Bharti AXA Life Grow Wealth Ultra plan: Good or Bad? An Insightful ULIP Review
Is the Bharti AXA Life Grow Wealth Ultra plan truly a wealth-building tool, or just another expensive insurance-investment combo?
Bharti AXA Life Grow Wealth Ultra: Smart Investment Strategy or Costly Commitment?
Is the Bharti AXA Life Grow Wealth Ultra designed for your goals, or just for disciplined premiums?
This analysis will help determine whether the plan is genuinely suitable for your financial goals.
What is the Bharti AXA Life Grow Wealth Ultra?
What are the features of the Bharti AXA Life Grow Wealth Ultra?
Who is eligible for the Bharti AXA Life Grow Wealth Ultra?
What are the benefits of the Bharti AXA Life Grow Wealth Ultra?
What are the Investment Strategies and fund options in the Bharti AXA Life Grow Wealth Ultra?
What are the charges in the Bharti AXA Life Grow Wealth Ultra?
Grace Period, Discontinuance and Revival of the Bharti AXA Life Grow Wealth Ultra
Free Look Period for the Bharti AXA Life Grow Wealth Ultra
Surrendering the Bharti AXA Life Grow Wealth Ultra
What are the advantages of the Bharti AXA Life Grow Wealth Ultra?
What are the disadvantages of the Bharti AXA Life Grow Wealth Ultra?
Research Methodology of Bharti AXA Life Grow Wealth Ultra
Benefit Illustration – IRR Analysis of Bharti AXA Life Grow Wealth Ultra
Bharti AXA Life Grow Wealth Ultra Vs. Other Investments
Bharti AXA Life Grow Wealth Ultra Vs. Pure-term + Equity Mutual Fund
Final Verdict on Bharti AXA Life Grow Wealth Ultra
Bharti AXA Life Grow Wealth Ultra is a Unit Linked, Non-Participating, Individual Savings Life Insurance Plan.
This plan offers life cover up to age 99, providing financial security for you and your family even in unforeseen circumstances and enables you to grow your wealth through long-term investments.
Death Benefit, which is the highest of:
The Death Benefit Multiples available are as follows
| PPT Option | Entry Age | DBM |
| Single Pay | Up to 50 | 1.25 |
| Single Pay | 50 and above | 1.1 |
| Other than Single Pay | Up to 50 | 7 or 10 |
| Other than Single Pay | 50 and above | 5 |
In case the Life Insured survives till maturity, and all due premiums have been paid till the date of maturity, the Bharti AXA Life Grow Wealth Ultra plan Policy Fund Value (inclusive of Milestone Benefits, Return of Charges and Loyalty Booster, as applicable) as on the date of maturity is paid as the Maturity benefit.
Milestone Benefits (Applicable for Wealth Affinity Plan option)
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 every fifth policy year, starting from the 10th policy year during the Bharti AXA Life Grow Wealth Ultra plan Policy Term.
Milestone Benefits (% of Fund Value) are given below:
| Variant | Wealth Affinity | |
| Year/Annualised | Premium Below 5,00,000 | 5,00,000 and above |
| Less than 20 | 5% | 10% |
| 20 and above | 10% | 20% |
Loyalty Boosters (Applicable for Wealth Plan option)
The Loyalty Booster shall be added to the Bharti AXA Life Grow Wealth Ultra plan Policy as a percentage of the average Policy Fund Value of the five years preceding the Date of Maturity, depending upon the Policy Term.
Return of Charges
Return of Premium Allocation Charge: The total premium allocation charges (excluding any applicable tax/cess levied) deducted during the Bharti AXA Life Grow Wealth Ultra plan policy term will be added to the policy fund value at maturity, if any.
Return of Administration Charge: The total administration charges (excluding any applicable tax/cess levied) deducted during the policy term will be added to the Bharti AXA Life Grow Wealth Ultra plan policy fund value at maturity, if any.
Return of Mortality Charge: The total mortality charges (excluding any extra mortality charge or any applicable tax/cess levied) deducted during the Bharti AXA Life Grow Wealth Ultra plan policy term will be added to the policy fund value at maturity.
