Bharti AXA Life Future Invest Plan : Good or Bad? An Insightful ULIP Review
Is the Bharti AXA Life Future Invest Plan a smart long-term wealth builder, or just another costly ULIP wrapped in investment promises?
Is the Bharti AXA Life Future Invest Plan a disciplined wealth-creation tool, or an expensive route to market exposure?
Is the Bharti AXA Life Future Invest Plan designed for investors’ benefit, or primarily for insurers’ margins?In this review, we take a detailed look at the plan’s features, along with its key benefits and limitations, to help you make an informed decision.
What is the Bharti AXA Life Future Invest Plan?
What are the features of the Bharti AXA Life Future Invest Plan?
Who is eligible for the Bharti AXA Life Future Invest Plan?
What are the benefits of the Bharti AXA Life Future Invest Plan?
What are the fund options in the Bharti AXA Life Future Invest Plan?
What are the charges in the Bharti AXA Life Future Invest Plan?
Grace Period, Discontinuance and Revival of the Bharti AXA Life Future Invest Plan
Free Look Period for the Bharti AXA Life Future Invest Plan
Surrendering the Bharti AXA Life Future Invest Plan
What are the advantages of the Bharti AXA Life Future Invest Plan?
What are the disadvantages of the Bharti AXA Life Future Invest Plan?
Research Methodology of Bharti AXA Life Future Invest Plan
Benefit Illustration – IRR Analysis of Bharti AXA Life Future Invest Plan
Bharti AXA Life Future Invest Plan Vs. Other Investments
Bharti AXA Life Future Invest Plan Vs. Pure-term + Equity Mutual Fund
Final Verdict on the Bharti AXA Life Future Invest Plan
Bharti AXA Life Future Invest Plan is a unit-linked, non-participating individual life insurance plan. This plan also provides you with benefits for 10 years while you pay premiums only for the first five, thus extending the protection and investment benefits into the future.
| Parameter | Eligibility |
| Minimum age at entry | 18 years (age last birthday) |
| Maximum age at entry | 59 years (age last birthday) |
| Maximum age at maturity | 69 years (age last birthday) |
| Premium modes | Yearly, Half-yearly, Quarterly and Monthly |
| Policy benefits period | 10 years |
| Premium payment term | Single Pay and 5 years |
Subject to the Bharti AXA Life Future Invest Plan Policy being in force, the Death benefit payable under the product will be the higher of
Premium Payment Term: Single Pay
Sum Assured = 125% of Single Premium
For Premium Payment Term: 5 Years
Sum Assured = Higher of 10 times Annualised Premium Or (0.5* Policy Term* annualised premium)
In case the Life Insured survives till maturity, and all due premiums have been paid till the date of maturity, the Policy Fund Value will be payable on the date of maturity.
At maturity, the Bharti AXA Life Future Invest Plan Policyholder may also choose to avail of the Settlement Option.
Policyholder shall be entitled to choose any one of the following options for claiming the Maturity Benefit:
Depending on your financial objectives, you have the choice of investing your premiums in any or all of the following six 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 |
| Money Market securities | Government securities | ||||
| Discontinued Policy Fund | 0-40% | 0-60% | |||
Premium Allocation Charge:
There is no premium allocation charge. 100% of premiums paid will be allocated in the funds chosen by you.
Mortality Charge:
This charge is levied to provide you with a life insurance benefit. This charge is applied to the Sum at Risk and is deducted proportionately by cancellation of units on a monthly basis.
Mortality charges per thousand Sum At Risk (per annum) for sample ages of healthy lives are as follows:
| Gender / Age last birthday (in years) | 30 | 40 | 50 |
| Male | 0.89 | 1.56 | 4.33 |
| Female | 0.84 | 1.24 | 3.13 |
Policy administration charge:
This charge is deducted by cancellation of units on a monthly basis. The monthly policy administration charge as a percentage of premium is as per the table below
| Policy Year | Premium Payment Term: 5 years | Single premium |
| 1 to 5 years | 0.50% | 0.20% |
| 5+ years | 0.50% | 0% |
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.
