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.

 

 

 

• 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.

 

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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

 

 

 

	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

 

 

 

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

 

 

 

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.

 

 

Policy Year	Premium Allocation Charge
1st	8%
2nd to 5th	5.5%
6th onwards	NIL

 

Policy Year	Policy Administration Charge
1st to 5th	NIL
6th Year onwards	Rs 90 p.m. which increases at 5% p.a.

 

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%

 

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

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

                                             

 

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.