Bharti AXA Life Child Advantage
Is the Bharti AXA Life Child Advantage Plan truly a smart way to secure your child’s financial future — or just another traditional policy with limited upside?
Does the Bharti AXA Life Child Advantage Plan give parents true flexibility to adapt to changing goals — or does its structure restrict strategic financial planning?
Is the Bharti AXA Life Child Advantage Plan ideal for conservative, risk-averse families — or too conservative for long-term wealth creation?
This article examines the plan’s features, advantages, and limitations, supported by a detailed illustration to help you make an informed decision.
What is the Bharti AXA Life Child Advantage Plan?
What are the features of the Bharti AXA Life Child Advantage Plan?
Who is eligible for the Bharti AXA Life Child Advantage Plan?
What are the benefits of the Bharti AXA Life Child Advantage Plan?
Grace Period, Discontinuance and Revival of the Bharti AXA Life Child Advantage Plan
Free Look Period for the Bharti AXA Life Child Advantage Plan
Surrendering the Bharti AXA Life Child Advantage Plan
What are the advantages of the Bharti AXA Life Child Advantage Plan?
What are the disadvantages of the Bharti AXA Life Child Advantage Plan?
Research Methodology of Bharti AXA Life Child Advantage Plan
Benefit illustration – IRR Analysis of Bharti AXA Life Child Advantage Plan
Bharti AXA Life Child Advantage Plan Vs. Other Investments
Bharti AXA Life Child Advantage Plan Vs. Pure-term + Equity Mutual Fund
Final Verdict on Bharti AXA Life Child Advantage Plan
Bharti AXA Life Child Advantage Plan is a Non-linked Participating Individual Life Insurance Savings Plan. The Plan offers you guaranteed payouts at key milestones and waives all future premiums in case of an unfortunate event, thus ensuring your child’s dreams are never compromised.
| Parameter | Eligibility Criteria | |
| Premium Type | Regular Pay | Limited Pay |
| Policy Term | 11 to 21 years | 11 to 21 years |
| Premium Payment Term | Same as Policy Term | Policy Term minus 5 years |
| Minimum age at entry | 18 years | 18 years |
| Maximum age at entry | 50 years | 55 years |
| Maximum Maturity Age | 71 years for Regular Pay | 76 years for Limited Pay |
| Minimum Sum Assured | ₹ 25,000 | |
| Minimum Annualised Premium | Depends on the Minimum Sum Assured | |
| Premium Payment Modes | Annual, Semi-annual, Quarterly, Monthly | |
Option 1: Money Back Option
Under this option, 40% of the Sum Assured will be paid on the Maturity Date at the end of the Bharti AXA Life Child Advantage Plan Policy Term.
This option also offers Guaranteed Payouts (adding up to 70% of the sum assured), which would be as defined in the Guaranteed Payouts section.
Option 2: Endowment Option
Under this option, 125% of the Sum Assured will be paid on Maturity Date at the end of the Policy Term. No Guaranteed Payouts would be paid under this option.
The Money Back or Endowment Option should be chosen at the inception of the Policy and cannot be changed during the Bharti AXA Life Child Advantage Plan Policy Term.
Guaranteed Payout (Applicable only for Money Back Option)
The Guaranteed Payouts would be paid to the Life Insured or nominee in the event of death of the Life Insured, if all due premiums have been paid and the Bharti AXA Life Child Advantage Plan policy is in force.
The Guaranteed Payouts would be paid during the last 5 Policy Years before Maturity Date as defined below:
| Time of Guaranteed Payouts | % of Sum Assured Payable |
| End of 5th Year before the Maturity Date | 10% |
| End of 4th Year before the Maturity Date | 10% |
| End of 3rd Year before the Maturity Date | 15% |
| End of 2nd Year before the Maturity Date | 15% |
| End of1st Year before the Maturity Date | 20% |
Non-guaranteed benefits
The Non-Guaranteed Annual Simple Reversionary Bonus is declared as a percentage of Sum Assured and is calculated at a simple rate of interest.
It shall accrue to the Policy on the Policy Anniversary Date immediately following the date of its declaration and will be payable on the Maturity Date.
In the event of the death of the Life Insured, the bonuses will continue to accrue to the Policy, provided the Policy was in force at the time of the unfortunate event of death of the Life Insured.
Non-Guaranteed Terminal Bonus (if declared) will be payable on the Maturity Date of the Policy. Non-Guaranteed Terminal Bonus is a percentage of accrued Non-Guaranteed Annual Simple Reversionary bonuses.
