Listen to this articleIs the Bharti AXA Life Dream Shield Plus Plan truly a smart wealth-building ULIP, or does it fall short when compared with other investment options?
Does the Bharti AXA Life Dream Shield Plus Plan justify its costs and features, or should investors explore alternative ULIPs for better returns?
Is the Bharti AXA Life Dream Shield Plus Plan a dependable tool for disciplined investing, or just another ULIP with hidden trade-offs?
In this article, we examine the Bharti AXA Life Dream Shield Plus Plan, offering an in-depth analysis of its features along with a detailed illustration to assess its effectiveness.
Table of Contents
What is the Bharti AXA Life Dream Shield Plus?
What are the features of the Bharti AXA Life Dream Shield Plus?
Who is eligible for the Bharti AXA Life Dream Shield Plus?
What are the benefits of the Bharti AXA Life Dream Shield Plus?
What are the investment strategies of the Bharti AXA Life Dream Shield Plus?
What are the charges of the Bharti AXA Life Dream Shield Plus?
Grace Period, Discontinuance and Revival of the Bharti AXA Life Dream Shield Plus
Free Look Period for the Bharti AXA Life Dream Shield Plus
Surrendering the Bharti AXA Life Dream Shield Plus
What are the advantages of the Bharti AXA Life Dream Shield Plus?
What are the disadvantages of the Bharti AXA Life Dream Shield Plus?
Research Methodology of Bharti AXA Life Dream Shield Plus
Benefit Illustration – IRR Analysis of Bharti AXA Life Dream Shield Plus
Bharti AXA Life Dream Shield Plus Vs. Other Investments
Bharti AXA Life Dream Shield Plus Vs. Pure-term + Equity Mutual Fund
Final Verdict on Bharti AXA Life Dream Shield Plus
What is the Bharti AXA Life Dream Shield Plus?
Bharti AXA Life Dream Shield Plus is a Unit Linked, Non-Participating Individual Savings Life Insurance Plan. It is a term-oriented Unit Linked Insurance Plan.
This plan offers you a comprehensive financial solution that gives you life cover up to 100 times your premium and helps build wealth over the long term.
What are the features of the Bharti AXA Life Dream Shield Plus?
- Between 100% and 300% of the mortality charges are credited back to the fund value from the end of the 11th policy year.
- A Milestone Benefit is added to the fund at the end of every five years, starting from the 10th policy year and continuing until five years prior to maturity, calculated as a percentage of the fund value.
- A Loyalty Booster is credited to the Bharti AXA Life Dream Shield Plus Plan policy at maturity as a percentage of the average fund value of the three years immediately preceding the maturity date, based on the chosen policy term.
- The plan offers multiple premium payment terms and policy term options, providing flexibility to suit different financial needs.
- You can choose between two investment strategies and multiple fund options, aligned with your financial goals and risk-return profile.
- Tax benefits may be available on the premiums paid and the benefits received, subject to prevailing tax laws.
Who is eligible for the Bharti AXA Life Dream Shield Plus?
What are the benefits of the Bharti AXA Life Dream Shield Plus?
Death Benefit
Upon the death of the Life Insured, provided the Bharti AXA Life Dream Shield Plus Plan policy is in force, and all due premiums till the date of death have been paid, the Death Benefit will be payable on intimation of death.
Death Benefit, which is the highest of:
- Sum assured less applicable partial withdrawal amount from the Fund value
- Policy Fund Value as on the date of intimation of death of the Life Insured
- 105% of all total premiums paid as on the date of death, less applicable partial withdrawal amount from the fund value
Where the Sum Assured is as defined as Annualised Premium x Death Benefit Multiple (DBM)
Maturity Benefit
Policy Fund Value as on the date of maturity is paid as the Maturity benefit. Fund Value is defined as the total value of units in a segregated fund, i.e. total number of units under a policy multiplied by the Net Asset Value (NAV) per unit of that fund.
