Categories: Insurance

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

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Is the Bharti AXA Life Unnati Plan truly a pathway to financial progress — or just another savings-cum-insurance product with average outcomes?

Can the Bharti AXA Life Unnati Plan help you reach major goals like education or retirement — or will inflation quietly erode the real value of its benefits?

Does the Bharti AXA Life Unnati Plan genuinely simplify financial planning — or does it mask complexity with appealing branding?

This article examines the key features of the Bharti AXA Life Unnati Plan, along with its merits and limitations, supported by a detailed illustration.

Table of Contents:

What is the Bharti AXA Life Unnati Plan?

What are the features of the Bharti AXA Life Unnati Plan?

Who is eligible for the Bharti AXA Life Unnati Plan?

What are the benefits of the Bharti AXA Life Unnati Plan?

Death Benefit

Maturity Benefit

Guaranteed Survival Benefit

Simple Reversionary Bonus

Cash Bonus

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

Free Look Period for the Bharti AXA Life Unnati Plan

Surrendering the Bharti AXA Life Unnati Plan

What are the advantages of the Bharti AXA Life Unnati Plan?

What are the disadvantages of the Bharti AXA Life Unnati Plan?

Research Methodology of Bharti AXA Life Unnati Plan

Benefit illustration – IRR Analysis of Bharti AXA Life Unnati Plan

Bharti AXA Life Unnati Plan Vs. Other Investments

Bharti AXA Life Unnati Plan Vs. Pure-term + Equity Mutual Fund

Final Verdict on the Bharti AXA Life Unnati Plan

What is the Bharti AXA Life Unnati Plan?

Bharti AXA Life Unnati Plan is a Non-Linked, Participating, Individual, Savings Life Insurance Plan. It provides life insurance coverage and the benefits of a savings product.

The product is designed to offer guaranteed and non-guaranteed benefits along with protection up to age 100.

What are the features of the Bharti AXA Life Unnati Plan?

  • Life insurance coverage for the entire policy duration
  • Whole life cover with protection extending up to 100 years of age
  • Waiver of Premium benefit to ensure continued coverage in case of unforeseen events
  • Option to enhance protection with up to 15× death benefit throughout the policy term
  • Multiple plan variants to align with your financial objectives: Moneyback, Immediate Income, Whole Life Income, and Endowment options
  • Flexible premium payment modes with a choice of policy terms and limited premium payment tenures
  • Tax benefits may be available, subject to prevailing tax laws

Who is eligible for the Bharti AXA Life Unnati Plan?

What are the benefits of the Bharti AXA Life Unnati Plan?

1. Death Benefit

Endowment Option

Base Variant & Higher Death Benefit Variant

For death during the Bharti AXA Life Unnati Plan policy term, the death benefit is payable, and the policy terminates. Death Benefit is the higher of:

  • Sum Assured on Death, plus Simple reversionary bonus accrued till the date of death, plus Terminal Bonus, if declared, will be payable
  • 105% of the Total Premiums paid as on the date of death

Waiver of Premium Variant

For death during the Bharti AXA Life Unnati Plan policy term, the death benefit is payable. Death Benefit is the higher of:

  • Sum Assured on Death;
  • 105% of the Total Premiums paid as on the date of death

Additionally, all future premiums will be waived.

The Simple Revisionary Bonus, if declared, shall continue to accrue at the end of each Policy Year until Maturity, and the accrued Simple Reversionary Bonus shall be payable at maturity along with the Sum Assured on Maturity and the terminal bonus, if declared.

Money Back Option

For death during the Bharti AXA Life Unnati Plan policy term, the death benefit is payable, and the policy terminates. Death Benefit is the higher of:

  • Sum Assured on Death, plus Simple reversionary bonus accrued till the date of death, plus Terminal Bonus, if declared, will be payable.
  • 105% of the Total Premiums paid as on the date of death

Immediate Income Option

For death during the Bharti AXA Life Unnati Plan policy term, the death benefit is payable, and the policy terminates. Death Benefit is the higher of:

  • Sum Assured on Death, plus Terminal Bonus, if declared, will be payable
  • 105% of the Total Premiums paid as on the date of death

