Categories: Insurance

Bharti AXA Life Flexi Term Pro Plan: Good or Bad? An Insightful Review

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Can the Bharti AXA Life Flexi Term Pro Plan truly provide comprehensive financial protection for your family, or do its features come with important trade-offs?

Does the Bharti AXA Life Flexi Term Pro Plan offer the flexibility and coverage your family actually needs, or are there better term insurance alternatives available?

Is the Bharti AXA Life Flexi Term Pro Plan a smart choice for securing your family’s future, or should you look beyond its flexible features before buying?

This article takes a closer look at the plan, examining its key features, benefits, and limitations to help you understand what it offers and whether the coverage is adequate for your financial needs.

Table of Contents:

What is the Bharti AXA Life Flexi Term Pro?

What are the features of the Bharti AXA Life Flexi Term Pro?

Who is eligible for the Bharti AXA Life Flexi Term Pro?

What are the benefits of the Bharti AXA Life Flexi Term Pro?

Death Benefit

Maturity Benefit – Only for Return of Premium Option

Grace Period, Discontinuance and Revival of the Bharti AXA Life Flexi Term Pro

Free Look Period for the Bharti AXA Life Flexi Term Pro

Surrendering the Bharti AXA Life Flexi Term Pro

What are the advantages of the Bharti AXA Life Flexi Term Pro?

What are the disadvantages of the Bharti AXA Life Flexi Term Pro?

Research Methodology of Bharti AXA Life Flexi Term Pro

Benefit Illustration – IRR Analysis of Bharti AXA Life Flexi Term Pro

Bharti AXA Life Flexi Term Pro Vs. Other Investments

Bharti AXA Life Flexi Term Pro Vs. Pure-Term + PPF/Equity Mutual Fund

Final Verdict on the Bharti AXA Life Flexi Term Pro

What is the Bharti AXA Life Flexi Term Pro?

Bharti AXA Life Flexi Term Pro is a non-linked, non-participating, individual, pure risk premium life insurance plan.

It provides life insurance coverage and secures your family’s financial needs. The Plan offers multiple options and features.

What are the features of the Bharti AXA Life Flexi Term Pro?

  • Options: The plan offers two options: Without Return of Premium and With Return of Premium, allowing you to choose based on your protection and premium preferences.
  • Single Life or Joint Life Cover: Under the Without Return of Premium option, you can choose either Single Life Cover or Joint Life Cover, which provides coverage for both you and your spouse under the same policy.
  • Flexible Policy and Premium Payment Terms: The plan offers multiple policy terms and premium payment terms, giving you the flexibility to select an option that suits your financial needs and affordability.
  • Whole Life Cover: You can opt for whole life coverage up to 99 years of age, providing long-term financial protection for your family.
  • Increase in Sum Assured / Top-Up: The plan provides an option to increase your life cover to meet changing financial responsibilities and higher protection needs as your life stage evolves.

Who is eligible for the Bharti AXA Life Flexi Term Pro?

Parameter Eligibility Criteria
Minimum age at entry 18 years of age
Maximum age at entry 65 years of age
Maximum Age at Maturity 99 years of age
Policy Term Fixed Policy Terms will be available in multiples of 5.
Without return of Premium – Single Life Fixed Term – 1,5 to 50 (in multiples of 5)
Variable Term – To Age 60,65,70,75,80,85,99
Without return of Premium – Joint Life Fixed Term – 5 to 50 (in multiples of 5)
With return of Premium Fixed Term – 10 to 50 (in multiples of 5)
Variable Term – To Age 60,65,70,75,80,85
Premium Payment Term Single Pay, Regular Pay and Limited Pay (5,7,8,10,12)
Minimum Sum Assured (Rs.) Rs 25,00,000
Maximum Sum Assured (Rs.) No Limit, subject to Board-approved Underwriting Policy
Premium Payment Modes Annual, semi-annual, quarterly & monthly
Minimum Premium Based on the minimum Sum Assured.