Milestone Benefits
Provided the policy is in force, and all due premiums have been paid, the Milestone Benefits will be credited to the Fund at the end of each of the applicable policy years during the Policy Term until 5 years preceding the maturity.
| End of Policy Year | Milestone Benefits (% of Fund Value) |
| 10 | 1.50% |
| 15 | 1.50% |
| 20 | 2.00% |
| 25 | 2.00% |
| 30 | 2.50% |
| 35 | 2.50% |
Return of Mortality charges (RoMC):
Subject to Policy being in force and all due premiums being paid, 100% to 300% (depending upon the policy year) of Mortality charges (excluding any extra Mortality charge & or any other applicable tax/cess levied) deducted during the Bharti AXA Life Dream Shield Plus Plan Policy term will be credited into the Fund Value.
Loyalty Boosters
Provided the Bharti AXA Life Dream Shield Plus Plan policy is in force, and all due premiums have been paid, Loyalty Booster will be credited to the Fund at the Date of Maturity.
Settlement Option
On Maturity, you may choose to receive the Bharti AXA Life Dream Shield Plus Plan Policy Fund Value as:
Option 1 – A lump sum payment on the date of maturity
Option 2 – At regular intervals chosen by you, during the Settlement Period
Option 3 – A combination of the above
What are the investment strategies of the Bharti AXA Life Dream Shield Plus?
Depending on your financial objectives, you have the choice of putting your premiums in any or all of the following eight investment funds mentioned below:
| Asset Allocation | |||||
| S.no | Fund Name | Debt | Money Market Instruments | Equities | Risk Profile |
| 1 | Growth Opportunities Plus Fund | – | 0-20% | 80-100% | High |
| 2 | Grow Money Plus Fund | – | 0-20% | 80-100% | High |
| 3 | Build India Fund | 0-20% | 0-20% | 80-100% | High |
| 4 | Save ‘n’ grow Money Fund | 0-90% | 0-40% | 0-60% | Moderate |
| 5 | Steady Money Fund | 60-100% | 0-40% | – | Low |
| 6 | Safe Money Fund | 60-100% | 0-40% | – | Low |
| 7 | Stability Plus Money Fund | 55-100% | 0-20% | 0-25% | Moderate |
| 8 | Emerging Equity Fund | – | 0-35% | 65-100% | High |
| Money Market securities | Government securities | ||||
| Discontinued Policy Fund | 0-40% | 0-60% | |||
Investment Strategies
At the inception of the Bharti AXA Life Dream Shield Plus Plan Policy, you may also choose to allocate the premium/s in one of the Investment strategies as per the conditions of the Product, with a maximum of two Investment strategies being available.
You shall have the option to choose only one of the Strategies at a time.
Dynamic Fund Allocation
In case this strategy is chosen at inception, the 1st and subsequent premiums will be allocated (after deducting Premium Allocation Charges) to the Grow Money Plus Fund.
During the last 5 years of the Bharti AXA Life Dream Shield Plus Plan Policy Term (before maturity), the funds will automatically be rebalanced between the Grow Money Plus Fund and the Steady Money Fund to protect you against any adverse movements in the equity markets.
The Company will automatically allocate the monies between the Grow Money Plus Fund and the Steady Money Fund, from the end of the 5th year before Policy Maturity, in a pre-determined manner as described below, through switching Units in the respective Fund
| Year | Existing Funds | |
| Grow Money Plus Fund | Steady Money Fund | |
| (PT-5) yr | 80% | 20% |
| (PT-4) yr | 75% | 25% |
| (PT-3) yr | 70% | 30% |
| (PT-2) yr | 50% | 50% |
| (PT-1) yr | 0% | 100% |
Systematic Transfer Plan (STP)
The Company will automatically allocate the Premium received (after deducting Premium Allocation Charges) to purchase Units in the Safe Money Fund.
