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
Benefits you get from Bharti AXA Life Power Kid Insurance Policy
Death Benefit – There are 2 options for Death Benefit:
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
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:
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.
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.