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Review: Aajeevan Sampatti – Bharti Axa Life Insurance Company

By   /   October 11, 2013  /   6 Comments

Bharti Axa Aajeevan Sampatti Plan Review

Basic Feature

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

Name Rahul
Age 30 Years
Premium Paying Term 15 Years
Sum Assured Rs.10,00,000
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:

  1. Life Cover of Rs.10,00,000
  2. 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.
  3. At maturity (When he will turn 100), he will get amount aquivalent to sum assured. (Rs.10,00,000)
  4. 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)

 

Other Benefits

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

 

Step 1:

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

 

Step 2:

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 financialkundali@gmail.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 :)

 

Recommended Articles:

1. Public Provident Fund

2. Child Education Calculator

 

 

www.financialkundali.com

www.financialkundali.com

 

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  • Published: 5 years ago on October 11, 2013
  • By:
  • Last Modified: March 2, 2014 @ 1:48 pm
  • Filed Under: Policy Reviews

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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