Bharti AXA Life Monthly Advantage Plan: Good or Bad? An Insightful Review
Is the Bharti AXA Life Monthly Advantage Plan a smart income solution, or does it quietly limit your long-term wealth?
Is the Bharti AXA Life Monthly Advantage Plan designed for real financial security, or just predictable payouts?
Does the Bharti AXA Life Monthly Advantage Plan truly offer financial stability, or are there more efficient alternatives available today?
This article examines the plan’s features, evaluates its suitability, and explains how it works through a detailed illustration.
What is the Bharti AXA Life Monthly Advantage Plan?
What are the features of the Bharti AXA Life Monthly Advantage Plan?
Who is eligible for the Bharti AXA Life Monthly Advantage Plan?
What are the benefits of the Bharti AXA Life Monthly Advantage Plan?
Accidental Total Permanent Disability
Grace Period, Discontinuance and Revival of the Bharti AXA Life Monthly Advantage Plan
Free Look Period for the Bharti AXA Life Monthly Advantage Plan
Surrendering the Bharti AXA Life Monthly Advantage Plan
What are the advantages of the Bharti AXA Life Monthly Advantage Plan?
What are the disadvantages of the Bharti AXA Life Monthly Advantage Plan?
Research Methodology of Bharti AXA Life Monthly Advantage Plan
Benefit Illustration – IRR Analysis of Bharti AXA Life Monthly Advantage Plan
Bharti AXA Life Monthly Advantage Plan Vs. Other Investments
Bharti AXA Life Monthly Advantage Plan Vs. Pure-term + Equity Mutual Fund
Final Verdict on the Bharati AXA Life Monthly Advantage Plan
Bharti AXA Life Monthly Advantage Plan is a Non-Linked Participating Individual Life Insurance Savings Plan. It starts giving guaranteed monthly payouts from the end of the premium payment term till your policy matures.
In case of an unfortunate event that might lead to total disability or death, your family receives the Monthly Income, which continues for the time period chosen by you.
| Parameter | Eligibility Criteria |
| Minimum age at entry | 6 years for a 12-year policy term |
| 2 years for a 16-year policy term | |
| 91 days for a 24-year policy term | |
| Maximum age at entry | 65 years for 12- & 16-year policy term |
| 60 years for a 24-year policy term | |
| Maximum Maturity Age | 81 years for a 16-year policy term |
| 77 years for a 12-year policy term | |
| 84 years for a 24-year policy term | |
| Minimum Monthly Income | ₹928 for a 12-year policy term |
| ₹642 for a 16-year policy term | |
| ₹370 for a 24-year policy term | |
| Minimum Sum Assured | ₹50,000 for all policy terms |
| Minimum Premium | ₹10,600 for a 12-year policy term |
| ₹7,000 for a 16-year policy term | |
| ₹3,700 fora 24-year policy term | |
| Policy Term | 12, 16 and 24 years |
| Premium Payment Term | 6, 8 and 12 years for 12-, 16- and 24-year policy terms, respectively |
| Premium Payment Modes | Annual, Semi-Annual, Quarterly & Monthly |
At Maturity, you receive Non-Guaranteed Annual Reversionary Bonus (if declared) plus Non-Guaranteed Terminal Bonus (if declared), subject to the Bharti AXA Life Monthly Advantage Plan policy being in force.
Annual Reversionary Bonus
The actual bonus rate declared by the Company is dependent on the performance of the participating insurance fund.
Non-Guaranteed Bonuses (if declared) are vested from the end of the 1st policy year onwards and are payable at Maturity, Death or Accidental Total Permanent Disability, whichever is earlier, subject to the Bharti AXA Life Monthly Advantage Plan policy being in force.
Terminal Bonus
Non-Guaranteed Terminal Bonus (if declared) is declared at Maturity, Death or Accidental Total Permanent Disability of the Life Insured, subject to the Bharti AXA Life Monthly Advantage Plan policy being in force.
In case of the unfortunate event of the death of the Life Insured, provided the Life Insured has not suffered Accidental Total and Permanent Disability, and the Bharti AXA Life Monthly Advantage Plan Policy is in force, and all due premiums have been paid, the Nominee will receive the benefit, which shall be the higher of the following:
Sum Assured on Death shall be the higher of the following:
Any Survival Benefit already paid will not be deducted from the Death Benefit as defined above.
Sum Assured on Death will be paid in equal monthly instalments starting immediately from the next monthly anniversary following the date of death and will be payable for the number of months as mentioned in the table below.
Death benefit Multiple:
| Policy Term | Multiple of Annualised Premium | No. of months for which Death Benefit will be payable |
| 12 years | 12.5 | 72 |
| 16 years | 13.5 | 96 |
| 24 years | 15.5 | 144 |
In case Life Insured suffers from Total Permanent Disability due to an Accident either immediately or within 90 days from the date of Accident and the Bharti AXA Life Monthly Advantage Plan Policy is in-force and all due premiums till the date of accident have been paid, the benefit payable to the Nominee (on behalf of the Policyholder) will be same as Death Benefit under the Policy (as mentioned above).
