Bharti AXA Life Insurance added yet another feature to its cap by launching the Income Protection Plan. Already garnering considerable attention in the insurance world, Bharti AXA hopes to emerge as one of the finest and most relevant insurance portals in recent times. It’ll drastically reduce the income protection insurance waiting period to many hours, rather than weeks and maybe months in some cases.
Bharti AXA Income Protection Plan
As far as the fundamental features of the plan are concerned, it enables the concerned policyholders to ensure that their family receives a sustainable income after they are no more. The purpose of the plan is to ensure the family of the concerned insured will be entitled to receiving an annual income for a period of fifteen to twenty years.
Also read: Lifetime Coverage for Your Family with Best Life Insurance Plans
Features of Bharti AXA Income Protection Plan
The following are some of the elementary features of the income protection plan:
- Bharti axa income protection plan, broadly speaking, is designed to incapacitate the family members of the insured to claim annual income after the latter’s death.
- If the concerned insured survives the complete term of the policy, the plan is entitled to disburse hundreds to twenty percent of the premium upon maturity.
- Also, it is significant to note that the plan provides two death benefits. Consequently, it is essentially left to the family members of the insured to decide how they would like to receive the annual income.
- It should be noted that the income protection plan is especially suitable for those who have a financially dependent family.
Eligibility of Bharti AXA Income Protection Plan
Importantly, any prospective insured should make it a point to keep in mind the eligibility criteria of the income protection plan. The following points must be remembered:
- The minimum age entry of the plan is not less than eighteen years.
- The maximum age entry of the plan depends upon the tenure of the policy: 58 years for a twelve-year term, 55 years for a fifteen-year term, and 50 years for a twenty-year term.
- The maximum age at the date of maturity is not more than seventy years. Also, it is equally important to underscore the fact that the ages mentioned refer to the age last birthday.
Sum Assured of Bharti AXA Income Protection Plan
The following are some of the fundamental features so far as the sum assured and the premium aspects of the plan are concerned:
- The minimum sum assured of the income protection plan is Rs. 5 lakh.
- Maximum sum assured counts on different circumstances as applicable.
- The premiums need to be shelled out monthly, quarterly, semi-annually, or annually.
- As mentioned before, the premium payment terms of the income protection plan vary according to the subjective preferences of the concerned policyholder.
- Also, the minimum premiums are dependent upon the subjective preferences of the concerned individual. In other words, maturity benefits are divided into twenty, fifteen, and twelve years.
Also read: Best Guaranteed Income Plans
Benefits of Bharti AXA Income Protection Plan
The following are some of the relevant benefits of the income protection plan:
- One of the most elementary benefits of the income protection plan includes death benefits. Upon the death of the concerned insured the chosen nominee will be entitled to receive death benefits accordingly.
- Generally speaking, the concerned nominee shall be entitled to receive 105 percent of all the premiums paid up to the date of death.
- The nominee is entitled to receive ten times the annualized premium.
- Sum assured upon maturity is furnished to the concerned nominee or the policyholder.
- The death benefit is payable for fifteen years or twenty years.
- The absolute amount assured is payable upon the death of the concerned insured. It is to be noted that the sum assured will be equivalent to the absolute amount assured.
- As far as the maturity benefits of the income protection plan are concerned, they depend on the tenure of the policy.
- Put simply, for a twenty-year term the maturity benefit is either one hundred percent or one twenty percent.
- For a fifteen-year term plan, the maturity benefit is either cent percent or 115 percent.
- For a twelve-year term plan, the maturity benefit is either cent percent or 110 percent.
- Additionally, one of the fundamental aspects of the income protection plan is that the concerned insured may avail of the apposite tax benefits.
- The said tax benefits are available under Section 80C and Section 10D of the Income Tax Act of India.
