Bharti AXA launches its first endowment plan compliant with new regulations

MUMBAI: Private life insurer Bharti AXA has recently announced the launch of its first endowment plan Flexi Save, designed as per the new regulations framed by the Insurance Regulatory and Development Authority ( IRDA).

Like other endowment plans, this policy offers a life insurance cover, along with a lump-sum maturity benefit. In addition, this limited pay product has a provision to let policyholders modify their policy's maturity date and make an early withdrawal. Therefore,the insured can choose to withdraw the corpus anytime during the 'flexi benefit' period, that is, the last ten years of the policy's tenure.

Upon withdrawal or at maturity, the policyholder will be entitled to the sum assured plus the reversionary bonus accumulated till then, apart from terminal bonus, if any. In case of her death, the nominee will get the higher of the sum assured or 105% of premiums paid till then. You also have the option of buying a Hospi Cash rider - which hands out a lump-sum in case of hospitalisation or surgery - to boost your protection portfolio.

Upside: Among other things, the new IRDA regulations aim to increase the focus on protection. So, this means that all new products, including Flexi Save, will come with a higher insurance element. Such products will also appeal to individuals who are looking at insurance-cum-investment products that offer secure returns.

Downside: Though the protection component of products launched under the new regime has gone up, the term cover remains the best option for those looking to safeguard their dependents financially in case of their death. It offers a higher life cover at a significantly lower premium compared to endowment plans.