Bharti AXA Life Elite Advantage Plan: Good or Bad? An Insightful Review
Is the Bharti AXA Life Elite Advantage Plan truly a smart wealth-building choice, or does it fall short when compared to other market-linked options?
Can the Bharti AXA Life Elite Advantage Plan help you achieve your financial goals, or are there more transparent and flexible alternatives available?
Does this Bharti AXA Life Elite Advantage plan genuinely balance insurance protection and investment growth, or are the returns not worth the long-term commitment?
This article evaluates the plan’s suitability by closely examining its features, along with its key advantages and limitations.
What is the Bharti AXA Life Elite Advantage?
What are the features of the Bharti AXA Life Elite Advantage?
Who is eligible for the Bharti AXA Life Elite Advantage?
What are the benefits of the Bharti AXA Life Elite Advantage?
Grace Period, Discontinuance and Revival of the Bharti AXA Life Elite Advantage
Free Look Period for the Bharti AXA Life Elite Advantage
Surrendering the Bharti AXA Life Elite Advantage
What are the advantages of the Bharti AXA Life Elite Advantage?
What are the disadvantages of the Bharti AXA Life Elite Advantage?
Research Methodology of Bharti AXA Life Elite Advantage
Benefit Illustration – IRR of Bharti Life Elite Advantage
Bharti AXA Life Elite Advantage Plan Vs. Other Investments
Bharti AXA Life Elite Advantage Plan Vs. Pure-term + Equity Mutual Fund
Final Verdict on Bharti AXA Life Elite Advantage
Bharti AXA Life Elite Advantage is a Non-Linked, Non-Participating, Life, Individual, Savings Product. It provides guaranteed regular returns after the end of the Bharti AXA Life Elite Advantage Plan policy term, so that the payouts continue even after the Life Cover period is over.
You will also receive the Sum Assured at the end of the Maturity Payout Period, provided the Bharti AXA Life Elite Advantage Plan policy is in force, and all due premiums are paid.
| Parameter | Eligibility Criteria |
| Minimum age at entry (age as on last birthday) | 8 years for 10-year Policy Term 6 years for 12-year Policy Term |
| Maximum age at entry (age as on last birthday) | 65 years |
| Maximum Maturity Age (age as on last birthday) | 75 years for 10-year policy term 77 years for 12-year Policy Term |
| Minimum Sum Assured | Depends on the minimum premium |
| Maximum Sum Assured | No Limit, subject to Board Approved Underwriting Policy (BAUP) |
| Minimum Annualised Premium | ₹ 24,000 for 5-year Premium Payment Term |
| ₹ 15,000 for 7-year Premium Payment Term | |
| ₹ 12,000 for 12-year Premium Payment Term | |
| Maximum Annualised Premium | No Limit |
| Policy Term | 10 and 12 years |
| Premium Payment Term | 5 years for a 10-year Policy Term |
| 7/12 years for a 12-year Policy Term | |
| Premium Payment Modes | Annual, Semi-Annual, Quarterly, Monthly |
| Maturity Payout Period | End of 10th year till end of 20th year for 10-year Policy Term |
| End of 12th year till end of 20th year for 12-year Policy Term | |
| Guaranteed Payout frequency | Annual, Semi-Annual, Quarterly |
If the Life Insured survives till the maturity of the Bharti AXA Life Elite Advantage Plan Policy and all premiums are duly paid, then the Guaranteed Payout and the sum assured – benefits, as mentioned below, will be paid to the Policyholder.
A percentage of Sum Assured on Maturity (as mentioned below) is paid during the Maturity Payout Period, starting from the end of the Bharti AXA Life Elite Advantage Plan policy term till the end of the 19th year.
The frequency of the guaranteed payout will be Annual/Semi-Annual/Quarterly, as chosen by the Policyholder.
The Policyholder has an option to take the above-mentioned maturity benefit as a lump sum.
The lump sum shall be calculated as the higher of [Net Present Value of future payouts at a guaranteed rate of 8.50% p.a.] and [100.1% of the Total Premiums Paid less the sum of the survival benefits already paid].