Depending on your financial objectives, you have the choice of putting your premiums in any or all of the following ten 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 |
| 9 | Nifty 5 Year SDL Constant Maturity Index Fund | 60-100% | 0-40% | – | Low |
| 10 | Nifty 100 Index Fund | – | 0-20% | 80-100% | High |
| Money Market securities | Government securities | ||||
| Discontinued Policy Fund | 0-40% | 0-60% | |||
Investment Strategies
At the inception of the Bharti AXA Life Grow Wealth Ultra 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 Grow Wealth Ultra 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 Grow Wealth Ultra 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.
Self-managed Strategy
This strategy can only be chosen at the inception of the policy. It enables the Bharti AXA Life Grow Wealth Ultra plan policyholder to manage their savings actively.
Under this strategy, the policyholder can choose to save their money in any of the funds listed (as listed above) in proportion to their choice.
The Bharti AXA Life Grow Wealth Ultra plan policyholder can switch money between the funds using the switch option.
i). Premium Allocation Charge
The Premium allocation charge (% of Annualised Premium) is as per the tables below:
| Variant | Wealth Affinity | Wealth | ||
| Policy year | Single Pay | Other than Single Pay | Single Pay | Other than Single Pay |
| 1 | 2% | 5.5% | NIL | |
| 2 | 0% | 5.0% | ||
| 3 | 0% | 4.5% | ||
| 4 | 0% | 4.0% | ||
| 5 | 0% | 3.5% | ||
| 6+ | 0% | 0.0% | ||
ii). Mortality Charge
Mortality charges will be deducted from the Bharti AXA Life Grow Wealth Ultra 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 Grow Wealth Ultra 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 inception of the Bharti AXA Life Grow Wealth Ultra plan policy will be deducted by cancellation of Units at the prevailing Unit Price on the corresponding Policy Date in each Policy Month.
iv). Fund Management Charge
| Name of the Fund | Charges p.a. |
| Growth Opportunities Plus Fund | 1.35% |
| Grow Money Plus Fund | 1.35% |
| Build India Fund | 1.35% |
| Emerging Equity Fund | 1.35% |
| Save ‘n’ Grow Money Fund | 1.25% |
| Steady Money Fund | 1.00% |
| Safe Money Fund | 1.00% |
| Nifty 100 Index fund | 0.90% |
| Nifty 5 Year SDL Constant Maturity Index Fund | 0.90% |
| Stability Plus Money Fund | 0.80% |
| Discontinued Policy Fund | 0.50% |
v). Discontinuance Charge
The Discontinuance Charge shall be levied at the time of surrender or on Discontinuance of Premium, whichever is earlier.
Inference from the charges: The plan applies multiple charges before investing your premium, including Premium Allocation, Discontinuance, and Mortality Charges, which persist throughout the Bharti AXA Life Grow Wealth Ultra plan policy term.
In contrast, other market-linked products typically have lower charges and offer more transparency in their investment processes.
These higher charges in ULIPs can significantly affect your returns over time.
For other than single premium policies
Grace Period
The Bharti AXA Life Grow Wealth Ultra 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 Grow Wealth Ultra plan Policyholder, and the Policy shall terminate
Discontinuance of Policy after the lock-in Period: the 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 Bharti AXA Life Grow Wealth Ultra plan 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 Grow Wealth Ultra 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 Grow Wealth Ultra 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 Grow Wealth Ultra plan policy fund shall be payable.
For Single premium policies
Surrender during the lock-in period: The Bharti AXA Life Grow Wealth Ultra 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 Policyholder, and the Policy shall terminate
Surrender after the lock-in period: The Bharti AXA Life Grow Wealth Ultra plan Policyholder has an option to surrender the Policy at any time. Upon receipt of a request for surrender, the fund value as on the date of surrender shall be payable.
This section evaluates the wealth creation capability of the Bharti AXA Life Grow Wealth Ultra Plan. By computing the Internal Rate of Return (IRR), we can objectively assess its efficiency and benchmark it against alternative investment avenues.
