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Bharti Axa Aajeevan Sampatti Plus Review

By   /   January 28, 2014  /   No Comments

 

Review: Bharti Axa Aajeevan Sampatti Plus

Review: Bharti Axa Aajeevan Sampatti Plus

 

Basic Feature:

This is an Investment + Insurance product offering you assured return of 6% / 5.5% on the Sum Assured. The amount will be given to you annually till you reach 85/100 years.This payout will be given to you after the premium paying term of 10/15 years as opted by you.

 

Limited Pay Period:

You may choose a Premium Payment Term of 10 years or 15 years at inception of your Policy.

 

Guaranteed Annual Payouts:

This plan assures Guaranteed Annual Payouts until Maturity. Once you complete the 10th Policy year, you will start receiving an annual payout until maturity or death of Life Insured, whichever is earlier. The Guaranteed Annual Payout percentage depends on the Policy term option chosen and is mentioned below.

Policy Term Guaranteed Annual Payout Percentage:  

To age 100 5.5% of Sum Assured on Maturity
To age 85 6% of Sum Assured on Maturity

 

ExLet me explain you how it works with the help of example given in the brochure.

To download the brochure click: Aajeevan Sampatti Plus 

Name Rahul
Age 30 years
Premium Paying Term 10 years
Premium Amount Rs.1,07,310 (Exclusive of taxes)
Sum Assured on Maturity Rs.5,00,000
Life cover till 100 years Rs.11,80,410
Guaranteed Payout per annum starting from the end of 10th year Rs.27,500

 

In this example Bharti Axa says that if a person age 30 years invest Rs.1,07310 for 10 years, he will get the following benefits:

1. Life Cover of Rs.11,80,410 till he reaches 100 years

2. Assured payout @ 5.5% of Sum Assured i.e. Rs.27,500 when he turns 40. This amount will be paid to him till he reaches 100 years of age. At maturity (When he will turn 100), he will get amount equivalent to sum assured. (Rs.5,00,000).

3. Also he will get bonus starting from 6th year onwards. Please note that this is a non guaranteed bonus. According to the illustration given in the example of Aajeevan Sampatti Plus in Bharti Axa website, they claim of bonus @ 4% & 8% of sum assured. But according to the bonus history, maximum bonus given by the company is 2.75% of sum assured.

Bonus History

 

How to beat this policy !!!!….

Invest in Public Provident Fund + Term Insurance:  

 

Step 1: Invest Rs. 1,00,000 for 10 years in public provident fund. Amount you will accumulate at the end of 10th year will be Rs.15,65,000.

Note:  

1. Here rate of interest is taken as 8%. Currently PPF rate is 8.7%.

2. Amount from PPF can be partially withdrawal on an annual basis. To know more about PPF, click: Public Provident Fund.

3. You will get 80 C deduction by investing in this plan. Also the amount withdrawn will be tax free.

 

Step 2:  Investing Rs.15,65,000 @ 6% after 10 years will give you close to Rs.93,900 per annum as interest.

Note:

1. This amount is far more than guaranteed amount of Rs.27,500

2. 6% after 10 years seems to be a reasonable rate of interest.

3. Investment in PPF is taken just for comparison. You can also invest in tax saving fd’s, National Savings Certificate etc.

4. Best part is that initial amount invested by you remains with you.

 

Step 3: Buy Bharti Axa term insurance of sum assured Rs.50,00,000.It will cost you around Rs.4,600 pa & will cover your life till 65 years.

Note:

1. Rs.7,310 left after investing Rs.1,00,000 in ppf can be used for this purpose.

2. Insurance cover is of Rs.50,00,000 which is much more cover of Rs.11,80,410 provided under this plan.

3. Why to bear the cost of insurance till 100 when you get away with all your liabilities till you turn 65. After all there is a cost involved to it.

 

 If somehow your agent is still able to convince you to invest in this plan, please feel free to drop a comment or write to me at financialkundali@gmail.com & all for your good I will make sure that you do not invest in it

 

Recommended Articles:

1. Public Provident Fund

2. National Savings Certificate

3. Partial withdrawal in PPF.

4. About Financial Kundali

 

www.financialkundali.com

www.financialkundali.com

 

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About the author

Hi My name is Hari Om Tripathi. I am an engineer by chance & a Personal Financial Planner by choice. Currently residing in Kanpur & writing full time for Financial Kundali. In case you have any query about Personal Financial Planning such a buying a MF or ULIP, going for a life insurance plan or a term plan, to surrender your policy or not or any other questions related to your Personal Financial Planning, write to me at financialkundali@gmail.com

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