Bharti AXA Life Monthly Income Plan+
Is the Bharti AXA Life Monthly Income Plan+ truly a dependable source of regular income — or just another traditional product with limited long-term growth?
Can the Bharti AXA Life Monthly Income Plan+ compete with other guaranteed income products like annuities or systematic withdrawal plans — or does it fall short on returns?
Is the Bharti AXA Life Monthly Income Plan+ a smart choice for retirees — or better suited as a short-term cash-flow supplement than a lifetime income solution?
This article analyses the features, benefits, and limitations of the Bharti AXA Life Monthly Income Plan+.
What is the Bharti AXA Life Monthly Income Plan+?
What are the features of the Bharti AXA Life Monthly Income Plan+?
Who is eligible for the Bharti AXA Life Monthly Income Plan+?
What are the benefits of the Bharti AXA Life Monthly Income Plan+?
Grace Period, Discontinuance and Revival of the Bharti AXA Life Monthly Income Plan+
Free Look Period for the Bharti AXA Life Monthly Income Plan+
Surrendering the Bharti AXA Life Monthly Income Plan+
What are the advantages of the Bharti AXA Life Monthly Income Plan+?
What are the disadvantages of the Bharti AXA Life Monthly Income Plan+?
Research Methodology of Bharti AXA Life Monthly Income Plan+
Benefit Illustration – IRR Analysis of Bharti AXA Life Monthly Income Plan+
Bharti AXA Life Monthly Income Plan+ Vs. Other Investments
Bharti AXA Life Monthly Income Plan+ Vs. Pure term + Equity Mutual Fund
Final Verdict on Bharti AXA Life Monthly Income Plan+
Bharti AXA Life Monthly Income Plan+ is a Non-Linked Participating Individual Life Insurance Savings Plan. It ensures a guaranteed monthly income that helps to fulfil your loved ones’ desires while protecting them in case of an unfortunate event.
| Parameter | Eligibility Criteria |
| Minimum age at entry | 3 years |
| Maximum age at entry | 65 years |
| Maximum Maturity Age | 80 years |
| Minimum Monthly Income | Rs 2000 |
| Minimum Sum Assured | Rs 192,000 |
| Minimum Premium | Depends on the minimum monthly income |
| Policy Term | 15 years |
| Premium Payment Term | 7 years |
| Premium Payment Modes | Annual, Semi-annual, Quarterly & Monthly |
The death benefit will be payable for 96 months (8 years), and the monthly income is equal to the Death Benefit divided by 96.
The Death Benefit payable will be the higher of the following:
The Sum Assured on Death will be the Higher of:
Non-Guaranteed Annual Reversionary Bonuses (if declared) plus Non-Guaranteed Terminal Bonus (if declared) are payable at maturity.
After the completion of the premium payment term, the guaranteed monthly income is paid for 96 months for a 15-year policy term
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 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 policy is not revived, then the Bharti AXA Life Monthly Income Plan+ 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 Bharti AXA Life Monthly Income Plan+ Policy will automatically be converted into Paid up, on expiry of the Grace period.
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 Income 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.
Your policy will acquire surrender value only if one annualised premium is paid and the Surrender Value is payable immediately on receipt of a Surrender request from the policyholder.
The guaranteed Surrender Value is defined as a percentage of all premiums paid, excluding any extra premium
The Bharti AXA Life Monthly Income Plan+ provides a regular income stream after the completion of the premium-paying term. However, before committing to this plan, it is important to assess the actual return potential.
Using the figures provided in the Bharti AXA Life Monthly Income Plan+ policy brochure, we evaluate the Internal Rate of Return (IRR) and compare it with alternative investment avenues.
Consider a 35-year-old male opting for this plan with a policy term of 15 years, a premium payment term of 7 years, and an annual premium of ₹35,715.
In the event of death, the sum assured is paid as monthly instalments of ₹4,950 for 96 months, resulting in a total payout of ₹4,75,200.
| Male | 35 years |
| Sum Assured | ₹ 4,75,200 |
| Policy Term | 15 years |
| Premium Paying Term | 7 years |
| Annualised Premium | ₹ 35,715 |
After completing the 7-year premium payment period, the policyholder begins receiving monthly survival benefits of ₹3,000. At maturity, the policy 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.
| At 4% p.a. | At 8% p.a. | ||
| Age | Year | Annualised premium / Maturity benefit | Annualised premium / Maturity benefit |
| 35 | 1 | -35,715 | -35,715 |
| 36 | 2 | -35,715 | -35,715 |
| 37 | 3 | -35,715 | -35,715 |
| 38 | 4 | -35,715 | -35,715 |
| 39 | 5 | -35,715 | -35,715 |
| 40 | 6 | -35,715 | -35,715 |
| 41 | 7 | -35,715 | -35,715 |
| 42 | 8 | 36,000 | 36,000 |
| 43 | 9 | 36,000 | 36,000 |
| 44 | 10 | 36,000 | 36,000 |
| 45 | 11 | 36,000 | 36,000 |
| 46 | 12 | 36,000 | 36,000 |
| 47 | 13 | 36,000 | 36,000 |
| 48 | 14 | 36,000 | 36,000 |
| 49 | 15 | 45,504 | 1,16,784 |
| IRR | 2.32% | 4.85% |
At a 4% assumed return, the IRR works out to only 2.3% as per the Bharti AXA Life Monthly Income Plan+ maturity calculator, offering negligible real value.