The Bharti AXA Life Monthly Advantage Plan policy will terminate on the occurrence of Accidental Total and Permanent Disability (ATPD).
The Nominee also has the option to take the above-mentioned monthly instalments (for Death/ATPD) as a lump sum.
Subject to the Bharti AXA Life Monthly Advantage Plan policy being in force, the Guaranteed Monthly Income on Survival (as displayed in the table below) will be payable monthly starting from the end of the next month after the completion of the Premium Payment Term and will be payable for 72 months for a 12-year policy term, 96 months for a 16-year policy term and 144 months for a 24-year policy term.
| Policy Term | Premium paying term | Guaranteed Monthly Income on Survival as % of (annual premium/12) |
| 12 years | 6 years | 105% |
| 16 years | 8 years | 110% |
| 24 years | 12 years | 120% |
Grace Period
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 Monthly Advantage Plan 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 a Surrender Value: In case you do not pay the premiums within your grace period, your policy will lapse, and your insurance cover will cease to exist.
You have the option to revive the policy within the period given for the revival of the policy.
At the end of the revival period, if the Bharti AXA Life Monthly Advantage Plan policy is not revived, then the policy will be terminated, and no benefits will be payable.
If Policy has acquired a 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 due to any reason, the Policy will automatically be converted into Paid up, on expiry of the Grace period.
Revival
You have the flexibility to revive all the benefits under your policy within five years of the due date of the premium in default.
If the Bharti AXA Life Monthly Advantage 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.
The Bharti AXA Life Monthly Advantage Plan policy acquires a surrender value after completion of the first policy year, provided one full year’s premium has been received.
The Special Surrender Value shall become payable after completion of the first policy year, provided one full year’s premium has been received.
The Bharti AXA Life Monthly Advantage Plan policy acquires Guaranteed Surrender Value after the payment of premiums for at least two consecutive years. The surrender benefit will be payable immediately on surrender.
Consider a 35-year-old male choosing this plan with a sum assured of ₹2,50,000. The Bharti AXA Life Monthly Advantage Plan policy term is 16 years, the premium payment term is 8 years, and the annual premium amounts to ₹37,405.
In the event of death, the sum assured is paid as monthly instalments of ₹5,260 for a period of 96 months.
After completing the 8-year premium payment term, the Bharti AXA Life Monthly Advantage Plan policyholder starts receiving a monthly survival benefit of ₹3,429. On maturity, the plan also pays non-guaranteed simple annual reversionary bonuses along with a terminal bonus.
The illustration assumes returns at 4% and 8%, which are indicative and depend on the insurer’s performance.
| Male | 35 years |
| Sum Assured | ₹ 2,50,000 |
| Policy Term | 16 years |
| Premium Paying Term | 8 years |
| Annualised Premium | ₹ 37,405 |
At the 4% assumed return, the internal rate of return (IRR) works out to approximately 1.8% as per the Bharti AXA Life Monthly Advantage Plan maturity calculator, offering minimal real value.
Even at an 8% assumed return, the IRR improves to only about 5% as per the Bharti AXA Life Monthly Advantage Plan maturity calculator, which is still lower than prevailing bank fixed deposit rates.
| At 4% p.a. | At 8% p.a. | ||
| Age | Year | Annualised premium / Maturity benefit | Annualised premium / Maturity benefit |
| 35 | 1 | -37,405 | -37,405 |
| 36 | 2 | -37,405 | -37,405 |
| 37 | 3 | -37,405 | -37,405 |
| 38 | 4 | -37,405 | -37,405 |
| 39 | 5 | -37,405 | -37,405 |
| 40 | 6 | -37,405 | -37,405 |
| 41 | 7 | -37,405 | -37,405 |
| 42 | 8 | -37,405 | -37,405 |
| 43 | 9 | 41,148 | 41,148 |
| 44 | 10 | 41,148 | 41,148 |
| 45 | 11 | 41,148 | 41,148 |
| 46 | 12 | 41,148 | 41,148 |
| 47 | 13 | 41,148 | 41,148 |
| 48 | 14 | 41,148 | 41,148 |
| 49 | 15 | 41,148 | 41,148 |
| 16 | 60,948 | 1,90,748 | |
| IRR | 1.89% | 5.32% |
A fixed income stream that does not adequately account for inflation erosion may not be suitable for most investors. Despite a 16-year policy term, the combination of modest returns, capital lock-in, and a rigid payout structure significantly reduces the plan’s attractiveness.
