Bharti AXA Life Swabhimaan Retirement Plan: Good or Bad? A Detailed Review

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Is the Bharti AXA Life Swabhimaan Retirement Plan truly a smart way to secure a dignified post-retirement life — or just another conservative savings product with modest income?

Does the Bharti AXA Life Swabhimaan Retirement Plan simplify lifetime planning — or add complexity with limited upside?

At the end of the day, will Bharti AXA Life Swabhimaan Retirement Plan feel like a trustworthy retirement companion — or a low-growth plan that underdelivers compared to smarter alternatives?

In this review, we examine the plan’s features, along with its key benefits and limitations.

What is the Bharti AXA Life Swabhimaan Retirement Plan?

Bharti AXA Life Swabhimaan Retirement Plan is a Non-Linked Non-Participating Individual Deferred Annuity Plan. With this plan, you have the choice to plan early for your retirement and lock annuity rates at present for a guaranteed life-long payment.

What are the features of the Bharti AXA Life Swabhimaan Retirement Plan?

Assured lifelong income, providing financial stability throughout retirement
Annuity payable for life, covering you or your spouse/partner, as per the chosen option
Multiple annuity variants to align with your retirement income requirements
Flexible payout frequency — monthly, quarterly, half-yearly, or annual
Choice of deferment period, allowing you to start income at a later date
Premium payment flexibility, either as a single premium or spread over a limited term
Tax benefits on premiums paid, subject to prevailing income tax laws

Who is eligible for the Bharti AXA Life Swabhimaan Retirement Plan?

What are the plan options in the Bharti AXA Life Swabhimaan Retirement Plan?

What are the benefits of the Bharti AXA Life Swabhimaan Retirement Plan?

1. Death Benefit

Upon the death of the Life Insured/s, provided the Bharti AXA Life Swabhimaan Retirement Plan policy is in force, and all due premiums till the date of death have been paid, the Death Benefit will be payable immediately on death.

Option 1: Life Annuity without Return of Premium

Death Benefit during Deferment period: Death Benefit payable shall be the higher of:

Total Premiums Paid up to date of death; plus Accrued Guaranteed Additions, if any; and
105% of Total Premiums Paid up to date of death

Death Benefit post Deferment period: There is no Death Benefit payable.

Option 2: Joint Life Last Survivor Annuity without Return of Premium

Death Benefit during Deferment period: In case of the death of either one of the Joint lives, no death benefit is payable.

In case of death of both the Primary and Secondary lives during the Deferment Period, the Death Benefit payable shall be the higher of:

Total Premiums Paid up to date of death; plus accrued Guaranteed Additions if any,
105% of Total Premiums Paid up to date of death

Death Benefit post Deferment period: There is no Death Benefit payable.

Option 3: Life Annuity with 100% Return of Premium

Death Benefit during Deferment period: Death Benefit payable shall be the higher of:

Total Premiums Paid up to date of death; plus Accrued Guaranteed Additions, if any; and
105% of Total Premiums Paid up to date of death

Death Benefit post Deferment period: Death Benefit payable shall be the higher of

Total Premiums Paid Plus Accrued Guaranteed Additions, if any; less Total annuity paid out till date of intimation of death;
Total Premiums Paid

Option 4: Joint Life Last Survivor Annuity with Return of Premium

Death Benefit during Deferment period: In case of the death of either one of the Joint lives, no death benefit is payable.

In case of death of both the Primary and Secondary lives during the Deferment Period, the Death Benefit payable shall be the higher of:

Total Premiums Paid up to date of death; plus accrued Guaranteed Additions if any,
105% of Total Premiums Paid up to date of death

Death Benefit post Deferment period: Death Benefit payable shall be the higher of

Total Premiums Paid Plus Accrued Guaranteed Additions, if any; less Total annuity paid out till date of intimation of death;
Total Premiums Paid

Option 5: Life Annuity with 50% Return of Premium

Death Benefit during Deferment period: Death Benefit payable shall be the higher of:

Total Premiums Paid up to date of death; plus Accrued Guaranteed Additions, if any; and
105% of Total Premiums Paid up to date of death

Death Benefit post Deferment period: Death Benefit payable shall be the higher of

50% of Total Premiums Paid; plus Accrued Guaranteed Additions, if any, less Total annuity paid out till date of intimation of death; and
50% of Total Premiums Paid

