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Is the Bharti AXA Life Growth Shield Plus Plan truly a smart wealth-building solution, or does it quietly lock investors into high costs and rigid structures?
Is Bharti AXA Life Growth Shield Plus Plan a reliable path to long-term wealth creation, or are there smarter alternatives available?
Is Bharti AXA Life Growth Shield Plus Plan designed for investor benefit, or does its structure favour the insurer more?
This article examines the Bharti AXA Life Growth Shield Plus Plan by analysing its features, advantages, and disadvantages, and providing a detailed illustration.
Table of Contents
What is the Bharti AXA Life Growth Shield Plus?
What are the features of the Bharti AXA Life Growth Shield Plus?
Who is eligible for the Bharti AXA Life Growth Shield Plus?
What are the benefits of the Bharti AXA Life Growth Shield Plus?
What are the investment strategies of the Bharti AXA Life Growth Shield Plus?
What are the charges of the Bharti AXA Life Growth Shield Plus?
Grace Period, Discontinuance and Revival of the Bharti AXA Life Growth Shield Plus
Free Look Period for the Bharti AXA Life Growth Shield Plus
Surrendering the Bharti AXA Life Growth Shield Plus
What are the advantages of the Bharti AXA Life Growth Shield Plus?
What are the disadvantages of the Bharti AXA Life Growth Shield Plus?
Research Methodology of Bharti AXA Life Growth Shield Plus
Benefit Illustration – IRR Analysis of Bharti AXA Life Growth Shield Plus
Bharti AXA Life Growth Shield Plus Vs. Other Investments
Bharti AXA Life Growth Shield Plus Vs. Pure-term + Equity Mutual Fund
Final Verdict on Bharti AXA Life Growth Shield Plus
What is the Bharti AXA Life Growth Shield Plus?
Bharti AXA Life Growth Shield Plus is a unit-linked, non-participating individual life insurance plan.
This plan offers you a comprehensive financial solution that gives you life coverage up to 100 times your premium and helps build wealth over the long term to ensure that you and your family fulfil all your aspirations.
What are the features of the Bharti AXA Life Growth Shield Plus?
- Premium allocation charges equivalent to 200% of the premium are returned between the 10th and 13th policy years.
- 100% to 300% of the mortality charges deducted during the Bharti AXA Life Growth Shield Plus Plan policy term are added back to the fund value from the end of the 11th policy year.
- Loyalty additions, calculated as a percentage of the fund value, are credited to the fund at maturity.
- The plan offers multiple premium payment options and policy terms, providing flexibility to suit different needs.
- You can choose from two investment strategies, along with multiple fund options, based on your financial goals and risk–return profile.
- Tax benefits may be available on premiums paid and benefits received, subject to prevailing tax laws.
Who is eligible for the Bharti AXA Life Growth Shield Plus?
What are the benefits of the Bharti AXA Life Growth Shield Plus?
Death Benefit
In case of the death of the Life Insured during the Bharti AXA Life Growth Shield Plus Plan Policy Term, the Death Benefit will be payable to the Nominee or the Policyholder, as the case may be, subject to the Policy being in force. Death Benefit, which is the highest of:
- Sum assured less applicable partial withdrawal amount from the Fund value
- Policy Fund Value inclusive of Loyalty additions (if any) as on the date of intimation of death of the Life Insured
- 105% of all total premiums paid as on the date of death, less applicable partial withdrawal# amount from the fund value
Where the Sum Assured is as defined as Annualised Premium x Death Benefit Multiple (DBM)
Maturity Benefit
Policy Fund Value inclusive of loyalty additions as on the date of maturity. Fund Value is defined as the total value of units in a segregated fund, i.e. total number of units under a policy multiplied by the Net Asset Value (NAV) per unit of that fund.
Settlement Option
On Maturity, you may choose to receive the Bharti AXA Life Growth Shield Plus Plan Policy Fund Value as:
Option 1 – A lump sum payment on the date of maturity
Option 2 – At regular intervals chosen by you, during the Settlement Period
Option 3 – A combination of the above
Return of all charges:
Return of Premium allocation charges (RoPAC): – Two times the Premium Allocation Charges shall be returned after the completion of the 10th Policy year and onwards, as provided in the table below.
| Return of Premium Allocation Charges from the end of | Premium Allocation Charges were deducted earlier in the |
| 10th Policy year | 1st Policy year |
| 11th Policy year | 2nd Policy year |
| 12th Policy year | 3rd Policy year |
| 13th Policy year | 4th Policy year |
Return of Mortality charges (RoMC):
A multiple of the Mortality Charges starting from the 11th Policy year and onwards shall be added to the Bharti AXA Life Growth Shield Plus Plan Policy Fund Value as stated below.
| Policy Years | Multiple of Mortality Charges |
| 1 to 10 years | Nil |
| 11 to 20 years | 1 time of the Mortality Charges collected during the 1st to 10th Policy year |
| 21 to 30 years | 2 times of the Mortality Charges collected during the 11th to 20th Policy year |
| 31 to 40 years | 3 times of the Mortality Charges collected during the 21st to 30th Policy year |
Loyalty Additions
The Loyalty Additions shall be added to the Bharti AXA Life Growth Shield Plus Plan Policy as a % of the average Policy Fund Value of the three years preceding the Date of Maturity, depending upon the Policy Term and Premium Payment Term.