Even at an 8% assumed return, the IRR improves to just 4.8% as per the Bharti AXA Life Monthly Income Plan+ maturity calculator, which remains lower than prevailing bank fixed deposit rates.
A fixed income stream that does not account for inflation erosion may not be suitable for most investors. Although the policy runs for 15 years, the combination of modest returns, capital lock-in, and a rigid payout structure weakens its overall appeal.
Additionally, the life cover provided is limited. Considering these factors, the Bharti AXA Life Monthly Income Plan+ may not be an optimal choice for long-term wealth creation or income planning.
The Bharti AXA Life Monthly Income Plan+ combines life insurance and investment into a single product. However, separating these two objectives often leads to more efficient and favourable financial outcomes.
By reallocating the same premium used in the earlier illustration, it is possible to generate comparable—or even superior—cash flows through a more structured and flexible approach.
In the previous illustration, there is no meaningful lump-sum sum assured; instead, only a monthly payout of ₹4,950 for eight years is payable in the event of death.
To address this gap, let us assume a minimum sum assured of ₹5 lakh, in line with the death benefit requirements prescribed by IRDAI.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 5,00,000 |
| Policy Term | 15 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 7,000 |
| Investment | ₹ 28,715 |
A pure-term life insurance policy with a sum assured of ₹5 lakh can be obtained at an annual premium of approximately ₹7,000 for a 15-year term, with premiums payable for only 5 years. This leaves ₹28,715 per year available for investment.
Additionally, since the term insurance premium ends earlier, an extra ₹35,715 becomes available for investment in the final two years, compared to the original plan’s premium structure.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -35,715 | 5,00,000 |
| 36 | 2 | -35,715 | 5,00,000 |
| 37 | 3 | -35,715 | 5,00,000 |
| 38 | 4 | -35,715 | 5,00,000 |
| 39 | 5 | -35,715 | 5,00,000 |
| 40 | 6 | -35,715 | 5,00,000 |
| 41 | 7 | -35,715 | 5,00,000 |
| 42 | 8 | 36,000 | 5,00,000 |
| 43 | 9 | 36,000 | 5,00,000 |
| 44 | 10 | 36,000 | 5,00,000 |
| 45 | 11 | 36,000 | 5,00,000 |
| 46 | 12 | 36,000 | 5,00,000 |
| 47 | 13 | 36,000 | 5,00,000 |
| 48 | 14 | 36,000 | 5,00,000 |
| 49 | 15 | 2,14,147 | |
| IRR | 7.38% | ||
Investors with a low-risk appetite may choose debt-oriented instruments such as the Public Provident Fund (PPF), while those with a higher risk tolerance may opt for equity-oriented investments like equity mutual funds.
For this analysis, the equity investment route has been considered.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 7 years | 3,41,091 |
| Purchase price | 2,15,005 |
| Long-Term Capital Gains | 1,26,086 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 1,086 |
| Tax paid on LTCG | 136 |
| Maturity value after tax | 3,40,956 |
The accumulated equity mutual fund corpus is subsequently transferred to an investment yielding 7% per annum, which is used to generate regular withdrawals while also preserving a lump sum at maturity.
The pre-tax maturity value of the equity mutual fund investment works out to ₹3.41 lakh. After accounting for capital gains tax, the post-tax corpus stands at ₹3.40 lakh.
When this corpus is deployed into a 7% yielding instrument, it generates annual withdrawals comparable to those offered under the Bharti AXA Life Monthly Income Plan+.
The resulting Internal Rate of Return (IRR) is approximately 7.38%, significantly higher than that of the insurance plan.
Returns could be even more attractive if withdrawals are deferred, offering greater flexibility to manage cash flows based on actual needs.
In contrast, the Bharti AXA Life Monthly Income Plan+ provides limited flexibility and relatively modest returns, making it a less efficient option for long-term financial planning.
The Bharti AXA Life Monthly Income Plan+ offers a regular income stream after the completion of the premium-paying term. In the event of the policyholder’s death, the benefit is also paid as a monthly income.
However, a key limitation of the plan is its rigid cash flow structure, as all benefits are fixed and cannot be deferred, accumulated, or adjusted based on changing financial needs.
Because the plan combines insurance and investment, the fixed payouts may fall short when faced with significant or unforeseen expenses.
An evaluation of the plan’s return profile indicates that it underperforms, with returns failing to outpace inflation, thereby eroding purchasing power over time.
The combination of inflexible payouts and modest returns makes the plan less suitable for long-term investors and it also has a high agent commission.
For life cover, a pure-term insurance policy remains the most effective solution, offering substantial coverage at a relatively low cost. On the investment side, selecting instruments that align with one’s risk appetite, financial objectives, and investment horizon is more prudent.
Rather than depending on insurance products for regular income, building a well-diversified investment portfolio provides greater flexibility and stronger financial security.
Through diversification, investors can accumulate an adequate corpus capable of generating sustainable cash flows.
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For a personalised and goal-oriented approach, consulting a Certified Financial Planner can help identify suitable investment options tailored to individual financial needs and circumstances.
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