Option 6: Life Annuity with Return of Premium on Critical Illness or Permanent Disability due to accident or Death

Death Benefit during Deferment period: Death Benefit payable shall be the higher of:

Total Premiums Paid up to date of death; plus Accrued Guaranteed Additions, if any; and
105% of Total Premiums Paid up to date of death

Death Benefit post Deferment period: Death Benefit payable shall be the higher of

Total Premiums Paid Plus Accrued Guaranteed Additions, if any; less Total annuity paid out till date of intimation of death;
Total Premiums Paid

Option 7: Life Annuity with Step-up increase after every 5 years with Return of Premium

Death Benefit during Deferment period: Death Benefit payable shall be the higher of:

Total Premiums Paid up to date of death; plus Accrued Guaranteed Additions, if any; and
105% of Total Premiums Paid up to date of death

Death Benefit post Deferment period: Death Benefit payable shall be the higher of

Total Premiums Paid Plus Accrued Guaranteed Additions, if any; less Total annuity paid out till date of intimation of death;
Total Premiums Paid

Option 8: Life Annuity with Return of Premium on attainment of age 80 years

Death Benefit during Deferment period: Death Benefit payable shall be the higher of:

Total Premiums Paid up to date of death; plus Accrued Guaranteed Additions, if any; and
105% of Total Premiums Paid up to date of death

Death Benefit post Deferment period: Before Attainment of Age 80: Death Benefit payable shall be the higher of:

Total Premiums Paid, plus Accrued Guaranteed Additions, if any, less Total annuity paid out till date of intimation of death
Total Premiums Paid

After Attainment of Age 80: No Death benefit is payable.

Critical Illness or Permanent Disability Benefit:

Option 9: Life Annuity with Return of Premium on Critical Illness or Permanent Disability due to accident or Death

Critical Illness or Permanent Disability Benefit during the Deferment period: Benefit payable shall be the higher of:

Total Premiums Paid, plus Accrued Guaranteed Additions, if any; and

105% of Total Premiums Paid

The benefit shall be payable to the Claimant, and the policy terminates.

Critical Illness or Permanent Disability Benefit Post Deferment period: Before attainment of Age 80: Benefit payable shall be the higher of:

Total Premiums Paid, plus Accrued Guaranteed Additions, if any, less Total annuity paid out till date of intimation of CI/PD;

Total Premiums Paid;

The benefit shall be payable to the Annuitant, and the Bharti AXA Life Swabhimaan Retirement Plan policy terminates.

After attainment of Age 80: Nil

2. Survival Benefit

Annuity is payable during the survival of the annuitant(s), as per the chosen mode of annuity payment. In case of Option 8, if the annuitant survives to age 80 s/he will receive a lump-sum amount equal to Total Premiums Paid

Grace Period, Discontinuance and Revival of the Bharti AXA Life Swabhimaan Retirement Plan

Grace Period

A grace period of 15 days will be given for the payment of the due premium for monthly payment frequency, and a 30-day grace period for the due premium for quarterly, half-yearly and annual payment frequencies.

Discontinuance

Lapse: If the Policyholder does not pay the due premiums within the Grace Period and the policy has not acquired Surrender Value, the Bharti AXA Life Swabhimaan Retirement Plan policy shall lapse with effect from the date of such unpaid premium.

Reduced Paid-up: In case of Limited or regular pay policies, after completion of the first policy year, provided one full year’s premium has been received, your policy gets converted into paid-up unless revived.

Revival

A Policy under Reduced Paid Up Mode / Lapsed state can be revived for full benefits within five years from the due date of the first unpaid Premium.

Free Look Period for the Bharti AXA Life Swabhimaan Retirement Plan

The Policyholder has a free look period of 30 days from the date of receipt of the policy document to review the terms and conditions of the policy, and if the Bharti AXA Life Swabhimaan Retirement Plan Policyholder disagrees with any of those terms and conditions, the Policyholder has the option to return the policy.

Surrendering the Bharti AXA Life Swabhimaan Retirement Plan

In case of surrender, the Bharti AXA Life Swabhimaan Retirement Plan policy shall acquire a Surrender Value based on the Premium Payment Mode as defined below

Single Pay: At any time after the Date of Commencement of Policy

Regular/Limited Pay: After completion of the first policy year, provided one full year’s premium has been received.