What are the investment strategies of the Bharti AXA Life Growth Shield Plus?
Depending on your financial objectives, you have the choice of putting your premiums in any or all of the following eight 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 |
| Money Market securities | Government securities | ||||
| Discontinued Policy Fund | 0-40% | 0-60% | |||
Investment Strategies
At the inception of the Bharti AXA Life Growth Shield Plus 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 Growth Shield Plus 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 Growth Shield Plus 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.
What are the charges of the Bharti AXA Life Growth Shield Plus?
i). Premium Allocation Charge
The Premium allocation charge is as per the table below
| Policy Term | % of Annualised Premium |
| Year 1 | 12.00% |
| Year 2 | 6.00% |
| Year 3 | 3.00% |
| Year 4 | 3.00% |
| Year 5 onwards | Nil |
ii). Mortality Charge
Mortality charges will be deducted from the Bharti AXA Life Growth Shield Plus 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 Growth Shield Plus 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 the inception of the Bharti AXA Life Growth Shield Plus Plan policy will be deducted by cancellation of Units at the prevailing Unit Price on the corresponding Policy Date in each Policy Month, starting from the 5th policy year.
The monthly policy administration charge is 0.50% as a percentage of the annualised premium. The Bharti AXA Life Growth Shield Plus Plan policy administration charge is subject to a maximum of Rs. 500 per month.
iv). Fund Management Charge
| 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 | Emerging Equity Fund | 1.35% per annum |
| 5 | Save ‘nʼ grow Money Fund | 1.25% per annum |
| 6 | Steady Money Fund | 1.00% per annum |
| 7 | Safe Money Fund | 1.00% per annum |
| 8 | Stability Plus Money Fund | 0.80% per annum |
| Discontinued Policy Fund | 0.50% per annum |
v). 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.
Inference from Charges: Although the plan refunds some of the charges, it doesn’t account for the time value of money.
Moreover, some charges are deducted regularly throughout the Bharti AXA Life Growth Shield Plus Plan policy term. Over time, these ongoing deductions can significantly erode your investment value and reduce long-term returns.
Grace Period, Discontinuance and Revival of the Bharti AXA Life Growth Shield Plus
Grace Period
The Bharti AXA Life Growth Shield Plus 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 Growth Shield Plus 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 Growth Shield Plus Plan Policy.
Revival
The revival period for this product is three years from the date of the first unpaid premium.
Free Look Period for the Bharti AXA Life Growth Shield Plus
If you disagree with any of the terms and conditions of the Bharti AXA Life Growth Shield Plus Plan Policy, you can return the original Policy along with a letter stating the reason/s within 30 days of receipt of the Policy.
Surrendering the Bharti AXA Life Growth Shield Plus
Surrender during the lock-in period: the Bharti AXA Life Growth Shield Plus 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 Growth Shield Plus Plan policy fund shall be payable.
What are the advantages of the Bharti AXA Life Growth Shield Plus?
- Liquidity through partial withdrawals is available after completion of the 5-year lock-in period.
- The Systematic Withdrawal Benefit (SWB) allows automated partial withdrawals, where a pre-decided amount is periodically withdrawn from the Bharti AXA Life Growth Shield Plus Plan policy fund value.
- Using Switch and Premium Redirection features, you can rebalance your asset allocation between equity and debt based on your evolving needs.
- For enhanced protection, optional riders can be added by paying an additional premium.
What are the disadvantages of the Bharti AXA Life Growth Shield Plus?
- The plan comes with a 5-year lock-in period, restricting early access to funds.
- Only the net premium, after deducting charges, is actually invested.
- The risk–return trade-off is not favourable, making it less efficient as an investment tool.
- Loan facility is not available under this plan, limiting liquidity in times of need.
Research Methodology of Bharti AXA Life Growth Shield Plus
The Bharti AXA Life Growth Shield Plus Plan aims to help you accumulate a corpus for your long-term goals through regular premium contributions. Due to its market-linked investment structure, the plan may appear attractive, especially for investors without deep technical knowledge.
