09-203 merit plus brochure

8/8/2019 09-203 Merit Plus Brochure

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life insurance

Bharti AXA Life

Merit Plus EDGE

life insurance

Bharti AXA Life

Merit Plus EDGE

A s p e r n e w IR D A g u

i d e l i n

e s

i need to pay upfront chargesfrom my premiuma plan that guaranteesreturn of first yearpremium


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In this policy, the investment risk in the investment portfolio is borne by the policyholder.

What is Bharti AXA Life Merit Plus EDGE?

At Bharti AXA Life Insurance, we understand the worth of your hard earned money, and that'swhy; we don't want you to part with it, even if it's borne by you as premium allocation charges.With Bharti AXA Life's unit-linked insurance policy Merit Plus EDGE, you get GuaranteedAdditions, which gives back 100% of the First Year's Premium, and more, as additional

interest. Hence this product is suitable for your long-term objectives like planning for yourretirement or your children's future while giving total protection to you and your family.Coupled with the trust of life cover, wealth creation and freedom of withdrawing part of themoney during critical stages of your life, Merit Plus EDGE is worth every drop of sweat youspent earning that money.

What are your advantages with Bharti AXA Life Merit Plus EDGE?

(a) Higher of Sum Assured or Fund Value

(b) Sum Assured PLUS Fund Value

(a) Get sum of premium allocation charges, which is equal to 100% of your first year

(b) Get 4% simple interest per annum on Premium Allocation Charges in the 20th Policyyear = 76% of first year premium.

switching between the investment funds and many more options

How does Bharti AXA Life Merit Plus EDGE work for you?

As a customer you will have the liberty

The premium you pay would be invested, net of Premium Allocation Charges, in fund or mix of available funds of your choice and units are allocated depending on the price of units for the

Benefits of Bharti AXA Life Merit Plus EDGE

Life insurance benefits:

Bharti AXA Life Merit Plus EDGE offers you the choice of life insurance benefits which are asfollows:


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2. Death BenefitOption B

The sum of Sum Assured and the Policy Fund Value as on the date of intimation of death willbe paid.

benefit cannot be changed during the term of the Policy.

Irrespective of the death benefit option chosen, if the life assured, at the time of death, is less

Sum Assured under the product is dependent on the age of the life assured at entry, which isas follows:

Example: Suppose your age at the time of buying Bharti AXA Life Merit Plus EDGE is 36 yearsand the annual premium that you decide to invest is Rs.20, 000. Then the Sum Assuredwould be Rs.20,000 x 10 = Rs.2,00,000.

Maturity Benefit:

On maturity, your Policy Fund Value as on that date is paid to you and the Policy ceases to exist.

Extended Maturity Benefit with Settlement Option:

I. Take entire maturity proceeds as lump sum payment on maturity; or

maturity date (extended maturity period). The value payable at such intervals will becalculated at the unit price as on the relevant date.

III. A combination of the above mentioned two options.At any time during the extended maturity period, you have an option to withdraw the balanceavailable Policy Fund Value as on that date. However, you will not be entitled to life insurance

Please note that during the extended maturity period, the investment risk in the investmentportfolio continues to be borne by the Policyholder.

Comprehensive overall protection benefits with Protection Enhancers:In addition to life insurance benefit, Bharti AXA Life Merit Plus EDGE offers you Protection

comprehensive protection against events such as accidental death, critical illness, etc., toyour loved ones, by paying nominal additional premium.

Please ask our advisor to show you the rider brochure for details of applicable terms andconditions.

Age at entry (years) Sum Assured (Multiple of Annual Premium)

0 to 20 10


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Guaranteed Additions:Bharti AXA Life Merit Plus EDGE returns back all the Premium Allocation Charges paid by you.Whats more you will also earn an interest on the Premium Allocation Charges that you havepaid. Heres the schedule of the Guaranteed Additions added to your fund value, by creditingadditional units to your investment fund:

Special Additions:Bharti AXA Life Merit Plus EDGE offers you special additions over the long term, by creditingadditional units to your investment fund, at regular intervals. These special additions canpotentially enhance your long-term wealth creation. The schedule of special additions, addedto your fund value, is as follows:

Choice of Investment Fund Options:Bharti AXA Life Merit Plus EDGE provides you the benefit of diverse fund options, to matchyour financial objectives depending on your requirements and life stage. The fund optionsavailable under the Plan, investment objective, asset allocation and risk profile for theavailable funds are detailed in the table below:

At the end of Policy Year Guaranteed Addition

20 4% simple interest per annum on PremiumAllocation Charges, from the due date of deduction of Premium Allocation Charge

End of Policy Year Special Additions

Investment Fund Objective Asset Allocation Risk-Return Potential

Growth To provide long term Listed Equities: 80% 100%, HighOpportunities capital appreciation Cash & Money MarketPlus Fund through investing in Securities: 0% 40%

stocks across allmarket capitalisationranges(Large, Mid or Small)

Grow Money To provide long term Listed Equities: 80% 100%, HighPlus Fund capital appreciation Cash & Money Market

through investing Securities: 0% 40%across a diversifiedhigh qualityequity portfolio

premiums have been paid.

last date of each of the preceding 36 Policy months, prior to the date of crediting of thespecial additions.


