Bharti AXA Life Income Laabh Plan
Is the Bharti AXA Life Income Laabh Plan genuinely a smart way to earn regular income — or just another traditional savings product in disguise?
Is Bharti AXA Life Income Laabh Plan best suited for retirement and long-term security — or only for short-term cash flow support?
Is Bharti AXA Life Income Laabh Plan a better income solution than fixed deposits or annuities — or does it trade off income stability for limited growth?
This article explains how the plan works and evaluates its suitability. It also examines the key features, along with the advantages and limitations of the plan.
What is the Bharti AXA Life Income Laabh?
What are the features of the Bharti AXA Life Income Laabh?
Who is eligible for the Bharti AXA Life Income Laabh?
What are the benefits of the Bharti AXA Life Income Laabh?
Grace Period, Discontinuance and Revival of the Bharti AXA Life Income Laabh
Free Look Period for the Bharti AXA Life Income Laabh
Surrendering the Bharti AXA Life Income Laabh
What are the advantages of the Bharti AXA Life Income Laabh?
What are the disadvantages of the Bharti AXA Life Income Laabh?
Research Methodology of Bharati AXA Life Income Laabh
Benefit Illustration – IRR Analysis of Bharti AXA Life Income Laabh
Bharti AXA Life Income Laabh Vs. Other Investments
Bharti AXA Life Income Laabh Vs. Pure-term + Equity Mutual Fund
Final Verdict on Bharti AXA Life Income Laabh
Bharti AXA Life Income Laabh is a Non-Linked, Non-Participating, Life Insurance, Individual Savings Product.
It is a simple and guaranteed Life Insurance plan that provides life insurance coverage together with a regular stream of income and a lump sum to help you achieve your dreams while providing financial security to your loved ones.
In case of the death of the Life Insured during the Bharti AXA Life Income Laabh 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.
Death Benefit is the higher of:
In case of the death of the Life Assured during the Income Period, the Income will continue to be paid out to the nominee.
The nominee shall have an option to receive the outstanding benefits (future Guaranteed Income payouts and Guaranteed Lumpsum Benefit) as a lump sum amount, which shall be the higher of
On survival of the life insured till the end of the Bharti AXA Life Income Laabh Plan policy term, provided all due premiums have been paid till the date of maturity, the Maturity Benefit shall be payable as follows:
Guaranteed Income: defined as a % of the Annualised Premium, payable each year of the income period commencing from the end of the Policy Term till the end of the Income Period, plus
Guaranteed Lump sum Benefit: defined as a % of Annualised Premium, payable in the last year of the Income Period
Guaranteed Income:
| Premium Payment Term (years) | Policy Term (Years) | Income Benefit% 1 | Income duration (End of Period) | Income Benefit% 2 | Income duration (End of Period) |
| 10 | 11 | 100% | 11th-15th Policy Year | 150% | 16th -20th Policy Year |
| 12 | 13 | 100% | 13th -18th Policy Year | 200% | 19th -24th Policy Year |
Guaranteed Lump sum Benefit:
| Premium Payment Term (years) | Policy Term (Years) | Timing of Payout of Guaranteed Lumpsum Benefit (Beginning of period) |
| 10 | 11 | 21st Year |
| 12 | 13 | 25th year |
| Annualized Premium | |||
| Age | Band 1 | Band 2 | Band 3 |
| 25 | 355% | 455% | 505% |
| 35 | 305% | 405% | 455% |
| 45 | 255% | 355% | 405% |
The grace period is 15 days for the monthly mode and 30 days for annual/ semi-annual/ quarterly premium payment modes.
The policy acquires a surrender value after completion of the first policy year, provided one full year’s premium has been received.
If the Policy has not acquired Surrender Value: If the Bharti AXA Life Income Laabh Plan 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 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 Policy will be reduced.
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 Policyholder disagrees with any of the terms and conditions of the Bharti AXA Life Income Laabh Plan 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 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)
The Bharti AXA Life Income Laabh Plan provides a maturity benefit in the form of regular income after the end of the Bharti AXA Life Income Laabh Plan policy term.
However, before opting for this plan, it is crucial to assess its return potential and overall suitability. Using figures from the policy brochure, we evaluate the returns and compare them with alternative investment options.
Consider a 35-year-old male who opts for the plan with a 13-year policy term and a 12-year premium-paying term, investing ₹1,00,000 per year. The sum assured under the policy is ₹10,50,000.
| Male | 35 years |
| Sum Assured | ₹ 10,50,000 |
| Policy Term | 13 years |
| Premium Paying Term | 12 years |
| Annualised Premium | ₹ 1,00,000 |
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 10,50,000 |
| 36 | 2 | -1,00,000 | 10,50,000 |
| 37 | 3 | -1,00,000 | 10,50,000 |
| 38 | 4 | -1,00,000 | 10,50,000 |
| 39 | 5 | -1,00,000 | 10,50,000 |
| 40 | 6 | -1,00,000 | 10,50,000 |
| 41 | 7 | -1,00,000 | 10,50,000 |
| 42 | 8 | -1,00,000 | 10,50,000 |
| 43 | 9 | -1,00,000 | 10,50,000 |
| 44 | 10 | -1,00,000 | 10,50,000 |
| 45 | 11 | -1,00,000 | 10,50,000 |
| 46 | 12 | -1,00,000 | 10,50,000 |
| 47 | 13 | 0 | 10,50,000 |
| 48 | 14 | 1,00,000 | |
| 49 | 15 | 1,00,000 | |
| 50 | 16 | 1,00,000 | |
| 51 | 17 | 1,00,000 | |
| 52 | 18 | 1,00,000 | |
| 53 | 19 | 1,00,000 | |
| 54 | 20 | 2,00,000 | |
| 55 | 21 | 2,00,000 | |
| 56 | 22 | 2,00,000 | |
| 57 | 23 | 2,00,000 | |
| 58 | 24 | 2,00,000 | |
| 59 | 5,75,000 | ||
| IRR | 4.11% |
Post the policy term, the policy offers an annual income of ₹1,00,000 for the first six years, followed by ₹2,00,000 per year for the next six years, along with a final lump-sum payout of ₹3.75 lakh.