What are the benefits of the Bharti AXA Life Flexi Term Pro?

1. Death Benefit

Upon death of the Life Insured during the policy term, provided the Bharti AXA Life Flexi Term Pro Plan policy is in force, and all due premiums till the date of death have been paid, the Death Benefit will be payable to the nominee/beneficiary immediately on death.

In case of Joint Life Variant

Upon the death of the Primary Insured, provided the Secondary Life is alive: Death Benefit shall be payable immediately on death of the Primary Insured.

Subsequent premiums for the surviving Secondary Life Insured will be waived, and cover for the Secondary Life Insured will continue for the remaining Bharti AXA Life Flexi Term Pro Plan policy term.

Upon the death of the Secondary Life Insured, provided the Primary Life is alive: Death Benefit shall be payable immediately on death of the Secondary Life Insured.

The policy shall continue with premiums payable by the policyholder for the Primary Life Insured.

In case of simultaneous death of both lives, provided the Bharti AXA Life Flexi Term Pro Plan policy is in force, and all due premiums till the date of death have been paid, the Death Benefit will be payable immediately on death.

For Single Pay, Death Benefit is the Sum Assured on Death, which is the highest of

  • 11 times Single Premium
  • Absolute amount assured to be paid on death equal to the Sum Assured

For Regular and Limited Pay, Death Benefit is the Sum Assured on Death, which is the highest of:

  • 11 times Annualised Premium
  • 105% of Total Premiums Paid# as on date of death
  • Absolute amount assured to be paid on death equal to the Sum Assured

Death Benefit Payout

Lumpsum: Under this mode, 100% of the Death Benefit will be paid immediately on death as a lump sum.

Monthly Income: Under this mode, for all options excluding One Year Policy Term, the Death Benefit will be paid as 1.04% of the Sum Assured every month in the form of Monthly Income, payable for 10 years (120 instalments) with the first instalment being payable immediately on death.

Under a One-Year Policy Term, Death Benefit will be paid as 1.0% of the Sum Assured every month in the form of Monthly Income, payable for 10 years (120 instalments)

Lumpsum plus Monthly Income: Under this mode, for all options excluding One Year Policy Term, 50% of the Death Benefit will be paid immediately on death as lumpsum and the remaining 50% of the Death Benefit will be paid as 0.93% of the total Sum Assured every month in the form of Monthly Income, payable for 5 years with the first instalment being payable immediately on death.

2. Maturity Benefit – Only for Return of Premium Option

In case the Life Insured survives till maturity, and all due premiums have been paid till the date of maturity, the Sum Assured at Maturity will be payable on the date of maturity.

Sum Assured on Maturity is calculated as the sum of the Total Premiums Paid till the date of maturity of the policy.

No Maturity Benefit shall be payable for the Without Return of Premium option.

Grace Period, Discontinuance and Revival of the Bharti AXA Life Flexi Term Pro

Grace Period

During the grace period, the Bharti AXA Life Flexi Term Pro Plan policy is considered to be in force. Except for Single Premium Policies, the grace period is 15 days for monthly mode and 30 days for annual/ semi-annual/ quarterly premium payment modes.

Discontinuance

Lapsation

For Without Return of Premium Variant, Single Life policies: In case you do not pay the due premiums within the Grace Period, the policy will lapse with effect from the date of such unpaid premium (‘lapse date’) and your insurance cover will cease to exist.

For Without Return of Premium Variant, Joint Life policies: In case the Primary Life Insured does not pay the due premiums within the Grace Period, the policy for both Lives Insured shall lapse with effect from the date of such unpaid premium (‘lapse date’).

For With Return of Premium, in case you do not pay the due premiums within the Grace Period and before the policy acquires surrender value, the Bharti AXA Life Flexi Term Pro Plan policy shall lapse with effect from the date of such unpaid premium (‘lapse date’).