Maturity Payout Period
100% of Sum Assured on Maturity is paid at the end of the 20th year from the Bharti AXA Life Elite Advantage Plan Policy Date.
In case of the unfortunate event of the death of the Life Insured during the Bharti AXA Life Elite Advantage Plan Policy Term, the following benefits will be payable to the Nominee, subject to the Policy being in force. The Sum Assured on death will be the higher of:
Grace Period
Grace Period is 15 days for the monthly mode and 30 days for annual/ semi-annual/ quarterly premium payment modes.
Discontinuance
The Bharti AXA Life Elite Advantage Plan 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 Bharti AXA Life Elite Advantage Plan policy within the period given for the revival of the policy.
At the end of the revival period, if the Bharti AXA Life Elite Advantage Plan 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.
Revival
You have the flexibility to revive all the benefits under your 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 Bharti AXA Life Elite Advantage Plan 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 (SSV) shall become payable after completion of the first policy year, provided one full year’s premium has been received.
The Bharti AXA Life Elite Advantage Plan policy acquires Guaranteed Surrender Value (GSV) after the payment of the premium for at least two consecutive years. The surrender benefit will be payable immediately on surrender.
The guaranteed payouts after the premium payment period may appear attractive for individuals seeking a regular income. However, while assessing an investment, it is equally important to evaluate the returns in percentage terms, not just the cash flows.
To facilitate a more informed decision, let us compute the Internal Rate of Return (IRR) based on the benefit illustration provided in the Bharti AXA Life Elite Advantage Plan policy brochure.
Consider a 35-year-old male who opts for the Bharti AXA Life Elite Advantage Plan with a Sum Assured of ₹11.44 lakh. The Bharti AXA Life Elite Advantage Plan policy term is 12 years, with a premium payment term of 12 years and an annual premium of ₹1,00,000.
| Male | 35 years |
| Sum Assured | ₹ 11,44,951 |
| Policy Term | 12 years |
| Premium Paying Term | 12 years |
| Annualised Premium | ₹ 1,00,000 |
After the Bharti AXA Life Elite Advantage Plan policy term, an assured income of 9.5% of the maturity Sum Assured—amounting to ₹1,08,770 per year—is paid annually until the end of the 19th policy year. In addition, a lump sum of ₹11.44 lakh is payable at the end of the 20th year.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 11,44,951 |
| 36 | 2 | -1,00,000 | 11,44,951 |
| 37 | 3 | -1,00,000 | 11,44,951 |
| 38 | 4 | -1,00,000 | 11,44,951 |
| 39 | 5 | -1,00,000 | 11,44,951 |
| 40 | 6 | -1,00,000 | 11,44,951 |
| 41 | 7 | -1,00,000 | 11,44,951 |
| 42 | 8 | -1,00,000 | 11,44,951 |
| 43 | 9 | -1,00,000 | 11,44,951 |
| 44 | 10 | -1,00,000 | 11,44,951 |
| 45 | 11 | -1,00,000 | 11,44,951 |
| 46 | 12 | -1,00,000 | 11,44,951 |
| 47 | 13 | 1,08,770 | |
| 48 | 14 | 1,08,770 | |
| 49 | 15 | 1,08,770 | |
| 50 | 16 | 1,08,770 | |
| 51 | 17 | 1,08,770 | |
| 52 | 18 | 1,08,770 | |
| 53 | 19 | 1,08,770 | |
| 54 | 20 | 1,08,770 | |
| 55 | 11,44,951 | ||
| IRR | 4.18% |
Based on this cash flow, the IRR works out to approximately 4.18% as per the Bharti AXA Life Elite Advantage Plan maturity calculator.
The annual income payouts interrupt the compounding process, resulting in subdued returns. Moreover, the Sum Assured is relatively inadequate and does not continue during the income payout period.
The combination of insufficient life cover and low investment returns makes the Bharti AXA Life Elite Advantage Plan an unattractive investment option for most investors.