Whole Life Income Option

For death during the Bharti AXA Life Unnati Plan policy term, the death benefit is payable and the policy terminates. Death Benefit is the higher of:

  • Sum Assured on Death, plus Terminal Bonus, if declared, will be payable
  • 105% of the Total Premiums paid as on the date of death

Where, Sum Assured on Death = Sum Assured Multiple * Annualised Premium

Where, Sum Assured Multiple is as follows:

Plan Option Sum Assured Multiple
Endowment – Base Variant 10.5
Endowment -Higher Death Benefit Variant 15
Endowment – Waiver of Premium Variant 10.5
Moneyback Option 10.5
Immediate Income Option 10.5
Whole Life Income Option 10.5

2. Maturity Benefit

Endowment Option (All Variants) & Money Back Option

In case the Life Insured survives till the maturity of the policy and all premiums are duly paid, then the benefits, as mentioned below, will be payable as lumpsum:

Maturity Benefit = Sum Assured on Maturity + Accrued Simple Reversionary Bonuses + Terminal Bonus, if declared

Immediate Income Option & Whole Life Income Option

In case the Life Insured survives till the maturity of the policy and all premiums are duly paid, then the benefits, as mentioned below, will be payable as lumpsum:

Maturity Benefit = Sum Assured on Maturity + Terminal Bonus, if declared

3. Guaranteed Survival Benefit

Endowment Option (All Variants) & Immediate Income Option

No Survival Benefit is paid.

Money Back Option

One Annualised Premium will be payable at the end of the policy years mentioned below, based on the chosen Premium Payment Term (PPT):

PPT (in years) 8 10 12
Policy year 4 4 4
8 8 8
12 12 12
16 16
20

Whole Life Income Option

Guaranteed Income will be paid at the end of each policy year, starting from the 2nd policy year, till maturity or death, whichever is earlier, as per the rates mentioned below:

PPT (in years) Guaranteed Income as a % of ‘Sum Assured on Maturity’
5 1.85
7 1.8
10 1.75
15 1.7

4. Simple Reversionary Bonus

For Endowment Option (All Variants except Waiver of Premium Variant) and Money Back Options Policies, this bonus, if declared, shall accrue at the end of each Policy Year commencing from the first Policy Year until the Maturity or death, whichever is earlier.

The accrued Simple Reversionary Bonuses shall be payable at maturity or death, whichever is earlier.

For Endowment Option (Waiver of Premium Variant), the Simple Revisionary Bonus, if declared, shall accrue at the end of each Policy Year commencing from the first Policy Year until Maturity, and the accrued Simple Reversionary Bonus shall be payable at maturity.

5. Cash Bonus

For Immediate Income and Whole Life Income Options, Cash Bonus, if declared, shall be payable at the end of each Policy Year starting from the end of the Policy Year as per the table until Maturity Date:

Plan Option PPT (in years) Policy Term (in years) Policy Year
Immediate Income Option 7 15 2
10 20 2
12 24 2
Whole Life Income Option 5 100 – Entry Age 6
7 8
10 11
15 16

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

Grace Period

The grace period is 15 days for the monthly mode and 30 days for annual/ semi-annual/ quarterly premium payment modes.

Discontinuance

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 Unnati 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 Unnati 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.

Revival

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.

Free Look Period for the Bharti AXA Life Unnati Plan

If the Policyholder disagrees with any of the terms and conditions of the Bharti AXA Life Unnati 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.

Surrendering the Bharti AXA Life Unnati Plan

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)

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 a guaranteed surrender value after the payment of premiums for at least two consecutive years.

What are the advantages of the Bharti AXA Life Unnati Plan?

  • Loan facility available up to 70% of the policy’s surrender value
  • Simple Reversionary Bonus accrues starting from the end of the first policy year
  • Option to enhance coverage through additional rider benefits

What are the disadvantages of the Bharti AXA Life Unnati Plan?

  • The overall return on investment is relatively low.
  • Bonus payouts are discretionary and not guaranteed.
  • The sum assured may fall short of adequately covering a family’s essential financial requirements.
  • Income under the income variants is not assured annually, as it is contingent on bonus declarations.

