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Group Insurance 1192 views February 5, 2021
If you have any loan running in your name and want a cover for the same in case of your death, the Bharti AXA Life Group Loan Protect plan is the one you can trust! A non-linked non-participating group life insurance plan that will safeguard your family in such unforeseen circumstances. All the borrowers of the Master Policyholder (lender) are eligible for life cover under the Bharti AXA Life Group Loan Protect plan. Under this plan, the insured members can choose from three premium payment term options – single pay, limited pay and regular. There are multiple coverage options on your disbursed loan amount. The master policyholder can customize your insurance cover as per your outstanding loan liabilities. Let’s know more about the policy on this page below.
Table of Contents
There are three life cover options available under this plan from which the master policyholder can choose.
Reducing Sum Assured Benefit – If the master policyholder chooses this option, each insured member will be insured for a sum insured equal to the balance outstanding at the beginning of each month as per the loan tenure. An amortization schedule helps determine the balance outstanding based on the interest rate fixed at inception. In the case of Reducing Sum Assured Benefit cover, on the death of the insured, a sum assured equal to the outstanding loan as per the loan reduction schedule fixed at inception will be payable to the nominee at the beginning of the month.
Level Sum Assured Benefit – Under this, each insured member shall be insured for a sum assured equal to the amount chosen at inception and the same will be fixed for the coverage term. In the case of Level Sum Assured Benefit cover, if the insured dies, an amount equal to the sum assured throughout the coverage term will be payable to the nominee.
Level + Reducing Sum Assured Benefit (Moratorium Cover) – With the moratorium cover, the insured member sum assured will remain fixed during the moratorium period but it will reduce thereafter at the applicable interest rate. Here, the balance outstanding will be determined as per the amortization schedule based on the interest rate fixed at inception.
This policy is designed for borrowers/co-borrowers of public sector banks, co-operative banks, small finance banks, microfinance institutions and housing finance companies. Under Bharti AXA Life Group Loan Protect Plan, the lender must submit all scheme related information requested by the insurance company, based on which the scheme will be approved and the borrower/co-borrower can get the following benefits –
Death Benefit – If the insured member dies during the policy term, provided all premiums are paid till the date of death and the policy is in force, the nominee will get a death benefit as per the option chosen by the master policyholder.
Maturity Benefit – Bharti AXA Life Group Loan Protect Plan doesn’t have any maturity benefit.
Surrender Benefit – In case the insured decides to cancel the policy during the policy term post the free look period, the surrender value will be payable to him/her.
Surrender Value = (SVF) x (U/T) x (P/PP) x (OS/IS) x P
Check out what the following terms used in the Surrender Value’ calculation denote –
Note – No surrender benefits are payable for regular premium paying policies.
If you want to buy Bharti AXA Life Group Loan Protect, ensure you meet the following –
With the Bharti AXA Life Group Protect, you will get the following features too –
To enroll under Bharti AXA Life Group Loan Protect, you need to fill and sign the self-filled questionnaire cum enrollment form. For this, you do not require a medical check-up if your proposed coverage amount is less than the underwriting limits as defined for your age.
If the risk arises during the policy term, the nominee needs to follow the below instructions to claim the Bharti AXA Group Loan Protect benefits –
Note – If any other documentation is required by the company, the nominee should submit the same as soon as possible.
Note – For all mortgage and education loans, the maximum moratorium cover will be 7 years.
The payment of Bharti AXA Group Loan Protect benefits is subject to suicide exclusion. In the case of death of the insured member due to suicide within one year from the date of risk commencement or revival of the policy, provided the policy is in force, the nominee or beneficiary will get either 80% of the total premiums paid or the surrender value as on the date of death, whichever is higher.