Bharti AXA Life Future Invest

Name of Policy

Bharti AXA Life Future Invest

Type of Policy

ULIP

Various Investment Options

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

Growth Money Plus Fund: - To provide long term capital appreciation by investing across a diversified high 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 and a limited opportunity of capital appreciation. This would be more of a defensively managed fund.

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 through investment in low-risk money market & short term debt instruments with maturity of 1 year or less.

Features

Parameter

Value             

Entry age

Minimum: 18 ; Maximum: 70 years

Maturity Age

80 years

Policy Term(Fixed)

10 Years                                     

Premium Payment Term

5 Years

Premium Payment Term

Annually, Semi Annually, Quarterly and Monthly

Premium

Annually

Semi Annually

Quarterly

Monthly

18,000

9,000

4,500

1,500

Basic Sum Assured

Age at Entry

Sum Assured

18-70 Years

10* Annual Premium

 

Charges

Explanation

Premium Allocation Charge

No premium allocation charge.

Policy Administration Charge( PAC)

The administration charge is 0.50% of annual premium deducted Monthly by cancellation of units subject to a maximum of Rs 6,000 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- 2 lakh
  •      Policy term: 20 years
  •      Premium: Rs. 20,000 p.a.

The life insurance component is miniscule, not exceeding 10 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. - 0.50% 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. 0.50% pm + 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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