Comparing alternative investment returns offers a clearer perspective and is a critical input when selecting an investment plan.
To illustrate this, let us evaluate an alternative approach by separating insurance and investment—using a pure term life insurance policy for protection and an investment vehicle to generate annual income.
The same assumptions from the earlier benefit illustration are retained for a like-for-like comparison.
Assume a pure term life insurance policy with a Sum Assured of ₹11.5 lakh for a 12-year policy term, available at an annual premium of ₹4,400, payable for 12 years. This leaves ₹95,600 per year available for investment, which is deployed to build a corpus intended for periodic withdrawals.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 11,50,000 |
| Policy Term | 12 years |
| Premium Paying Term | 12 years |
| Annualised Premium | ₹ 4,400 |
| Investment | ₹ 95,600 |
For accumulation, an equity mutual fund is used. At the end of 12 years, the units are redeemed. After accounting for capital gains tax, the post-tax corpus amounts to ₹24.20 lakh.
This corpus is then invested in an instrument delivering a 7% return, enabling annual withdrawals of approximately ₹1.08 lakh—comparable to the assured income under the insurance plan. At the end of 20 years, the remaining balance is fully withdrawn to mirror the lump-sum maturity benefit.
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 11,50,000 |
| 36 | 2 | -1,00,000 | 11,50,000 |
| 37 | 3 | -1,00,000 | 11,50,000 |
| 38 | 4 | -1,00,000 | 11,50,000 |
| 39 | 5 | -1,00,000 | 11,50,000 |
| 40 | 6 | -1,00,000 | 11,50,000 |
| 41 | 7 | -1,00,000 | 11,50,000 |
| 42 | 8 | -1,00,000 | 11,50,000 |
| 43 | 9 | -1,00,000 | 11,50,000 |
| 44 | 10 | -1,00,000 | 11,50,000 |
| 45 | 11 | -1,00,000 | 11,50,000 |
| 46 | 12 | -1,00,000 | 11,50,000 |
| 47 | 13 | 1,08,770 | |
| 48 | 14 | 1,08,770 | |
| 49 | 15 | 1,08,770 | |
| 50 | 16 | 1,08,770 | |
| 51 | 17 | 1,08,770 | |
| 52 | 18 | 1,08,770 | |
| 53 | 19 | 1,08,770 | |
| 54 | 20 | 1,08,770 | |
| 55 | 29,63,952 | ||
| IRR | 8.81% |
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 12 years | 25,83,983 |
| Purchase price | 11,47,200 |
| Long-Term Capital Gains | 14,36,783 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 13,11,783 |
| Tax paid on LTCG | 1,63,973 |
| Maturity value after tax | 24,20,010 |
Under this structure, the IRR of the cash flows works out to 8.81%, significantly higher than that of the Bharti AXA Life Elite Advantage Plan. If the corpus is allowed to compound further without annual withdrawals, the returns would be even more attractive.
Moreover, this strategy provides superior liquidity and flexibility, allowing investors to modify the withdrawal amount, frequency, or timing based on evolving needs—flexibility that is notably absent in the Bharti AXA Life Elite Advantage Plan.
The Bharti AXA Life Elite Advantage Plan is a traditional savings-oriented insurance product that requires premium payments for a limited duration, after which benefit payouts commence.
The plan distributes maturity benefits through periodic payouts, followed by a lump-sum payment at the end of the term.
While these immediate guaranteed payouts are positioned as a key advantage, from an investment perspective, returns tend to be more meaningful when funds are allowed to compound over a longer horizon.
Further, the Sum Assured does not continue during the payout phase and remains insufficient to meet even a family’s basic financial requirements. The plan underperforms due to its below-average returns, limited flexibility, and inadequate life cover and it also has a high agent commission.
Despite offering annual payouts, these shortcomings materially weaken the plan’s effectiveness and may negatively impact long-term financial outcomes.
A more prudent financial strategy is to opt for a pure-term life insurance policy with adequate coverage and pair it with goal-based investment solutions. Separating insurance and investment allows for better portfolio efficiency and potentially higher returns.
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