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The scheme is a limited premium paying term plan with an option to choose a policy term of 25 or 30 years. A distinguishing feature of this plan is that it pays the sum assured to the policyholder/nominee in equal monthly installments instead of a lump sum payment.
Key Features
The sum assured under this plan is payable as regular monthly income to the policyholder for 15 years after the end of the premium paying term.
In the event of the death of the policyholder during the premium paying term, the monthly income shall accrue to the nominee from the next policy month onwards for a period of 15 years.
Interestingly, even if the policyholder's death were to occur after the premium paying term, ie, during the monthly income benefit period, the entire monthly income shall accrue to the nominee once again for a period of 15 years irrespective of the payouts already made to the policyholder.
Bharti Axa Life Monthly Income Plan scores more for its death benefit than the survival benefit. As far as survival benefit is concerned, taking into account the high premiums charged by the scheme, the overall net returns that accrue to the policyholder for the entire policy term are mediocre. Investors can alternatively earn far better returns by investing in a PPF for 15 years.
Where this plan actually scores is the death benefit in the form of monthly income that will continue to accrue to the nominee for a period of 15 years irrespective of any payouts already made to the policyholder when he/she was alive.
Thus, for a policy term of 30 years, if the policyholder were to survive till the end of the policy term, he/she would be entitled to monthly income for the last 15 years of the policy term only. However, in the event of the death of the policyholder, say in the 28th policy year, where he/she would have received monthly income for about 13 years already, the nominee shall be entitled to monthly income for a period of 15 years once again.
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