During the deferment period: The Surrender Value payable is the higher of the Guaranteed Surrender Value or the Special Surrender Value

Post Deferment Period: Surrender Value in the post Deferment Period shall be equal to Special Surrender Value, and is explained below:

What are the advantages of the Bharti AXA Life Swabhimaan Retirement Plan?

Partial withdrawal facility during the post-deferment period for fully paid-up policies, to meet financial emergencies
‘Save the Date’ feature, allowing annuity payments to commence on a special date of your choice
Higher premium incentive, where increased premiums are rewarded through additional annuity benefits
Loan facility available after six months from the policy commencement date
QROPS eligibility, enabling access to benefits or payouts when the policy is purchased through the transfer of UK tax-relieved assets under a Qualifying Recognised Overseas Pension Scheme

What are the disadvantages of the Bharti AXA Life Swabhimaan Retirement Plan?

Annuity income is fully taxable as per the applicable income tax laws
Surrender benefits are restricted and available only under select plan variants
Loan facility is limited, and permitted only under specific options
Fixed annuity payouts lack inflation protection, making them inadequate to keep pace with rising living costs over time

Research Methodology of Bharti AXA Life Swabhimaan Retirement Plan

The Bharti AXA Life Swabhimaan Retirement Plan offers multiple annuity choices, including Single Life and Joint Life options, with or without a return of purchase price.

However, to assess the plan’s true effectiveness, it is essential to evaluate the Internal Rate of Return (IRR) and compare it with alternative investment avenues.

Benefit Illustration – IRR Analysis of Bharti AXA Life Swabhimaan Retirement Plan

Consider a 55-year-old individual investing ₹5 lakh per year under Plan Option 3 – Life Annuity with 100% Return of Premium. The premium payment term is 2 years, with a deferment period of 7 years.

Male	55 years
Sum Assured	₹ 10,00,000
Policy Term	Life Annuity after a deferment period of 7 years
Premium Paying Term	2 years
Annualised Premium	₹ 5,00,000

Age	Year	Annualised premium / Maturity benefit	Death benefit
55	1	-5,00,000	10,00,000
56	2	-5,00,000	10,00,000
57	3	0	10,00,000
58	4	0	10,00,000
59	5	0	10,00,000
60	6	0	10,00,000
61	7	0	10,00,000
62	8	0	10,00,000
63	9	90,650	10,00,000
64	10	90,650	10,00,000
65	11	90,650	10,00,000
66	12	90,650	10,00,000
67	13	90,650	10,00,000
68	14	90,650	10,00,000
69	15	90,650	10,00,000
70	16	90,650	10,00,000
71	17	90,650	10,00,000
72	18	90,650	10,00,000
73	19	90,650	10,00,000
74	20	90,650	10,00,000
75	21	90,650	10,00,000
76	22	90,650	10,00,000
77	23	90,650	10,00,000
78	24	90,650	10,00,000
79	25	90,650	10,00,000
80	26	90,650	10,00,000
81	27	90,650	10,00,000
82	28	90,650	10,00,000
83	29	90,650	10,00,000
84	30	90,650	10,00,000
85		10,00,000

	IRR	5.56%

Total premium paid: ₹10 lakh

Annual lifetime annuity received: ₹90,650

Assumed life expectancy: 85 years

Return of premium to nominee on death: ₹10 lakh

Based on these cash flows, the IRR works out to approximately 5.56% as per the Bharti AXA Life Swabhimaan Retirement Plan maturity calculator.

When compared to this, even a bank fixed deposit (FD) can potentially deliver a higher return, while also offering better liquidity. Additionally, the premiums paid into the plan remain largely locked-in, further restricting access to funds.

In conclusion, the Bharti AXA Life Swabhimaan Retirement Plan underperforms on both return potential and flexibility. More efficient alternatives exist that can provide higher yields along with superior liquidity, which are explored in the following section.

Bharti AXA Life Swabhimaan Retirement Plan Vs. Other Investments

The Bharti AXA Life Swabhimaan Retirement Plan operates in two distinct stages: an accumulation phase (comprising the premium payment term and deferment period) and a distribution phase (annuity payouts).

However, the plan delivers unattractive returns and offers limited liquidity. A more efficient retirement strategy can help build a larger corpus while also providing greater flexibility and superior return potential.