Paid-Up Benefit: Paid-Up Benefits will be applicable only for the Return of Premium Option. After completion of the first policy year, provided one full year premium has been paid and if the Policyholder does not pay the due premiums further within the Grace Period (as defined in section 12), the Policy shall be converted into Paid Up on expiry of the Grace Period.

Once the Policy becomes Paid Up, all the benefits under the Policy will be reduced proportionately.

Revival

You have the flexibility to revive your lapsed policy within the revival period of five years after the due date of the first unpaid premium, subject to the terms and conditions the Company may specify from time to time.

Free Look Period for the Bharti AXA Life Flexi Term Pro

If Policyholder disagrees with any of the terms and conditions of the Bharti AXA Life Flexi Term Pro Plan Policy, there is an option to return the original Policy along with a letter stating reason/s within 30 days.

from the date of receipt of the policy document to review the terms and conditions of the policy and if Policyholder disagrees with any of the terms and conditions of the Bharti AXA Life Flexi Term Pro Plan Policy, there is an option to return the original Policy.

Surrendering the Bharti AXA Life Flexi Term Pro

Surrender Value:

Without Return of Premium Under Limited Pay, the policy acquires an Unexpired Risk Premium after the payment of two annualised premiums for all Limited Pay options.

The single-pay option shall acquire an unexpired risk premium immediately.

No Unexpired Risk Premium will be payable for the regular pay option and one-year term option. The Unexpired Risk Premium will be payable immediately on surrender.

Return of Premium Option

The Bharti AXA Life Flexi Term Pro Plan policy acquires a surrender value after completion of the first policy year, provided one full year premium has been received.

The SSV shall become payable after completion of the first policy year, provided one full year premium has been received, except for single premium policies where SSV shall become payable immediately after receipt of single premium.

The policy acquires GSV after the payment of premium for at least two consecutive years, other than single premium. For single premium, the policy shall acquire GSV immediately after receipt of single premium.

On Surrender of the Policy, the higher of the Special Surrender Value (SSV) or Guaranteed Surrender Value (GSV) shall be payable.

What are the advantages of the Bharti AXA Life Flexi Term Pro?

  • Increase in Sum Assured: The policyholder can increase the Sum Assured up to two times during the policy term, subject to the applicable terms and conditions.
  • Loan Facility: A loan facility is available only under the Return of Premium on Maturity option, subject to the policy terms and conditions.
  • Flexible Death Benefit Payout: The death benefit can be received as a lump sum, regular income, or a combination of both, providing flexibility in meeting the nominee’s financial requirements.

What are the disadvantages of the Bharti AXA Life Flexi Term Pro?

  • No Maturity Benefit: If you choose the Without Return of Premium option, no maturity benefit is payable at the end of the policy term.
  • No Surrender Value or Loan Facility: The Without Return of Premium option does not provide a surrender value or loan facility during the policy term.

Research Methodology of Bharti AXA Life Flexi Term Pro

The Bharti AXA Life Flexi Term Pro Plan provides life cover either for a fixed policy term or up to 99 years of age.

If the Bharti AXA Life Flexi Term Pro Plan policyholder survives the policy term and has chosen the With Return of Premium option, the premiums paid are returned as a maturity benefit.

However, under the Without Return of Premium option, no maturity benefit is payable.

At first glance, the return of premium feature may appear attractive because the premiums paid are returned at maturity.

However, these premiums are returned without any additional value or investment growth. Therefore, the effective return on the amount paid is zero. Let us understand this with an illustration from the policy brochure.

Benefit Illustration – IRR Analysis of Bharti AXA Life Flexi Term Pro

Consider a 35-year-old male who opts for the Bharti AXA Life Flexi Term Pro Plan with a ₹1 crore Sum Assured.

He chooses a 25-year policy term, pays premiums throughout the 25-year period, and selects the With Return of Premium option. The annual premium is ₹32,000.

Male 35 years
Sum Assured ₹ 1,00,00,000
Policy Term 25 years
Premium Paying Term 25 years
Annualised Premium ₹ 32,000

At the end of 25 years, he receives a maturity benefit of ₹8 lakh (32,000*25), representing the total premiums paid over the policy term.