Fund Management Charges:
| S.no | Fund | 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 | Save ‘nʼ grow Money Fund | 1.25% per annum |
| 5 | Steady Money Fund | 1.00% per annum |
| 6 | Safe Money Fund | 1.00% per annum |
| Discontinued Policy Fund | 0.50% per annum |
Inference from Charges: These expenses increase an investor’s overall costs and are not typically associated with other market-linked investment products. Over time, these charges can considerably erode your returns, impacting your wealth accumulation potential.
For other than single premium policies
Grace Period
The Bharti AXA Life Future Invest 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.
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 Bharti AXA Life Future Invest Plan Policyholder, and the Policy shall terminate
Discontinuance of Policy after the lock-in Period: the Bharti AXA Life Future Invest 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.
Revival
The revival period for this product is three years from the date of the first unpaid premium.
If you disagree with any of the terms and conditions of the Bharti AXA Life Future Invest Plan Policy, you can return the original Policy along with a letter stating the reason/s within 30 days of receipt of the Policy.
For other than single premium policies
Surrender during the lock-in period: the Bharti AXA Life Future Invest 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 Policyholder has an option to surrender the Policy anytime, and the proceeds of the Bharti AXA Life Future Invest Plan policy fund shall be payable.
For Single premium policies
Surrender during the lock-in period: The Bharti AXA Life Future Invest Plan Policyholder has an option to surrender at any time during the lock-in period.
Upon receipt of a request for surrender, the fund value, after deducting the applicable discontinuance charges, shall be credited to the discontinued policy fund.
At the end of the lock-in period, the proceeds of the discontinuance fund shall be paid to the Bharti AXA Life Future Invest Plan Policyholder, and the Policy shall terminate
Surrender after the lock-in period: The Policyholder has an option to surrender the Bharti AXA Life Future Invest Plan Policy at any time. Upon receipt of a request for surrender, the fund value as on the date of surrender shall be payable.
Once the plan’s features are understood, the next step is to evaluate its performance. Estimating the potential return enables a meaningful comparison with alternative investment avenues.
For this purpose, we calculate the Internal Rate of Return (IRR) using the figures provided in the Bharti AXA Life Future Invest Plan policy brochure.
Consider a 35-year-old male who purchases the Bharti AXA Life Future Invest Plan with a Sum Assured of ₹5 lakhs. The Bharti AXA Life Future Invest Plan policy term is 10 years, and the premium payment term is 5 years, with an annual premium of ₹50,000.
| Male | 35 years |
| Sum Assured | ₹ 5,00,000 |
| Policy Term | 10 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 50,000 |
Upon payment of premiums as scheduled, the maturity benefit payable is the Fund Value. The benefit illustrations in the brochure assume two return scenarios — 4% p.a. and 8% p.a.
These rates are purely illustrative, neither guaranteed nor indicative of minimum or maximum returns.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 36 | 2 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 37 | 3 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 38 | 4 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 39 | 5 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 40 | 6 | 0 | 5,00,000 | 0 | 5,00,000 |
| 41 | 7 | 0 | 5,00,000 | 0 | 5,00,000 |
| 42 | 8 | 0 | 5,00,000 | 0 | 5,00,000 |
| 43 | 9 | 0 | 5,00,000 | 0 | 5,00,000 |
| 44 | 10 | 0 | 5,00,000 | 0 | 5,00,000 |
| 45 | 2,55,640 | 3,53,827 | |||
| IRR | 0.28% | 4.41% | |||
At 4% assumed return:
The projected fund value at maturity is ₹2.55 lakhs. This translates to an IRR of approximately 0.28% as per the Bharti AXA Life Future Invest Plan maturity calculator, indicating negligible real growth.
At 8% assumed return:
The projected fund value increases to ₹3.53 lakhs, resulting in an IRR of around 4.41% as per the Bharti AXA Life Future Invest Plan maturity calculator.
When benchmarked against other market-linked investment options, the returns appear underwhelming. Despite carrying market risk, the plan delivers returns comparable to relatively low-risk debt instruments.
This imbalance between risk and reward significantly weakens its investment proposition.
From a financial planning perspective, allocating capital to the Bharti AXA Life Future Invest Plan may dilute portfolio efficiency rather than enhance long-term wealth creation.
