Bharti AXA Life Secure Insta Income Plan
Is the Bharti AXA Life Secure InstaIncome Plan truly a reliable source of immediate income — or just another savings product dressed up as insurance?
At the end of your Bharti AXA Life Secure InstaIncome Plan policy term, will you look back with satisfaction — or wish you had chosen a more dynamic income solution?
Is the Bharti AXA Life Secure InstaIncome Plan structured to provide flexibility in how and when you receive income — or does it lock you into choices that may not align with your goals?
This review aims to equip you with the necessary insights to make an informed decision by examining the plan’s key features, along with its advantages and limitations.
What is the Bharti AXA Life Secure InstaIncome Plan?
What are the features of the Bharti AXA Life Secure InstaIncome Plan?
Who is eligible for the Bharti AXA Life Secure InstaIncome Plan?
What are the benefits of the Bharti AXA Life Secure InstaIncome Plan?
Grace Period, Discontinuance and Revival of the Bharti AXA Life Secure InstaIncome Plan
Free Look Period for the Bharti AXA Life Secure InstaIncome Plan
Surrendering the Bharti AXA Life Secure InstaIncome Plan
What are the disadvantages of the Bharti AXA Life Secure InstaIncome Plan?
What are the disadvantages of the Bharti AXA Life Secure InstaIncome Plan?
Research Methodology of Bharati AXA Life Secure InstaIncome Plan
Benefit Illustration – IRR Analysis of Bharti AXA Life Secure InstaIncome Plan
Bharti AXA Life Secure InstaIncome Plan Vs. Other Investments
Bharti AXA Life Secure InstaIncome Plan Vs. Pure-term + Equity Mutual Fund
Final Verdict on Bharti AXA Life Secure InstaIncome Plan
Bharti AXA Life Secure InstaIncome Plan is a Non-Linked, Non-Participating, Individual Savings, Life Insurance Plan.
It offers life insurance cover along with guaranteed income starting as early as day 1 to ensure you meet your immediate needs while also providing income for a longer term to achieve your financial goals.
In case of the death of the Life Insured during the Bharti AXA Life Secure InstaIncome Plan Policy Term, provided the Policy is in-force. Death Benefit is the higher of
The following survival benefits are payable under the product, provided the survival of the Life Insured during the Bharti AXA Life Secure InstaIncome Plan Policy Term, all due premiums have been paid till date, and the policy is in force.
Variant 1
Income Booster: defined as a percentage of the Annualised Premium, is payable in advance only in the first policy year.
Guaranteed Early Income: defined as a percentage of the Annualised Premium, is the regular income payable in arrears during the Premium Payment Term from the second policy year till the last year of the Premium Payment Term. The incomes shall be payable as per the chosen Income Frequency.
Guaranteed Income: defined as a percentage of the Annualised Premium, is the regular income payable in arrears from Premium Payment Term plus one year till the last year of Income Term. The income shall be payable as per the chosen Income Frequency.
Loyalty Income: defined as a percentage of the Annualised Premium, is the additional income payable in arrears from Premium Payment Term plus one year till the last year of Income Term. The income shall be payable as per the chosen Income Frequency.
Variant 2
Guaranteed Early Income: defined as a percentage of the Annualised Premium, is the regular income payable in advance during the Premium Payment Term from the first policy year till the last year of the Premium Payment Term. The incomes shall be payable as per the chosen Income Frequency.
Guaranteed Income: defined as a percentage of the Annualised Premium, is the regular income payable in advance from Premium Payment Term plus one year till the last year of Income Term. The income shall be payable as per the chosen Income Frequency.
Loyalty Income: defined as a percentage of the Annualised Premium, is the additional income payable in arrears from Premium Payment Term plus one year till the last year of Income Term. The income shall be payable as per the chosen Income Frequency.
Variant 3
Guaranteed Early Income: defined as a percentage of the Annualised Premium, is the regular income payable in arrears during the Premium Payment Term, with the income start year dependent on the deferment period chosen. The incomes shall be payable as per the chosen Income Frequency.
Guaranteed Income: defined as a percentage of the Annualised Premium, is the regular income payable in arrears from Premium Payment Term plus one year till the last year of Income Term. The income shall be payable as per the chosen Income Frequency.
Loyalty Income: defined as a percentage of the Annualised Premium, is the additional income payable in arrears from Premium Payment Term plus one year till the last year of Income Term. The income shall be payable as per the chosen Income Frequency.
Variant 4
Guaranteed Early Income: defined as a percentage of the Annualised Premium, is the regular income payable in arrears during the Premium Payment Term, with the income start year dependent on the deferment period chosen. The incomes shall be payable as per the chosen Income Frequency.
Guaranteed Income: defined as a percentage of the Annualised Premium, is the regular income payable in arrears from Premium Payment Term plus one year till the last year of Income Term. The income shall be payable as per the chosen Income Frequency.
