Bharti AXA Life Bright Stars EDGE

Name of Policy

Bharti AXA Life Bright Stars EDGE

Type of Policy

ULIP Endowment

Various Investment Options

Growth Opportunities Plus Fund: - To provide long-term capital appreciation through investing in stocks across all market capitalization ranges (Large, Mid or Small).

Grow Money Plus Fund: - To provide long-term capital appreciation through investing across a diversified quality equity portfolio.

Build India Fund To provide long-term capital appreciation through exposure to equity investments in Infrastructure and allied sectors, and by diversifying investments across various sub-sectors of the infrastructure sector.

Save ’n’ grow Money Fund To provide steady accumulation of income in medium to long term by investing in high quality debt papers and government Securities.

Steady Money Fund: - To provide steady accumulation of income in medium to long term by investing in high quality debt papers and government Securities.

Safe Money Fund: -To provide capital protection Corporate through investments in low-risk money-market & short-term debt instruments with maturity of 1 year or lesser.

 

Features

Parameter

Value             

Entry age

Minimum: 7 ; Maximum: 60 years

Maturity Age

70 Years for 10 year term

75 years for 15 year term

80 years for 20 year term

Policy Term(Fixed)

10/ 15 / 20 Years                        

Premium Payment Term

Annual , Semi Annual, Quarterly and Monthly

Premium

Policy Term

Annual

Semi Annual

Quarterly

Monthly

10 Years

18,000

9,000

4,500

1,500

15 Years

18,000

9,000

4,500

1,500

20 Years

12,000

6,000

3,000

1,000

Sum Assured

20 times Annual Premium

 

Charges

Explanation

Premium Allocation Charge (on regular premiums)

Year 1       

Year 2-12       

Year 13 onwards

8%          

5.50%           

0.00%

Policy Administration Charge( PAC)

The monthly PAC is 0.18% of the annual premium and is charged from 6th policy year onwards. This charge shall not exceed Rs. 5000 per annum.

Fund Management Charge (FMC)

 

Type of Fund

Charge

Growth Opportunities Plus Fund

1.35% p.a.

Grow Money Plus Fund

1.35% p.a.

Build India Fund

1.35% p.a.

Save ’n’ grow Money Fund

1.25% p.a.

Steady Money Fund

1.00% p.a.

Safe Money Fund

1.00% p.a.

Life Cover

Yes

Illustration

Let us assume a simple case:

  •     Your age: 30 years
  •      Sum assured- 4 lakh
  •      Policy term: 20 years
  •      Premium: Rs. 20,000 p.a.

The life insurance component is miniscule, not exceeding 20 times your annual premium. If you really want life insurance, a good term plan will give you life insurance of about 500 times your annual premium – so you would rather avoid the fund.

Let’s see what you get:

  •       life cover plus Investment
  •      Of your first year premium of Rs. 20,000 p.a. 8%+ 0.18% p.m. + Mortality charge is removed. Most of this goes to your agent’s pocket. Only the remaining gets invested in the fund.
  •     Of your 2-12 year premium of Rs. 20,000 p.a. 5.50%+0.18% p.m. + Mortality charge gets removed again. Most of this again goes to your agent, and only the remaining gets invested.
  •       In addition to this, of your total fund, the fund management charge of ~1.35% is cut every year
  •      Instead, if this Rs. 20,000 p.a. had gone into a Systematic Investment Plan in a Mutual Fund, giving a return of approximately 15% a year on a five year average, not a single Rupee would have been deducted as policy charges. It would not take a mathematician to deduce that the returns here will be much better.

 

In summary, investments can deliver returns only if the costs are not so high.

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