Why Choose Bharti AXA Life Saral Pension?

It is an immediate annuity plan to ensure that you live life at your own terms – even after your retirement. With its simple and easy-to-understand features and standardized options, this pension plan is the perfect immediate annuity plan for you.

Guaranteed Fixed Income for Whole Life
Pay once (purchase price^) and get guaranteed fixed income (annuity) for your entire life.
Joint Life Option
Extend the same benefit of guaranteed fixed income to your spouse. In case your spouse outlives you, he/she will receive the same annuity income for as long as he/she lives.
Multiple Annuity Pay-Out Frequencies
Option to receive annuity income monthly, quarterly, half yearly or yearly to suit your need.
Return of Purchase Price^
In case of death of the annuitant (or the last surviving annuitant in case of Joint life), 100% of the purchase price (excluding taxes) will be returned to the nominees or the legal heir of the annuitant.
Single Premium Payment
Pay premium only once to purchase the annuity, post which you start receiving the benefits.

Key Benefits

Guaranteed Income

Joint Life Option

Single Premium Payment

Multiple Annuity Pay-out

How Does the Product Work?

Let’s take a look at this case study

Mohit is a 58-year-old salaried employee nearing his retirement. He wants to ensure that he and his wife, Swati, are not a financial burden on their children. For his financial independence, Mohit wants to ensure he gets regular monthly income for the rest of his life, even after retirement. He also wants to secure his wife in case he was to die before her. Mohit opts for Bharti AXA Life Saral Pension.

Case :

Mohit purchases Bharti AXA Life Saral Pension under the Option 2 - Joint Life Last Survivor Annuity with Return of 100% of Purchase Price (ROP) on death of the last survivor. He opts for a monthly annuity pay-out of Rs. 6,380.78 for which he has to pay a one-time purchase price of Rs. 15,00,000.

One month after payment of his Purchase price, he would start receiving monthly annuity of Rs. 6,380.78 till as long as he lives. After his death, his wife would continue receiving monthly annuity of Rs. 6,380.78 for as long as she lives. On her death, her nominees or legal heirs would receive 100% of the purchase price^, i.e., Rs. 15,00,000 and the annuity would be terminated.

The above example is for offline illustration purpose only and prices stated are exclusive of tax.

What Do You Gain from the Plan?

Annuity Options

Option 1 - Life Annuity with Return of 100% of Purchase price (ROP)

Under this option, Annuity is paid for life of the annuitant. In addition, 100% Purchase Price^ will be returned to the nominee / legal heirs on death of the annuitant.

Option 2 - Joint Life Last Survivor Annuity with Return of 100% of Purchase Price (ROP) on death of the last survivor

In this case, the annuity is first paid to the primary annuitant for life. After death of the primary annuitant, if the spouse is surviving, the spouse continues to receive same amount of annuity for life till his/her death. Subsequently, on death of the spouse, Purchase Price^ shall be payable to nominee / legal heirs. However, if the spouse has pre-deceased the annuitant, then on the death of the annuitant, the Purchase price^ shall be payable to the nominee / legal heir. Joint life policy is permitted only where a spousal relationship exists.

Annuity option once chosen cannot be altered.

Death Benefit

Upon death of the Annuitant, the Death Benefit will be payable immediately on death.

In case of single Life annuity

100% of Purchase price^ shall be payable to the nominee or legal heir on death of the annuitant and the annuity payments shall cease immediately.

In case of joint life annuity, after death of the primary annuitant

If the spouse is surviving, the spouse continues to receive the same amount of annuity for life till his/her death. Subsequently, on death of the spouse, 100% Purchase Price^ shall be payable to nominee / legal heirs. However, if the spouse has predeceased the annuitant, then on the death of the annuitant, the Purchase price^ shall be payable to the nominee /legal heirs.

Any loan outstanding shall be recovered from the claim proceeds under the policy.

Survival Benefit

Annuity is payable during the survival of the annuitant(s), as per the chosen mode of annuity payment. If there is any Loan outstanding under the policy, the annuity amount will be reduced by the amount of loan interest due under the policy. The loan interest will accrue as per the frequency of annuity payment under the policy and it will be due on the date of annuity.

Surrender on Diagnosis of Critical Illness

The policy can be surrendered any time after six months from the date of commencement, if the annuitant or the spouse or any of the children of the annuitant is diagnosed as suffering from any of the critical illnesses specified in the Policy Document, based on the documents produced to the satisfaction of the medical examiner of the Insurer. The list of critical illnesses may be revised from time to time by the Authority as needed. On approval of surrender, 95% of the Purchase Price^ shall be paid to the annuitant, subject to deduction of outstanding loan amount and loan interest, if any. On payment of surrender value, the policy stands terminated.

Any change in the surrender value calculation method shall be applicable only after prior approval of IRDAI.

Loan

Loan can be availed any time after six months from the date of commencement of the policy. Under joint life option, the loan can be availed by the primary annuitant and on death of the primary annuitant; it can be availed by the secondary annuitant.

Maximum amount of loan that can be granted under the policy shall be such that the effective annual interest amount payable on loan does not exceed 50% of the annual annuity amount payable under the policy.

The loan interest will be recovered from the annuity amount payable under the policy. The loan interest will accrue as per the frequency of annuity payment under the policy and it will be due on the date of annuity. The loan outstanding shall be recovered from the claim proceeds under the policy. However, the annuitant has the flexibility to repay the loan principal at any time during the currency of the annuity payments.

In case the Policy results in a claims before the repayment of the loan in full with interest, the Company shall be entitled to recover the outstanding loan and interest thereon from claims payable under the Policy. Any change in basis of determination of interest rate for policy loan can be adopted only after prior approval of the Authority.

Interest Rate on loan

The interest on loan shall be at 10-year G-Sec rate per annum as at 1st April of the relevant financial year, as published by M/s. FBIL, plus not more than 200 bps and shall be applicable for all loans granted during the period of twelve months, beginning 1st May of the relevant financial year. Any change in basis of determination of interest rate for policy loan can be adopted only after prior approval of the Authority. The current rate of interest for FY 21 - 22 chargeable on Policy loans is 8.22% p.a.

Higher Purchase Price Incentive

As the purchase price increases, a Purchase Price^ incentive, as a percentage, gets added on the Annuity Rates as specified below, subject to the minimum annuity amount of Rs. 12000 per annum :

Single Life
Purchase Price Band	Purchase Price Range	High Purchase Price Incentive
Band 1	Less than 2,00,000	NA
Band 2	2,00,000 – 4,99,999	0.00%
Band 3	5,00,000 - 9,99,999	7.00%
Band 4	10,00,000 - 24,99,999	9.50%
Band 5	25,00,000 and above	11.00%

Insurance Jargon Explained

Annuity

A scheme under which a certain amount is paid at regular yearly/ half yearly/ quarterly/ monthly intervals.

Annuity Plans

These plans provide for a "pension" amount (or a mix of a lump sum amount and a pension) to be paid to the insured or his spouse. In the event of death of both of them during the policy period, a lump sum amount is paid to the next of kin.

Premium

The payment, or one of the regular periodic payments, that a policyholder makes to an insurer in exchange for the insurer's obligation to pay benefits upon the occurrence of the contractually-specified contingency (e.g., death).

Sum Assured

Sum assured is the amount that an insurer agrees to pay on the occurrence of a stated contingency (eg: Death).

View all Jargon

^Purchase price is defined as the amount paid by the policyholder to secure the benefits under the policy. The term Purchase Price and the Premium are used interchangeably in this document. Purchase Price does not include any taxes which are payable separately.

Bharti AXA Life Saral Pension