Investment Plans December 10, 2020

Bharti AXA Life Insurance Company Limited has introduced Bharti AXA Life Shining Stars Plan, a non-linked non-participating individual life insurance savings plan that gives financial security to the family in your absence. Or, if you survive till the date of maturity, you will receive the maturity benefits as per the policy. On your maturity benefit payout, you have two options: Flexi payout and Annual payout. The life-cum-investment plan Maturity Benefit can be paid either as a lump sum (at Maturity or the end of any year in the Maturity payout period or 5 equal annual installments at the end of every year from Maturity).

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For an Annual Payout, the plan uses the present value of any outstanding annual payouts. Bharti AXA Life Shining Stars Plan has an inbuilt benefit with which the policy can continue even after the death of the Life Assured. And for this, the company won’t charge any further premiums, and the Maturity benefit will be as usual till the maturity date. Read the page below to collect more information on this plan.

Bharti AXA Life Shining Stars Plan Benefits

If your policy is in force and all due premiums are paid till death or maturity, the following benefits will be payable:

Maturity Benefit

You will get this benefit when you survive till the end of the policy term. In this, you will receive the Sum Assured at Maturity, which is equal to the Sum Assured under the policy. You can choose your Maturity Payout Period (4 years starting from the date of maturity) either at policy inception or at least 90 days before the date of maturity. The following are your payout options:

Flexi Payout – Under this payout option, you can receive Maturity Benefit as a lump sum amount at the end of any year during the Maturity Payout period, based on the year of payout. The benefit will be determined as follows –

Flexi Payout Factor * Sum Assured

Where the Flexi Payout Factors is dependent on the year of payout as follows:

Annual Payout – In this Maturity Benefit payout, the payment will be done in five equal annual payouts at the end of every year starting from the date of maturity. And every annual payout is equal to 22% of the Sum Assured. Here, the Life Assured may choose to take the present outstanding value of the annual payouts as a lump sum amount. And it will be calculated as a net present value of outstanding annual payouts at a rate of 5% per annum.

In the case of death of the life insured during the Maturity Payout Period, the maturity benefit

will continue to be paid out to the nominee according to the Maturity Payout Option chosen by the Policyholder.

Death Benefit

If the Life Assured dies during the policy term, the death benefit will be payable to the nominee/beneficiary immediately. Your Death Benefit is the Sum Assured on Death, which is the highest of the following:

  1. 11X Annualized Premium (The premium excludes taxes, rider premiums, underwriting extra premiums, and loadings, if any).
  2. 105% of all paid premiums (as on the date of death)
  3. The absolute amount which is equal to the Sum Assured under the policy
  4. Sum Assured at Maturity which is equal to the Sum Assured under the policy

Besides the death benefit, the Bharti AXA Life Shining Stars plan shall continue even after the death of the Life Insured till the end of the policy term. And for such an extension, the company doesn’t charge any further premiums, and the Maturity Benefit will also continue.

In the case of the Life Insured’s death during the Grace Period, the Death Benefit will be payable to the nominee/beneficiary after deducting the unpaid premium. And the policy shall continue after the death with maturity benefits and no further premiums. Whereas in the case of the Life Insured death when the policy is in lapsed status, no benefit shall be payable and the Policy will terminate immediately.

Rider Benefit

For an added protection, you can buy riders for your Bharti Axa Life Shining Stars plan. The riders are available to you if you pay an additional premium for it along with the Bharti AXA Life Shining Star plan premium. The following are your options among which you can choose the suitable rider:

  1. Bharti AXA Life Hospi Cash Rider – From this rider, you will get a fixed benefit payment for each day of hospitalization. And in case of surgery, the lump sum benefit will be paid.
  2. Bharti AXA Life Accidental Death Benefit Rider – This rider will give your nominee/beneficiary an additional sum assured if the Life Assured dies due to an accident.
  3. Bharti AXA Life Term Rider – It is designed to increase the life insurance coverage for the Life Assured at a nominal premium.

While opting for a Rider, the outstanding term of the Bharti AXA Life Shining Stars Policy will be for at least five years. Rider policy term must be less than or equal to the Premium Payment Term of the Base Policy. And the premium for a health-related or critical illness rider may not exceed 100% of the base policy premium, the premiums of all the other riders put together shall not exceed 30% of the base policy premiums. And any of the above-mentioned rider benefits shall not exceed the Sum Assured under the Base Policy.

Tax Benefit

You can avail of tax benefits on your life-cum-investment plan premium payments as well as the paid benefits under the prevailing tax laws.

When to Surrender Bharti AXA Life Shining Stars Plan?

Your life insurance policy will acquire a surrender value if at least two annual premiums have been paid. That’s when you can surrender the policy.

Guaranteed Surrender Value = Guaranteed Surrender Value Factor * Total paid premiums

You are also eligible for a Special Surrender Value under this policy. The company declares the Special Surrender Values at a rate not less than the Guaranteed Surrender Value. These rates are non-guaranteed and may be changed from time to time, after prior approval from the IRDAI.

The payable Surrender Value is subject to any statutory or any other restrictions as applicable by the company. And upon the surrender of the policy, all the rights and benefits shall extinguish. And the policy terminates once the Surrender Value is paid to the Life Assured.

Bharti AXA Life Shining Stars Plan Free Look Period

You have 15 days of free look period if you buy the policy offline or 30 days if you purchase it via distance marketing mode. During this period, you can read the terms and conditions carefully and return the same if you have any objection. On cancellation during the free look period, the Life Assured can receive a refund of the paid premiums. And this refund will be calculated as follows:

Paid Premiums – Proportionate Risk Premium for the period on the cover – Expenses of Medical Examination – Stamp Duty Charges (if any).

When you purchase this life-cum-investment plan via Insurance Repository (IR), the Free Look period will be as follows:-

Existing E-Insurance Account: The Free Look Period will commence from the date of delivery of the email by the IR. This email confirms the credit of the Insurance Policy.

New E-Insurance Account: When an application for an e-Insurance account accompanies the insurance proposal, the latest of the following considerations will apply for the free look period.

  • Date of receipt of the ‘welcome kit’ from the IR 
  • The delivery date of the email confirming the access to the e-Insurance Account
  • The delivery date of the email confirming the credit of the Insurance Policy by the IR to the e-Insurance Account.

Bharti AXA Life Shining Stars Suicide Clause

If the Life Assured dies within 12 months from the date of commencement of risk or revival of the policy, provided the cause of death is a suicide, the nominee or beneficiary will get at least 80% of the total paid premiums (as on the date of death) or the surrender value (as available on the date of death) whichever is higher.

Note- This suicide clause may apply only if the policy is in force.

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