Bharti AXA Life Guaranteed Wealth Pro Plan: Good or Bad? An Insightful Review
Is the Bharti AXA Life Guaranteed Wealth Pro Plan truly a reliable path to long-term financial security, or does the “guarantee” come at the cost of growth?
Is the Bharti AXA Life Guaranteed Wealth Pro Plan designed for smart wealth creation, or mainly for investors seeking comfort over performance?
Does this Bharti AXA Life Guaranteed Wealth Pro plan genuinely help you build predictable wealth, or are traditional investment options better suited for long-term goals?
Let us take a closer look at the plan to assess whether it truly delivers on both protection and wealth creation.
What is the Bharti AXA Life Guaranteed Wealth Pro?
What are the features of the Bharti AXA Life Guaranteed Wealth Pro?
Who is eligible for the Bharti AXA Life Guaranteed Wealth Pro?
What are the benefits of the Bharti AXA Life Guaranteed Wealth Pro?
Grace Period, Discontinuance and Revival of the Bharti AXA Life Guaranteed Wealth Pro
Free Look Period for the Bharti AXA Life Guaranteed Wealth Pro
Surrendering the Bharti AXA Life Guaranteed Wealth Pro
What are the advantages of the Bharti AXA Life Guaranteed Wealth Pro?
What are the disadvantages of the Bharti AXA Life Guaranteed Wealth Pro?
Research Methodology of Bharti AXA Life Guaranteed Wealth Pro
Benefit Illustration – IRR Analysis of Bharti AXA Life Guaranteed Wealth Pro
Bharti AXA Life Guaranteed Wealth Pro Vs. Other Investments
Bharti AXA Life Guaranteed Wealth Pro Vs. Pure-term + Equity Mutual Fund
Final Verdict on Bharti AXA Life Guaranteed Wealth Pro
Bharti AXA Life Guaranteed Wealth Pro is a Non-Linked, Non-Participating Individual Savings Life Insurance Plan. You have the flexibility to choose from two plan options – the Endowment option and the Income option.
Both options offer guaranteed benefits and life. The Income option gives you various options to choose from, viz., deferred income as well as immediate income.
In case of the death of the Life Insured during the Bharti AXA Life Guaranteed Wealth Pro Plan Policy Term, provided the 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 immediately on death.
On payment of the death benefit to the nominee, the Bharti AXA Life Guaranteed Wealth Pro Plan policy will terminate, and no further benefits will be payable.
Endowment Option (Single Pay): Sum Assured on Death
Endowment Option (Limited Pay): The death benefit is the higher of
Income Option: Death Benefit is the higher of
Sum Assured on Death is defined as:
The Sum Assured Multiple under the various options is as follows:
The following survival benefits are payable under the product, provided the Life Insured survives the Bharti AXA Life Guaranteed Wealth Pro Plan Policy Term, and all due premiums have been paid:
Endowment Option
Loyalty Additions, defined as a percentage of Annualised Premium and varying by age, applicable premium band and premium payment term/policy term chosen, shall accrue in the last four policy years (at the end of the Policy Year).
Accrued Loyalty Additions are payable as a lump sum either at maturity, on the death of the Life Insured or surrender of the Bharti AXA Life Guaranteed Wealth Pro Plan policy.
Short-Term Income Option, Long-Term Income Option and Life Long Income Option
The Income payable under this option shall be the sum of:
For Lifelong income, the income payout period is equal to 100 minus Age at Entry, less (Premium Payment Term + 1)
Early Income Option and Long-Term Early Income
The income benefits payable are as follows:
Upon survival of the Life Insured till the end of the Bharti AXA Life Guaranteed Wealth Pro Plan Policy Term and provided the Policy is in force, all due premiums have been paid, the maturity benefits are payable in lumpsum on the date of maturity
Endowment Option (Limited Pay): Sum Assured on Maturity plus Loyalty Additions accrued till the date of Maturity.
Endowment Option (Single Pay): Sum Assured on Maturity
| Income Option | Maturity Benefit |
| Short Term Income | No Maturity Benefit is applicable |
| Long Term Income | Return of Total Premiums Paid at the end of the policy term |
| Life Long Income | Return of Total Premiums Paid at the end of the policy term |
| Early Income | No Maturity Benefit is applicable |
| Long Term Early Income | Return of Total Premiums Paid at the end of the policy term (i.e. end of 25th year) plus Terminal Booster (as a % of Annualised Premium) is the additional amount paid at the end of the Policy Term. |
Grace Period
The grace period is 15 days for the monthly mode and 30 days for annual/ semi-annual/ quarterly premium payment modes.
