Bharti Axa Monthly Income Policy is a life insurance saving plan for individuals. The policy offers guaranteed monthly income and potential upside through bonuses, life insurance benefits, and tax benefits.
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This article explains the policy in detail for all early investors.
Bharti Axa Monthly Income Policy is a life insurance plan which offers a monthly income facility. It provides choices for the consumers to choose either endowment option or income option. The endowment option allows consumers to get guaranteed lump sum money when the policy matures.
The income option allows the consumers to earn monthly income once the premium payment term ends. The monthly income is paid till the policy matures.
The plan also offers flexibility in terms of choosing premium payment terms and policy payment terms. It provides considerable tax benefits along with other policy benefits.
The policyholders can choose three different premium payment terms such as seven years, ten years, and 15 years. Bharti Axa Monthly Income Policy has three different policy terms such as 15 years, 20 years, and 30 years.
The policyholders are required to pay premiums during the chosen premium payment terms.
Once the premium payment term ends, they can get guaranteed monthly income for their chosen retirement period or term. Once the policy term ends, the plan matures. On the maturity date, the policyholders get accrued annual reversionary bonuses and terminal bonuses.
Here’s why Bharti Axa monthly income plan is better:
Bharti Axa Monthly Income Policy is a life insurance savings plan. Thus, it offers guaranteed income opportunities and life insurance. However, other life insurance plan does not offer any monthly income facility.
The monthly income plan offers better tax benefits. Since it offers a tax deduction facility both in premium amounts and monthly income amounts. In other insurance plans, the tax deduction facility is offered in only premium amounts.
Bharti Axa Monthly Income insurance offers better financial security compared to other insurance plans. The insured individuals can plan for any life events more confidently. They can use the monthly income offered by the policy in different investment processes.
Bharti Axa Monthly Income Policy offers flexibility in choosing a better investment plan. The policyholders can opt for the endowment option or income option. Thus, policyholders can get a guaranteed return on the maturity of the policy or income facility from short-term or long-term perspectives. This flexibility is not present in other insurance plans offered by the insurer.
Steps to follow for buying a monthly income plan:
The policyholders can buy Bharti Axa Monthly Income Insurance Online through Bharti AXA’s website. They can also visit the branch office of Bharti AXA Life Insurance Company Limited.
They must read all the necessary information available in the product brochure and website. They must understand and assess the product before making a final purchase decision.
Consumers must find the Savings Plan Calculator available online at the website. Bharti Axa Monthly Income Insurance Online calculation of the premium amount and monthly income benefits will help them decide based on their age, income, and need.
To calculate the premium amount, the insurer must register their mobile number and name. Through this registration process, they will authorize the company personnel to contact back for better support.
The online platform will allow the registered customers to provide contact details, income details, family details, etc.
Once all the details are submitted, the users can select the policy terms, premium payment terms, assured sum amount, and premium amounts.
It will lead to the payment page. Here, the consumers must pay the first installment through debit card, credit card, or net banking.
If they visit the branch office of the company, the consumers are required to fill-up the form asking for the exact details and make payment through cash, cheque, demand draft, debit, or credit card.
Bharti Axa Monthly Income Policy offers financial security to insured individuals for the future. The policy covers various other aspects which ensure a good life for the insured individuals. The key elements covered by the policy are discussed below.
Guaranteed Returns: The policy offers guaranteed returns on maturity. It returns the sum assured on maturity plus an additional bonus applicable and loyalty earned. This guaranteed lump sum money helps the insured individuals celebrate any life event or plan for a better future.
Life Insurance: Bharti Axa Monthly Income Plan has a life insurance facility. It offers a percentage of monthly income for the next eight years, ten years, or 15 years as applicable to the nominee, in case of the death of the insured individuals. The payout is offered from the next month of the incident. Apart from this, the annual reversionary and terminal bonuses are paid on death as a lump sum.
Income Options: Bharti Axa Monthly Income insurance offers a monthly income facility. It offers monthly income once the policy matures for the next eight years or 15 years as applicable.
Financial Security: The life insurance facility and monthly income facility of the policy offers better security to the insured individual and other family members. It helps to plan for any event in life more confidently.
Flexibility: The policy offers flexibility to choose different policy terms and premium payment terms. It has three different premium payment terms: seven years, ten years, and 15 years. The policy has three different policy terms to choose such as 15 years, 25 years, and 30 years.
Tax Benefits: The policy offers tax relief for each premium payment and monthly income receipts. The tax benefits are subject to the change of the Income Tax Act.
Some policy exclusions the policy buyers must know before buying the plan:
The policy excludes its coverage in case the insured individuals die due to suicide within 12 months from the policy risk-commencement date. However, the nominee will receive the at least 80% of the total premiums paid to date or the surrender value of the policy on the date of death, whichever is higher.
The policy excludes coverage for certain critical illnesses. The policyholders can buy appropriate riders to get coverage for those vital illnesses.
The policy offers the following benefits as mentioned below:
Tax Benefits: The policyholders get tax benefits on the premiums paid and monthly benefits received. Tax benefits are offered as per the Income Tax Act 1961.
Survival Benefits: On survival through the policy terms, the insured individuals will receive the monthly income as per the policy terms chosen. The policyholders must have paid all the due premiums and deductibles as applicable.
Maturity Benefits: Once the policy matures, the policyholder will receive two critical bonuses a non-guaranteed annual reversionary bonus and a non-guaranteed terminal bonus. However, it depends on the policy in force and its implicit terms and conditions.
Death Benefits: If the policyholder dies while the policy is in force, the nominee will receive the death benefit. The value of the death benefit is the higher amount of sum assured on death plus non-guaranteed simple reversionary bonuses or 105% of all the premiums paid to date while underwriting any extras.
The policy is one of the popular insurance plans among the policyholders. The policy helps to secure the future while insuring life. The tax benefits offered by the policy have made it popular among high-income individuals.
This popularity has led the company to assure a sum of more than 1 lakh crore. The company is successfully operating its 263 offices across India and managing assets of 9374 crores. It has claims paid a percentage of 99.05%.
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