On each subsequent monthly anniversary, the Fund Value of [1/ (13 less month number in the Bharti AXA Life Dream Shield Plus Plan Policy Year)] of the Units available at the beginning of the month] shall be switched to the Grow Money Plus Fund by cancelling Units in the Safe Money Fund, and purchasing Units in the Grow Money Plus Fund till the availability of Units in Safe Money Fund.
You shall not be permitted to make partial withdrawals from the Safe Money Fund during the period when this investment strategy option is in force.
While STP is operational, you are not allowed to change your fund choice. This strategy can be availed only on annual Premium payment mode.
What are the charges of the Bharti AXA Life Dream Shield Plus?
i). Premium Allocation Charge
The Premium allocation charge is as per the table below
| Policy Term | % of Annualised Premium |
| Year 1 | 12.00% |
| Year 2 | 6.00% |
| Year 3 | 3.00% |
| Year 4 | 3.00% |
| Year 5 onwards | Nil |
ii). Mortality Charge
Mortality charges will be deducted from the Bharti AXA Life Dream Shield Plus Plan Policy Fund Value on the Policy Date in each Policy Month.
The annual charge per thousand of Sum at Risk will be based on the attained Age of the Bharti AXA Life Dream Shield Plus Plan policyholder, age last birthday. Sum at Risk = Higher of (Death Benefit – Fund Value, 0)
iii). Policy Administration Charge
A monthly charge as a percentage of premiums chosen at the inception of the policy will be deducted by cancellation of Units at the prevailing Unit Price on the corresponding Policy Date in each Policy Month, starting from the 5th policy year.
The monthly policy administration charge is 0.50% as a percentage of the annualised premium. The Bharti AXA Life Dream Shield Plus Plan policy administration charge is subject to a maximum of Rs. 500 per month.
iv).Fund Management Charge
| S.no | Fund | v). Fund Management Charge |
| 1 | Growth Opportunities Plus Fund | 1.35% per annum |
| 2 | Grow Money Plus Fund | 1.35% per annum |
| 3 | Build India Fund | 1.35% per annum |
| 4 | Emerging Equity Fund | 1.35% per annum |
| 5 | Save ‘nʼ grow Money Fund | 1.25% per annum |
| 6 | Steady Money Fund | 1.00% per annum |
| 7 | Safe Money Fund | 1.00% per annum |
| 8 | Stability Plus Money Fund | 0.80% per annum |
| Discontinued Policy Fund | 0.50% per annum |
vi). Discontinuance Charge:
The Discontinuance Charge shall be levied at the time of surrender or on Discontinuance of Premium, whichever is earlier. It depends on the premium amount and the year of discontinuance.
vii). Inference from Charges: Although the plan refunds Mortality charges, it doesn’t account for the time value of money. Moreover, some charges are deducted regularly throughout the Bharti AXA Life Dream Shield Plus Plan policy term.
Over time, these ongoing deductions can significantly erode your investment value and reduce long-term returns.
Grace Period, Discontinuance and Revival of the Bharti AXA Life Dream Shield Plus
a). Grace Period
The Bharti AXA Life Dream Shield Plus Plan Policyholder gets a grace period of Fifteen (15) days in case of Monthly Premium Payment Mode and Thirty (30) days in case of Annual/ Semi Annual/ Quarterly Premium Payment mode.
b). Discontinuance
Discontinuance of Premium during lock-in period: the fund value after deducting the applicable discontinuance charges shall be credited to the discontinued policy fund, and the risk cover and rider cover, if any, shall cease.
At the end of the lock-in period, the proceeds of the discontinuance fund shall be paid to the Policyholder, and the Bharti AXA Life Dream Shield Plus Plan Policy shall terminate
Discontinuance of Policy after the lock-in Period: the Bharti AXA Life Dream Shield Plus Plan Policy shall be converted into a reduced paid-up policy with the paid-up sum assured, i.e. original sum assured multiplied by the total number of premiums paid to the original number of premiums payable as per the terms and conditions of the Policy.
c). Revival
The revival period for this product is three years from the date of the first unpaid premium.
