How is Bharti Axa Life’s Aspire Life policy?

I am told by my friend that it is policy with 0 allocation charge & I can surrender after 3 years & will get complete fund value without any surrender charge.

How is Bharti Axa Life’s Aspire Life policy?
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6 Replies to “How is Bharti Axa Life’s Aspire Life policy?”

  1. You can purchase only Gold when market is down…………
    any MNC has no more life. What they offer, can’t comlete
    Risk at market basis …………..written in small charcter which you never pay attation. Dont fix your money.

  2. Your friend is wrong, I’m afraid. A quick look at the website and the pdf brochure will tell you that the 100% allocation only applies if the annual premium is more than Rs.50,000. If you surrender after 3 years, there is a 5% surrender charge. There is no surrender charge after 5 years, however the product term is 15, 20 or 25 years, so I don’t know why you’d invest in an risk-based product for 15, 20 or 25 years and consider surrender after just 3.


  3. Your friend is totally wrong & trying to sell you one of the Worst ULIP (all ULIP are not good investment).

    1. This ULIP is some different from other ULIPs. The first year premium do not go in any fund. Only premium second year onwards goes towards any fund. The first year premium is used by the company to provide you guaranteed addition on maturity (only on maturity & not on surrender even in last year) so if you surrender, forget the first year premium. So if you surrender after 3 years, you only get the money due to the 2nd & 3rd year premium paid & that too subject to surrender charges. Due to all the charges, you will not get more then 50% of total paid premium.

    2. Now come to guaranteed addition. If you complete a term of 15 years, guaranteed addition is 115% of first year premium. If you consider 8 % rate of return on your premium, it should be at least 350%. It shows that company has deducted a hidden allocation charge on your first year premium & that too to the extent of 70%. (your 100 Rs paid is reduced to 30 & that 30 rs gave you 115 Rs after 15 years @ 8% ROI. So he is also wrong when he says that there is no allocation charge.

    I advice you that you do not go with this ULIP & opt for term insurance to insure yourself & mutual funds/PPF to invest.

    I am not able to understand a simple fact that how IRDA allows such type of policies which have so much scope of misselling.

    On the other hand, I appreciate SEBI, which has worked very nicely to control the Mutual fund industry as I find so less scope of misselling there.

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