This is an Investment + Insurance product offering you assured return of 5.5% on the Insurance Amount. This payout of 5.5% will be given to you after the premium paying term of 10/15 years as opted by you. The amount will be given to you annually till you reach 100 years.
Let me explain you how it works with the help of example given in the brochure. To download the brochure click: Aajeevan Sampatti Brochure
|Premium Paying Term||15 Years|
|Premium Per Annum||Rs.91,000 + Taxes|
In this example Bharti Axa says that if a person age 30 years invest Rs.91,000 for 15 years, he will get the following benefits:
- Life Cover of Rs.10,00,000
- Assured payout @ 5.5% of Life cover i.e. Rs.55,000 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 aquivalent to sum assured. (Rs.10,00,000)
- In case of death of Life insured, the Death benefit paid will be higher of Sum assured OR 11 times Annual Base Premium (excluding any modal factors and under writing extra premium)
Non guaranteed bonus starting from 6th year onwards.
Case1. Bonus @6% comes out to be Rs.12,000 per annum
Case 2. Bonus @10% comes out to be Rs.65,500 per annum
Note: As per Bonus History of Bharti Axa, maximum bonus given was 2.75%.
For Bonus History, click: Bonus History
Best Case Scenario
Let’s assume that the company will give you Rs.65,000 as bonus per annum starting from the 6th year onwards. So total amount which Rahul will receive when he turns 40 will be Rs.55,000 + Rs.65,500 = Rs.1,20,500.
Make Your Own Plan
Now let’s compare this plan with investment in Public Provident Fund + Online Term Insurance
(Note that you will get similar tax benefit in PPF as in Aajeevan Sampatti Plan)
So we have Rs.91,000 in hand & we want to make a plan which is better than Aajeevan Sampatti
Buy an online term insurance from bharti axa life insurance company. For a 30 year old insurance of Rs.50,00,000 is available at Rs.4,000 (approx)
Note: In Aajeevan Sampatti Plan Insurance amount was only Rs.10,00,000
Invest the remaining Rs.87,000 per annum in PPF for 15 years.
Assuming 8% rate of interest ( current rate is 8.7% ), amount after 15 years comes out to be Rs. 25,51,212.
Now after 15 years, you can invest this amount @ 8% rate of interest to get Rs.2,04,000 per annum. This amount is much more as compared to 55,000 guaranteed amount.
Note: Actual number of premiums to be paid in ppf is 16 but for comparison we have taken 15. To know more about PPF, click: Public Provident Fund
Clearly PPF + Term Insurance scores over Aajeevan Sampatti plan by Bharti Axa.
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 email@example.com & all for your good I will make sure that you do not invest in it.
for any clarification, feel free to drop a comment