Since there is no additional growth on the premiums, the Internal Rate of Return (IRR) is 0% as per the Bharti AXA Life Flexi Term Pro Plan maturity calculator.

Age Year Annualised premium / Maturity benefit Death benefit
35 1 -32,000 1,00,00,000
36 2 -32,000 1,00,00,000
37 3 -32,000 1,00,00,000
38 4 -32,000 1,00,00,000
39 5 -32,000 1,00,00,000
40 6 -32,000 1,00,00,000
41 7 -32,000 1,00,00,000
42 8 -32,000 1,00,00,000
43 9 -32,000 1,00,00,000
44 10 -32,000 1,00,00,000
45 11 -32,000 1,00,00,000
46 12 -32,000 1,00,00,000
47 13 -32,000 1,00,00,000
48 14 -32,000 1,00,00,000
49 15 -32,000 1,00,00,000
50 16 -32,000 1,00,00,000
51 17 -32,000 1,00,00,000
52 18 -32,000 1,00,00,000
53 19 -32,000 1,00,00,000
54 20 -32,000 1,00,00,000
55 21 -32,000 1,00,00,000
56 22 -32,000 1,00,00,000
57 23 -32,000 1,00,00,000
58 24 -32,000 1,00,00,000
59 25 -32,000 1,00,00,000
60 8,00,000
IRR 0.00%

While the Return of Premium feature may appear to offer an additional benefit, the maturity amount merely represents the return of the premiums paid, without any investment growth.

Moreover, return-of-premium policies generally involve a higher premium than comparable term insurance without this feature.

The key question, therefore, is whether paying a higher premium simply to receive the premiums back at maturity makes financial sense. Let us examine this in the next section.

Bharti AXA Life Flexi Term Pro Vs. Other Investments

A pure-term life insurance policy, without a return-of-premium or investment component, can provide substantial life cover at a relatively affordable premium.

This allows you to focus the insurance primarily on its intended purpose—protecting your family against financial uncertainty.

For your life goals, the savings from the lower premium can be invested separately based on your risk tolerance, financial goals, and investment horizon, giving your money an opportunity to grow over time.

Bharti AXA Life Flexi Term Pro Vs. Pure-Term + PPF/Equity Mutual Fund

Let us consider the same example with a ₹1 crore life cover. A pure-term policy costs ₹12,300 per year, with a policy term of 25 years and a premium payment term of 25 years.

Compared with the ₹32,000 annual premium under the return-of-premium option, this results in an annual saving of ₹19,700.

Pure Term Life Insurance Policy
Sum Assured ₹ 1,00,00,000
Policy Term 25 years
Premium Paying Term 25 years
Annualised Premium ₹ 12,300
Investment ₹ 19,700

Instead of paying this additional amount for the return-of-premium feature, the ₹19,700 savings can be invested separately.

The choice of investment can depend on your risk tolerance. A higher-risk investor may consider equity-oriented investments, while a more conservative investor may prefer debt-oriented investments.