Coverage under Bharti AXA Income Protection Plan
As far as the coverage is concerned, it is significant to keep in mind that there are generally two riders available with the income protection plan to enhance the protection of the insured:
- Bharti AXA Hospi Cash Rider: As the name suggests, for every day of hospitalization the rider is chiefly meant to disburse a fixed benefit as essential hospital cash. Additionally, the concerned policyholder shall be entitled to receive a lump sum benefit in cases of urgent surgeries.
- Bharti AXA Accidental Death Benefit Rider: As the name itself hints, in case the life insured dies due to an unprecedented accident, the chosen nominee will be entitled to receiving an additional lump sum to be shielded sufficiently against an exigent financial strain.
Not Covered under Bharti AXA Income Protection Plan
However, apart from the aforementioned features of the income protection plan, it is equally significant to keep in mind the things or situations not covered by it. The following are the exclusions under the income protection plan:
- If the concerned insured is found to have committed suicide within the first year of the policy, the respective benefits of the plan will not apply. However, it is to be noted that the company will refund eighty percent of the premiums shelled out till that date.
- Also, it is important to keep in mind that policy benefits will not apply if the concerned insured commits suicide within a year of the revival date of the plan. However, it is to be noted that the company will refund eighty percent of the premiums shelled out till that date.
Additional Features of Bharti AXA Income Protection Plan
To better comprehend the knick-knacks of the income protection plan it is important to consider certain fundamental points. Mostly these features apply irrespective of exceptions or specialties:
- Like all other plans, the income protection has a grace period. The grace period is thirty days from the premium due date.
- Additionally, one of the important points to note is the fact that the plan offers a free look period too. In other words, a span of fifteen odd days is granted to the policyholder for reviewing the plan according to his preferences.
- As far as the loan facility of the income protection plan is concerned, the concerned insured may take a loan of not more than Rs. 15000 if the policy has acquired a surrender value.
- The maximum loan that the insured may ask for is Rs. 70000 of the surrender value. It is important to note that the rate of interest as of now is 10.47 percent.
- In that case, it must be noted that the plan may acquire either the guaranteed surrender value or the special surrender, whichever is the case.
- In such a case, the concerned policyholder has the scope to reinstate the income protection plan within the span of the revival date itself.
- It should be underscored that against the backdrop of such inabilities, the plan will be entitled to get terminated officially at the end of the stipulated revival period.
- Additionally, it is equally vital to note that a policyholder may reinstate the income protection plan within two years from the due date of the foremost unpaid premium.
- Service tax, cess, and other significant taxations will be imposed according to the provisions as laid under Section 80C of the Income Tax Act of India.
Additional Benefits of Bharti AXA Income Protection Plan
Apart from the fundamental features as mentioned before, there are certain additional advantages of the income protection plan. They include the following:
- One can easily send an SMS to be advised on a particular feature of the Bharti AXA plan.
- One can ask for an advisor to be guided appropriately through the course of a plan.
- Brochures and various policy bonds can be easily downloaded from the official website.
- Apposite quotes are always available online.
- One of the most evident benefits of the plan is that it can be managed online in the comfort of one’s home.
- Premiums too can be shelled out through online means.
- The concerned insured can fluidly register and track claims online thus saving both time and money.
- One of the more obvious advantages of the online methods is that the concerned insured can easily contact customer care services to be guided or led through the course of a particular plan when needed.
- As mentioned before, the most fluid feature of the online plan is the functionality of the SMS. One is bound to remain updated on the policy every time.
Conclusion
To conclude, why should one buy the income protection plan? Despite the benefits mentioned throughout this write-up, what is most significant is to thoroughly consider one’s subjective financial preferences.
To continue in that strain it is important to keep in mind that the income protection plan is especially propitious for those who have dependents and in case of their unprecedented decease, would naturally want to insure their family against strenuous financial currents.
Specifically, the income protection plan is especially favorable in that it assures peace of mind since one can be guaranteed one’s family’s well-being when the chips are down and finances rather lean.