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commensurate with your financial objectives (Minimum allocation in any chosen investment

Savengrow To provide steady Listed Equities: 0%60%, ModerateMoney Fund accumulation of Corporate Bonds and

income in medium Bank Deposits: 0%to long term by Government Bonds andinvesting in high securities: 0%40%,quality debt papers Cash & Money Marketand government Securities: 0%40%securities and alimited opportunityof capitalappreciation.This would be moreof a defensivelymanaged fund

Steady To provide steady Corporate Bonds and LowMoney Fund accumulation of Bank Deposits: 20%80%,

income in medium Government Bonds andto long term by Securities: 20%80%,investing in high Cash & Money Marketquality debt papers Securities: 0%40%and governmentsecurities

Safe To provide capital Corporate Bonds and LowMoney Fund protection through Bank Deposits: 0%60%,

investments in Government Bonds andlow-risk securities: 0%60%,money-market and Cash & Money Marketshor t-term debt Securities: 0%40%instruments withmaturity of 1 year or lesser

Build India Fund To provide longterm Listed Equities: 80%100%, Highcapital appreciation Corporate Bonds andthrough exposure to Bank Deposits: 0% 20%,equity investments Cash & Money Market

in infrastructure and Securities: 0%20%allied sectors, and bydiversifyinginvestments acrossvarious sub-sectorsof the infrastructuresector


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Confidence of total control with Bharti AXA Life Merit Plus EDGE

Benefit of liquidity through Partial Withdrawal: With the benefit of partial withdrawal, youcan take care of your intermittent financial needs while continuing your long-term wealthcreation. This facility is available to you after first three completed Policy years. In a Policyyear only two withdrawals are allowed subject to the minimum and maximum limit specified.These two withdrawals are free of cost. The minimum amount for each partial withdrawal isRs.1, 000. Additionally, the total Partial Withdrawal amount should not exceed 20% of thePolicy Fund Value at the time of Partial Withdrawal. Post-withdrawal, the fund value should beat least 120% of one years Annual Regular Premium.

Benefit of making additional investment through Top-ups: This feature helps you to makeadditional investment over and above your regular premium with the help of Top-up premiumfacility, at your own convenience. This facility is available to you after three completed yearsof the Policy. The minimum amount of a single Top-up is Rs.1000. Top-up investment at any

point can be made only if the regular premium for the base plan is paid in full. Additionally, atany point during the Policy Benefit Period, total amount of Top-up premium paid cannot be

your Sum Assured.

Benefit of Switches & Premium Redirection: Through the feature of switches and premiumredirection you can manage your asset allocation between equity and debt depending on yourneeds. For example, you may wish to move your money to a low-risk investment fund option

switch twelve times in a Policy year free of charge, beyond which a charge of Rs.100 perswitch is levied. The minimum value of a switch should be Rs. 1,000.

Premium Redirection facility. This facility can be availed of any number of times free of charge.

Cover Continuance Option: While we recommend that all your regular premiums be paid onthe respective due dates, we also understand that due to sudden changes in lifestyle likeincreased responsibilities or unexpected increase in household expenses may affect your

future ability to pay premiums.Now you need not worry if you are unable to pay premiums into your Policy. The CoverContinuance Option entitles you to continue your Policy with all benefits if you are unable topay premiums any time after paying three annual premiums. Once you have opted for thisoption, you cannot pay any further premiums or top-ups under the Policy.

however the guaranteed additions will only be available if at least five annual premiums havebeen paid.


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Mortality Charge: This charge is levied to provide you the life insurance benefit. This chargeis applied on the Sum at Risk (as defined below) and is deducted proportionately by

cancellation of units on a monthly basis.For Death BenefitOption A, Sum at Risk is defined as the excess of Sum Assured over the PolicyFund Value. However, for Death BenefitOption B, Sum at Risk is defined as the Sum Assured.

Annual Mortality Charge (in Rs.) per thousand rupees of Sum at Risk for sample ages of healthy lives is as follows:

Miscellaneous Charge: This charge is applied on the Sum at Risk (as defined above) and isdeducted proportionately by cancellation of Units at the prevailing Unit Price on thecorresponding Policy Date in each Policy Month.

The annual miscellaneous charge is Re. 1 per thousand rupees of Sum at Risk.

