Bharti AXA Life Power Kid Insurance Plan is a unit linked plan and in initial years you need to pay lots of charges (as above - PAC => 5.5 % + FMC => 1 % + PAC => 0.4% (if you opting to pay minimum premium of 26000)) so total charges you pay in initial 5 years = 7%
Means out of total premium = 26000 x 5 = 130,000 ; you will be paying 9100 as charges (to me it's lots of money).
Lets calculate Return -
Premium = 26000; Sum Insured = 650,000
If we invest the same amount for next 20 years for a 30 year old then as per Bharti - Axa life's 10% return would be = Rs. 10,69,876 (see attachment for more info)
If we invest the same amount in term and MFs or other investment mode -
Lets take term plan and invest remaining money in Mutual Fund -
1- Take Term Plan -
Bharti AXA Life eProtect- Online term insurance plan Premium = 3,075 Sum Insured = 25 lakh (in Kids Plan sum Insured is only 650,000); Term Cover = 20 years
2- Invest in Mutual Fund or any other investment with fixed return of 10%
(26000-3075) = Rs 22925/- annually ; you will get Rs. 14,44,332/-
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