OFFERS PROTECTION, MATURITY BENEFITS, ASSURED RETURNS IN UNCERTAIN MARKETS
PROVIDES ENDOWMENT AND INCOME OPTIONS TO ENSURE FAMILY’S FUTURE FINANCIAL REQUIREMENTS
GIVES GUARANTEED ADDITIONS TO BOOST ANNUAL CORPUS UNDER ENDOWMENT OPTION
RETURNS PREMIUM BACK AT THE END OF PAYOUT PERIOD UNDER LONG TERM AND DEFERRED INCOME VARIANTS
ASSURES SHORT-TERM AND LONG-TERM INCOME FROM 10 TO 30 YEARS
ENHANCES LIFE PROTECTION WITH SEVERAL OPTIONAL RIDERS
Bharti AXA Life Insurance, a joint venture between Bharti Enterprises, one of India’s leading business groups, and AXA, one of the world’s largest insurance companies, today announced the launch of its novel plan – Bharti AXA Life Guaranteed Income Pro – that offers life insurance along with maturity benefits and guaranteed returns.
This non-linked, non-participating savings insurance plan is designed to provide financial stability to individuals and ensure policyholders of future income requirements with dual benefits of savings and protection.
Bharti AXA Life Guaranteed Income Pro empowers policyholders with financial returns, fulfills the need to secure their financial obligations and helps achieve goals like child’s education or marriage, retirement, a holiday, retirement income or a supplementary income.
‘’We designed Guaranteed Income Pro as an innovative solution that provides life insurance coverage and benefits of a savings product. The hallmark of our unique offering is the sound financial returns amid uncertain markets. It not only offers flexible short, medium and long-term income options but also helps people meet different financial needs at various milestones of life,’’ said Mr. Parag Raja, Managing Director and Chief Executive Officer, Bharti AXA Life Insurance.
The unique plan takes care of financial goals of policyholders by giving flexibility to choose from Endowment and Income options, which offer promising benefits and help them sail through uncertain times.
Under Endowment Option, the insured will get lump sum benefits at maturity with guaranteed additions boosting annual corpus from the first year. The guaranteed addition of 10 per cent of one annualized premium shall be accrued from the end of first policy year till the end of policy tenure.
The new plan returns all premiums paid at the end of the payout period under Long-term and Deferred Income variants. Besides, under Long-term Income, the policyholders also get income for an income payout period of 25 or 30 years following the completion of policy term. The income payout under Long-term Income option ranges from 25.7 per cent to 90 per cent of Annualized Premium. This enables customers to supplement their income for the golden years.
The Short-term Income option offers maturity benefits in the form of income which is defined as a percentage of one annualized premium, payable for fixed period of 10, 11 or 12 years upon payment of all due premiums and life assured surviving the policy term. The income payout Short-term Income option ranges from 165.8 per cent to 197.9 per cent of the Annualized Premium. This helps the life assured achieve financial milestones.
The Deferred Income plan provides assured income for an income payout period of 25 years after the completion of policy term. The income payout under Deferred Income option ranges from 43 per cent to 74 per cent of the Annualized Premium under the Limited Pay option. It allows the policyholders to meet their recurring expenses for a defined period.
Bharti AXA Life Guaranteed Income Pro Plan offers customers the choice of multiple policy and premium payment terms. Its minimum policy term is 10 years and the maximum term is 24 years under Endowment option. The minimum entry age is 91 days and the maximum entry age is 60 years under Endowment option. For Income option, the minimum entry age is five years and the maximum entry age is 65 years. It gives three options to customers to pay premium – Single Premium, Regular Premium and Limited Premium.
The policyholder can enhance their life protection and scope of benefits through several optional riders like the Bharti AXA Life Hospi Cash Rider, Bharti AXA Life Accidental Death Benefit Rider, Bharti AXA Life Premium Waver Rider and Bharti AXA Life Term Rider for a nominal additional premium. The policyholder will also be entitled for tax benefits on premium payment, as applicable.
In case of death of the life assured during the policy term, the death benefit along with accrued guaranteed additions, if any, is payable to the nominee.
”With Bharti AXA Life Guarantee Income Pro, we are helping people remove uncertainties from financial planning through an assurance of certain income. This is ideal for risk-averse individuals who aim to generate a substitute source of regular income and achieve assured financial returns for tomorrow,” Parag added.
PRODUCT ILLUSTRATIONS FOR COMPREHENSION PURPOSES
Let us consider a scenario to understand Long Term Income option under Bharti AXA Life Guaranteed Income Pro
Siddharth, age 35 year, decides to purchase Bharti AXA Life Guaranteed Income Pro for a premium of Rs. 50,000 p.a. (exclusive of taxes). The Sum Assured throughout the policy term would be Rs. 6,25,000.
He opts for Long Term Income option considering he wants income for a period of 25 years and opts for a policy term of 13 years and premium payment term of 12 years.
The income payout period would be 25 years and the income would start from the end of the 14th year till the end of 38th year. The income can be taken with a frequency of Annual, Semi-Annual, Quarterly, and Monthly.
The below cases illustrate the benefits that Siddarth would receive in this Long Term Income option.
Case I: Siddharth pays the premiums for the entire duration of the premium payment term that is, 12 years.
On Survival till end of the policy term, that is 13th policy year and provided all premiums have been paid, Income would start from the 14th year till the end of 38th year.
At the end of the income payout period, all the premiums paid (excluding the taxes, rider premiums and underwriting extra premiums, if any) would be returned.
| Total Premium Paid (Rs.) | 6,00,000 |
| Benefits Payable | Benefit Amount (Rs.) |
| Income (Annual) | 49,700 |
| Total Income | 12,42,500 |
| Return of Premium | 6,00,000 |
Case II (Death during Policy Term): In case Siddharth dies during the policy term, death benefit equal to sum assured on death would be payable. In the example above, in case of Siddharth’s death during the policy term in the 10th year, his family would receive death benefit of Rs. 6,25,000 immediately on death.
Case III (Death after Policy Term and during Income Payout Period): In case Siddharth dies after the policy term, his nominee shall continue receiving Income as per Income Payout Frequency and benefit option chosen till the end of the Payout Period. In the example above, in case of Siddharth’s death during the 15th year, his nominee shall continue receiving Income of Rs. 49,700 as was chosen, till the end of the Payout Period.
The nominee shall have an option to receive the future income as a lump sum, which shall be the present value of future payouts, discounted at a rate which is computed using the prevailing interest rates.
(The above examples are for offline illustration purpose only.)