Loyalty Income: defined as a percentage of the Annualised Premium, is the additional income payable in arrears from Premium Payment Term plus one year till the last year of Income Term. The income shall be payable as per the chosen Income Frequency.
Upon survival of the Life Insured till the end of the Bharti AXA Life Secure InstaIncome Plan Policy Term and provided the Policy is in-force all due premiums have been paid, maturity benefits are payable in a lump sum on the date of maturity in the following manner:
Variant 1, 2 and 4
Guaranteed Maturity Benefit (defined as a fixed percentage of Annualised Premium) payable at the end of the policy term shall be payable at the end of the policy term. Guaranteed Maturity Benefit (GMB) for each of the variants given below:
| Variant 1 | Variant 2 | Variant 4 | |||
| PPT | GMB | PPT | GMB | PPT | GMB |
| 5 | 500% | 5 | 500% | 10 | 1000% |
| 10 | 1000% | 10 | 1300% | 11 | 1100% |
| 12 | 1200% | 12 | 1700% | 12 | 1200% |
Variant 3
No maturity benefit payable
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 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 Secure InstaIncome 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 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 Secure InstaIncome 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) or Special Surrender Value (SSV).
From a liquidity perspective, the Bharti AXA Life Secure InstaIncome Plan offers guaranteed survival benefits starting as early as the first policy year, along with a maturity payout.
However, to judge the true effectiveness of the plan, it is necessary to evaluate the returns in percentage terms by calculating the Internal Rate of Return (IRR). The following illustration is derived from figures disclosed in the policy brochure.
Consider a 35-year-old male investing ₹1,00,000 annually for 10 years under Variant 1. The policy term is 30 years, with an income payout period of 30 years and a sum assured of ₹10.5 lakh.
| Male | 35 years |
| Sum Assured | ₹ 10,50,000 |
| Policy Term | 30 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
Benefits received under the plan:
Income Booster: A one-time upfront payout of ₹50,000 in the first policy year.
Guaranteed Early Income: ₹24,960 per annum, payable in arrears from the 2nd to the 10th policy year.
Guaranteed Income & Loyalty Income: Annual payouts of ₹12,480 each, payable in arrears from the end of the 11th policy year until the end of the income period.
Guaranteed Maturity Benefit: A lump-sum payout of ₹10 lakh, payable along with the final income instalment.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -50,000 | 10,50,000 |
| 36 | 2 | -1,00,000 | 10,50,000 |
| 37 | 3 | -75,040 | 10,50,000 |
| 38 | 4 | -75,040 | 10,50,000 |
| 39 | 5 | -75,040 | 10,50,000 |
| 40 | 6 | -75,040 | 10,50,000 |
| 41 | 7 | -75,040 | 10,50,000 |
| 42 | 8 | -75,040 | 10,50,000 |
| 43 | 9 | -75,040 | 10,50,000 |
| 44 | 10 | -75,040 | 10,50,000 |
| 45 | 11 | 24,960 | 10,50,000 |
| 46 | 12 | 24,960 | 10,50,000 |
| 47 | 13 | 24,960 | 10,50,000 |
| 48 | 14 | 24,960 | 10,50,000 |
| 49 | 15 | 24,960 | 10,50,000 |
| 50 | 16 | 24,960 | 10,50,000 |
| 51 | 17 | 24,960 | 10,50,000 |
| 52 | 18 | 24,960 | 10,50,000 |
| 53 | 19 | 24,960 | 10,50,000 |
| 54 | 20 | 24,960 | 10,50,000 |
| 55 | 21 | 24,960 | 10,50,000 |
| 56 | 22 | 24,960 | 10,50,000 |
| 57 | 23 | 24,960 | 10,50,000 |
| 58 | 24 | 24,960 | 10,50,000 |
| 59 | 25 | 24,960 | 10,50,000 |
| 60 | 26 | 24,960 | 10,50,000 |
| 61 | 27 | 24,960 | 10,50,000 |
| 62 | 28 | 24,960 | 10,50,000 |
| 63 | 29 | 24,960 | 10,50,000 |
| 64 | 30 | 24,960 | 10,50,000 |
| 31 | 10,24,960 | ||
| IRR | 3.35% |
Despite these assured benefits, the IRR works out to only 3.35% as per the Bharti AXA Life Secure InstaIncome Plan maturity calculator over the 30-year period, which is clearly inadequate for a long-term investment horizon.
The regular income payouts disrupt the compounding process, thereby suppressing overall returns. In addition, neither the periodic income nor the final maturity amount is sufficient to meaningfully address major life goals.
Given the low return profile and limited growth potential, the Bharti AXA Life Secure InstaIncome Plan appears unsuitable for wealth creation or goal-oriented financial planning.
The Bharti AXA Life Secure InstaIncome Plan fails to deliver inflation-beating returns over the long term. For superior growth and liquidity, a more effective strategy is to clearly separate insurance from investment.
