Bharti AXA Life Child Advantage
A traditional participating savings plan with an in-built Premium waiver benefit that offers you the flexibility to choose between 2 Maturity benefits – Money back and Endowment – depending on the needs and career goals of your child.
4 Reasons to Buy
- Choose between pay-out options that are based on your child’s needs – Money back or Endowment. a.)With the Money back option, you will get guaranteed pay-outs in the last 5 years before Maturity to meet your child’s education needs. At Maturity you will get guaranteed Maturity pay-out for your child’s higher education and career needs. b.) With the Endowment option you will get a guaranteed lump sum amount at Maturity, provided the Policy is in force, to help meet your child’s dream.
- Built-in Premium waiver benefit ensures that your child’s needs will be taken care of. If something unfortunate were to happen to the parent (Life Insured) the future Premiums are waived off while all the benefits in the policy continue.
- Flexibility to choose your Policy Term – between 11 and 21 years. Based on your child’s age, you can choose a Policy Term between 11 to 21 years. Also choose the Premium payment type –‘limited pay’ where the Premium payment term is 5 years lesser than the Policy Term or ‘regular pay’ where the Premium payment term is equal to Policy Term.
- Potential upside with bonus. Non-guaranteed annual simple reversionary bonus gets accrued to the policy at the end of each year provided all due Premiums are paid and is payable at Maturity. The company may also declare non-guaranteed terminal bonus that will be also be payable at Maturity.
How it works?
Let’s take a look at this case study
35 year old Karan has a 2 year old son Sahil, he chooses our Bharti AXA Life Child Advantage with Money Back option for a Sum Assured of ₹ 18,18,512. He pays an annual premium of ₹ 1,00,000 p.a. for 20 years.
Starts paying an annual premium* of ₹ 1,00,000
1ST POLICY YEAR
Starts receiving guaranteed pay-outs of ₹ 1,81,851 each year
15TH AND 16THPOLICY YEAR
Then he receives guaranteed pay-outs of ₹ 2,72,777 each year
17TH AND 18THPOLICY YEAR
Next he receives guaranteed pay-out of ₹ 3,63,702
19TH POLICY YEAR
While Karan still continues paying an annual premium* of ₹ 1,00,000 throughout the entire premium payment term of 20 years
20TH POLICY YEAR
He also receives a lump sum maturity benefit : @8% p.a.₹ 19,27,623# (Guaranteed ₹ 7,27,405 + Non-guaranteed accumulated bonus ₹ 12,00,218#)
OR @4% p.a. ₹ 11,67,485# (Guaranteed ₹ 7,27,405 + Non-guaranteed accumulated bonus ₹ 4,40,080#)
END OF 20THPOLICY YEAR
*Premium is exclusive of service tax
# 4% and 8% rates are used only for illustration purposes and are not guaranteed. The values represented with 4% & 8% are not the upper or lower limits of what one can expect from this policy, as it is dependent on number of factors including investment performance
In case of Karan’s untimely demise, before the 20th Policy year, his son will receive ₹ 20,00,364 as life insurance benefit and all the future premiums will be waived off. Additionally, his son will receive all the remaining guaranteed pay-outs and lump sum maturity benefits.
|Premium Type||Regular Pay||Limited Pay|
|Policy Term||11 to 21 years||11 to 21 years|
|Premium Payment Term||Same as Policy Term||Policy Term minus 5 years|
|Minimum age at entry (age last birthday)||18 Years||18 years|
|Maximum age at entry (age last birthday)||50 years||55 years|
|Maximum Maturity Age (age last birthday)||71 years for Regular pay||76 years for Limited pay|
|Minimum Sum Assured||₹ 25,000|
|Minimum Annualized Premium||
Depends on the Minimum Sum Assured
|Premium Payment Modes||Annual, Semi annual, Quarterly*, Monthly*|
* Through Auto Pay only