Policy Administration Charge: This charge is deducted by cancellation of units from the

on every policy anniversary.

Fund Management Charge: This is a charge that is levied on each of the investment fundsand is adjusted in the unit price calculation on a daily basis. The charges for the funds areas follows:

Policy Year % of Annual Premium

6th onwards Nil

Gender/Age(in years) 25 30 35 40 45

Female 1.30 1.40 1.47 1.99 3.02

Fund Name Fund Management Charge

Steady Money Fund 1.00% p.a.Safe Money Fund 1.00% p.a.

What are the Applicable Charges?

Premium Allocation Charge: The Premium Allocation Charge is a charge levied at the time of receipt of premium allocation and is recovered as a percentage of the regular premium,

applied as per the following matrix:


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Surrender Charge: The surrender charge is applied if and when you surrender your policy. Thesurrender value that you will receive will be the policy fund value less this charge. Thesurrender charges are applicable on the Policy Fund value and are as follows:

Policy Year Surrender Charge (% of Policy Fund Value)

1 91%

2 60%3 40%

4 20%

5 10%

6 0%

If Policy is surrendered within first three Policy years then the surrender value as on the dateof intimation of surrender will be paid only after the completion of three policy years.

This illustration does not take into account the impact of service tax and cess.

Some benefits are guaranteed and some benefits are variable with returns based on thefuture performance of your Insurer carrying on life insurance business. If your Policy offersguaranteed returns then these will be clearly marked guaranteed in the illustration table onthis page. If your Policy offers variable returns then the illustration on this page will show twodifferent rates of assumed future investment returns. These assumed rates of return are notguaranteed and they are not the upper or lower limits of what you might get back, as the valueof your Policy is dependent on a number of factors including future investment performance.

Service Tax: Service tax including cess and surcharge is applicable on all the charges as per

the prevailing rates.

A sample illustration of the product benefits:The following table shows the benefit of Bharti AXA Life Merit Plus EDGE for a 30year oldmale under Build India Fund for Death Benefit Option A:

Assumed Rate of Return 10% p.a. 6% p.a. 10% p.a. 6% p.a.Guaranteed Addition

Guaranteed Addition19,000 38,000in 20th year (in Rs.)

Policy Fund Valueat Maturity (in Rs.)IRR at maturity 8.72% 4.81% 8.80% 4.92%(Customer Yield)

Illustration 1 Illustration 2


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Tax Benefits

prevailing tax laws of the Income Tax Act, 1961. The tax benefits are subject to change as perchange in tax laws from time to time.

SECTION 41 OF INSURANCE ACT, 1938No person shall allow or offer to allow, either directly or indirectly, as an inducement to anyperson to take out or renew or continue an insurance in respect of any kind of risk relating tolives in India, any rebate of the whole or part of the commission payable or any rebate of thepremium shown on the Policy nor shall any person taking out or renewing or continuing apolicy accept any rebate except such rebate as may be allowed in accordance with thepublished prospectus or tables of the Insurer.

SECTION 45 OF INSURANCE ACT, 1938No Policy of life insurance shall after the expiry of two years from the date on which it waseffected, be called in question by an insurer on the ground that statement made in theproposal for insurance or in any report of a medical officer, or referee, or friend of the insured,or in any other document leading to the issue of the Policy, was inaccurate or false, unlessthe insurer shows that such statement was on a material matter or suppressed facts whichit was material to disclose and that it was fraudulently made by the Policyholder and that thePolicyholder knew at the time of making it that the statement was false or that it suppressedfacts which it was material to disclose.

Provided that nothing in this section shall prevent the insurer from calling for proof of age atany time if he is entitled to do so, no Policy shall be deemed to be called in question merelybecause the terms of the Policy are adjusted on subsequent proof that the age of the Lifeinsured was incorrectly stated in the proposal.

Product at a glance

Parameter Eligibility

Minimum Age at Entry 0 years

Maximum Age at Entry 60 years

Minimum Topup Premium Rs.1,000


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Terms and Conditions

1. If any regular premium due within the first three years of the Policy remains unpaid evenafter the grace period of 30 days, the Policy lapses and all the benefits under the Policy

a period of two years from the due date of the last unpaid premium. If the Policy is notreinstated during the reinstatement period, the Policy will stand terminated and the PolicyFund Value as at the expiry of reinstatement period net of surrender charge as on thelapse date shall be payable at the completion of the third Policy year or at the end of thereinstatement period, whichever is later.

2. If the due premiums have been paid for at least three consecutive Policy years from thePolicy Date and subsequent premiums are unpaid, you may reinstate the Policy within twoyears from the date of first unpaid premium by resuming premium payment by paying allthe unpaid premiums and the appropriate Premium Allocation Charge shall be deductedfrom the above mentioned payment. During the period allowed for reinstatement, the Policyshall continue to be in effect by levying applicable Policy Charges. At the end of the allowedperiod for reinstatement, if you have not opted for cover continuance option, only the Policy

Fund Value, after deducting applicable surrender charges will be paid and the Policy willterminate. In an event of death during the Reinstatement Period, the death benefit shall bepaid out.