In case of the unfortunate event of death of the Life Insured during the Bharti AXA Life Child Advantage Plan Policy Term, the Death Benefit payable shall be the higher of the following, subject to the Policy being in force.
The Sum Assured on Death will be the higher of:
Sum Assured on Maturity is 110% of Sum Assured for Money Back Option or 125% of Sum Assured for Endowment Option.
In addition to the above, all outstanding premiums would be waived off, and all the benefits under the Bharti AXA Life Child Advantage Plan would continue as scheduled.
For the Money Back Option, the Guaranteed Payouts already paid will not be deducted from the Death Benefit.
Grace Period is 15 days for the monthly mode and 30 days for annual/ semi-annual/ quarterly premium payment modes.
The policy acquires a surrender value after completion of the first policy year, provided one full year’s premium has been received.
If the Policy has not acquired a Surrender Value: In case you do not pay the premiums within your grace period, your policy will lapse, and your insurance cover will cease to exist. You have the option to revive the policy within the period given for the revival of the policy.
At the end of the revival period, if the policy is not revived, then the policy will be terminated, and no benefits will be payable.
If Policy has acquired a Surrender Value: After completion of the first policy year, provided one full year’s premium has been received, and further premiums have not been paid due to any reason, the Policy will automatically be converted into Paid up, on expiry of the Grace period.
You have the flexibility to revive all the benefits under your Bharti AXA Life Child Advantage Plan policy within five years of the due date of the premium in default.
If the Policyholder disagrees with any of the terms and conditions of the Policy, there is an option to return the original Policy along with a letter stating the reason/s within 30 days of receipt of the Policy.
The policy acquires a surrender value after completion of the first policy year, provided one full year’s premium has been received.
The Special Surrender Value shall become payable after completion of the first policy year, provided one full year’s premium has been received.
The policy acquires Guaranteed Surrender Value after the payment of premiums for at least two consecutive years. The surrender benefit will be payable immediately on surrender.
The Bharti AXA Life Child Advantage Plan offers guaranteed survival benefits during the final years of the policy term, along with non-guaranteed bonuses payable upon maturity.
To understand the cash-flow structure, let us review a benefit illustration from the policy brochure.
Consider a 35-year-old male who purchases the Bharti AXA Life Child Advantage Plan with a base sum assured of ₹18.18 lakh, a policy term of 20 years, and a premium-paying term of 20 years. The annual premium is ₹1 lakh.
| Male | 35 years |
| Sum Assured | ₹ 18,18,512 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Annualised Premium | ₹ 1,00,000 |
During the last five years of the policy, the policyholder receives guaranteed payouts, followed by a maturity benefit at the end of the policy term, which is dependent on bonus declarations.
The projected benefits under 4% and 8% return scenarios are illustrative and subject to the insurer’s performance.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 36 | 2 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 37 | 3 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 38 | 4 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 39 | 5 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 40 | 6 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 41 | 7 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 42 | 8 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 43 | 9 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 44 | 10 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 45 | 11 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 46 | 12 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 47 | 13 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 48 | 14 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 49 | 15 | -1,00,000 | 18,18,512 | -1,00,000 | 18,18,512 |
| 50 | 16 | 81,851 | 18,18,512 | 81,851 | 18,18,512 |
| 51 | 17 | 81,851 | 18,18,512 | 81,851 | 18,18,512 |
| 52 | 18 | 1,72,777 | 18,18,512 | 1,72,777 | 18,18,512 |
| 53 | 19 | 1,72,777 | 18,18,512 | 1,72,777 | 18,18,512 |
| 54 | 20 | 2,63,702 | 18,18,512 | 2,63,702 | 18,18,512 |
| 55 | 11,67,485 | 19,27,623 | |||
| 2.13% | 4.74% | ||||
The benefits received are as follows:
End of the 15th and 16th year: ₹1,81,851 each
End of the 17th and 18th year: ₹2,72,777 each
End of the 19th year: ₹3,63,702
End of the 20th year: ₹7,27,405 plus bonus
Bonus at 4%: ₹4,40,080
Bonus at 8%: ₹12,00,218
Under the 4% scenario, the internal rate of return (IRR) works out to just 2.13% as per the Bharti AXA Life Child Advantage Plan maturity calculator, which does not add any meaningful value to the investment.
Even under the 8% scenario, the IRR improves only to 4.74% as per the Bharti AXA Life Child Advantage Plan maturity calculator, which remains lower than returns offered by most debt instruments.
This analysis clearly indicates that despite the presence of guaranteed benefits, the overall returns are inadequate. With education costs rising at an inflation rate of 8%–10%, these payouts are unlikely to meaningfully support future education expenses.