A closer look at the Internal Rate of Return (IRR) offers a more realistic assessment of its effectiveness.
Let us evaluate the plan’s return potential using the figures provided in the Bharti AXA Life Growth Shield Plus Plan policy brochure.
Benefit Illustration – IRR Analysis of Bharti AXA Life Growth Shield Plus
Consider a 35-year-old male who opts for the Bharti AXA Life Growth Shield Plus Plan with a sum assured of ₹70 lakh. The annual premium is ₹1 lakh, with a policy term of 30 years and a premium-paying term of 10 years.
| Male | 35 years |
| Sum Assured | ₹ 70,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
The illustration projects return at two assumed rates—4% p.a. and 8% p.a. These figures are used only for illustration, are not guaranteed, and do not represent the actual performance of the underlying funds, which may vary based on market conditions and investment decisions.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 70,00,000 | -1,00,000 | 70,00,000 |
| 36 | 2 | -1,00,000 | 70,00,000 | -1,00,000 | 70,00,000 |
| 37 | 3 | -1,00,000 | 70,00,000 | -1,00,000 | 70,00,000 |
| 38 | 4 | -1,00,000 | 70,00,000 | -1,00,000 | 70,00,000 |
| 39 | 5 | -1,00,000 | 70,00,000 | -1,00,000 | 70,00,000 |
| 40 | 6 | -1,00,000 | 70,00,000 | -1,00,000 | 70,00,000 |
| 41 | 7 | -1,00,000 | 70,00,000 | -1,00,000 | 70,00,000 |
| 42 | 8 | -1,00,000 | 70,00,000 | -1,00,000 | 70,00,000 |
| 43 | 9 | -1,00,000 | 70,00,000 | -1,00,000 | 70,00,000 |
| 44 | 10 | -1,00,000 | 70,00,000 | -1,00,000 | 70,00,000 |
| 45 | 11 | 0 | 70,00,000 | 0 | 70,00,000 |
| 46 | 12 | 0 | 70,00,000 | 0 | 70,00,000 |
| 47 | 13 | 0 | 70,00,000 | 0 | 70,00,000 |
| 48 | 14 | 0 | 70,00,000 | 0 | 70,00,000 |
| 49 | 15 | 0 | 70,00,000 | 0 | 70,00,000 |
| 50 | 16 | 0 | 70,00,000 | 0 | 70,00,000 |
| 51 | 17 | 0 | 70,00,000 | 0 | 70,00,000 |
| 52 | 18 | 0 | 70,00,000 | 0 | 70,00,000 |
| 53 | 19 | 0 | 70,00,000 | 0 | 70,00,000 |
| 54 | 20 | 0 | 70,00,000 | 0 | 70,00,000 |
| 55 | 21 | 0 | 70,00,000 | 0 | 70,00,000 |
| 56 | 22 | 0 | 70,00,000 | 0 | 70,00,000 |
| 57 | 23 | 0 | 70,00,000 | 0 | 70,00,000 |
| 58 | 24 | 0 | 70,00,000 | 0 | 70,00,000 |
| 59 | 25 | 0 | 70,00,000 | 0 | 70,00,000 |
| 60 | 26 | 0 | 70,00,000 | 0 | 70,00,000 |
| 61 | 27 | 0 | 70,00,000 | 0 | 70,00,000 |
| 62 | 28 | 0 | 70,00,000 | 0 | 70,00,000 |
| 63 | 29 | 0 | 70,00,000 | 0 | 70,00,000 |
| 64 | 30 | 0 | 70,00,000 | 0 | 70,00,000 |
| 65 | 9,83,177 | 39,78,586 | |||
| IRR | -0.07% | 5.52% | |||
At an assumed return of 4% p.a., the fund value at maturity is ₹9.83 lakh, resulting in an IRR of -0.07% as per the Bharti AXA Life Growth Shield Plus Plan maturity calculator. The negative IRR arises because the maturity value is lower than the total premiums paid.
At an assumed return of 8% p.a., the fund value increases to ₹39.78 lakh, with an IRR of 5.52% as per the Bharti AXA Life Growth Shield Plus Plan maturity calculator. However, even at this higher assumed return, the outcome is not commensurate with the market-linked risk taken.
In fact, the effective IRR under this plan is lower than what traditional debt instruments can potentially offer, despite involving higher risk and a long-term lock-in.
This defeats the primary objective of choosing a market-linked product. The plan fails to generate inflation-beating returns and may ultimately slow down wealth creation or lead to a shortfall in meeting financial goals when the funds are needed most.
Bharti AXA Life Growth Shield Plus Vs. Other Investments
Long-term investors expect their capital to grow meaningfully above inflation, and unfortunately, the Bharti AXA Life Growth Shield Plus plan falls short of that fundamental objective.
