Pitching on the Superior Guaranteed Additions, Tax Savings and up to 10x Insurance, Bharti Axa has come up with a New Single Premium Traditional Plan ?Invest Once? specifically designed to lure young investors. Invest Once is a non-participating endowment insurance plan offering the facility of hassle free single premium. Let?s sail through the features of Invest Once Plan and decide whether to buy it or not?
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Features of Bharti Axa Invest Once Plan
Invest Once is a single premium traditional life insurance policy, offering two terms of 5 years and 10 years to choose from. The amount of sum assured depend upon the term and single premium you wish to pay. Since the policy is targeting young investors, there is an option of buying policy online even through your smart phone in less than 10 minutes.
|Minimum age at entry (age last birthday)||8 years for 10 years term
13 years for 5 years term
|Maximum age at entry (age last birthday)||55 years|
|Maximum Maturity Age (age last birthday)||60 years for 5 years term
65 years for 10 years term
|Minimum Sum Assured||Depends on the minimum premium|
|Minimum Annual Base Premium (Excluding applicable taxes and premium for enhanced death cover)||Rs.5,000|
|Maximum Annual Base Premium (Excluding applicable taxes and premium for enhanced death cover)||No Limit|
|Policy Term||5 years & 10 years|
|Premium Payment Term||Single Premium|
Download: Bharti Axa Life Invest Once Brochure
Invest Once pitches on guaranteed returns of 9% p.a. throughout the policy term of 10 years and 7% p.a. for 5 years. However, once should carefully note that the additions are simple interest not compounded returns as in fixed deposits. So if you invest Rs.5 lac for 10 years tenure than you will get Rs.45,000 per annum as guaranteed additions for 10 years.[AdSense-A]
Thus the return of Invest Once Policy comes to 6.00% for 5 years plan to 6.45% for 10 years plan which is equal to any other traditional endowment plan and would not in any case beat inflation.
|Policy Term||Guaranteed Additions||CAGR|
Enhanced Death Cover:
Buyer can enhance the amount of sum assured by paying additional known as Mortality Premium. The mortality premium shall also be paid at once together with the base premium.
Mortality Premium Rates per thousand Sum at Risk (per annum) for sample ages of healthy lives are as follows:
|Mortality Premium Rates (per 1000 Sum Assured) For Healthy Male|
|Age/Term||5 Years||10 Years|
For example: If a 25 year old wishes to extend his life cover by Rs.1 lac for 10 years term plan than he has to shed Rs.4,880 (exclusive of taxes) as Mortality Premium.
Benefits under Invest Once Policy
In case the unfortunate event happens, amount payable would be sum of 1 & 2 below:
1. The higher of;
a. Sum Assured chosen by the policyholder
b. Sum Assured on Maturity Sum Assured on Death
c. 125% of Single Premium plus mortality Premium (if opted for enhanced death cover), for policyholder with age less than 45 years as on last birthday at policy inception
110% of Single premium plus mortality premium (if opted for enhanced death cover), for policyholder with age 45 or higher as on last birthday (if opted for) at policy inception
2. Enhanced Death Cover (if opted for)
If the policy holder survives to the date of maturity of policy than the maturity benefit equal to Sum Assured on Maturity will be payable which is
- 100% of Single Premium;
- Total Guaranteed Additions accrued during the Policy Term (excluding Mortality Premium, if any).
If the policy holders wishes to surrender the policy before maturity than the following surrender value will be payable
|Policy Year||Guaranteed Surrender value as a % of Single premium plus Mortality Premium (if any) paid less all underwriting extra premium, if any|
5 Years Plan
|10 Years Plan|
A 25 years old invest Rs.5 lacs for 10 year plan without any enhanced death cover rider. As per his age and specifications, he would get life cover of Rs.6,99,996.
|Life Insured||25 years|
|Policy Term||10 years|
|Guaranteed Additions||Rs.45,000 per year for 10 years|
|Sum Assured At Maturity||Rs.9,50,000|
Now if he dies before the maturity period than his family would get Rs.9,50,000 i.e. higher of Sum Assured, Sum Assured at Maturity or 125% of the Single Premium paid.
If he survives through the policy term than the maturity benefits of Rs.9,50,000 would be paid i.e. 190% of the single premium paid.
Should you Buy Bharti Axa Invest Once Plan?
Buying Endowment Life Insurance Policy is never advisable and that too for short period of 5 years to 10 years is not at all a wise decision.
I would advise everyone to Never Merge Insurance and Investment because merging them would not suffice any purpose. Under Endowment plans you will always find that life cover is very low and would not fulfill the needs of your dependents. Considering the returns aspect, you will always get returns up to 6% to 7% which does not even beat the inflation.
So if you are planning to buy insurance than go with the term plan and for investment purpose you can consider various mutual fund scheme like debt funds, equity funds or balanced funds as per your risk appetite.[AdSense-B]