The IRR figures below are derived from the benefit illustrations provided in the Bharti AXA Life Grow Wealth Ultra plan policy brochure.
Consider a 35-year-old male who chooses the plan with a Sum Assured of ₹30 lakhs. The Bharti AXA Life Grow Wealth Ultra plan policy term is 20 years, with a premium payment term of 8 years, and an annual premium of ₹3 lakhs. He opts for the Wealth plan option.
| Male | 35 years |
| Sum Assured | ₹ 30,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 8 years |
| Annualised Premium | ₹ 3,00,000 |
Under this structure, the accumulated fund value becomes payable at the end of the Bharti AXA Life Grow Wealth Ultra plan policy term, subject to uninterrupted premium payments.
The brochure projects returns at assumed gross investment rates of 4% and 8%. These are illustrative scenarios, not guarantees, and do not represent the minimum or maximum achievable returns.
The actual maturity value will depend on market performance and other policy-specific factors.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 36 | 2 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 37 | 3 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 38 | 4 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 39 | 5 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 40 | 6 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 41 | 7 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 42 | 8 | -3,00,000 | 30,00,000 | -3,00,000 | 30,00,000 |
| 43 | 9 | 0 | 30,00,000 | 0 | 30,00,000 |
| 44 | 10 | 0 | 30,00,000 | 0 | 30,00,000 |
| 45 | 11 | 0 | 30,00,000 | 0 | 30,00,000 |
| 46 | 12 | 0 | 30,00,000 | 0 | 30,00,000 |
| 47 | 13 | 0 | 30,00,000 | 0 | 30,00,000 |
| 48 | 14 | 0 | 30,00,000 | 0 | 30,00,000 |
| 49 | 15 | 0 | 30,00,000 | 0 | 30,00,000 |
| 50 | 16 | 0 | 30,00,000 | 0 | 30,00,000 |
| 51 | 17 | 0 | 30,00,000 | 0 | 30,00,000 |
| 52 | 18 | 0 | 30,00,000 | 0 | 30,00,000 |
| 53 | 19 | 0 | 30,00,000 | 0 | 30,00,000 |
| 54 | 20 | 0 | 30,00,000 | 0 | 30,00,000 |
| 55 | 36,25,067 | 67,37,264 | |||
| IRR | 2.52% | 6.39% | |||
At 4% assumed return:
The projected fund value is ₹36.25 lakhs, translating to an IRR of 2.52% as per the Bharti AXA Life Grow Wealth Ultra plan maturity calculator. This return is even lower than what a standard savings account typically offers.
At 8% assumed return:
The projected fund value increases to ₹67.37 lakhs, resulting in an IRR of 6.39% as per the Bharti AXA Life Grow Wealth Ultra plan maturity calculator. This is broadly comparable to, and in some cases may be lower than, prevailing bank fixed deposit rates.
Despite being a market-linked product that carries equity exposure risk, the return profile does not appear commensurate with the level of risk undertaken.
Although positioned as a long-term wealth accumulation and inflation-hedging solution, the projected outcomes indicate limited compounding efficiency.
As a result, the maturity corpus generated under this plan may fall short of meeting meaningful long-term financial objectives.
The Bharti AXA Life Grow Wealth Ultra Plan raises concerns regarding suitability, primarily due to its inability to deliver inflation-adjusted returns and the relatively modest life cover it provides.
The structural bundling of insurance and investment within a single product further dilutes overall efficiency, leading to compromised returns.
To understand the opportunity cost, it is prudent to evaluate a “buy term and invest separately” strategy.
Assume an individual purchases a pure term life insurance policy with a Sum Assured of ₹30 lakhs at an annual premium of ₹30,400. The Bharti AXA Life Grow Wealth Ultra plan policy term is 20 years, with a premium payment term of 5 years.