Free Look Period for the Bharti AXA Life Dream Shield Plus
If you disagree with any of the terms and conditions of the Bharti AXA Life Dream Shield Plus Plan Policy, you can return the original Policy along with a letter stating the reason/s within 30 days of receipt of the Policy.
Surrendering the Bharti AXA Life Dream Shield Plus
Surrender during the lock-in period: the Bharti AXA Life Dream Shield Plus Plan Policyholder has an option to surrender the Policy anytime, and proceeds of the discontinued policy shall be payable at the end of the lock-in period or date of surrender, whichever is later.
Surrender after the lock-in period: the Bharti AXA Life Dream Shield Plus Plan Policyholder has an option to surrender the Policy anytime, and the proceeds of the policy fund shall be payable.
What are the advantages of the Bharti AXA Life Dream Shield Plus?
- Partial withdrawals from the Bharti AXA Life Dream Shield Plus Plan policy fund value are permitted at any time after the completion of the mandatory lock-in period of five years.
- The Systematic Withdrawal Benefit enables automated partial withdrawals, allowing a pre-determined amount to be withdrawn from the policy fund value at the end of the selected policy year.
- The Switch and Premium Redirection features provide flexibility to rebalance asset allocation between equity and debt in line with changing financial requirements.
- Optional riders can be added to the base policy to enhance coverage.
- Premiums can be paid on a Monthly, Quarterly, Semi-Annual, or Annual basis, offering payment flexibility.
What are the disadvantages of the Bharti AXA Life Dream Shield Plus?
- The plan has a 5-year lock-in period, restricting early access to your funds.
- Only the net premium, after deducting various charges, is invested, reducing the effective investment amount.
- The risk–return trade-off is unfavourable, making it a less efficient investment option.
- No loan facility is available under this plan, limiting liquidity during financial emergencies
Research Methodology of Bharti AXA Life Dream Shield Plus
In this section, we assess the potential returns of the Bharti AXA Life Dream Shield Plus Plan based on the benefit illustration provided in the official policy brochure.
Evaluating projected returns is critical for making informed investment decisions, and this analysis aims to determine whether the plan aligns with long-term financial objectives.
Benefit Illustration – IRR Analysis of Bharti AXA Life Dream Shield Plus
Consider a 35-year-old male investor opting for a sum assured of ₹50 lakh, a policy term of 30 years, and a premium-paying term of 10 years.
The annual premium is ₹1 lakh, with maturity benefits payable at the end of the Bharti AXA Life Dream Shield Plus Plan policy term.
| Male | 35 years |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
The returns are illustrated under two scenarios, assuming annual investment returns of 4% and 8%. These projections are purely illustrative and not guaranteed.
