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Bharti Axa Life Unnati  – Is this really an All in One Plan?

Bharti Axa Life Unnati - Is this really an ALL IN ONE Insurance Plan

Recently Bharti Axa Life has launched Unnati life insurance plan indicating it a comprehensive plan. This is non linked, individual and savings life insurance plan that comes with 4 different options to cater the needs of the individuals. What are the key benefits of Bharti Axa Life Unnati Insurance Plan? Should you opt Bharti Axa life Unnati Plan? What are the hidden factors in such plans?

Also Read: LIC Tech Term Plan – How good is this Term plan?

Key Features of Bharti Axa Life Unnati

This is a non-linked, individual and savings life insurance plan.

  • It comes with 4 different options viz. endowment option, immediate income option, whole life income option and money back option.
  • This plan provides life insurance coverage during the entire police term and whole life coverage up to the age of 100 years.
  • It offers plan for policy term for 15 years to 100 years of the policy.
  • Premium payment term is between 5 years to 12 years.
  • It provides 15x protection throughout the policy term.
  • It offers flexible premium payment terms along with multiple policy terms.
  • One can enhance the protection through several riders.
  • Get income tax benefits on premiums paid as well as on the maturity amount received.

What are various options in Bharti Axa Life Unnati Plan?

It offers 4 different options.

  • Endowment Option: It provides lumpsum benefit on maturity. This option is useful to achieve long term goals.
  • Money Back option: Get guaranteed money back equal to one annualized premium for every 4 years during the policy term.
  • Immediate income option: Get income from the end of 2nd policy period by way of non-guaranteed cash bonus, if declared.
  • Whole life income option: Get guaranteed income till 100 years of age starting from 2nd policy year.

What are various benefits in Bharti Axa Life Unnati Plan?

1) Death Benefit

In case of unfortunate death of the life insured, death benefit would be paid as per the option chosen.

  • Endowment Option – Base variant & higher death benefit variant: Higher of the following would be paid
    • Sum assured on death + Simple Reversionary Bonus + Terminal Bonus if declared or
    • 105% of the total premiums paid as on the date of the death.
  • Endowment Option – Waiver of premium variant: Higher of the following would be paid
    • Sum assured on death or
    • 105% of the total premiums paid as on the date of the death.
    • Additionally, all future premiums will be waived off. Simple reversionary bonus + sum assured on maturity + terminal bonus (if declared) would be paid on maturity.
  • Money back option: Higher of the following would be paid
    • Sum assured on death + Simple Reversionary Bonus + Terminal Bonus if declared or
    • 105% of the total premiums paid as on the date of the death.
  • Immediate Income option: Higher of the following would be paid
    • Sum assured on death + Terminal Bonus if declared or
    • 105% of the total premiums paid as on the date of the death.
  • Whole Life Income option: Higher of the following would be paid
    • Sum assured on death + Terminal Bonus if declared or
    • 105% of the total premiums paid as on the date of the death.

2) Maturity Benefit

In case life insured is survived till maturity, the following benefit would be paid.

  • Endowment option and money back option: Sum assured on maturity + terminal bonus + accrued simple reversionary bonus
  •  Immediate income option and whole life income option: Sum assured on maturity + terminal bonus (if declared)

3) Guaranteed Survival Benefit

If life insured is survived during the policy term, following benefits would be paid

  • Endowment option and immediate income option: No survival benefit is paid
  • Money back option: One annualized premium is paid at the end of every 4th year during the policy year. For more info refer brochure.
  • While Life income option: Guaranteed amount is paid starting from 2nd policy year till maturity or death, whichever is earlier. This guaranteed amount ranges between 1.7% to 1.85% on sum assured on maturity.

What are various riders available in Bharti Axa Life Unnati Plan?

Following riders are available in this insurance plan.

  • Bharti Axa Life Term Rider
  • Bharti Axa Life Hospi Cash Rider
  • Bharti Axa Life Accidental Death Benefit Rider
  • Bharti Axa Life Premium Waiver Rider
  • Bharti Axa Life Accidental Total and Permanent Disability Rider

Why to invest in Bharti Axa Life Unnati Plan?

Below are few reasons to invest in such plans:

  • This life insurance savings plan offers 4 different options which might be useful at various stages of life. E.g., money back plan offers payment of one annualized premium every 4 years. While life income option provides guaranteed income from 2nd year of the policy till 100 years.
  • Like any other life insurance plan, it offers death benefit, survival benefits, maturity benefits etc.
  • This insurance plan offers flexible premium payment options. One can opt for limited premium payment option, but still enjoy life insurance coverage for total policy period.
  • This plan comes with whole life coverage up to 100 years of age.
  • It offers 5 different riders which can enhance protection.
  • It provides income tax benefits u/s 80c for the premiums paid + tax benefits for the maturity amount.

Negative or Hidden Factors in Bharti Life Unnati Plan

Here are some negative factors in such plans.

  • These life insurance saving schemes offer low returns which would range between 4% to 5.5%.
  • In case of suicide of life insured within 12 months from the policy date, nominee would get 80% of premiums paid.
  • It comes with various riders, however, all these come with extra premium.
  • It offers various plans and sub options (like variants) which creates confusion to individuals who want to opt such plans.

Also Read: Best Term Insurance Plans in India

Should you opt for Bharti Axa Life Unnati Life Insurance Plan?

This life insurance savings plan comes with several unique features. However, such plans provide 4% to 5.5% returns (computing the exact return is difficult as it contains simple reversionary bonus, terminal bonus, cash bonus which are not guaranteed) and comes with several terms and conditions. Such returns cannot beat inflation in future. Like I indicated several times earlier, one should consider a simple term insurance plan and invest in mutual funds or equity (if you can take high risk) for long term. If you are low risk investor, consider a term plan and go for simple fixed deposits that can provide higher returns compared to such life insurance saving plans.

Source: Bharti Axa Life Unnati Policy Document

Suresh KP

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