Research Methodology of Bharti AXA Life Unnati Plan

The Bharti AXA Life Unnati Plan offers four plan variants, allowing investors to choose an option based on their financial requirements. However, both the survival benefits and maturity benefits are dependent on bonus declarations.

Therefore, it is important for investors to carefully evaluate the plan before committing their money.

One of the most effective ways to assess an investment is by calculating the Internal Rate of Return (IRR), as it helps evaluate the cash flow pattern and the actual return generated over the investment tenure.

Benefit illustration – IRR Analysis of Bharti AXA Life Unnati Plan

Consider a 35-year-old male opting for a Sum Assured of ₹5.25 lakh, with a policy term of 24 years and a premium payment term of 12 years. He pays an annual premium of ₹50,000 and selects the Endowment Option – Base Variant.

Male 35 years
Sum Assured ₹ 5,25,000
Policy Term 24 years
Premium Paying Term 12 years
Annualised Premium ₹ 50,000

Under the endowment option, the policyholder receives a lump-sum maturity benefit, which includes accrued bonuses. The policy brochure illustrates two scenarios based on assumed rates of return of 4% and 8% per annum.

These figures are purely illustrative and not guaranteed, as actual benefits depend on future bonus declarations and the insurer’s performance.

At 4% p.a. At 8% p.a.
Age Year Annualised premium / Maturity benefit Death benefit Annualised premium / Maturity benefit Death benefit
35 1 -50,000 5,25,000 -50,000 5,25,000
36 2 -50,000 5,25,000 -50,000 5,25,000
37 3 -50,000 5,25,000 -50,000 5,25,000
38 4 -50,000 5,25,000 -50,000 5,25,000
39 5 -50,000 5,25,000 -50,000 5,25,000
40 6 -50,000 5,25,000 -50,000 5,25,000
41 7 -50,000 5,25,000 -50,000 5,25,000
42 8 -50,000 5,25,000 -50,000 5,25,000
43 9 -50,000 5,25,000 -50,000 5,25,000
44 10 -50,000 5,25,000 -50,000 5,25,000
45 11 -50,000 5,25,000 -50,000 5,25,000
46 12 -50,000 5,25,000 -50,000 5,25,000
47 13 0 5,25,000 0 5,25,000
48 14 0 5,25,000 0 5,25,000
49 15 0 5,25,000 0 5,25,000
50 16 0 5,25,000 0 5,25,000
51 17 0 5,25,000 0 5,25,000
52 18 0 5,25,000 0 5,25,000
53 19 0 5,25,000 0 5,25,000
54 20 0 5,25,000 0 5,25,000
55 21 0 5,25,000 0 5,25,000
56 22 0 5,25,000 0 5,25,000
57 23 0 5,25,000 0 5,25,000
58 24 0 5,25,000 0 5,25,000
59 9,76,724 16,95,288
IRR 2.65% 5.67%

At a 4% assumed return, the projected maturity value is ₹9.76 lakh, translating into an IRR of approximately 2.65% as per the Bharti AXA Life Unnati Plan maturity calculator.

This is lower than the returns typically offered by most savings bank accounts. Even at an assumed return of 8%, the projected maturity value is ₹16.95 lakh, resulting in an IRR of around 5.67% as per the Bharti AXA Life Unnati Plan maturity calculator, which is still lower than what one could potentially earn from a bank fixed deposit over a similar period.

Such return levels are unlikely to help investors achieve long-term financial goals. Additionally, the life cover offered under the plan is inadequate to provide meaningful financial protection to the family.

Therefore, the Bharti AXA Life Unnati Plan may not be a suitable option for goal-based investors. From both an insurance and investment standpoint, the plan falls short when compared to alternative financial solutions.

Bharti AXA Life Unnati Plan Vs. Other Investments

Combining life insurance and investment within a single product is often an inefficient strategy.

A more effective approach is to separate protection and wealth creation into two distinct components. Using the same illustration parameters, let us evaluate an alternative scenario.