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 50,00,000 | -1,00,000 | 50,00,000 |
| 36 | 2 | -1,00,000 | 50,00,000 | -1,00,000 | 50,00,000 |
| 37 | 3 | -1,00,000 | 50,00,000 | -1,00,000 | 50,00,000 |
| 38 | 4 | -1,00,000 | 50,00,000 | -1,00,000 | 50,00,000 |
| 39 | 5 | -1,00,000 | 50,00,000 | -1,00,000 | 50,00,000 |
| 40 | 6 | -1,00,000 | 50,00,000 | -1,00,000 | 50,00,000 |
| 41 | 7 | -1,00,000 | 50,00,000 | -1,00,000 | 50,00,000 |
| 42 | 8 | -1,00,000 | 50,00,000 | -1,00,000 | 50,00,000 |
| 43 | 9 | -1,00,000 | 50,00,000 | -1,00,000 | 50,00,000 |
| 44 | 10 | -1,00,000 | 50,00,000 | -1,00,000 | 50,00,000 |
| 45 | 11 | 0 | 50,00,000 | 0 | 50,00,000 |
| 46 | 12 | 0 | 50,00,000 | 0 | 50,00,000 |
| 47 | 13 | 0 | 50,00,000 | 0 | 50,00,000 |
| 48 | 14 | 0 | 50,00,000 | 0 | 50,00,000 |
| 49 | 15 | 0 | 50,00,000 | 0 | 50,00,000 |
| 50 | 16 | 0 | 50,00,000 | 0 | 50,00,000 |
| 51 | 17 | 0 | 50,00,000 | 0 | 50,00,000 |
| 52 | 18 | 0 | 50,00,000 | 0 | 50,00,000 |
| 53 | 19 | 0 | 50,00,000 | 0 | 50,00,000 |
| 54 | 20 | 0 | 50,00,000 | 0 | 50,00,000 |
| 55 | 21 | 0 | 50,00,000 | 0 | 50,00,000 |
| 56 | 22 | 0 | 50,00,000 | 0 | 50,00,000 |
| 57 | 23 | 0 | 50,00,000 | 0 | 50,00,000 |
| 58 | 24 | 0 | 50,00,000 | 0 | 50,00,000 |
| 59 | 25 | 0 | 50,00,000 | 0 | 50,00,000 |
| 60 | 26 | 0 | 50,00,000 | 0 | 50,00,000 |
| 61 | 27 | 0 | 50,00,000 | 0 | 50,00,000 |
| 62 | 28 | 0 | 50,00,000 | 0 | 50,00,000 |
| 63 | 29 | 0 | 50,00,000 | 0 | 50,00,000 |
| 64 | 30 | 0 | 50,00,000 | 0 | 50,00,000 |
| 65 | 12,06,586 | 42,52,101 | |||
| IRR | 0.74% | 5.79% |
Under the 4% return scenario, the projected fund value at maturity is ₹12.06 lakh, resulting in an Internal Rate of Return (IRR) of only 0.74% as per the Bharti AXA Life Dream Shield Plus Plan maturity calculator.
Under the 8% return scenario, the projected fund value increases to ₹42.52 lakh, translating into an IRR of 5.79% as per the Bharti AXA Life Dream Shield Plus Plan maturity calculator.
These projections indicate that the plan delivers modest returns even under optimistic assumptions. The low IRRs highlight its limited wealth creation potential, increasing the likelihood of falling short of long-term financial goals.
For investors seeking meaningful long-term growth, the Bharti AXA Life Dream Shield Plus Plan does not present a compelling proposition as an investment vehicle.
Bharti AXA Life Dream Shield Plus Vs. Other Investments
As an investor, your primary objective is to grow wealth by earning returns that outpace inflation. Allocating capital to low-return, market-linked products such as ULIPs may not effectively serve this purpose.
Let us examine an alternative investment approach that offers superior returns and greater flexibility, using the same parameters as the earlier illustration.
Bharti AXA Life Dream Shield Plus Vs. Pure-term + Equity Mutual Fund
In the earlier example, the Bharti AXA Life Dream Shield Plus Plan provided a sum assured of ₹50 lakh with an annual premium of ₹1 lakh.
For a like-for-like comparison, we consider a pure term life insurance policy with an identical sum assured of ₹50 lakh, available at an annual premium of ₹14,800 (25-year policy term with a 10-year premium-paying term).
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 14,800 |
| Investment | ₹ 85,200 |
By opting for term insurance, you save ₹85,200 annually, which can be redirected toward investments aligned with your risk appetite.
Conservative investors may choose instruments such as PPF for stable, tax-efficient returns, while growth-oriented investors can opt for equity mutual funds for higher market-linked appreciation.