The Bharti AXA Life Grow Wealth Ultra’s premium paying term is 8 years, while the pure-term insurance policy’s premium paying term is 5 years. This leaves full ₹ 3 Lakhs for investment in the last 3 years.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 30,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 30,400 |
| Investment | ₹ 2,69,600 |
Compared to the ₹3 lakh annual premium under the ULIP structure, this approach leaves ₹2,69,600 per year available for independent investment. The allocation can be aligned with the investor’s risk profile:
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -3,00,000 | 30,00,000 |
| 36 | 2 | -3,00,000 | 30,00,000 |
| 37 | 3 | -3,00,000 | 30,00,000 |
| 38 | 4 | -3,00,000 | 30,00,000 |
| 39 | 5 | -3,00,000 | 30,00,000 |
| 40 | 6 | -3,00,000 | 30,00,000 |
| 41 | 7 | -3,00,000 | 30,00,000 |
| 42 | 8 | -3,00,000 | 30,00,000 |
| 43 | 9 | 0 | 30,00,000 |
| 44 | 10 | 0 | 30,00,000 |
| 45 | 11 | 0 | 30,00,000 |
| 46 | 12 | 0 | 30,00,000 |
| 47 | 13 | 0 | 30,00,000 |
| 48 | 14 | 0 | 30,00,000 |
| 49 | 15 | 0 | 30,00,000 |
| 50 | 16 | 0 | 30,00,000 |
| 51 | 17 | 0 | 30,00,000 |
| 52 | 18 | 0 | 30,00,000 |
| 53 | 19 | 0 | 30,00,000 |
| 54 | 20 | 0 | 30,00,000 |
| 55 | 1,33,48,953 | ||
| IRR | 10.78% | ||
Low-risk investors: Debt-oriented options such as the Public Provident Fund (PPF).
High-risk investors: Market-linked avenues such as Equity mutual fund schemes.
For illustration, assume the surplus amount is invested in an equity mutual fund.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 1,49,16,946 |
| Purchase price | 22,48,000 |
| Long-Term Capital Gains | 1,26,68,946 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 1,25,43,946 |
| Tax paid on LTCG | 15,67,993 |
| Maturity value after tax | 1,33,48,953 |
Pre-tax maturity value: ₹1.49 crore
Post-tax maturity value (after capital gains tax): ₹1.33 crore
Post-tax IRR: 10.78%
As a market-linked instrument, an equity mutual fund offers superior compounding potential, better risk-adjusted returns, and significantly higher liquidity, as funds can be accessed without restrictive lock-in conditions (subject to applicable tax implications).
Comparative Assessment
In contrast, the Bharti AXA Life Grow Wealth Ultra Plan demonstrates:
Limited liquidity due to lock-in restrictions
Lower effective IRR despite market exposure
Inadequate risk-to-return compensation
From a financial planning standpoint, separating protection and investment enhances transparency, flexibility, and return efficiency. The alternative strategy not only strengthens life cover adequacy but also substantially improves long-term wealth creation potential.
The Bharti AXA Life Grow Wealth Ultra Plan is available in two variants—Wealth Affinity and Wealth. On the surface, the features appear structured to support long-term goal planning while offering life protection.
However, a deeper evaluation of its return metrics indicates that the plan does not meaningfully enhance wealth creation and it also has a high agent commission.
The layered charge structure and limited transparency in fund-level cost impact erode compounding efficiency, leading to modest IRRs. This directly constrains long-term corpus accumulation.
Further, the relatively low sum assured weakens the protection component, reducing its effectiveness as a comprehensive financial safeguard.
The bundled design—combining insurance and investment within a single plan—ultimately compromises both objectives.
A structurally superior approach is to decouple protection from wealth creation.
A pure-term life insurance policy ensures adequate financial cover for dependents at a minimal cost, while separate investments can be aligned precisely with one’s risk appetite, time horizon, and return expectations.
Evaluating projected IRRs and cost structures before committing capital is essential to avoid opportunity loss.
Sound financial planning is not product-driven but goal-driven. A disciplined strategy, built on clarity of objectives and efficient allocation of resources, is critical for sustainable wealth creation.
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