Bharti AXA Life Saral Jeevan Bima Plan: Good or Bad? A Detailed Review
Why is adequate life insurance important for protecting your family’s financial future?
Can term insurance provide substantial life cover at an affordable premium?
Is choosing a life insurance policy based on return of premium a suitable approach?
Can a pure-term plan provide higher life cover at a lower premium?
This article examines the Bharti AXA Life Saral Jeevan Bima, a pure-term life insurance policy, and analyses its key features, benefits and limitations in detail.
Table of Contents
Bharti AXA Life Saral Jeevan Bima is a non-linked, non-participating, individual, pure-risk-premium life insurance plan.
With its simple and easy-to-understand features and standardised options, this plan is a perfect pure protection plan for both you and your family.
Multiple Policy Options: Choose from multiple combinations of policy terms and premium payment terms to suit your needs.
Customisable: You may choose monthly, semi-annual or annual premium payment mode
Special Premium Rates for Women: Women policyholders can benefit from special premium rates.
Simple and Easy to Understand: The policy offers straightforward features that are easy to understand.
| Parameter | Minimum | Maximum |
| Age at Entry | 18 years | 65 years |
| Age at maturity | _ | 70 years |
| Policy term | 5 years | 40 years |
| Premium paying term | Premium paying term | Policy tern |
| Single pay | 5 to 40 years | |
| Regular pay | 5 to 40 years | |
| Limited pay 5 years | 10 to 40 years | |
| Limited pay 10 years | 11 to 40 years | |
| Basic Sum assured | ₹5 Lakhs | ₹50 Lakhs |
| Premium frequency | Annual, semi-annual & monthly* | |
| Premium amount | As per Sum Assured chosen | |
On death of the Life Assured after the expiry of the Waiting Period but before the stipulated date of maturity and provided the Policy is in force, the Death Benefit amount that will be payable to the nominee/ beneficiary immediately upon death, payable as a lump sum, is:
For Regular premium or Limited premium payment policy, Sum Assured on Death, which is the highest of:
For a single premium policy, “Sum Assured on Death”, Which is the higher of:
No Maturity Benefit shall be payable on the Life Assured surviving the stipulated Date of Maturity.
Grace Period
The grace period is 15 days for monthly mode and 30 days for annual/semi-annual premium payment modes.
Discontinuance
In case you do not pay the due premiums within your Grace Period, your policy will lapse, and your insurance cover will cease to exist.
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.
In case of the death of the Life Insured while the Bharti AXA Life Saral Jeevan Bima Policy is in lapse status, no benefit shall be payable, and the Policy will terminate.
Revival
You have the flexibility to revive your lapsed 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 Saral Jeevan Bima Policy, there is an option to return the original Policy along with a letter stating reason/s within 30 days of receipt of the Policy Document.
The Policy will accordingly be cancelled
Single Premium Policies: The Policy Cancellation Value acquires immediately after receipt of Single Premium and is calculated as follows: 70% × 𝑆𝑖𝑛𝑔𝑙𝑒 𝑃𝑟𝑒𝑚𝑖𝑢𝑚 𝑝𝑎𝑖𝑑 × (𝑈𝑛𝑒𝑥𝑝𝑖𝑟𝑒𝑑 𝑃𝑜𝑙𝑖𝑐𝑦/ 𝑇𝑒𝑟𝑚 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑃𝑜𝑙𝑖𝑐𝑦 𝑇𝑒𝑟𝑚)
Limited Premium Payment Term: 5 years or 10 years: The Bharti AXA Life Saral Jeevan Bima Policy Cancellation Value acquires if at least two (2) consecutive full years’ premiums are paid and is calculated as follows: = 70% × 𝑇𝑜𝑡𝑎𝑙 𝑃𝑟𝑒𝑚𝑖𝑢𝑚𝑠 𝑝𝑎𝑖𝑑 × (𝑈𝑛𝑒𝑥𝑝𝑖𝑟𝑒𝑑 𝑃𝑜𝑙𝑖𝑐𝑦 𝑇𝑒𝑟𝑚 / 𝑂𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑃𝑜𝑙𝑖𝑐𝑦 𝑇𝑒𝑟𝑚)
Let us understand the plan through a benefit illustration from the policy brochure. Bharti AXA Life Saral Jeevan Bima provides a death benefit only in the event of the policyholder’s death during the policy term.
It does not offer any maturity benefit, survival benefit or profit-based bonus.
This makes it a straightforward pure-term life insurance plan focused solely on providing life protection.
For example, a 35-year-old male opts for Bharti AXA Life Saral Jeevan Bima with a sum assured of ₹25 lakh, a policy term of 25 years, and an annual premium of ₹11,500.
If the policyholder dies during the policy term, the nominee or beneficiary receives the sum assured of ₹25 lakh, subject to the policy terms and conditions.
| Male | 35 years |
| Sum Assured | ₹ 25,00,000 |
| Policy Term | 25 years |
| Premium Paying Term | 25 years |
| Annualised Premium | ₹ 11,500 |
There are no additional maturity benefits, survival benefits or bonuses under this Bharti AXA Life Saral Jeevan Bima plan.
While this may appear limited compared with policies that offer returns or profit participation, such features generally come at a higher premium for a similar level of life cover.
The primary purpose of term insurance is to provide adequate financial protection at an affordable cost.
Therefore, the focus should be on selecting a sufficient sum assured rather than seeking returns from the insurance policy. Bharti AXA Life Saral Jeevan Bima follows this pure-term approach, offering straightforward life protection without an investment component.
Saral Jeevan Bima is a standard term life insurance product introduced by the IRDAI (Insurance Regulatory and Development Authority of India) with the objective of offering essential life cover through simplified and standardised terms.
It is designed to make term insurance more accessible, including for individuals who may have limited income documentation.
Bharti AXA Life Saral Jeevan Bima provides pure life cover without any savings or investment component.
The plan offers a lump-sum death benefit to the nominee if the policyholder dies during the policy term, providing financial support to the family.
However, a key limitation of the plan is its maximum sum assured of ₹50 lakh.
Individuals requiring a higher level of life cover may need to consider other pure-term insurance policies available in the market and it also has a high agent commission.
Life insurance should primarily serve the purpose of financial protection, while investments should be aligned separately with specific financial goals.
Keeping insurance and investments separate can help ensure that adequate protection is obtained without compromising the investment strategy.
Determining the right sum assured requires considering factors such as income, liabilities, dependants, existing assets and future financial goals.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
A Certified Financial Planner can help assess these factors and determine an appropriate level of life cover to create a stronger financial safety net.
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