Based on these cash flows, the Internal Rate of Return (IRR) works out to approximately 4.11% as per the Bharti AXA Life Income Laabh Plan maturity calculator. This return is lower than the long-term inflation rate, rendering the plan ineffective as a long-term investment.
In addition, the sum assured is relatively low and does not continue during the income payout period, when the maturity benefits are distributed in a staggered manner. The regular income is fixed and not inflation-adjusted, which further erodes its real value over time.
Although the plan spans nearly 24 years, the combination of modest returns and limited life cover reduces its attractiveness.
Investors seeking meaningful wealth creation or adequate life insurance protection may find the Bharti AXA Life Income Laabh Plan unsuitable for long-term financial planning.
The return analysis indicates that the Bharti AXA Life Income Laabh Plan generates relatively modest yields. By reallocating the same premium, investors can potentially achieve superior cash flows through more efficient financial strategies.
While the plan combines insurance and investment, separating these two elements often leads to better outcomes. This approach can be illustrated using the same premium considered in the earlier example.
A pure-term life insurance policy with a sum assured of ₹10.5 lakh requires an annual premium of approximately ₹5,300 for a 13-year policy term with a 10-year premium-paying period.
This leaves a balance of ₹94,700 per year, which can be invested in line with the investor’s risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,50,000 |
| Policy Term | 13 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 5,300 |
| Investment | ₹ 94,700 |
Conservative investors may allocate this amount to debt-oriented instruments such as the Public Provident Fund (PPF), while aggressive investors can consider equity-oriented options like equity mutual funds.
Over time, the accumulated corpus can be shifted to an instrument offering around 7% annual returns to generate withdrawals comparable to the income payouts under the Bharti AXA Life Income Laabh Plan.
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 10,50,000 |
| 36 | 2 | -1,00,000 | 10,50,000 |
| 37 | 3 | -1,00,000 | 10,50,000 |
| 38 | 4 | -1,00,000 | 10,50,000 |
| 39 | 5 | -1,00,000 | 10,50,000 |
| 40 | 6 | -1,00,000 | 10,50,000 |
| 41 | 7 | -1,00,000 | 10,50,000 |
| 42 | 8 | -1,00,000 | 10,50,000 |
| 43 | 9 | -1,00,000 | 10,50,000 |
| 44 | 10 | -1,00,000 | 10,50,000 |
| 45 | 11 | -1,00,000 | 10,50,000 |
| 46 | 12 | -1,00,000 | 10,50,000 |
| 47 | 13 | 0 | 10,50,000 |
| 48 | 14 | 1,00,000 | |
| 49 | 15 | 1,00,000 | |
| 50 | 16 | 1,00,000 | |
| 51 | 17 | 1,00,000 | |
| 52 | 18 | 1,00,000 | |
| 53 | 19 | 1,00,000 | |
| 54 | 20 | 2,00,000 | |
| 55 | 21 | 2,00,000 | |
| 56 | 22 | 2,00,000 | |
| 57 | 23 | 2,00,000 | |
| 58 | 24 | 2,00,000 | |
| 59 | 31,22,956 | ||
| IRR | 8.47% |
In the equity mutual fund scenario, the pre-tax corpus at maturity grows to ₹25.72 lakh. After accounting for capital gains tax, the post-tax amount stands at ₹24.09 lakh, which is then reinvested at a 7% return to support annual withdrawals.
This structure delivers an Internal Rate of Return (IRR) of approximately 8.47%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 12 years | 25,72,241 |
| Purchase price | 11,47,000 |
| Long-Term Capital Gains | 14,25,241 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 13,00,241 |
| Tax paid on LTCG | 1,62,530 |
| Maturity value after tax | 24,09,711 |
Moreover, if withdrawals are deferred or avoided, the overall returns can be even higher, offering greater flexibility to align cash flows with actual financial needs. In contrast, the Bharti AXA Life Income Laabh Plan’s limited flexibility and low return potential reduce its appeal.
Separating life insurance from investments not only improves return efficiency but also provides better control over long-term financial objectives.
The Bharti AXA Life Income Laabh Plan is a traditional life insurance product that combines insurance and investment by accumulating premiums to provide maturity benefits in the form of annual income for a defined period.
While it offers a lump-sum death benefit during the policy term, life cover does not extend into the income payout phase. In the event of death during the income period, only the scheduled income payouts continue, with no additional death benefit.
The structure of fixed annual withdrawals disrupts the power of compounding, thereby limiting the plan’s overall return potential. When the objective is to generate a regular income, separating life insurance from investments proves to be a more efficient and effective approach.
Given its restricted life cover and relatively low returns, the Bharti AXA Life Income Laabh Plan is not well-suited for individuals seeking a reliable long-term income solution and it also has a high agent commission.
Rather than depending on insurance-based income plans, investors are better served by building a diversified investment portfolio aligned with their risk appetite, financial goals, and investment horizon. Such an approach offers greater flexibility and adaptability as financial needs evolve.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
To safeguard dependents against unforeseen risks, opting for a pure-term life insurance policy is essential. For a tailored financial roadmap, consulting a Certified Financial Planner is strongly recommended, as they can guide product selection and strategy based on individual circumstances.
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