Investment Plans 336 views November 1, 2021

Bharti AXA Life AspireLife is a unit-linked insurance plan that helps you build a corpus for your future financial needs. And in case of your death, the company shall pay a lump sum amount to your family. You will get five funds options under this unit-linked insurance plan wherein you can invest your premiums. The company provides you the flexibility to choose the funds based on your goal and risk appetite. Let’s have a look at the key features of this Bharti AXA Life Insurance Plan

  • Death Payout
  • Maturity Benefit
  • Guaranteed Special Addition

To learn more about these and other benefits of the Bharti AXA Life AspireLife, read this page below.

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Bharti AXA Life AspireLife Base Benefits

The company shall offer you the following under the Bharti AXA Life AspireLife Plan –

Death Benefit to the Nominee

In case of your death during the policy tenure, the company will pay the following –

Death Within the First Policy Year

In this case, the nominee will receive the higher of –

  • Sum Assured
  • Annualized Regular Premium x Market Index Factor

Death After the Completion of the First Policy Year

The company shall pay the higher of –

  • Policy Fund Value + Guaranteed Special Addition
  • Sum Assured Payable on Death – All Withdrawals (other than Top-up Premium) made twelve months before the date of death.

to the nominee.

The insurance company shall pay you this benefit after canceling units from your funds. In case the life assured is 5 years old or attain the age of 5 years after the policy anniversary, the death benefit will be as follows.

Death Within the First Policy Year – Annualized Regular Premium x Market Index Factor

Death After the Completion of the First Policy Year – Policy Fund Value + Guaranteed Special Addition based upon the policy benefit period.

Note – Market Index Factor is the ratio of the National Stock Exchange (‘NSE’) CNX Nifty Index at closing as on the date of intimation of death claim. And in case of a holiday, the previous business day and NSE CNX Nifty Index at closing as on the policy date will be considered for the same.

Benefits Payable Upon Survival till the End of the Policy Term

This unit-linked plan provides you a benefit on the maturity date i.e, Policy Fund Value plus the Guaranteed Special Addition. You can choose to get the maturity benefit through any of the following options.

  • Lump sum policy fund value plus guaranteed special addition
  • Withdraw the maturity benefit at regular intervals during the extended maturity period
  • Or receive the benefit as a combination of the above

An extended maturity period is up to five years starting from the maturity date. This option is available to the policyholder only. During this period, you won’t be entitled to any life cover, partial withdrawals and switches. However, you have the option to withdraw the balance available fund value in a lump sum.

In case you choose option two or three, units equivalent to the created guaranteed special addition will be credited in the investment funds as per the prevailing allocation instruction. Here, the inherent risk of fluctuating markets in regards to the policy fund value and guaranteed special addition shall be borne by the policyholder, and applicable fund management charges will be levied.

If you die during the extended maturity benefit period, the existing policy fund value as on the date of intimation of death shall be payable to the nominee, provided you are both the life assured and the policyholder. If the life assured and the policyholder are different persons, the policy shall terminate.

Note – The policyholder needs to intimate his/her maturity benefit payout option at least 90 days before the maturity date. If no request is received, the company shall use the payout option one as mentioned above.

Guaranteed Special Addition Available During the Policy Tenure

The company shall provide you Guaranteed Special Addition as a percentage of the first-year annualized premium. Your additions shall depend on the policy term chosen at inception.

  • For a policy term of 10 years – 130%
  • For a policy term of 15 years – 160%
  • For a policy term of 20 years – 175%

Bharti AXA Life AspireLife Partial Withdrawal of Units

You can do partial withdrawals from your investments after the completion of five years, provided all premiums are paid till that date and the policy is in force. The minimum amount you can withdraw from your funds is INR 5,000 and the maximum limit is subject to 20% of the fund value of that year. If the policy fund value becomes less than one year’s annualized premium after the withdrawal, the policy will terminate.

Note – Only two partial withdrawals are allowed in a policy year and they are free of charge.

To do partial withdrawals, the company shall cancel the units from the policy fund value corresponding to the paid top-up premiums, provided top-ups are invested for at least three completed years from the date of its payment. However, this condition doesn’t apply if the top-up premium is paid during the last three years of the policy tenure.

Note -If you are a minor, partial withdrawal shall be allowed once you attain the age of 18 years.

Bharti AXA Life AspireLife Investment Options

You will have the following options to invest your premiums in –

Grow Money Fund – The fund aims to provide long-term capital appreciation through investments across a diversified portfolio of high-quality stocks.

Save’n’grow Money Fund – Here, a steady accumulation of income is done through investments, primarily in high-quality debt papers and government securities. You will have a limited opportunity for capital appreciation while investing in this fund. This is a defensive managed fund.

Steady Money Fund – This will create a steady accumulation of income through investments in high-quality debt papers and government securities.

Growth Opportunities Fund – You will get a long-term capital appreciation through investments in stocks across market capitalization ranges (Large, Mid or small).

Safe Money Fund – Get capital protection through investments in low-risk money markets and short-term debt instruments that have a maturity of one year or less.

Suicide Exclusion from Bharti AXA Life AspireLife

In case you commit suicide within one year from the date of the policy issuance, the company will refund the paid premiums to the nominee. And if you commit suicide within one year from the date of reinstatement of the policy, the company will pay the policy fund value to the nominee as on the valuation date following the intimation of death.

Free Look Period

You will have a free look period of 15 days from the receipt of the policy bond to review the terms and conditions. And if you cancel the policy due to any reason during the free look period, an amount equal to the paid premium less stamp duty, underwriting expenses incurred by the company shall be refunded and the policy will terminate.

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