Bharti AXA Life Group Employee Benefit Builder

Why Choose Bharti AXA Life Group Employee Benefit Builder ?

The Bharti AXA Life Group Employee Benefit Builder is an annually renewable, non-participating, group savings plan designed to help employers manage employee benefit schemes like Gratuity Post-Retirement Medical Benefits (PRMBS), Leave Encashment.

Annual Renewable Plan
Flexibility to renew yearly as per your scheme needs.
Fund Management
Contributions are invested in a non-linked, non-participating life fund, with interest credited regularly.
Life Insurance Coverage
Each member is covered with a guaranteed sum assured of ₹10,000.
Flexible Contributions
Based on actuarial valuation as per AS 15 (Revised)/IND AS 19 standards.
Multiple Schemes Allowed
Separate policies can be issued for different schemes under the same employer.
Tax Benefits
Contributions and benefits may be eligible for tax advantages as per prevailing laws.

How the Bharti AXA Life Group Employee Benefit Builder Works ?

This plan is designed for employers or trusts who manage employee benefit schemes such as Gratuity, Leave Encashment, and Post-Retirement Medical Benefits (PRMBS). Here’s how it functions:

1. Employer/Trust as Policyholder

The employer or a scheme trust becomes the Master Policyholder.
If an employer runs multiple schemes, a separate policy is issued for each scheme.

2. Setting Up the Fund

Contributions are made by the employer as per actuarial valuation (AS 15 Revised / IND AS 19 standards).
These contributions are pooled into a Policy Account maintained for the scheme.
The account shows all credits (contributions + interest earned) and debits (benefit payouts, charges).

3. Investment & Growth

Contributions are invested in the non-linked, non-participating life fund of the company.
Interest is declared periodically and credited to the Policy Account:
- Declared based on fund size and market conditions.
- Credited on a pro-rata basis at the end of each financial year.

4. Employee Benefits (as per Scheme Rules)

When a member exits employment (due to retirement, resignation, death, or leave encashment), benefits are paid:

Death Benefit:
- Fixed ₹10,000 Sum Assured (per member) + scheme benefit (e.g., gratuity, PRMBS, leave encashment).
- Paid immediately to the nominee via the Master Policyholder.
Retirement/Exit/Leave Encashment Benefit:
- Benefit calculated as per Scheme Rules.
- Paid from the Policy Account balance, subject to Market Value Adjustment (MVA), if applicable.
Maturity Benefit:
- On retirement/exit, the accumulated balance is paid as per Scheme Rules.

5. Surrender Option

The Master Policyholder can surrender the policy with 1 month’s notice.
Surrender Value = Policy Account – applicable charges.
After surrender, all rights and benefits under the policy terminate.

6. Bulk Exit & Market Value Adjustment (MVA)

Bulk Exit = if >25% of Policy Account is withdrawn in one policy year.
On such exits or on surrender, MVA may apply if the market value of assets is lower than the Policy Account value.
MVA ensures fairness between existing and continuing members.

7. Renewal

The policy is renewed every year.
Even if no fresh contributions are made (in case of overfunded schemes), the policy continues as long as there is sufficient balance in the Policy Account.

Insurance Jargon Explained

Participating Policy

An insurance plan which gives the policyholder a share in the profits of the insurance company’s participating fund in the form of bonuses. Apart from bonuses, such insurance plans shall provide some guaranteed benefits also. Participating policy is also referred to as “with profits policy”.

Endowment plan

An insurance policy which provides a lump sum amount on a fixed date, either maturity of the policy or upon the death of the life insured, whichever occurs earlier.

Income payout

The money paid to the policyholder as regular income at the end of the policy term.

Rider

A provision attached to a policy that adds benefits not available in the original policy or that changes the original policy.

Riders help the Policyholder in enhancing the insurance product to meet specific needs by adding protection benefits to the basic Insurance Plan at a lower additional cost. For example, Bharti AXA Life Hospi cash rider provides fixed per day cash benefit to the Policyholder for each day of hospitalisation, thus providing benefits of a health plan along with base Life Insurance plan.

View all Jargon

Disclaimers

Life Insurance coverage is available under this plan.
Tax Benefits*: As per prevailing tax laws, subject to change.
Bharti AXA Life Group Employee Benefit Builder is the name of the product; it does not represent the quality or future performance of the plan.
Tax benefits are subject to change as per prevailing laws.
For more details, please refer to the policy document.