Investment Plans September 6, 2021

Aviva AnnuityPlus Plan helps individuals get lifetime income through annuity during the post-retirement stage. It is a non-participating, non-linked immediate annuity plan that offers income by exchanging your pension plan proceeds as long as you live. The best part about this plan is that you can choose from seven annuity options as per your needs. Let’s check out its key features mentioned below.

  • Flexible Annuity Options as per Your Financial Needs
  • Guaranteed Annuity Amount
  • Option to Increase the Purchase Price at Inception for Higher Annuity Installment
  • Multiple Annuity Payment Frequencies
  • A Free Look Period of 15 or 30 Days
  • Tax Benefits Under Income Tax Act, 1961

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On this page, we will talk about the features and benefits of the Aviva AnnuityPlus Plan in detail so that you can understand them better. Keep reading to know more.

Features and Benefits of Aviva AnnuityPlus Plan in Detail

We have discussed the features of the Aviva AnnuityPlus Plan in detail below.

What will be the Minimum Purchase Price Under the Aviva AnnuityPlus Plan?

Under the Aviva AnnuityPlus Plan, the minimum purchase price (lump sum amount you pay to get the annuity) stands at INR 25,000. Whereas there’s no maximum limit on the purchase price.

What is the Minimum Annuity Installment?

The minimum annuity installment stands at INR 500 for any of the frequencies chosen by a policyholder. Under the plan, you can choose from multiple frequencies – Yearly, Half-yearly, Quarterly and Monthly.

To get the final annuity amount, the annuity rate is multiplied by a multiplicative factor based on the mode of payment. Check the below table to know more.

Mode of Annuity PaymentMultiplicative Factor
Yearly1.0272
Half-yearly1.0123
Quarterly1.0049
Monthly1

Multiple Annuity Options to Choose From

As mentioned earlier, policyholders can choose from 7 annuity options as per their specific financial needs. You can get to know them in detail below.

Option 1: Life Annuity

Under this option, the plan will provide annuity until a policyholder survives and the plan terminates upon his/her death.

Option 2: Annuity Guaranteed for five years and life thereafter

This annuity option provides a level annuity in arrears for the first five years whether the annuitant survives or not during these stipulated five years. But after these five years, the plan will only pay annuity until the annuitant survives.

Option 3: Annuity Guaranteed for 10 years and life thereafter

Under this option, the annuitant will get a level annuity (in arrears) for the first 10 years irrespective of whether he/she survives or not during these 10 years. After this, the annuity will be only paid until the survival of the annuitant.

Option 4: Annuity Guaranteed for 15 years and life thereafter

This option is also similar to options 2 and 3 except that the guaranteed years during which an annuitant will receive annuity (whether he/she survives or not) stand at 15 years. After these years, the plan will only pay an annuity as long as the annuitant survives.

Note: For Option 2, 3 and 4, the nominee of the annuitant will get an annuity payout in case the annuitant dies during the guaranteed period.

Option 5: Annuity for Life Increasing at 3% per annum

If you choose this annuity option, Aviva AnnuityPlus will pay the annuity amount increasing at 3% per annum in arrears as long as the annuitant survives.

Option 6: Life Annuity with Return of Purchase Price

The annuitant gets the annuity amount in arrears as long he/she survives. In case of his/her death, the nominee will receive the purchase price of the annuity.

Option 7: Joint Life Last Survivor Annuity

As the name suggests, this option provides a level annuity in arrears as long as both or either of the two annuitants survives.

Aviva AnnuityPlus Plan Eligibility Criteria

The minimum and maximum entry age under the plan from Aviva depends on the category of the annuitant. To know more, check the below table.

Category of AnnuitantsMinimum Entry Age (In Years)Maximum Entry Age (In Years)
For Aviva's Pension Product policyholders 1880

Note: In the case of joint life last survivor annuity, the age of both lives must be less than 80.
Nominees of deceased Aviva pension policyholders18, for joint life last survivor annuity option

0, for all other annuity options
For the general public other than the above two categories50

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