Bharati Axa Life Wealth Pro - ULIP Plan review - Should you invest or avoid

Bharati Axa Life Launches Wealth Pro – How is this ULIP Plan?

Bharati Axa Life Wealth Pro - ULIP Plan review - Should you invest or avoidBharati Axa Life Launches Wealth Pro ULIP Plan – Review


Bharti Axa Life has recently launched Wealth Pro Insurance Plan. This is a unit linked insurance plan (ULIP) that offers several nice features along with life protection, enhanced savings and market linked returns. ULIPs always contain high allocation charges which make such plans unattractive. What are the features of Bharati Axa Life Wealth Pro ULIP? Should you opt for Bharati Axa Life Wealth Pro Insurance Plan? Do Bharati Axa Life Wealth Pro ULIP policy allocation charges are high?

Also Read: LIC Jeevan Akshay 7 – Pension Plan – Should you buy?

This post is based on request from “Ritesh S” on Suggest-a-Topic option on our blog.

Overview of Bharati Axa Life Wealth Pro

Bharti AXA Life Insurance company is one of the reputed life insurance companies in India that offers a huge range of products and services. One of its newly launched products is the Bharati Axa Life Wealth Pro plan. It is a unit-linked and non-participating plan that provides life-protection as well as wealth-creation. The plan provides life cover up to 10 times of premiums along with helping in building wealth over the long term.

Here is company video giving an overview about the plan

Features of Bharati Axa Life Wealth Pro

Here are the distinctive features of this ULIP plan.

Bharati Axa Life Wealth Pro is a unit-linked and non-participating individual life insurance plan.

The policy comes with two variants – Growth Variant and Legacy Variant

A percentage of fund value is added as a wealth booster subject to policy being in-force (available under both- Growth and Legacy option).

The plan gives you the freedom to choose one or more fund based on your risk appetite with 7 fund offerings and 2 investment strategies.

There are two investment strategies in this plan – Dynamic Fund Allocation and Systematic Transfer Plan along with multiple fund options to suit your investment goals and risk-return potential.

There is no provision i.e. no loan can be obtained on this policy.

The policyholder can exercise the option of a partial withdrawal of funds at any time after the completion of the lock-in period subject to certain conditions.

The policy has an additional benefit of Systematic Withdrawal Plan (SWP) which facilitates the policyholder for an automated partial withdrawal. This option is available only under Legacy Variant.

Through the features of Switch & Premium Redirection, one can manage their asset allocation between equity and debt as per their requirements. For example, one may keep their money in equity in the initial years of the policy and may switch to debt closer to the maturity to protect themselves against any adverse movements in the equity market.

There are four riders also available to make the policy more comprehensive.

Who is eligible to take Bharati Axa Life Wealth Pro?

The eligibility to take this plan has been summarized in the form of a table:

Particulars Growth Variant Legacy Variant
Min Age at entry For 10 yr policy term-8 years

For 15 yr policy term- 3 years

For 20 yr policy term- 91 days

91 days
Max Age at entry For 10 yr policy term-65 years

For 15 yr policy term- 60 years

For 20 yr policy term- 55 years

For 5 yr PPT (Premium Payment Term)-44 years

For 7 yr PPT- 57 years

For 10 yr PPT- 65 years

To age 60 yrs- 53 years

Max Maturity Age 75 years 99 years
Premium modes Annual and Monthly Annual and Monthly
Min Premium Single pay- Rs. 1,00,000

Limited/Regular pay- Rs. 25,000

Single pay- Not Available

Limited/Regular pay- Rs. 25,000

Max Premium No limit, subject to Board Approved Underwriting Policy No limit, subject to Board Approved Underwriting Policy
Min Sum Assured Single pay- Rs. 1,25,000

Limited/Regular pay- Rs. 2,50,000

Single pay- Rs. 1,25,000

Limited/Regular pay- Rs. 2,50,000

Max Sum Assured No limit, subject to Board Approved Underwriting Policy No limit, subject to Board Approved Underwriting Policy

What are the various benefits available in Bharati Axa Life Wealth Pro?

Here are various benefits available in Bharati Axa Life Wealth Pro:

I) Death Benefit – in case of the sad demise of the Life Insured during the policy term, the higher of the following death benefit will be paid to the nominee or the policyholder as the case may be-

i) Sum assured minus partial withdrawals made during the two years period immediately preceding the date of death of the Life Assured

ii) Policy Fund Value (including any Loyalty Additions) as on date of death

iii) 105% of all premiums paid as on date of death

Maturity benefit – On maturity, the following benefit is payable:

Growth Variant: Maturity Benefit payable shall be equal to the Policy Fund Value including Return of Mortality Charges, Return of Premium Allocation Charges, and Wealth Boosters as on the date of maturity.

Legacy Variant: Maturity Benefit payable shall be equal to the Policy Fund Value including Loyalty Additions and Wealth Boosters as on the date of maturity.

You may like: Best Term Insurance Plans for 2020-21

How does Bharati Axa Life Wealth Pro work – Explained with example

Let’s consider a case study to understand the working of this policy-

A 40 old person, Mr. X working as a director in a company wants to plan his retirement as well as his daughter’s wedding in 10 years. He wants an investment along with life cover also. He is not able to decide between Growth and Legacy Option.

Mr. X wishes to pay a premium of Rs. 2,00,000 p.a. for a premium payment period of 10 years.

