Categories: Insurance

Bharti AXA Life Grameen Jeevan Bima Plan: Good or Bad? A Detailed Review

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Can the Bharti AXA Life Grameen Jeevan Bima Plan truly provide meaningful financial protection at an affordable cost, or are its benefits too limited for your family’s needs?

Does the Bharti AXA Life Grameen Jeevan Bima Plan offer adequate life protection, or could its coverage leave important financial gaps?

Is the Bharti AXA Life Grameen Jeevan Bima Plan a practical choice for basic life protection, or are there better insurance alternatives available?

This article examines the plan’s features, advantages and limitations to help assess its suitability.

Table of Contents:

What is the Bharti AXA Life Grameen Jeevan Bima?

What are the features of the Bharti AXA Life Grameen Jeevan Bima?

Who is eligible for the Bharti AXA Life Grameen Jeevan Bima?

What are the benefits of the Bharti AXA Life Grameen Jeevan Bima?

Death Benefit

Maturity Benefit

Grace Period, Discontinuance and Revival of the Bharti AXA Life Grameen Jeevan Bima

Free Look Period for the Bharti AXA Life Grameen Jeevan Bima

Surrendering the Bharti AXA Life Grameen Jeevan Bima

What are the advantages of the Bharti AXA Life Grameen Jeevan Bima?

What are the disadvantages of the Bharti AXA Life Grameen Jeevan Bima?

Research Methodology of Bharti AXA Life Grameen Jeevan Bima

Benefit Illustration – IRR Analysis of Bharti AXA Life Grameen Jeevan Bima

Final Verdict on Bharti AXA Life Grameen Jeevan Bima

What is the Bharti AXA Life Grameen Jeevan Bima?

Bharti AXA Life Grameen Jeevan Bima is a Non-Linked, Non-Participating Life Term Micro Insurance Plan. It is a Life Insurance plan that provides life insurance coverage at an affordable premium.

The plan offers flexibility to choose from multiple policy terms with single-pay and regular pay options.

What are the features of the Bharti AXA Life Grameen Jeevan Bima?

  • Life Insurance Coverage: Provides life insurance coverage throughout the policy term. There is no maturity benefit under the plan.
  • Flexible Policy and Premium Payment Terms: Offers a choice of two policy terms — 5 years and 10 years. Premiums can be paid either as a single premium or throughout the policy term.
  • No Medical Examination: The plan can be purchased without undergoing a medical examination, subject to the applicable eligibility conditions.
  • Tax Benefits: Premiums paid and benefits received may qualify for tax benefits, subject to the provisions and conditions of the Income Tax Act, 1961.

Who is eligible for the Bharti AXA Life Grameen Jeevan Bima?

Parameter Eligibility Criteria
Pure Protection Option
Minimum age at entry 18 years
Policy Term 5 years 10 years
Premium Payment Option Single Pay/Regular Pay Single Pay/ Regular Pay
Maximum age at entry (in years) 60 55
Maximum age at maturity (in years) 65
Minimum Sum Assured (Rs.) ₹ 10,000
Maximum Sum Assured (Rs.) ₹ 2,00,000
Premium Payment Modes Single, Annual, semi-annual, quarterly & monthly
Minimum Premium Based on the minimum Sum Assured

What are the benefits of the Bharti AXA Life Grameen Jeevan Bima?

1. Death Benefit

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

Death Benefit is the Sum Assured on Death, which is as follows

Single Pay

Sum Assured on Death is the highest of:

  • 11 times the Single Premium
  • 125% of Single Premium
  • Absolute amount assured to be paid on death equal to Sum Assured
  • Sum Assured on Maturity

Regular Pay

Sum Assured on Death is the highest of:

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

2. Maturity Benefit

In case the Life Insured survives till the maturity of the policy and all premiums are duly paid, no Maturity Benefit is payable.

The Sum Assured on Maturity is zero under this option, and hence no benefit shall be payable to the Bharti AXA Life Grameen Jeevan Bima Plan Policyholder.

Grace Period, Discontinuance and Revival of the Bharti AXA Life Grameen Jeevan Bima

Grace Period

The grace period is 15 days for monthly mode and 30 days for annual/semi-annual premium payment modes.

Discontinuance

In case you do not pay the due premiums within your Grace Period, your policy will lapse, and your insurance cover will cease to exist. You can revive the policy within the period allowed for revival of the policy.

At the end of the revival period, if the policy is not revived, then the Bharti AXA Life Grameen Jeevan Bima Plan policy will be terminated, and no benefits will be payable.