The return analysis makes one thing evident: the Plan does not deliver inflation-beating returns. For a 30-year investment horizon, this is a significant limitation.
Bharti AXA Life Growth Shield Plus Vs. Pure-term + Equity Mutual Fund
Let us now evaluate a more efficient alternative by separating insurance and investment, using the same ₹1,00,000 annual outlay from the earlier illustration.
A pure term insurance policy with a sum assured of ₹75 lakh (broadly comparable to the earlier example) would cost approximately ₹24,650 per year for a 35-year-old, assuming a 30-year policy term and a 10-year premium-paying period.
This leaves ₹75,350 annually available for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 75,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 24,650 |
| Investment | ₹ 75,350 |
Depending on risk appetite:
Conservative investors may allocate this amount to debt instruments such as the Public Provident Fund (PPF).
Aggressive investors can invest in equity instruments, such as equity mutual funds, to seek higher long-term returns.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 75,00,000 |
| 36 | 2 | -1,00,000 | 75,00,000 |
| 37 | 3 | -1,00,000 | 75,00,000 |
| 38 | 4 | -1,00,000 | 75,00,000 |
| 39 | 5 | -1,00,000 | 75,00,000 |
| 40 | 6 | -1,00,000 | 75,00,000 |
| 41 | 7 | -1,00,000 | 75,00,000 |
| 42 | 8 | -1,00,000 | 75,00,000 |
| 43 | 9 | -1,00,000 | 75,00,000 |
| 44 | 10 | -1,00,000 | 75,00,000 |
| 45 | 11 | 0 | 75,00,000 |
| 46 | 12 | 0 | 75,00,000 |
| 47 | 13 | 0 | 75,00,000 |
| 48 | 14 | 0 | 75,00,000 |
| 49 | 15 | 0 | 75,00,000 |
| 50 | 16 | 0 | 75,00,000 |
| 51 | 17 | 0 | 75,00,000 |
| 52 | 18 | 0 | 75,00,000 |
| 53 | 19 | 0 | 75,00,000 |
| 54 | 20 | 0 | 75,00,000 |
| 55 | 21 | 0 | 75,00,000 |
| 56 | 22 | 0 | 75,00,000 |
| 57 | 23 | 0 | 75,00,000 |
| 58 | 24 | 0 | 75,00,000 |
| 59 | 25 | 0 | 75,00,000 |
| 60 | 26 | 0 | 75,00,000 |
| 61 | 27 | 0 | 75,00,000 |
| 62 | 28 | 0 | 75,00,000 |
| 63 | 29 | 0 | 75,00,000 |
| 64 | 30 | 0 | 75,00,000 |
| 65 | 1,26,09,973 | ||
| IRR | 10.28% | ||
Investing ₹75,350 per year in equity mutual funds through SIPs over 30 years can potentially accumulate a corpus of ₹1.42 crore. After accounting for long-term capital gains tax, the post-tax corpus works out to approximately ₹1.26 crore, translating to a post-tax IRR of around 10.28%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 30 years | 1,42,85,898 |
| Purchase price | 7,53,500 |
| Long-Term Capital Gains | 1,35,32,398 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 1,34,07,398 |
| Tax paid on LTCG | 16,75,925 |
| Maturity value after tax | 1,26,09,973 |
This comparison clearly highlights the inefficiency of combining insurance and investment in a single product.
By keeping them separate, investors benefit from higher return potential, superior liquidity, and greater flexibility—all of which are notably absent in the Bharti AXA Life Growth Shield Plus Plan, making it a sub-optimal choice for long-term wealth creation.
Final Verdict on Bharti AXA Life Growth Shield Plus
In the Bharti AXA Life Growth Shield Plus Plan, premiums are paid either for a limited period or throughout the Bharti AXA Life Growth Shield Plus Plan policy term.
However, only a portion of the premium is actually invested, and that too after multiple charges are deducted. Although the plan offers to return certain charges, it fails to account for the time value of money.
At maturity, you receive only the fund value, and in most scenarios, the returns fall short of reasonable market expectations. Given the risks involved, such outcomes are hard to justify and it also has a high agent commission.
A key contributor to this underperformance is the high-cost structure, which steadily erodes the investment value over time. This is further compounded by poor liquidity, as the funds remain locked in for an extended period.
As a result, the plan offers limited support for long-term wealth creation.
At its core, the problem lies in combining insurance and investment into a single product, which leads to compromises on both fronts.
A more effective strategy is to secure protection through a pure-term life insurance policy at a relatively low cost, while investing the remaining surplus in a well-diversified investment portfolio aligned with your financial goals.
To build a robust portfolio, investment decisions should be guided by your risk appetite, time horizon, and financial objectives.
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