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A recent launch by Bharti Axa Life Insurance, Future Invest seeks to club the features of an endowment plan with a market-linked product. Thus, while the policyholder is entitled to the fund value at the end of the policy term, in the event of his/her unfortunate death, the nominee shall receive either the sum assured or the fund value whichever is higher under Option A.
Alternatively, the nominee is entitled to receive both the sum assured plus the fund value subject to policyholder paying a higher mortality charge under Option B.
Unique Feature
For one, Future Invest has no premium allocation charge. Thus, the entire amount of premium paid gets invested in the scheme. Also, premiums are to be paid for just half of the policy term, ie, while the policy term is 10 years, the investor is required to pay annual premiums for the first five years only. The scheme also provides for a settlement period wherein the investor can continue to stay invested in the plan for a maximum period of 5 years after the end of the policy term, to reap market gains.
For Customers
Future Invest is a new launch and it is thus advisable for investors to understand its features as well as charges before taking the plunge. Following is a brief summary of the scheme…
Future Invest offers an attractive sum assured equal to 10 times the annual premium if the policyholder's age is less than 45 and 7 times thereafter. Thus, for annual premium of 1 lakh, the sum assured is 10 lakh or 7 lakh
For those opting for Option B as the death benefit for the nominee, the mortality is charged on sum assured. This is higher than the mortality charges applicable otherwise on the difference between the sum assured and fund value.
Option B also entitles the investor to an additional accident death benefit equal to the base sum assured. However, this again is at the cost of 1 per 1,000 sum assured per annum.
Future Invest definitely scores on features such as no premium allocation charge and the option to receive both the sum assured and fund value as death benefit. It is, however, a let down as far as policy administration charge of 0.5% per month, on annual premium, is concerned. However, as this charge is capped at 6,000 per annum, high net worth investors (HNI) can consider the scheme as a viable investment option.
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