New Delhi: Leading private insurer Bharti AXA Life Insurance on Monday announced the launch of its new child insurance plan 'Bharti AXA Life Shining Stars that provides life cover to parents and protects their children and family from any financial instability.
Bharti AXA Life Shining Stars is a non-linked, non-participating limited pay endowment life insurance plan that provides assured payouts at maturity and helps parents accumulate sufficient wealth and secure their child's future and finance his/her higher educational expenses and other life turning points through disciplined savings.
"Education and career planning of a child are prime responsibilities for any parent and they require a prudent financial management. Mere monthly savings might not suffice the rising education costs and the changing needs. Hence, we designed a comprehensive child plan in Bharti AXA Life Shining Stars with twin benefits of savings and protection to help parents ensure their children's future financial needs, provide financial aid at their different career stages and empower them to fulfill the dreams without any compromise," said Vikas Seth, Managing Director and Chief Executive Officer, Bharti AXA Life Insurance, here.
The unique proposition of the new child plans is that it gives parents flexibility to choose between two maturity payout options, Flexi Payout Option and Annual Payout Option, which can be chosen at policy inception and modified at the time of maturity as per child's needs so that the parents are not constrained by choices that they made years ago.
Under Flexi Payout Option, the maturity benefit can be taken as a lump sum at maturity or at the end of any year during maturity payout period so that payout timings can be customized as per child's needs, while in Annual Payout Option, five equal annual payouts will be paid at the end of every year starting from maturity to cater to child's higher education expenses.
Bharti AXA Life Shining Stars comes with an inbuilt benefit where the policy shall continue even after the death of the policyholder with no further premiums to be paid and the maturity benefit shall continue to be payable at the time of maturity.
Apart from offering comprehensive benefits of life cover along with maturity payout, he said, the new child insurance plan also builds a corpus for child's educational expenses and safeguards his/her future needs, including higher education, career planning and marriage, after the demise of the parent.
The plan offers the flexibility to choose from nine combinations of premium paying terms and policy terms where the premiums are payable for a limited period of time.
It allows the policyholder to take loan from the company in order to meet unforeseen needs and avail rider benefits under Bharti AXA Life Hospi Cash Rider, Bharti AXA Life Accidental Death Benefit Rider and Bharti AXA Life Term Rider by paying additional premium.
The minimum age to enter the plan is 18 years and the maximum age to buy it is 60 years. The insured will also be entitled for tax benefits on premium payment as well as the benefits received as applicable.
"Our new child insurance plan is about the welfare of children who will receive guaranteed benefits at maturity of the policy, even in the absence of their parents. It further allows the child to continue uninterrupted education and choose his/her career goal. We are confident that Bharti AXA Life Shining Stars will help the new age children shine in the cut-throat environment," Seth added.
Bharti AXA Life Insurance, a joint venture between Bharti Enterprises and French insurance behemoth AXA, has recorded a surge of 52 per cent in its new business premium at Rs 398 crore in the first half of financial year 2018-19 against Rs 262 crore in the corresponding fiscal period.