Bharti AXA Life Swabhimaan Retirement Plan Vs. Equity Mutual Fund

Let us evaluate an alternative approach using the same assumptions as in the earlier example. In the Swabhimaan Plan, the death benefit—both during the deferment period and the annuity phase—is limited to the total premiums paid.

Hence, in this comparison, life insurance cover is excluded, and the entire premium amount is invested.

Age	Year	Equity Mutual Fund
55	1	-5,00,000
56	2	-5,00,000
57	3	0
58	4	0
59	5	0
60	6	0
61	7	0
62	8	0
63	9	90,650
64	10	90,650
65	11	90,650
66	12	90,650
67	13	90,650
68	14	90,650
69	15	90,650
70	16	90,650
71	17	90,650
72	18	90,650
73	19	90,650
74	20	90,650
75	21	90,650
76	22	90,650
77	23	90,650
78	24	90,650
79	25	90,650
80	26	90,650
81	27	90,650
82	28	90,650
83	29	90,650
84	30	90,650
85		45,91,886

	IRR	8.17%

The annual premium can be allocated based on the investor’s risk appetite—either towards low-risk instruments like PPF or growth-oriented options such as equity mutual funds.

In this illustration, the premium is invested in an equity mutual fund to build a stronger retirement corpus.

Equity Mutual Fund Tax Calculation
Maturity value after 7 years	20,92,252
Purchase price	10,00,000
Long-Term Capital Gains	10,92,252
Exemption limit	1,25,000
Taxable LTCG	9,67,252
Tax paid on LTCG	1,20,907
Maturity value after tax	19,71,346

Pre-tax corpus from equity mutual fund: ₹20.92 lakh

Post-tax maturity value (after capital gains tax): ₹19.71 lakh

When this post-tax amount is moved to an instrument yielding 7% per annum, it can generate annual withdrawals of ₹90,650, while the corpus continues to grow to ₹45.91 lakh by age 85.

The effective IRR under this strategy works out to 8.17%, significantly higher than the annuity plan.

This approach offers far greater flexibility than the Bharti AXA Life Swabhimaan Retirement Plan. The accumulated corpus can be utilised not only for regular retirement income but also for other financial needs or goals, based on the retiree’s priorities.

Moreover, investing through a diversified asset allocation and undertaking periodic rebalancing helps generate inflation-adjusted income, thereby protecting purchasing power throughout retirement.

In contrast, the Bharti AXA Life Swabhimaan Retirement Plan provides lower returns and locks investors into a rigid structure with limited choices for fund usage.

As a result, alternative investment-led strategies are better suited for achieving financial independence and maximising retirement outcomes.

Final Verdict on Bharti AXA Life Swabhimaan Retirement Plan

The Bharti AXA Life Swabhimaan Retirement Plan is designed to encourage retirement savings and provide a regular income after retirement.

Although the plan follows a two-stage structure—accumulation and distribution—its return potential is not competitive enough to meet long-term retirement objectives.

A key limitation of the Swabhimaan Retirement Plan is its lack of liquidity, as the invested funds remain largely locked in. The promise of a guaranteed annuity does not adequately compensate for this rigidity, particularly given the moderate returns on offer.

As a result, the plan may not appeal to retirees who prioritise flexibility and better yield and it also has a high agent commission.

A more effective way to build a strong retirement corpus is to invest systematically in a diversified portfolio comprising equities, fixed-income instruments, and other asset classes aligned with one’s risk profile.

Periodic review and rebalancing help ensure the strategy remains aligned with evolving retirement goals.

After accumulating the required corpus, allocating a portion to debt instruments for stable income and retaining exposure to equities for growth can create a sustainable retirement income while managing inflation.

Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?

For a customised approach, consulting a Certified Financial Planner can help design a retirement strategy tailored to individual financial goals and circumstances.

Bharti AXA Life Swabhimaan Retirement Plan: Good or Bad? A Detailed Review

Table of Contents:

What is the Bharti AXA Life Swabhimaan Retirement Plan?

What are the features of the Bharti AXA Life Swabhimaan Retirement Plan?

Who is eligible for the Bharti AXA Life Swabhimaan Retirement Plan?

What are the plan options in the Bharti AXA Life Swabhimaan Retirement Plan?