Discontinuance
The Bharti AXA Life Guaranteed Wealth Pro Plan policy acquires a surrender value after completion of the first policy year, provided one full year’s premium has been received.
If the Bharti AXA Life Guaranteed Wealth Pro Plan Policy has not acquired Surrender Value: If the policyholder does not pay the due premiums within the Grace Period, the policy shall lapse with effect from the date of such unpaid premium (‘lapse date’).
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 Guaranteed Wealth Pro Plan policy will be terminated, and no benefits will be payable.
If the Policy has acquired Surrender Value: After completion of the first policy year, provided one full year’s premium has been received, and further premiums have not been paid for any reason, the Policy will automatically be converted into Paid up, on expiry of the Grace period, and all the guaranteed benefits under the Bharti AXA Life Guaranteed Wealth Pro Plan Policy will be reduced.
Revival
You have the flexibility to revive your lapsed/ paid-up policy within the revival period of five years after the due date of the first unpaid premium.
If the Bharti AXA Life Guaranteed Wealth Pro Plan Policyholder disagrees with any of the terms and conditions of the Policy, there is an option to return the original Policy along with a letter stating the reason/s within 30 days of receipt of the Policy Document.
The Bharti AXA Life Guaranteed Wealth Pro Plan policy acquires a surrender value after completion of the first policy year, provided one full year’s premium has been received.
On surrender post the Policy acquires surrender value, you will receive the higher of:
Guaranteed Surrender Value (GSV)
Special Surrender Value (SSV)
Before investing in any financial product, it is crucial to assess the potential returns. To evaluate the Bharti AXA Life Guaranteed Wealth Pro Plan, let us analyse its returns and overall suitability.
The following Internal Rate of Return (IRR) calculation is based on the figures disclosed in the Bharti AXA Life Guaranteed Wealth Pro Plan policy brochure.
Consider a 35-year-old male who invests ₹50,000 per year in this plan, opting for a 12-year Premium Payment Term and a 24-year Policy Term, with a sum assured of ₹6.30 lakh under the Endowment option.
| Male | 35 years |
| Sum Assured | ₹ 6,30,000 |
| Policy Term | 24 years |
| Premium Paying Term | 12 years |
| Annualised Premium | ₹ 50,000 |
At maturity, he receives the Sum Assured on Maturity along with accrued Loyalty Additions, amounting to a total payout of ₹18.08 lakh.
This results in an IRR of approximately 6.03% as per the Bharti AXA Life Guaranteed Wealth Pro Plan maturity calculator.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -50,000 | 6,30,000 |
| 36 | 2 | -50,000 | 6,30,000 |
| 37 | 3 | -50,000 | 6,30,000 |
| 38 | 4 | -50,000 | 6,30,000 |
| 39 | 5 | -50,000 | 6,30,000 |
| 40 | 6 | -50,000 | 6,30,000 |
| 41 | 7 | -50,000 | 6,30,000 |
| 42 | 8 | -50,000 | 6,30,000 |
| 43 | 9 | -50,000 | 6,30,000 |
| 44 | 10 | -50,000 | 6,30,000 |
| 45 | 11 | -50,000 | 6,30,000 |
| 46 | 12 | -50,000 | 6,30,000 |
| 47 | 13 | 0 | 6,30,000 |
| 48 | 14 | 0 | 6,30,000 |
| 49 | 15 | 0 | 6,30,000 |
| 50 | 16 | 0 | 6,30,000 |
| 51 | 17 | 0 | 6,30,000 |
| 52 | 18 | 0 | 6,30,000 |
| 53 | 19 | 0 | 6,30,000 |
| 54 | 20 | 0 | 6,30,000 |
| 55 | 21 | 0 | 6,30,000 |
| 56 | 22 | 0 | 6,30,000 |
| 57 | 23 | 0 | 6,30,000 |
| 58 | 24 | 0 | 6,30,000 |
| 59 | 18,08,333 | ||
| IRR | 6.03% |
While the endowment option provides benefits at the end of the Bharti AXA Life Guaranteed Wealth Pro Plan policy term, the other variants offer regular income with customisable payout structures.
However, opting for regular income leads to early withdrawals, which disrupts the power of compounding and further reduces the effective IRR.
A return of this magnitude over a long tenure of 24 years is unattractive, as long-term investments are expected to beat inflation in order to meet future financial goals.
Moreover, the sum assured is relatively low and insufficient to provide meaningful financial protection to the family.
