Tax-saving or tax-planning is an important part of financial planning. If wisely done, it can serve a dual objective – help individuals meet their financial goals and save tax in the process.
Broadly, these are the three insurance avenues that can help maximize tax-savings:
Introduction/Overview
Bharti AXA Life Secure Income Plan is a traditional non-participating savings plan with regular monthly incomes to take care of the additional expenses and also life insurance coverage for protection purposes
Key Features
- It is a non-participating plan with limited premium payment option
- Guaranteed Income is paid every month after the completion of the premium payment term
- Guaranteed Additions accrue after the premium payment term till maturity or death
- The rate of Guaranteed Additions depends on the policy term and the PPT
Benefits
- On maturity, the basic SA along with the aggregate Guaranteed Additions, is paid to the policyholder
- On death of the policyholder the death benefit as per the policy term chosen is payable
| Policy term |
Death Benefit |
| 15 years & 17 years |
Higher of SA + accrued Guaranteed Additions or 11 times Annual Premium or 105% of all premiums paid till death |
| 20 years |
Higher of SA + accrued Guaranteed Additions or 13 times Annual Premium or 105% of all premiums paid till death |
- A guaranteed Income of 8% of Sum Assured p.a. is paid from the completion of the PPT till maturity or death
- Income tax benefit on the premium paid as per Section 80C and on the claims received as per Section 10(10D) of the Income Tax Act.
Product Specification:
|
Minimum
|
Maximum
|
| Entry Age (Last Birthday) |
0 years
|
65 years
|
| Maturity Age (Last Birthday) |
-
|
80 years
|
| Policy Term (PT) in years |
15, 17 or 20
|
| Premium Paying Term (PPT) in years |
5, 7 or 10 respectively
|
| Premium Paying Frequency |
Annual, half-yearly, quarterly, monthly
|
| Yearly Premium |
18,000
|
No limit
|
| Sum Assured |
Depends on the premium chosen
|
Details About Premium
Annual premium in Rupees for a policy term of 20 years and PPT 10 years
| Age |
30 years |
| Premium |
50,000 |
| Sum Assured |
311,061 |
| Guaranteed Income from 11th year |
24,885 every year |
| Aggregate Guaranteed Additions payable on Maturity |
311,061 |
| Maturity Benefit |
622,122 |
| Death Benefit |
650,000 |
Policy Details
Grace Period: 30 days’ grace period is allowed for premium payment in all modes. If policyholder fails to make payment within the grace period, the policy lapses
Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy after 2 / 3 years’ premiums has been paid. The Surrender Value will be higher of the Guaranteed Surrender Value or the Special Surrender Value.
GSV = GSV Factor * annual premiums less the Guaranteed Monthly Income already received
Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.
Additional Features or Riders
- Discount in premium for premiums of Rs. 1 lakh and above
- Bharti AXA Life Hospital Cash Rider is available under the plan
Inclusions
- A loan of a maximum of 70% of the Surrender Value is available under the plan
Exclusions
- In case of suicide committed within 12 months of policy inception only premiums paid are returned to the nominee. In case of suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid
