school fees, etc (if Education Allowance Benefit has been opted for). + The Fund Value would be paid out on maturity along with Loyalty Additions

 

Maturity Benefit – The Fund Value is paid as Maturity Benefit.

 

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 & other restrictions in Bharti AXA Life Power Kid Policy

 

 

Minimum

Maximum

Sum Assured (in Rs.)

15 X AP

20 X AP

Policy Term (in years)

15

20

Premium Payment Term (in years)

Equal to Policy Term

Entry Age of Policyholder (in years)

21

50

Age at Maturity (in years)

-

65 for PT=15

70 for PT=20

Premium (in Rs.)

26,000

No Limit

Payment modes

Yearly, Half-yearly, Quarterly and Monthly

 

 

Sample illustration of returns in Bharti AXA Life Power Kid Insurance Plan

 

Annual Premium = Rs. 30,000,

Policy Term = 20 years,

Sum Assured = Rs 7,50,000

Age of Parent = 35 years

Total Investment = Rs 30,000 X 20 years= Rs 6,00,000

 

Bharti AXA Life Powe Kid Insurance Plan Sample Premiums

 

Additional Features and Benefits of Bharti AXA Life Power Kid Insurance Plan

 

Riders – There is 1 inbuilt rider available in this policy

Accidental Death Benefit Rider

 

Investment Fund Options

The plan has 6 investment fund options:

  1. Growth Opportunities Plus Fund
  2. Grow Money Plus Fund
  3. Build India Fund
  4. Save’n’Grow Money Fund
  5. Steady Money Fund
  6. Safe Money Fund

 

Top-up - Not Allowed.

 

Switching - There are 12 free Switches that are allowed in this plan. Minimum Switching amount is Rs 1,000.

 

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 the Annual Premium should be maintained after Partial Withdrawal.

 

                                             
Charges in Bharti AXA Life Power Kid Plan
 
Premium Allocation Charge – This charge is deducted from the Premium Paid by you

 

Policy Year
Premium Allocation Charge
1st
8%
2nd to 5th
5.5%
6th onwards
NIL
 
 
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.

 

Policy Year
Policy Administration Charge
1st to 5th
NIL
6th Year onwards
Rs 90 p.m. which increases at 5% p.a.
 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

 

Type
Charge
Growth Opportunities Plus Fund
1.35%
Grow Money Plus Fund
1.35%
Build India Fund
1.35%
Save‘n’Grow Money Fund
1.25%
Steady Money Fund
1.00%
Safe Money Fund
1.00%
 
 
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

 

Year of Discontinuation
Annual Premium > Rs 25,000 p.a.
1st
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 

Service Tax would be applicable on the charges depending on the applicable rates. 

                                             

What happens if?

 

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 Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this 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 to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this 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.

 

If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.

 

You want a loan against your policy – There is no Loan facility in this plan.



 

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