Bharti AXA Life Smart Invest Guaranteed Plan
Is the Bharti AXA Life Smart Invest Guaranteed Plan truly a “smart” way to secure guaranteed returns — or just another safe savings product with limited upside?
Is the Bharti AXA Life Smart Invest Guaranteed Plan the right choice for disciplined, long-term savers — or is it better suited for ultra-conservative investors who want certainty over growth?
At the end of the policy, will the Bharti AXA Life Smart Invest Guaranteed Plan feel like a smart choice — or a conservative compromise with limited financial impact?
This article explains how such traditional life insurance plans operate and presents a detailed analysis of the features, benefits, and limitations of the Bharti AXA Life Smart Invest Guaranteed Plan.
What is the Bharti AXA Life Smart Invest Guaranteed Plan?
What are the features of the Bharti AXA Life Smart Invest Guaranteed Plan?
Who is eligible for the Bharti AXA Life Smart Invest Guaranteed Plan?
What are the benefits of the Bharti AXA Life Smart Invest Guaranteed Plan?
Grace Period, Discontinuance and Revival of the Bharti AXA Life Smart Invest Guaranteed Plan
Free Look Period for the Bharti AXA Life Smart Invest Guaranteed Plan
Surrendering the Bharti AXA Life Smart Invest Guaranteed Plan
What are the advantages of the Bharti AXA Life Smart Invest Guaranteed Plan?
What are the disadvantages of the Bharti AXA Life Smart Invest Guaranteed Plan?
Research Methodology of Bharti AXA Life Smart Invest Guaranteed Plan
Benefit Illustration – IRR Analysis of Bharti AXA Life Smart Invest Guaranteed Plan
Bharti AXA Life Smart Invest Guaranteed Plan Vs. Other Investment
Bharti AXA Life Smart Invest Guaranteed Plan Vs. Pure-term + Equity Mutual Fund
Final Verdict on the Bharti AXA Life Smart Invest Guaranteed Plan
Bharti AXA Life Smart Invest Guaranteed Plan is a Non-Linked, Non-Participating, Life Insurance, Individual Savings Product. It offers life insurance coverage as well as a lump sum maturity benefit to achieve milestones.
The plan offers a choice of single life or joint life coverage along with flexibility of choosing from different premium payment terms and policy term combinations.
In case of death of the Life Insured/s during the Bharti AXA Life Smart Invest Guaranteed Plan Policy Term, provided the Policy is in force, and all due premiums till the date of death have been paid, Lumpsum Death Benefit will be payable to the Nominee immediately on death.
| Premium Payment Option | Death Benefit |
| Single Pay | Sum Assured on Death |
| Non-Single Pay (Regular/Limited Pay) | Death Benefit is the higher of: 1. Sum Assured on Death 2. 105% of the total premiums paid till date of death |
Sum Assured on Death is defined as
| Single Premium Policies | Sum Assured Multiple (Option 1 or Option 2) * Single Premium |
| Non-Single Premium Policies (Regular/Limited Pay) | Sum Assured Multiple (10.5) * Annualised Premium |
| Joint Life Single Premium Policies | 1.67X to 1.25X based on the age of Primary Life * Single Premium for first death 10.5X to 10X based on the age of Secondary Life * Single Premium for second death |
The Sum Assured Multiples for Single Premium Policies are as follows:
| Plan Option | Age | Sum Assured Multiple |
| Option 1 | 8-60 years | 1.77 to 1.25 times, decreasing every year by 0.01 |
| Option 2 | 8-50 years | 10.42 to 10 times, decreasing every year by 0.01 |
| Joint Life (First Death) | 18-60 years | 1,67 to 1.25 times, decreasing every year by 0.01, as per the age of Primary Life |
| Joint life (Second Death) | 0-50 years | 10.50 to 10 times decreasing every year by 0.01, as per the age of Secondary Life |
Upon survival of the Life Insured(s) till the end of the Bharti AXA Life Smart Invest Guaranteed Plan Policy Term and provided the Policy is in force, all due premiums have been paid, the maturity benefits are payable in a lump sum on the date of maturity in the following manner:
| Premium Payment Option | Maturity Benefit |
| Non-Single Pay (Regular/Limited Pay) | Sum Assured on Maturity plus Guaranteed Additions accrued till the date of Maturity, where Sum Assured on Maturity is defined as 105% of (Annualised premium * Premium Paying term). |
| Single Pay | Sum Assured on Maturity is equal to the (1000/Premium Rate) multiplied by the Single Premium. |
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 Smart Invest Guaranteed 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 Bharti AXA Life Smart Invest Guaranteed 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 Bharti AXA Life Smart Invest Guaranteed 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 Document.
In the case of Single Pay, the Policy acquires surrender value immediately on payment of the single premium.
In case of Limited Pay, the policy acquires a surrender value after completion of the first policy year, provided one full year’s premium has been received.
On surrender, the Policy acquires surrender value. You will receive the higher of:
Guaranteed Surrender Value (GSV)
Special Surrender Value (SSV)
The SSV shall become payable after completion of the first policy year, provided one full year’s premium has been received.
