Last updated on December 26th, 2019 at 04:25 pm
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 a number of 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. In fact, the chief 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.
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 hundred to one twenty per cents 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.
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 fifty years for a twenty year term.
- Maximum age at the date of maturity is not more than seventy years. Also, it is equally important to underscore the fact that ages mentioned refer to age last birthday.
Sum Assured: 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:
- 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 on monthly, quarterly, semi annually or annually.
- As mentioned before, the premium payment terms of the income protection plan varies 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.
Benefits of the Bharti AXA Life Insurance 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 death of the concerned insured the chosen nominee will be entitled to receiving death benefits accordingly.
- Generally speaking, the concerned nominee shall be entitled to receiving 105 per cent of all the premiums paid up to the date of death.
- The nominee is entitled to receiving ten times the annualized premium.
- Sum assured upon maturity is furnished to the concerned nominee or the policyholder.
- The death benefit is payable for a period of fifteen years or twenty years.
- 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 hundred per cent or one twenty per cent.
- For a fifteen year term plan, the maturity benefit is either cent per cent or 115 per cent.
- For a twelve year term plan, the maturity is benefit is either cent per cent or 110 per cent.
- 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 Life Insurance 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 in order to enhance 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 receiving 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 in order to be shielded sufficiently against an exigent financial strain.
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 per cent 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 per cent of the premiums shelled out till that date.
The Key Features of Bharti AXA Life Insurance Income Protection Plan
In order 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 a period of thirty days from the premium due date.
- Additionally, one of the important points to note is the fact that 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 own preferences.
- It is significant to note that if the concerned insured is not satisfied with the norms of the plan, or finds it unsuitable for his or her financial exigencies, he or she may return it in exchange for a particular amount of refund.
- Also, it must be noted that the said refund exempts any proportionate risk premium, medical costs and stamp duty expenses.
- 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 per cent.
- One of the more significant points to keep in mind is the fact that the plan will acquire a surrender value only after the concerned insured has shelled out premiums for a full term of three whole years.
- In that case, it must be noted that the plan may acquire either the guaranteed surrender value or the special surrender, whichever be the case.
- One of the key aspects of the income protection plan is that the plan can be converted to what is known as the Reduced Paid up Policy. The conversion transpires of the concerned insured has paid up the premiums for three years and if the thirty day grace period somehow lapses.
- In such a case, the concerned policyholder has the scope of reinstating the income protection plan within the span of the revival date itself.
- One of the most significant conditions to keep in mind is that if the concerned insured has not been able to shell out premiums for three years as mentioned before, or if the grace period is found to have lapsed, the benefits of the policy will not apply.
- 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 a span of two years from the due date of the foremost unpaid premium.
- However, in order for the concerned insured to do that, it is binding on him or her to first dispense all outstanding premiums plus interest as applied.
- 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.
To continue with the last point, it is important to note that the concerned insured can avail of the apposite tax benefits according to the provisions laid under the Income Tax Act of India. Specifically speaking, Section 80C and Section 10D are the two primary portions of the Income Tax Act, 1961.
However, it is more significant to keep in mind that the respective tax laws are always subject to proposed amendments from time to time. In fact, one cannot possibly tell when a law is tweaked or a provision docked. Therefore, it is generally recommended to get hold of a tax advisor.
A tax advisor is beneficial in many aspects when it comes to availing tax benefits under insurance plans. In order to maximize benefits and be updated regarding the knick knacks of a volatile tax law, it is best to consider hiring a proper tax advisor.
Additional Benefits of the Bharti AXA Life Insurance 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 at 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 in order 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. In fact, one is bound to remain updated on the policy every time.
To conclude, why should one buy the income protection plan? In spite of 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 of one’s family well being when the chips are down and finances rather lean.