Term Insurance + PPF Term insurance + Equity Mutual Fund
Age Year Term Insurance premium + PPF Death benefit Term Insurance premium + Equity Mutual Fund Death benefit
35 1 -32,000 1,00,00,000 -32,000 1,00,00,000
36 2 -32,000 1,00,00,000 -32,000 1,00,00,000
37 3 -32,000 1,00,00,000 -32,000 1,00,00,000
38 4 -32,000 1,00,00,000 -32,000 1,00,00,000
39 5 -32,000 1,00,00,000 -32,000 1,00,00,000
40 6 -32,000 1,00,00,000 -32,000 1,00,00,000
41 7 -32,000 1,00,00,000 -32,000 1,00,00,000
42 8 -32,000 1,00,00,000 -32,000 1,00,00,000
43 9 -32,000 1,00,00,000 -32,000 1,00,00,000
44 10 -32,000 1,00,00,000 -32,000 1,00,00,000
45 11 -32,000 1,00,00,000 -32,000 1,00,00,000
46 12 -32,000 1,00,00,000 -32,000 1,00,00,000
47 13 -32,000 1,00,00,000 -32,000 1,00,00,000
48 14 -32,000 1,00,00,000 -32,000 1,00,00,000
49 15 -32,000 1,00,00,000 -32,000 1,00,00,000
50 16 -32,000 1,00,00,000 -32,000 1,00,00,000
51 17 -32,000 1,00,00,000 -32,000 1,00,00,000
52 18 -32,000 1,00,00,000 -32,000 1,00,00,000
53 19 -32,000 1,00,00,000 -32,000 1,00,00,000
54 20 -32,000 1,00,00,000 -32,000 1,00,00,000
55 21 -32,000 1,00,00,000 -32,000 1,00,00,000
56 22 -32,000 1,00,00,000 -32,000 1,00,00,000
57 23 -32,000 1,00,00,000 -32,000 1,00,00,000
58 24 -32,000 1,00,00,000 -32,000 1,00,00,000
59 25 -32,000 1,00,00,000 -32,000 1,00,00,000
60 13,53,786 26,51,331
IRR 3.84% 8.31%

To illustrate this approach, we have considered two investment options: PPF as a debt-oriented investment and an Equity Mutual Fund as an equity-oriented investment.

If the ₹19,700 annual saving is invested in a PPF, the investment could grow to approximately ₹13.53 lakh at the end of the period, with an IRR of 3.84%.

While the return may appear modest, the illustration highlights an important point: under a return-of-premium policy, you pay a higher premium and receive the same premiums back at maturity without any investment growth.

If the same annual saving is invested in an Equity Mutual Fund, the projected value would be approximately ₹29.41 lakh before tax and ₹26.51 lakh after tax.

The combined IRR of the Equity Mutual Fund investment along with the pure-term insurance premium is 8.31% post-tax.

Equity Mutual Fund Tax Calculation
Maturity value after 25 years 29,41,879
Purchase price 4,92,500
Long-Term Capital Gains 24,49,379
Exemption limit 1,25,000
Taxable LTCG 23,24,379
Tax paid on LTCG 2,90,547
Maturity value after tax 26,51,331

This illustration demonstrates the potential advantage of separating insurance from investment.

A pure-term policy can provide the   required life protection at a lower premium, while the amount saved can be invested separately to build a corpus for your financial goals.

The actual investment outcome, however, will depend on the investment option chosen and the returns generated over the investment period.

Final Verdict on the Bharti AXA Life Flexi Term Pro

Protecting your family against financial uncertainties is a fundamental part of financial planning. Before you begin investing for your financial goals, it is important to put the basics in place—adequate life insurance, health insurance, and a sufficient emergency fund.

The Bharti AXA Life Flexi Term Pro Plan provides life cover either for a fixed policy term or up to 99 years of age.

Under the Return of Premium option, the premiums paid are returned if you survive the policy term.

However, two aspects of the plan deserve careful consideration. First, opting for whole life cover up to 99 years may extend the insurance beyond the period when substantial financial dependants or income-replacement needs typically exist, while also resulting in a higher premium.

Second, the Return of Premium feature may appear attractive, but it comes with a higher premium and does not provide any investment growth on the premiums returned at maturity and it also has a high agent commission.

Therefore, it is worth considering a simpler approach: use pure-term insurance for life protection and invest separately for your financial goals.

This approach keeps insurance and investment distinct, allowing you to select the level of life cover you need while investing the savings from a lower premium according to your goals, risk tolerance, and investment horizon.

A comprehensive financial plan should look beyond a single insurance product and consider insurance, investments, taxation, cash-flow requirements, and financial goals together.

Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?

A Certified Financial Planner can help you evaluate these factors and structure a plan that is aligned with your individual circumstances and long-term objectives.

Holistic

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