The policy acquires GSV after the payment of a premium for at least two consecutive years.
So far, we have examined the features, merits, and limitations of the Bharti AXA Life Smart Invest Guaranteed Plan. Let us now assess the return on investment based on the figures disclosed in the policy brochure.
Comparing these returns with those of alternative investment avenues will help in making a more informed decision.
As per the benefit illustration, consider a 45-year-old male who purchases the Bharti AXA Life Smart Invest Guaranteed Plan with a sum assured of ₹1.4 lakh.
The policy term is 5 years, funded through a single premium of ₹1 lakh. At the end of the policy term, the maturity benefit payable is ₹1.34 lakh.
The Internal Rate of Return (IRR) for this cash flow works out to approximately 6.08% as per the Bharti AXA Life Smart Invest Guaranteed Plan maturity calculator.
| Male | 45 years |
| Sum Assured | ₹ 1,40,000 |
| Policy Term | 5 years |
| Premium Paying Term | Single Pay |
| Annualised Premium | ₹ 1,00,000 |
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 45 | 1 | -1,00,000 | 1,40,000 |
| 46 | 2 | 0 | 1,40,000 |
| 47 | 3 | 0 | 1,40,000 |
| 48 | 4 | 0 | 1,40,000 |
| 49 | 5 | 0 | 1,40,000 |
| 50 | 1,34,311 | ||
| IRR | 6.08% |
In comparison, a bank fixed deposit can potentially deliver higher returns while also offering superior liquidity. Investing at a rate lower than inflation erodes purchasing power and does not constitute a prudent investment strategy.
Hence, the Bharti AXA Life Smart Invest Guaranteed Plan may not be a suitable addition to an investment portfolio, even within the debt allocation.
Let us now move to the comparison section. The investment returns offered by the Bharti AXA Life Smart Invest Guaranteed Plan are relatively modest.
This section evaluates alternative investment options and computes their returns to provide a clearer perspective and support more informed decision-making.
For a like-for-like comparison, we use the same assumptions as in the earlier illustration, while separating the insurance and investment components.
In the previous example, the death benefit under the Bharti AXA Life Smart Invest Guaranteed Plan was ₹1.4 lakh, which does not meet the IRDAI-prescribed minimum sum assured of ₹5 lakh.
Therefore, for a fair comparison, we assume a pure term insurance policy with a sum assured of ₹5 lakh.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 5,00,000 |
| Policy Term | 5 years |
| Premium Paying Term | Single Pay |
| Annualised Premium | ₹ 14,500 |
| Investment | ₹ 85,500 |
A pure term life insurance policy offering ₹5 lakh coverage can be purchased with a single premium of approximately ₹14,500.
After paying the insurance premium, the remaining amount available for investment is ₹85,500. This balance can be deployed into investments aligned with one’s financial goals and time horizon.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 45 | 1 | -1,00,000 | 5,00,000 |
| 46 | 2 | 0 | 5,00,000 |
| 47 | 3 | 0 | 5,00,000 |
| 48 | 4 | 0 | 5,00,000 |
| 49 | 5 | 0 | 5,00,000 |
| 50 | 1,50,680 | ||
| IRR | 8.55% | ||
For illustration, assume the amount is invested in an equity mutual fund scheme. At the end of five years, the maturity value of the equity mutual fund, after accounting for capital gains tax, is ₹1.5 lakh.
The combined Internal Rate of Return (IRR) of the equity mutual fund investment, along with the pure term insurance policy, works out to 8.55%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 5 years | 1,50,680 |
| Purchase price | 85,500 |
| Long-Term Capital Gains | 65,180 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 0 |
| Tax paid on LTCG | 0 |
| Maturity value after tax | 1,50,680 |
This comparison underscores the importance of a goal-based investment approach. Separating insurance and investment not only enhances flexibility but also delivers superior returns compared to traditional endowment-type plans.
Based on these calculations, the Bharti AXA Life Smart Invest Guaranteed Plan may not be an optimal choice for inclusion in an investment portfolio.
The Bharti AXA Life Smart Invest Guaranteed Plan is a traditional life insurance product that combines life cover with an investment component. However, the life cover offered under the plan diminishes each year, and the sum assured itself is insufficient.
Consequently, the insurance element fails to serve its primary purpose of providing meaningful financial protection.
An analysis of the plan’s returns further indicates that the investment performance is unfavourable. The returns generated are relatively low when compared with alternative investment avenues and it also has a high agent commission.
The combination of an inadequate sum assured, a declining life cover, and modest returns makes the Bharti AXA Life Smart Invest Guaranteed Plan an unattractive proposition.
A more effective approach is to first establish a strong financial foundation by securing adequate life and health insurance and maintaining a robust emergency fund.
Investments should then be structured around specific financial goals, aligned with one’s risk appetite and investment horizon.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
Investors should be cautious of products marketed solely on the promise of guaranteed returns. For effective goal-based financial planning, consulting a Certified Financial Planner is advisable, as personalised planning plays a critical role in achieving long-term life goals.
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