In case of the death of the Life Insured while the Policy is in lapse status, no benefit shall be payable, and the Policy will terminate.

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.

Free Look Period for the Bharti AXA Life Grameen Jeevan Bima

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

The Policy will accordingly be cancelled

Surrendering the Bharti AXA Life Grameen Jeevan Bima

For Single Pay policies: Surrender Value shall be acquired immediately upon payment of premium. On Surrender of the Policy, Guaranteed Surrender Value (GSV) shall be payable to the Bharti AXA Life Grameen Jeevan Bima Plan policyholder

Guaranteed Surrender Value (GSV): On Surrender, the Guaranteed Surrender Value equal to Guaranteed Surrender Value Factor * Total premiums paid will be paid

For Regular Pay policies: No Surrender Value shall be paid.

What are the advantages of the Bharti AXA Life Grameen Jeevan Bima?

  • Flexible Premium Payment Frequency: You can choose to pay premiums monthly, quarterly, half-yearly, or annually, depending on your convenience.
  • Suitable for Lower-Income Groups: The plan is designed to provide affordable life insurance coverage, making it accessible to individuals from lower-income groups.

What are the disadvantages of the Bharti AXA Life Grameen Jeevan Bima?

  • No Loan Facility: The plan does not offer any loan facility against the policy.
  • Limited Sum Assured: The maximum sum assured is capped at ₹2 lakh, which may be inadequate to meet the family’s financial needs in the event of the policyholder’s death.
  • Fixed Policy Term: The policy offers a fixed policy term, leaving no flexibility to choose a term based on your financial protection needs.

Research Methodology of Bharti AXA Life Grameen Jeevan Bima

The Bharti AXA Life Grameen Jeevan Bima Plan offers a minimum sum assured of ₹10,000 and a maximum of ₹2,00,000.

In comparison, the standard pure-term insurance plan Saral Jeevan Bima, introduced under IRDAI guidelines, offers a minimum sum assured of ₹5 lakh.

Given the financial responsibilities a family may have, a significantly lower level of life cover may not provide adequate financial protection.

Benefit Illustration – IRR Analysis of Bharti AXA Life Grameen Jeevan Bima

For illustration, consider a 35-year-old male opting for a sum assured of ₹1,00,000 for a 10-year policy term, with an annual premium of ₹208.

If the policyholder dies during the Bharti AXA Life Grameen Jeevan Bima Plan policy term, the nominee or beneficiary receives the sum assured of ₹1 lakh, subject to the policy terms and conditions.

Male 35 years
Sum Assured ₹ 1,00,000
Policy Term 10 years
Premium Paying Term 10 years
Annualised Premium ₹ 208

The plan does not provide any maturity benefit, bonuses, or additional benefits, as it is designed as a pure-term insurance policy.

While this keeps the product simple and focused on life protection, the key consideration is whether the coverage amount is sufficient to meet the family’s financial needs.

A pure-term insurance policy should ideally provide adequate life cover based on the family’s income, liabilities, financial goals, and future needs.

In this context, the maximum sum assured of ₹2,00,000 under the Bharti AXA Life Grameen Jeevan Bima Plan is limited.

Compared with the ₹5 lakh minimum sum assured available under Saral Jeevan Bima, the coverage offered by this plan may provide only limited financial protection to the family.

Final Verdict on Bharti AXA Life Grameen Jeevan Bima

Bharti AXA Life Grameen Jeevan Bima is a pure-term life insurance plan with no savings or investment component. It provides a lump-sum death benefit to the nominee during the policy term, keeping the product simple and focused solely on life protection.

However, our analysis indicates that the life cover offered is inadequate and it also has a high agent commission.

The maximum sum assured is capped at just ₹2 lakh, which is unlikely to provide meaningful financial protection for a family in the event of the policyholder’s untimely death.

As a result, the plan has limited utility as a comprehensive life-protection solution.

The key limitation of Bharti AXA Life Grameen Jeevan Bima is its low maximum sum assured of ₹2 lakh. Individuals requiring higher life cover may consider other pure-term insurance plans that offer substantially higher coverage.

Life insurance should primarily address protection needs, while investments should be planned separately based on financial goals, risk appetite, and investment horizon.

To determine an appropriate level of life cover, consider consulting a Certified Financial Planner.

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

A professional assessment can help estimate the required sum assured based on income, liabilities, dependants, financial goals, and future needs.

Holistic

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