In conclusion, the Bharti AXA Life Guaranteed Wealth Pro Plan may not be an optimal investment choice, as it neither helps in building an adequate corpus nor offers sufficient life insurance coverage.
The returns offered by the Bharti AXA Life Guaranteed Wealth Pro Plan are lower than those of many conventional debt instruments. For long-term goals, investors require higher-returning avenues to ensure their financial milestones are met.
Moreover, the life cover provided under the plan is inadequate to offer meaningful financial protection. A more effective approach is to separate insurance and investment, while applying the same assumptions used in the earlier example.
Consider opting for a pure-term life insurance policy with a sum assured of ₹6.5 lakh. Such a policy costs approximately ₹7,300 per year for a 24-year term, with a 10-year premium payment period.
Unlike the earlier case where the premium was spread over 12 years, this approach frees up ₹42,700 from the ₹50,000 premium for investment during the first 10 years. In the following 2 years, the entire ₹50,000 can be invested.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 6,50,000 |
| Policy Term | 24 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 7,300 |
| Investment | ₹ 42,700 |
Investment selection should be aligned with individual risk tolerance. Investors with a higher risk appetite may consider equity-oriented instruments such as equity mutual funds, while conservative investors can opt for relatively safer avenues like PPF.
For illustration, assume the annual savings are invested in an equity mutual fund scheme.
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -50,000 | 6,50,000 |
| 36 | 2 | -50,000 | 6,50,000 |
| 37 | 3 | -50,000 | 6,50,000 |
| 38 | 4 | -50,000 | 6,50,000 |
| 39 | 5 | -50,000 | 6,50,000 |
| 40 | 6 | -50,000 | 6,50,000 |
| 41 | 7 | -50,000 | 6,50,000 |
| 42 | 8 | -50,000 | 6,50,000 |
| 43 | 9 | -50,000 | 6,50,000 |
| 44 | 10 | -50,000 | 6,50,000 |
| 45 | 11 | -50,000 | 6,50,000 |
| 46 | 12 | -50,000 | 6,50,000 |
| 47 | 13 | 0 | 6,50,000 |
| 48 | 14 | 0 | 6,50,000 |
| 49 | 15 | 0 | 6,50,000 |
| 50 | 16 | 0 | 6,50,000 |
| 51 | 17 | 0 | 6,50,000 |
| 52 | 18 | 0 | 6,50,000 |
| 53 | 19 | 0 | 6,50,000 |
| 54 | 20 | 0 | 6,50,000 |
| 55 | 21 | 0 | 6,50,000 |
| 56 | 22 | 0 | 6,50,000 |
| 57 | 23 | 0 | 6,50,000 |
| 58 | 24 | 0 | 6,50,000 |
| 59 | 40,75,037 | ||
| IRR | 10.56% |
Under this equity mutual fund investment, the post-tax maturity value works out to ₹40.75 lakh after accounting for capital gains tax at redemption (pre-tax value: ₹45.64 lakh), translating into a post-tax IRR of 10.56%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 12 years | 45,64,043 |
| Purchase price | 5,27,000 |
| Long-Term Capital Gains | 40,37,043 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 39,12,043 |
| Tax paid on LTCG | 4,89,005 |
| Maturity value after tax | 40,75,037 |
Such returns comfortably outpace inflation and result in a significantly larger corpus, improving the likelihood of achieving long-term financial goals.
The primary driver of this difference in outcomes is the power of compounding, which is most effective over long investment horizons.
This compounding advantage is largely absent in the Bharti AXA Life Guaranteed Wealth Pro Plan due to its bundled insurance and investment structure.
The Bharti AXA Life Guaranteed Wealth Pro Plan offers guaranteed survival (income) and maturity benefits, ensuring certainty of payouts.
However, the returns are relatively low—significantly trailing even conventional debt instruments—making the plan unsuitable for long-term wealth creation.
In addition, the life cover provided is insufficient to offer meaningful financial security and it also has a high agent commission.
While the plan promotes flexibility by allowing investors to select an option based on their cash-flow requirements, this flexibility is limited in practice.
Once an income option is chosen, the payouts cannot be deferred or accumulated, which restricts growth potential.
As a result, the Bharti AXA Life Guaranteed Wealth Pro Plan does not perform effectively either as a protection solution or as an investment vehicle.
Adequate life insurance is a cornerstone of sound personal financial planning, and a pure-term life insurance policy provides far superior protection at a much lower cost.
To meet financial goals and remain adaptable to changing life circumstances, it is essential to build a well-diversified and goal-oriented investment portfolio.
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