The Bharti AXA Life Future Invest Plan does not meaningfully support long-term wealth creation and provides a relatively modest life cover.
A more efficient approach is to separate insurance and investment, allowing each to serve its distinct purpose. Let us evaluate this strategy using the same assumptions.
Consider purchasing a pure term life insurance policy with a Sum Assured of ₹5 lakhs at an annual premium of ₹4,800 for a 10-year term.
In comparison, the Bharti AXA Life Future Invest Plan requires an annual premium of ₹50,000. By opting for the term policy, you free up ₹45,200 per year, which can be systematically invested.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 5,00,000 |
| Policy Term | 10 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 4,800 |
| Investment | ₹ 45,200 |
Investment allocation should reflect individual risk tolerance. Conservative investors may prefer debt-oriented avenues such as PPF, while aggressive investors may choose equity-oriented instruments like equity mutual funds.
For this illustration, we assume investment in an equity mutual fund.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -50,000 | 5,00,000 |
| 36 | 2 | -50,000 | 5,00,000 |
| 37 | 3 | -50,000 | 5,00,000 |
| 38 | 4 | -50,000 | 5,00,000 |
| 39 | 5 | -50,000 | 5,00,000 |
| 40 | 6 | 0 | 5,00,000 |
| 41 | 7 | 0 | 5,00,000 |
| 42 | 8 | 0 | 5,00,000 |
| 43 | 9 | 0 | 5,00,000 |
| 44 | 10 | 0 | 5,00,000 |
| 45 | 5,39,808 | ||
| IRR | 9.98% | ||
If the annual surplus of ₹45,200 is invested in an equity mutual fund, the projected pre-tax corpus at the end of the period is ₹5.66 lakhs. After accounting for applicable capital gains tax, the post-tax value stands at ₹5.39 lakhs, translating to a post-tax IRR of approximately 9.98%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 10 years | 5,66,781 |
| Purchase price | 2,26,000 |
| Long-Term Capital Gains | 3,40,781 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 2,15,781 |
| Tax paid on LTCG | 26,973 |
| Maturity value after tax | 5,39,808 |
This approach generates a substantially higher corpus, offers better inflation-adjusted growth potential, and aligns more effectively with long-term financial goals.
By separating insurance from investment, you secure adequate life cover at a minimal cost while enabling your investments to compound efficiently.
In contrast, the Bharti AXA Life Future Invest Plan delivers low risk-adjusted returns along with limited coverage, making it a comparatively inefficient vehicle for achieving meaningful financial objectives.
The Bharti AXA Life Future Invest Plan enables market-linked investment of your savings. However, both the Bharti AXA Life Future Invest Plan policy term and premium payment term lack meaningful flexibility, limiting alignment with your cash flow requirements.
While the plan attempts to combine investment and insurance within a single structure, it does not execute either component efficiently.
Return analysis suggests that the plan is unlikely to generate an adequate corpus to meet long-term financial goals. High policy charges erode the investible surplus, compressing compounding potential and materially impacting overall returns.
On the protection front, the life cover offered is relatively low and does not provide a strong financial safety net against unforeseen contingencies. Sound financial planning demands two distinct outcomes — sufficient risk coverage and effective wealth creation.
This plan fails to deliver convincingly on both counts, resulting in an unfavourable risk–reward trade-off.
A more rational strategy is to opt for a pure-term life insurance policy to secure comprehensive coverage at minimal cost, while simultaneously building a diversified investment portfolio for long-term wealth accumulation.
Separating insurance from investment eliminates structural inefficiencies and improves capital allocation outcomes.
Before investing in any financial product, conduct a thorough suitability assessment.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For structured and goal-oriented planning, consult a Certified Financial Planner who can design a portfolio aligned with your risk profile, time horizon, and financial objectives.
Listen to this article Is building a retirement corpus of ₹1–2 crore really only possible…
Listen to this article Markets feel predictable—until they suddenly aren’t. At market peaks, confidence is…
Listen to this article Your salary will likely grow with time. Promotions, job switches, and…
Listen to this article Markets are falling, headlines are screaming, and uncertainty feels louder than…
Listen to this article What if the biggest mistake in your investing journey isn’t choosing…
Listen to this article When people think about investing, the focus is almost always on…