Additionally, the sum assured is insufficient to meet even basic family protection needs. Investing in the Bharti AXA Life Child Advantage Plan may therefore significantly compromise your long-term financial goals.
Let us examine an alternative approach in which the same premium outlay is deployed more efficiently to generate the required cash flows.
This can be achieved by clearly separating insurance and investment, rather than combining them within a traditional insurance product. The following illustration explains this approach in detail.
Under the Bharti AXA Life Child Advantage Plan, the death benefit consists of the sum assured along with applicable bonuses. In the earlier example, the sum assured was ₹18.18 lakh.
Instead, consider opting for a pure-term life insurance policy with a higher sum assured of ₹25 lakh, a policy term of 20 years, and a premium-paying term of 20 years. The annual premium for such a policy is approximately ₹7,400.
This leaves ₹92,600 out of the ₹1 lakh annual outflow available for investment, which can be allocated based on the investor’s risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 25,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Annualised Premium | ₹ 7,400 |
| Investment | ₹ 92,600 |
For investors with a higher risk tolerance, equity-oriented instruments such as equity mutual funds can be considered. Conservative investors may prefer debt-oriented options like the Public Provident Fund (PPF).
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 25,00,000 |
| 36 | 2 | -1,00,000 | 25,00,000 |
| 37 | 3 | -1,00,000 | 25,00,000 |
| 38 | 4 | -1,00,000 | 25,00,000 |
| 39 | 5 | -1,00,000 | 25,00,000 |
| 40 | 6 | -1,00,000 | 25,00,000 |
| 41 | 7 | -1,00,000 | 25,00,000 |
| 42 | 8 | -1,00,000 | 25,00,000 |
| 43 | 9 | -1,00,000 | 25,00,000 |
| 44 | 10 | -1,00,000 | 25,00,000 |
| 45 | 11 | -1,00,000 | 25,00,000 |
| 46 | 12 | -1,00,000 | 25,00,000 |
| 47 | 13 | -1,00,000 | 25,00,000 |
| 48 | 14 | -1,00,000 | 25,00,000 |
| 49 | 15 | -1,00,000 | 25,00,000 |
| 50 | 16 | 81,851 | 25,00,000 |
| 51 | 17 | 81,851 | 25,00,000 |
| 52 | 18 | 1,72,777 | 25,00,000 |
| 53 | 19 | 1,72,777 | 25,00,000 |
| 54 | 20 | 2,63,702 | 25,00,000 |
| 55 | 52,63,783 | ||
| IRR | 10.80% |
Assuming an equity mutual fund is chosen, and the cash-flow pattern is structured to mirror that of the Bharti AXA Life Child Advantage Plan, the results are significantly different.
Capital gains tax is assumed only at the final redemption, after considering the annual exemption limit of ₹1.25 lakh. Under these assumptions, the internal rate of return (IRR) works out to 10.80%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 57,33,323 |
| Purchase price | 18,52,000 |
| Long-Term Capital Gains | 38,81,323 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 37,56,323 |
| Tax paid on LTCG | 4,69,540 |
| Maturity value after tax | 52,63,783 |
Moreover, if no interim withdrawals are made and the investment is allowed to compound, the effective returns would be even higher.
This comparison clearly highlights that separating insurance and investment offers superior liquidity, flexibility, and return potential, making it a far more efficient strategy for achieving long-term financial goals.
The Bharti AXA Life Child Advantage Plan offers guaranteed cash payouts along with life insurance coverage. Features such as a premium waiver and policy continuance in the event of death add to its appeal.
However, selecting this product solely on the basis of guaranteed payouts may not be a prudent decision. A return analysis indicates that the plan delivers sub-optimal performance, with returns often lower than those offered by standard debt instruments.
For long-term financial goals, investment returns must exceed inflation. Unfortunately, the returns generated by the Bharti AXA Life Child Advantage Plan are inadequate to meet major life goals.
While the plan does provide a lump-sum death benefit, along with premium waiver and policy continuance benefits, these features alone are insufficient to truly secure your child’s future and it also has a high agent commission.
No off-the-shelf children’s plan can effectively address the rapidly rising cost of education. A more practical approach is to invest separately, based on your risk appetite and investment time horizon.
Instead of relying on rigid and inflexible cash payouts from a children’s plan, starting early and planning investments proactively yields better outcomes.
Adequate life insurance coverage is a critical foundation for achieving all financial goals. Opting for a pure-term life insurance policy ensures sufficient protection at a relatively low cost.
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To build a well-diversified investment portfolio and determine the appropriate level of insurance coverage, consulting a Certified Financial Planner is strongly recommended.
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