3. At any time during the Policy Benefit Period, after completion of 3 Policy years, if the PolicyFund Value falls below 120% of the Annual Premium, then the Policy will be terminated andthe surrender value will be paid out.

4. 4% simple interest per annum on Premium Allocation Charges will be calculated on theannual mode basis, irrespective of mode of premium selected by the Policyholder and isequal to 76% of first year premium.

the option to return the original Policy Bond along with a letter stating reasons for the

will accordingly be cancelled and an amount equal to the sum of (Premium AllocationCharge, Policy Administration Charge, Mortality Charge, Miscellaneous Charge, deductedfrom the Policy Fund Value) and (the Policy Fund Value less stamp duty and underwritingexpenses incurred by the Company), will be refunded to the Policyholder.

6. This is a non-participating Unitlinked Insurance Policy.

7. Increase and decrease in Annual Premium is not allowed under Bharti AXA Life Merit PlusEDGE.

Revision of Charges:

The Company reserves the right to revise the following charges from time to time with a priorapproval from the Insurance Regulatory and Development Authority (IRDA).

Fund Management Charge: The maximum fund management charge will be the minimum of 2% for each of the investment funds or the cap prescribed by IRDA:

Partial Withdrawal Charge: Rs.300 per partial withdrawal.

Switching Charge: Rs.300 per switch.

The Company also has the right to revise the asset allocation of any investment fund(s)

with prior approval from IRDA.Computation of Unit PriceThe unit pricing shall be computed based on whether the Company is purchasing(Appropriation Price) or selling (Expropriation Price) the assets in order to meet the day-to-day


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transactions of unit allocations and unit redemptions, i.e., the Life Insurer shall be required

at the valuation date. The appropriation price shall apply in a situation when the Company isrequired to purchase the assets to allocate the units at the valuation date. This shall be theamount of money that the Company should put into the fund in respect of each unit itallocates in order to preserve the interests of the existing Policyholders. The unit price will becomputed as follows: Market value of investment held by the fund plus the expenses incurredin the purchase of the assets plus the value of any current assets plus any accrued incomenet of fund management charges less the value of any current liabilities less provisions, if any. This gives the Net Asset Value of the fund. Dividing by the number of units existing at thevaluation date (before any new units are allocated), gives the unit price of the fund underconsideration. The Expropriation Price shall apply in a situation when the Company is requiredto sell assets to redeem the units at the valuation date. This shall be the amount of moneythat the Company should take out of the fund in respect of each unit it cancels in order topreserve the interests of the continuing Policyholders. The unit price will be computed asfollows: Market Value of investment held by the fund less the expenses incurred in the saleof the assets plus the value of any current assets plus any accrued income net of fundmanagement charges less the value of any current liabilities less provisions, if any. This givesthe Net Asset Value of the fund. Dividing by the number of units existing at the valuation date(before any units are redeemed), gives the unit price of the fund under consideration.

Risks of investments in unit-linked Policies:

traditional insurance policies

with capital market and the NAV of the units may go up or down based on the performanceof the investment funds and the factors influencing the capital markets and the insured is

Bharti AXA Life Merit Plus EDGE is only the name of the unit-linked insurance Policy and doesnot in any way represent or indicate the quality of the Policy, its future prospects and perfor-mance or the returns

surplus or profits that may be declared by the Company

Fund, Savengrow Money Fund and Safe Money Fund are the names of the investment funds

and do not in any manner indicate the quality of the investment funds, their future prospectsor returns

Disclaimers

contained in the insurance Policy Bond. In the event of conflict, if any, between the terms andconditions contained in this brochure and those contained in the Policy Bond, the terms andconditions contained in the Policy Bond shall prevail


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Bharti AXA Life Insurance Company Ltd.Regd. Office Address: Unit - 601 & 602, 6th Floor, Raheja Titanium,Off Western Express Highway, Goregaon (E), Mumbai- 400 063.Regn. No. 130. UIN: 130L030V01.Insurance is the subject matter of the solicitation.

Your Bharti AXA Life Advisor

Get in touch with us

For any further queries regarding the product, or any other feedback,please contact your Financial Advisor OR The Customer ServiceRepresentative of The Company during business hours (9:00 a.m. to9:00 p.m.) at the following numbers:

1800-102-4444

SMS SERVICE to 56677We will get in touch within 48 hours to address your query

Email us: [email protected]

Visit us: www.bharti-axalife.com

09-203 merit plus brochure

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