Assuming the investable surplus of ₹82,800 is deployed in an equity mutual fund, the projected maturity value works out to ₹1.61 crore.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 50,00,000 |
| 36 | 2 | -1,00,000 | 50,00,000 |
| 37 | 3 | -1,00,000 | 50,00,000 |
| 38 | 4 | -1,00,000 | 50,00,000 |
| 39 | 5 | -1,00,000 | 50,00,000 |
| 40 | 6 | -1,00,000 | 50,00,000 |
| 41 | 7 | -1,00,000 | 50,00,000 |
| 42 | 8 | -1,00,000 | 50,00,000 |
| 43 | 9 | -1,00,000 | 50,00,000 |
| 44 | 10 | -1,00,000 | 50,00,000 |
| 45 | 11 | 0 | 50,00,000 |
| 46 | 12 | 0 | 50,00,000 |
| 47 | 13 | 0 | 50,00,000 |
| 48 | 14 | 0 | 50,00,000 |
| 49 | 15 | 0 | 50,00,000 |
| 50 | 16 | 0 | 50,00,000 |
| 51 | 17 | 0 | 50,00,000 |
| 52 | 18 | 0 | 50,00,000 |
| 53 | 19 | 0 | 50,00,000 |
| 54 | 20 | 0 | 50,00,000 |
| 55 | 21 | 0 | 50,00,000 |
| 56 | 22 | 0 | 50,00,000 |
| 57 | 23 | 0 | 50,00,000 |
| 58 | 24 | 0 | 50,00,000 |
| 59 | 25 | 0 | 50,00,000 |
| 60 | 26 | 0 | 50,00,000 |
| 61 | 27 | 0 | |
| 62 | 28 | 0 | |
| 63 | 29 | 0 | |
| 64 | 30 | 0 | |
| 65 | 1,42,56,348 | ||
| IRR | 10.80% | ||
After accounting for capital gains tax, the post-tax corpus stands at approximately ₹1.42 crore, translating into a post-tax Internal Rate of Return (IRR) of 10.80%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 30 years | 1,61,53,398 |
| Purchase price | 8,52,000 |
| Long-Term Capital Gains | 1,53,01,398 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 1,51,76,398 |
| Tax paid on LTCG | 18,97,050 |
| Maturity value after tax | 1,42,56,348 |
This strategy delivers inflation-beating returns and offers significantly higher flexibility to align investments with evolving financial goals. By separating insurance and investment, you secure adequate life cover while optimising wealth creation.
Unlike ULIPs, where returns are diluted by charges and rigid structures, this approach provides greater control, cost efficiency, and superior financial outcomes.
Consequently, the Bharti AXA Life Dream Shield Plus Plan may not be an appropriate choice for long-term, goal-based investing.
Final Verdict on Bharti AXA Life Dream Shield Plus
The Bharti AXA Life Dream Shield Plus Plan combines life insurance protection with a market-linked investment component. In the event of the Bharti AXA Life Dream Shield Plus Plan policyholder’s death, the death benefit is payable as a lump sum.
On maturity, the benefits can be received either as a lump sum or in instalments.
While the plan offers features such as the refund of mortality charges along with additions like milestone benefits and loyalty boosters to the fund value, beyond these elements, it functions like a conventional ULIP—an investment structure typically associated with modest returns.
A detailed analysis of the projected outcomes indicates that the plan is unlikely to help build a meaningful corpus over the long term and it also has a high agent commission.
One of its key drawbacks is the high-cost structure, with multiple charges levied throughout the Bharti AXA Life Dream Shield Plus Plan policy term.
As a result, investing in the Bharti AXA Life Dream Shield Plus Plan may actually impede long-term wealth creation rather than support it.
Relying on a bundled insurance-and-investment product such as a ULIP is generally not an efficient way to achieve financial goals.
A more effective approach is to separate insurance and investment: opt for a pure term life insurance policy to secure adequate risk coverage and invest the remaining surplus independently in instruments aligned with your risk appetite and financial objectives.
This strategy offers superior returns, better liquidity, and greater flexibility when compared to ULIPs.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For personalised guidance, it is advisable to consult a Certified Financial Planner (CFP), who can design a customised financial plan based on your risk profile, investment horizon, and specific goals.
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