Bharti AXA Life Insurance has launched a limited pay traditional participating life insurance plan- ‘Monthly Advantage’. The plan offers guaranteed monthly payouts from the end of the premium payment term until the maturity of the policy. In the scheme, non-guaranteed annual reversionary bonus, if any, gets accrued to the policy from the end of the 1st policy year and gets paid out on maturity, death or accidental total permanent disability whichever is earlier as a lump sum. Policyholder may also receive non-guaranteed terminal bonus, if any. Mudit Kumar, chief and appointed actuary of the company, said investing in a plan like Monthly Advantage will not only help build a financial pool for starting a family but also reduce the monthly strain on the income by financing educational needs of the child. As the policy ensures additional income, it can be used either as a supplementary income or can be further invested during the early retirement stage to secure income for old age, he added. Another feature of the policy is that any survival benefits already paid as monthly income will not be deducted from the death benefits. Sum assured on death will be paid in equal monthly installments starting immediately from the next monthly anniversary following the date of death or accidental total permanent disability and will be payable for 72 months, 96 months and 144 months for policy term of 12 years, 16 years and 24 years respectively.