Moreover, the life cover provided is limited. Considering these aspects, the Bharti AXA Life Monthly Advantage Plan may not be an effective solution for long-term wealth creation or sustainable income planning.
The return analysis clearly indicates that the Bharti AXA Life Monthly Advantage Plan delivers relatively modest yields.
The same premium outlay can be deployed more efficiently to generate comparable—or superior—cash flows through alternative strategies.
While the plan attempts to combine life insurance and investment, separating these two components often results in better financial outcomes. This can be illustrated by reallocating the premium used in the earlier example.
In the earlier illustration, the plan does not provide a meaningful lump-sum death benefit. Instead, it offers only a monthly payout of ₹5,260 for eight years in the event of death.
To bridge this gap, let us assume a minimum lump-sum sum assured of ₹5 lakh, in line with IRDAI’s prescribed death benefit norms.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 5,00,000 |
| Policy Term | 16 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 7,300 |
| Investment | ₹ 30,105 |
A pure-term life insurance policy with a sum assured of ₹5 lakh can be purchased at an annual premium of ₹7,300 for a 16-year policy term with a 5-year premium payment period.
This leaves an annual surplus of ₹30,105 from the original premium, which can be invested based on the investor’s risk appetite. In this approach, the premium payment term is limited to 5 years, as opposed to the 7-year term in the earlier illustration.
This allows you to invest the entire amount available for investment during the final two years, thereby improving cash flow flexibility and potential returns.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -37,405 | 5,00,000 |
| 36 | 2 | -37,405 | 5,00,000 |
| 37 | 3 | -37,405 | 5,00,000 |
| 38 | 4 | -37,405 | 5,00,000 |
| 39 | 5 | -37,405 | 5,00,000 |
| 40 | 6 | -37,405 | 5,00,000 |
| 41 | 7 | -37,405 | 5,00,000 |
| 42 | 8 | -37,405 | 5,00,000 |
| 43 | 9 | 41,148 | 5,00,000 |
| 44 | 10 | 41,148 | 5,00,000 |
| 45 | 11 | 41,148 | 5,00,000 |
| 46 | 12 | 41,148 | 5,00,000 |
| 47 | 13 | 41,148 | 5,00,000 |
| 48 | 14 | 41,148 | 5,00,000 |
| 49 | 15 | 41,148 | |
| 16 | 3,18,271 | ||
| IRR | 7.66% | ||
Conservative investors may prefer debt-oriented instruments such as the Public Provident Fund (PPF), while investors with a higher risk tolerance could opt for equity-oriented avenues like equity mutual funds. For this comparison, the equity mutual fund route is considered.
The accumulated value from the equity mutual fund investment is subsequently transferred to an instrument yielding 7% per annum, which serves as the source for periodic withdrawals and eventual full redemption, thereby replicating the maturity benefits of the Bharti AXA Life Monthly Advantage Plan.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 8 years | 4,42,305 |
| Purchase price | 2,62,740 |
| Long-Term Capital Gains | 1,79,565 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 54,565 |
| Tax paid on LTCG | 6,821 |
| Maturity value after tax | 4,35,485 |
The pre-tax maturity value of the equity investment works out to ₹4.42 lakh. After accounting for capital gains tax, the post-tax corpus stands at ₹4.35 lakh.
This amount is then deployed into a 7% return instrument, from which annual withdrawals are made to mirror the payouts under the insurance plan, followed by a complete withdrawal at maturity. This strategy results in an Internal Rate of Return (IRR) of 7.66%.
Notably, the returns could be even higher if withdrawals are deferred, offering greater flexibility to align cash flows with actual financial needs.
In comparison, the Bharti AXA Life Monthly Advantage Plan, with its rigid structure and relatively low returns, appears less effective when evaluated against a strategy that separates insurance and investment.
The Bharti AXA Life Monthly Advantage Plan provides a regular monthly income after the premium-paying term, and in the event of the Bharti AXA Life Monthly Advantage Plan policyholder’s death, the benefit is also paid out as a monthly income, with an option to receive it as a discounted lump sum.
However, the plan suffers from a rigid cash flow structure—the survival benefits cannot be deferred, accumulated, or modified to suit changing financial requirements. In addition, the sum assured offered under the plan is relatively inadequate.
Regular withdrawals further dilute overall returns, as they disrupt the power of compounding. For generating sustainable income, separating life insurance from investments is generally a more efficient approach.
The combination of limited life cover and comparatively low returns makes the Bharti AXA Life Monthly Advantage Plan less suitable for individuals seeking a reliable income stream and it also has a high agent commission.
To ensure adequate financial protection for your family, it is essential to opt for a pure-term life insurance policy with sufficient coverage.
Investments, on the other hand, should be chosen based on your risk appetite, financial goals, and investment horizon.
Instead of depending on insurance-based income plans, building a well-diversified and structured investment portfolio is better suited to address evolving financial needs.
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