Investment Plans 225 views November 15, 2021

Bharti AXA Life Merit Plus EDGE is a unit-linked life insurance plan that helps you meet your financial goals along with the benefit of life cover. This plan is best for you if you’re planning for long-term goals such as retirement, children’s future, etc. The key features of this Bharti AXA Life Insurance Plan are as follows –

  • Life cover
  • Sum assured up to 15X annualized premium depending upon the entry age
  • Maturity benefit
  • Guaranteed additions
  • Special additions
  • Six fund options

Read the page below and know more about these and other benefits of the Bharti AXA Life Merit Plus EDGE.

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Bharti AXA Life Merit Plus EDGE Benefits

The below-mentioned benefits are available to you and the nominee –

Death Payout for the Nominee if You Die

The nominee will receive a death benefit as chosen by you if you die during the policy term. You can choose your death benefit from the following options –

Option A – On admission of claim in the case of your death, the nominee will receive the higher of –

  • Fund Value
  • Sum assured applicable at the time of death minus all withdrawals made following the partial withdrawals provision twelve months before the death (other than made out of the top-up premium)

Option B – In case of your death during the policy benefit period, the death benefit will be payable to the nominee i.e, the sum of – fund value and the sum assured applicable at the time of death.

The company shall pay the death benefit by canceling the outstanding units under the policy. If the death happens before the policy anniversary date and after attaining the age of 5 years, only the policy fund value shall be payable to the policyholder.

Maturity Benefit Payable Upon Survival till the End of the Policy term

You’ll receive the policy fund value on the maturity date, and you can receive the same by choosing any of the following –

  • Lump-sum payment of the policy fund value
  • Withdrawal of maturity benefit at regular intervals during the extended maturity period
  • A combination of the above

The extended maturity period is a maximum of five years and starts from the maturity date. Your nominee won’t be entitled to any death benefit during this period. And you can’t make any partial withdrawals or switches during this period. However, you can withdraw the balance fund value at any time during this period.

In the case of option 2 or 3, the market risk shall be borne by you and the applicable fund management charges shall continue to be levied. Upon death during the extended maturity benefit period, the existing policy fund value shall be paid to the nominee and the policy terminates.

Note – You need to apply for the specified maturity payout at least 90 days before the maturity date. The default payout option is lump-sum.

Guaranteed Additions Credited During the Policy Term

Guaranteed additions will be credited at the end of the 15th and 20th-anniversary dates, provided the policy is in force and at least five annualized regular premiums are paid. The company shall add this to your respective funds by crediting additional units. Check out the table below to know the percentage of guaranteed additions.

End of the Policy YearGuaranteed Additions
15thSum of Premium Allocation Charges
20th4% simple interest per annum on the premium allocation charges as on the due date shall be added to the fund.

Note – The 4% simple interest per annum on premium allocation charges is calculated on an annual mode basis irrespective of the chosen premium payment mode. And this shall be equal to 76.00% of the 1st-year premium.

And if you choose the cover continuance option, guaranteed additions shall not be available after the payment of three annualized regular premiums.

Special Additions Credited from the 25th Policy Anniversary Date

The insurance company shall credit 3% of the average fund value to your respective funds from the 25th policy anniversary date and thereafter every fifth policy anniversary date. The average policy fund value is equal to the fund value as on the last date of each of the previous 36 months.

Bharti AXA Life Merit Plus EDGE Investment Options

The company offers you the following funds under this Bharti AXA Life Insurance Plan —

Growth Opportunities Plus Fund – Get a long-term capital appreciation through investments across market capitalizations.

Grow Money Plus Fund – Here, the company will invest your premium in a high-quality portfolio of equities for long-term capital appreciation.

Build India Fund – The company invests in stocks of infrastructure along with its various sub-sectors and allied sectors to generate a long-term capital appreciation.

Save’n’grow Money Fund – You’ll receive a steady accumulation of income as the investments are made in high-quality debt papers and government securities. However, there is limited scope for capital appreciation. This is more of a defensively managed fund.

Steady Money Fund – A steady accumulation of income is generated through investments in high-quality debt papers and government securities.

Safe Money Fund – This fund provides capital protection by investing in money-market and short-term debt instruments that come with a maturity of one year or less.

Free Look Option

The company shall provide you a free look period of 15 days to review the terms and conditions of the policy. This period starts from the date of policy bond receipt. You can return the policy bond along with a letter stating reasons for the objection in case of any disagreement. Upon receipt of such a request, the policy will accordingly be cancelled and the company shall pay a refund. This amount is equal to the sum of premium allocation charge, mortality charge, miscellaneous charge and policy administration charge, deducted from the fund value and the policy fund value less stamp duty and underwriting expenses incurred by the company. After the payment of the refund, all the rights under this policy shall stand extinguished.

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