Case Study (For illustration purpose only): Mohan is 35 years old. He is married and has a 4 year old daughter. His wife is a homemaker. Concerns: 1. He is concerned about expenses that he would incur when his daughter grows up. For e.g. higher education, marriage expenses, etc. 2. Mohan is looking for a guaranteed benefit product as he wants to be certain about the future of his daughter. He does not want to invest in unit-linked insurance policies or equities. 3. He also wants to secure his family by ensuring that they are protected in case of an unfortunate event. Proposed solution: Mohan purchases Bharti AXA Life Elite Advantage and invests ` 1,00,000 as Annualised Premium. He chooses a Policy Term of 12 years and Premium Payment Term of 12 years. Assuming that Mohan is in good health, his sum assured as per his age is ` 11,87,648.
Mohan pays premium of ` 1,00,000 p.a. for 12 years
Maturity Payout Period
4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Guaranteed Payout of 1,12,827 p.a. (9.5% of Sum Assured at Maturity) `
Life covered for 12 years
Sum Assured on Maturity ` 11,87,648
Needs met: 1. He will receive the maturity benefit in regular installments from the end of the Policy Term till the end of the 19th year. These payouts could serve as a second income and also help in paying school and college expenses. 2. The lump sum amount that he will receive at the end of the 20th year could be used for his daughter’s higher education expenses or for her marriage. 3. Life Cover is available in case of an unfortunate event during the Policy Term. 4. In case of loss of life of Mohan during the first 11 years, his family will get ` 11,87,648. In case of loss of life during the 12 th year, his family will get ` 12,60,000.
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