This approach allows for better cash-flow management aligned with individual needs while also generating higher returns.
Let us examine an alternative strategy using the same annual outlay of ₹1 lakh:
Insurance Component: opt for a pure term life insurance policy with a sum assured of ₹10.5 lakh at an annual premium of approximately ₹13,000 for 10 years.
Investment Component: The remaining surplus is invested in an equity mutual fund. Systematic withdrawals are structured to replicate the survival benefits provided under the Bharti AXA Life Secure InstaIncome Plan.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,50,000 |
| Policy Term | 30 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 13,000 |
| Investment | ₹ 87,000 |
At the end of the 10-year investment phase, the balance units are redeemed and reinvested in a fixed-income instrument offering a return of 7% per annum.
Capital gains tax is accounted for only at the final redemption, after considering the annual long-term capital gains exemption of ₹1.25 lakh.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -50,000 | 10,50,000 |
| 36 | 2 | -1,00,000 | 10,50,000 |
| 37 | 3 | -75,040 | 10,50,000 |
| 38 | 4 | -75,040 | 10,50,000 |
| 39 | 5 | -75,040 | 10,50,000 |
| 40 | 6 | -75,040 | 10,50,000 |
| 41 | 7 | -75,040 | 10,50,000 |
| 42 | 8 | -75,040 | 10,50,000 |
| 43 | 9 | -75,040 | 10,50,000 |
| 44 | 10 | -75,040 | 10,50,000 |
| 45 | 11 | 24,960 | 10,50,000 |
| 46 | 12 | 24,960 | 10,50,000 |
| 47 | 13 | 24,960 | 10,50,000 |
| 48 | 14 | 24,960 | 10,50,000 |
| 49 | 15 | 24,960 | 10,50,000 |
| 50 | 16 | 24,960 | 10,50,000 |
| 51 | 17 | 24,960 | 10,50,000 |
| 52 | 18 | 24,960 | 10,50,000 |
| 53 | 19 | 24,960 | 10,50,000 |
| 54 | 20 | 24,960 | 10,50,000 |
| 55 | 21 | 24,960 | 10,50,000 |
| 56 | 22 | 24,960 | 10,50,000 |
| 57 | 23 | 24,960 | 10,50,000 |
| 58 | 24 | 24,960 | 10,50,000 |
| 59 | 25 | 24,960 | 10,50,000 |
| 60 | 26 | 24,960 | 10,50,000 |
| 61 | 27 | 24,960 | 10,50,000 |
| 62 | 28 | 24,960 | 10,50,000 |
| 63 | 29 | 24,960 | 10,50,000 |
| 64 | 30 | 24,960 | 10,50,000 |
| 34,86,208 | |||
| IRR | 7.32% | ||
To closely match the cash flows of the Bharti AXA Life Secure InstaIncome Plan, withdrawals are aligned with the survival benefits, while the remaining balance is withdrawn as a lump sum at the end of the 30-year period, similar to the maturity benefit.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 10 years | 12,10,816 |
| Purchase price | 8,70,000 |
| Long-Term Capital Gains | 3,40,816 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 2,15,816 |
| Tax paid on LTCG | 26,977 |
| Maturity value after tax | 11,83,839 |
Under this alternative approach, the IRR improves significantly to 7.32%, compared to just 3.35% offered by the Bharti AXA Life Secure InstaIncome Plan.
Additionally, opting out of periodic withdrawals can further enhance corpus growth and overall returns.
This strategy not only delivers superior yield but also offers far greater liquidity and flexibility—advantages that the rigid structure of the Bharti AXA Life Secure InstaIncome Plan does not provide.
The Bharti AXA Life Secure InstaIncome Plan provides regular income through multiple payout options, allowing investors to choose from four variants based on their cash-flow requirements.
While the assurance of guaranteed income may seem attractive—particularly as a supplementary income source—the plan does not deliver favourable returns for long-term wealth creation.
In addition, the sum assured remains modest, resulting in inadequate life insurance coverage.
Although the survival benefits are presented under different labels, the payout amount remains fixed throughout the policy tenure and does not adjust for inflation. A closer evaluation reveals that despite the guaranteed nature of these payouts, the plan generates low yields, making it an unappealing choice for serious, long-term investors.
Neither the insurance cover nor the income benefits adequately justify the cost, and overall, the plan falls short of supporting meaningful financial growth and it also has a high agent commission.
Before embarking on any investment journey, it is crucial to secure sufficient life insurance coverage. A pure term insurance policy provides substantial protection at a relatively low cost.
Alongside this, building a well-diversified investment portfolio can help achieve financial goals more efficiently while offering greater flexibility.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For a more customised approach, consulting a Certified Financial Planner (CFP) is advisable. A CFP can create a tailored financial plan aligned with your risk profile, investment horizon, and life goals, ensuring that your insurance and investment strategies work in tandem.
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