Bharti AXA Life Unnati Plan Vs. Pure-term + Equity Mutual Fund

A pure-term life insurance policy with a Sum Assured of ₹10 lakh—equivalent to the sum assured plus bonuses assumed in the earlier illustration—can be obtained at an annual premium of approximately ₹9,300 for a 24-year policy term with a 10-year premium payment term.

The balance amount from the original annual outflow of ₹40,700 can then be invested separately, based on the investor’s risk appetite, thereby offering significantly greater flexibility and return potential.

Pure Term Life Insurance Policy
Sum Assured ₹ 10,00,000
Policy Term 24 years
Premium Paying Term 10 years
Annualised Premium ₹ 9,300
Investment ₹ 40,700

For conservative investors, allocating the surplus to the Public Provident Fund (PPF) is a suitable option.

Investors with a higher risk tolerance may consider investing in an equity mutual fund scheme to enhance long-term wealth creation.

Term insurance + Equity Mutual Fund
Age Year Term Insurance premium + Equity Mutual Fund Death benefit
35 1 -50,000 10,00,000
36 2 -50,000 10,00,000
37 3 -50,000 10,00,000
38 4 -50,000 10,00,000
39 5 -50,000 10,00,000
40 6 -50,000 10,00,000
41 7 -50,000 10,00,000
42 8 -50,000 10,00,000
43 9 -50,000 10,00,000
44 10 -50,000 10,00,000
45 11 -50,000 10,00,000
46 12 -50,000 10,00,000
47 13 0 10,00,000
48 14 0 10,00,000
49 15 0 10,00,000
50 16 0 10,00,000
51 17 0 10,00,000
52 18 0 10,00,000
53 19 0 10,00,000
54 20 0 10,00,000
55 21 0 10,00,000
56 22 0 10,00,000
57 23 0 10,00,000
58 24 0 10,00,000
59 39,04,443
IRR 10.32%

Over a 24-year investment horizon, the equity mutual fund investment grows to a pre-tax corpus of ₹43.71 lakh. After factoring in capital gains tax, the post-tax maturity value stands at ₹39.04 lakh, translating into an IRR of 10.32%.

Equity Mutual Fund Tax Calculation
Maturity value after 12 years 43,71,934
Purchase price 5,07,000
Long-Term Capital Gains 38,64,934
Exemption limit 1,25,000
Taxable LTCG 37,39,934
Tax paid on LTCG 4,67,492
Maturity value after tax 39,04,443

This approach ensures adequate life coverage through a term insurance policy while simultaneously enabling inflation-beating returns through disciplined investing.

In contrast, the Bharti AXA Life Unnati Plan delivers neither meaningful protection nor competitive investment returns, making it a suboptimal choice for investors pursuing long-term, goal-based financial planning.

Final Verdict on the Bharti AXA Life Unnati Plan

The Bharti AXA Life Unnati Plan offers four plan variants that combine survival and maturity benefits, along with bonuses. Investors can choose between early income, whole-life income, or a lump-sum payout at maturity.

However, it is important to note that all these benefits are non-guaranteed, as they are linked to bonus declarations.

A detailed return analysis indicates that the plan delivers relatively low returns even under the lump-sum maturity option. The income-based variants further dilute returns, as periodic payouts interrupt the power of compounding and reduce long-term wealth accumulation.

Overall, the Bharti AXA Life Unnati Plan offers limited value to investors. By combining insurance and investment into a single product, the plan restricts financial growth and may impede the achievement of long-term financial goals and it also has a high agent commission.

Continued reliance on traditional insurance-cum-investment policies such as this can slow financial progress and increase the risk of falling short of one’s objectives.

While the term “Unnati” signifies growth or prosperity, the Bharti AXA Life Unnati Plan does not effectively deliver either.

A more efficient strategy is to secure your family’s future through a pure-term life insurance policy and invest the remaining surplus separately in instruments aligned with your financial goals.

This approach not only enhances protection but also provides superior returns, flexibility, and resilience against life’s uncertainties.

To remain financially on track, it is essential to diversify investments across asset classes and build a balanced portfolio.

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

For individuals unsure about structuring or optimising their finances, seeking guidance from a Certified Financial Planner can provide clarity, direction, and confidence throughout the financial journey.

Holistic

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