To ensure he is satisfactorily covered, the Sum Assured offered under both Growth and Legacy option is 10 times the premium paid. In case of an untimely demise of Mr. X during the Policy Term, the minimum Death Benefit payable would be Rs. 20,00,000. From the life insurance point of view, he can opt for any variant of the policy. For the investment purpose, lets first analyze the Growth Variant.

Premium Rs. 2,00,000
Premium Payment Term Regular
Policy Term 10 years
Sum Assured Rs. 20,00,000 (10 times the Premium)
Fund opted Equity – Grow Money Plus Fund – 100%
Fund Value on Maturity @4% p.a. Rate of Investment Return
Rs. 22,09,532@8% p.a. Rate of Investment Return
Rs. 27,28,357

Please note that the fund value given in the table is illustrative and not guaranteed.

In case of death of the Life Insured in the fourth year, a death benefit equal to the higher of the sum assured or the fund value will be payable to the nominee.

In this case, death benefit of Rs. 20,00,000 will be payable to the nominee.

Let’s consider the Legacy Variant.

Premium Rs. 2,00,000
Premium Payment Term Limited Pay (10 years)
Policy Term 59 years (99-40)
Sum Assured Rs. 20,00,000 (10 times the Premium)
Fund opted Equity – Grow Money Plus Fund – 100%
Fund Value on Maturity @4% p.a. Rate of Investment Return
Rs. 96,02,366@8% p.a. Rate of Investment Return
Rs. 7,60,57,257

Please note that the fund value given in the table is illustrative and not guaranteed.

In case of death of the Life Insured, in the 9th policy year, Death Benefit equal to the higher of Sum Assured or Fund Value (including Loyalty Additions) will be payable to the nominee.

Are any riders available in the policy?

The following riders are available by paying additional premium:

Bharti AXA Life Hospi Cash Rider – This rider allows payment of a fixed benefit for each day of hospitalization to a maximum of 40 days per year along with providing lump sum benefit in case of surgery.

Bharti AXA Life Accidental Death Benefit Rider – Under this rider, in case of unfortunate event of death due to an accident, the beneficiary receives an additional sum assured as chosen under the rider.

Bharti AXA Life Premium Waiver Rider – Under this rider, in case the Life Insured is diagnosed with any of the 13 critical illnesses covered under the rider, the future premiums are waived off and the benefits under the policy will continue.

Bharti AXA Life Term Rider – In case of an unfortunate event of death during the policy term, the beneficiary receives an additional sum assured.

What are various ULIP Charges in this plan?

Like any other ULIP, even this plan has various ULIP charges.

1) Premium allocation charges: If one purchases this plan through online mode, the charges are low. A) Single premium – 1%; Annual premium mode – 2% to 6% (1 to 5+ years); c)  Non annual premium mode: 2% to 4.5%

2)  Policy administration charges: One has to bear 0.15% for single premium for single premium plan for 1 to 5 years and 0.15% to 0.45% for limited / regular premiums

3) Fund Management Charges: One has to bear 0.5% to 1.35% towards fund management charges

4) Mortality charges: This plan charges between 0.09% to 0.8% of sum assured as mortality charges (depending on the age)

5) Discontinuation charges:  These would range between 0.35% to 2% for 1 to 5 years period. Beyond 5 years, there are no charges

In net summary if you continue your policy, you need to bear atleast 4% to 6% as annual charges including fund management fees.

Why should you buy this ULIP Plan?

The following are the unique reasons to buy this ULIP:

1) Choose a Variant – The plan offers you two variants to choose from –

Growth Variant – This variant offers the term options of 10,15 and 20 years with multiple premium payment term options.

Legacy Variant – to provide a huge corpus to the beneficiary, this variant provides a life insurance coverage of 10 times the annualized premium throughout your policy term (99 years).

2) Increase your wealth with Wealth booster – A percentage of Fund Value is added as a wealth booster subject to Policy being in-force.

3) Multiple Investment Strategies to match your investment requirements: The plan allows you to choose from 2 investment strategies (Dynamic Fund Allocation and Systematic Transfer Plan) along with multiple fund options based on your investment goals and risk-return appetite.

4) Tax Benefit – One can avail of the tax benefits on the premiums paid and the benefits received u/s 80c.

Also Read: Imp things to note about Unit Linked Insurance Plans (ULIPs)

Negative / Hidden Factors in Bharati Axa Life Wealth Pro

Here are some negative factors.

1) High ULIP Charges. The company would charge policy, administrative charges, fund management fees, mortality charges and other charges which would reduce your investment value.

2) One cannot discontinue before 5 years as there is lock-in period of 5 years.

3) In case of emergency, one cannot avail loan on the such ULIP Plans.

Should you opt for Bharati Axa Life Wealth Pro?

ULIP is a combination of investment and life insurance. This ULIP plan offers you the triple benefit of enhanced protection, regular savings, and market-linked returns. The plan offers you to give a life coverage of 10 times of premiums along with helping in building wealth from an early age of 91 days to up to the age of 99 years to make sure that one can fulfill their family dreams. There are many additional and unique benefits attached to the policy like wealth boosters, partial withdrawal, SWP, riders, switching of funds that make this policy apart from the plethora of policies available on the market. However, one should also check the ULIP charges which are as usual high that would reduce your investment value. Instead of such ULIP Plans, one can invest in a diversified portfolio of mutual funds that can provide far better returns. If you are a low risk investor and don’t want to invest in mutual funds, you can just go with bank fixed deposits or post office FDs.

Source: Bharti Axa Life Wealth Pro (IRDA)

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