Investment Plans 304 views April 20, 2021

Bharti AXA Life Bachat Bima Plan could be suitable for individuals seeking a life cover and savings to meet various financial goals. This plan from Bharti AXA is an individual traditional insurance product for people up to 60 years. It is a non-participating policy, which means it will not provide any benefits for participation in the distribution of surplus or profits that may be declared by the life insurance company.

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Let’s look at the key features of the Bharti AXA Life Bachat Bima Plan.

  1. Death benefit
  2. Maturity benefit
  3. Interest credit benefit
  4. Partial Withdrawal facility
  5. Availability of different premium payment options
  6. 15 days of free look period

On this page, we will discuss the features of the Bharti AXA Life Bachat Bima Plan in detail so that you can understand better. Let’s start without any further delay!

Let’s Discuss Bharti AXA Life Bachat Bima Plan Features in Detail!

We are discussing the key features of the Bharti AXA Life Bachat Bima Plan one after another. Have a look!

Death Benefit

If the policyholder dies during the policy term and on the admission of the claim, Bharti AXA will pay the higher of the sum assured or the account value to the nominee/ beneficiary as a death benefit. Also, the policy will cease to exist once the death benefit is paid. Here, the account value is the amount available at any point of time in a policyholder’s account.

Maturity Benefit

If a policyholder survives until the end of the policy term, the account value shall be paid to the policyholder as maturity benefits.

Interest Credit Benefit

Bharti AXA Life Bachat Bima Plan will also provide an interest credit benefit facility. With this benefit, the interest will be declared in advance on the first working day of every quarter net of account management charges. This rate will be credited to the policyholder’s account value on every quarter’s last working day.

The method of calculation of interest credit rate is based on the average of the account value for the said period and hence, cannot be less than 0%. The following factors will be considered while declaring the interest rate in advance.

  1. Forecast of the interest earned in the quarter
  2. Adjustment of any surplus or deficit between the actual interest earned and the interest credited for the previous quarter(s)

Surrender Benefit

Policyholders can surrender their policy anytime during the policy benefit period, and they will get surrender benefits. What will be this benefit amount? Well, it will be the policyholder’s account value minus applicable account closing charges. Also, your policy will acquire a surrender value if at least INR 499 is paid as the total premium.

Note: Account closing charge stands at INR 150 if you surrender your policy within the first three policy years. After this period, there will be no account closing charge.

Partial Withdrawal Facility

With the Bharti AXA Life Bachat Bima Plan, policyholders can enjoy the partial withdrawal facility. With this, you get the option of making partial withdrawals from your account once you have paid a total premium of INR 499 and you have completed 6 months from the policy date.

Under this plan from Bharti AXA, you can enjoy one free partial withdrawal every three months. After this, a partial withdrawal charge will be charged on every transaction. This charge will be 5% of the withdrawal amount. Also, you can withdraw a minimum amount of INR 250, and your account should not have less than INR 250 post withdrawal.

What is the Premium Amount for Bharti AXA Life Bachat Bima Plan?

You can choose the premium amount for the Bharti AXA Life Bachat Bima Plan from the two options – INR 99 and 499.

After the initial premium payment towards the policy, you can increase your premium in multiples of INR 100 with a minimum amount of INR 100. However, the total premium paid in a policy year cannot be more than INR 6,000, while the total premium paid in a policy month should not exceed INR 1,000.

Your sum assured will depend on the premium paid by you. When you pay the premium amount towards your policy, an account opening charge will be deducted from the premium, and the remaining amount will be invested in the policyholder’s account. Now let’s understand the payment of premium under the Bharti AXA Life Bachat Bima Plan.

  1. For the premium option of INR 499 – Future premiums can be paid by the policyholder anytime during the policy term.
  2. For the premium option of INR 99 – A policyholder should pay a minimum of an additional total premium of INR 400 within 5 months from the date of inception of the policy.

Different Charges Related to Bharti AXA Life Bachat Bima Plan

The below table can give you the necessary information about different types of charges related to the Bharti AXA Life Bachat Bima Plan. Do check!

Account Opening ChargeFor premium option of INR 499 - INR 220 will be deducted

For premium option of INR 99 - INR 250 will be deducted
Account Management ChargeAt the rate of 2.75% per annum (it will be adjusted from the interest earned on the account value)
Transaction Charge5% of the renewal premium payment after the total premium payment of INR 499

5% of the withdrawal amount for every additional partial withdrawal over and above the free withdrawal

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