Investment Plans 459 views December 10, 2020

Aviva Life Insurance Company India Ltd has introduced a Non-Linked Non-Participating life insurance plan where you will get regular payouts for 12 years. And your family will get the payout immediately in case you die during the policy term. It means you can provide your family income even when you are not around. The Guaranteed Income for self or family is the highlight of this insurance-cum-investment plan. Read on to know more about this plan.

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Aviva Life New Family Income Builder Plan Benefits

You or your nominee/beneficiary will get the following benefits if the policy is in force and all due premiums have been paid till the date of death or maturity.

Maturity Benefit

When you survive till the end of the policy term, you are eligible for the following benefits:

  1. 1.5X Annual Premium (excluding taxes and extra premium) will be payable in 12 annual installments at the end of each year.
  2. 6X Annual Premium (excluding taxes and extra premium) will be payable in a lump sum amount during the payout period.

Note: In case you die while receiving a regular income, the outstanding payouts will be payable to the nominee/beneficiary.

Death Benefit

When the Life Assured dies during the policy term, the Death Sum Assured becomes payable to the nominee/beneficiary. The death assured amount could be the highest of the following:

  1. 10X Annualized Premium
  2. 105% of the total paid premiums (as of the date of death)
  3. Maturity Sum Assured

The death benefit (1.5X Annual Premium) for Aviva Life New Family Income Builder Plan will be payable in 12 annual installments. In this, the first installment is payable at claim settlement, and the rest 11 annual installments shall be paid on the death anniversary each year starting from the first death anniversary date.

You can also choose a lump sum payout option where 6X Annual Premium will be payable along with the 12th annual installment on the 11th death anniversary.

Aviva Life New Family Income Builder Plan Bonus

Under this life cum investment plan, a Guaranteed Terminal Benefit will be payable as per the entry age of the Life Assured at the settlement of death claim or the end of the Premium Payment Term, whichever is earlier. Check out the table below and understand how the Terminal Benefit will apply to your policy as per your entry age.

Entry AgeTerminal Benefit (percentage of the annual premium excluding taxes and extra premium if any)
6-1512%
16-2510%
26-358%
36-406%
41-454%
46-502%

Aviva Life New Family Income Builder Plan Suicide Exclusion

When the Life Assured dies due to suicide within 12 months from the date of inception or revival of the policy, the nominee or beneficiary will get 80% of the paid premiums excluding taxes and extra premiums, if any, or surrender value on revival. And this suicidal clause will apply if the policy is in force.

Free-look Period

Within 15 days of Aviva Life New Family Income Builder Plan document receipt, you can read the terms and conditions of the policy and return the same if you are dissatisfied with the same. On such cancellation, the company will refund the paid premiums to the life assured after deducting the risk premium (for the cover period), incurred medical expenses, and stamp duty charge (if any).

Aviva Life New Family Income Builder Plan Eligibility

To buy this life insurance plan from Aviva Life Insurance Company India Ltd, you need to meet the following criteria:

  1. Entry Age: 6-50 years (as on the last birthday)
  2. Maturity Age: 18-62 years (as on the last birthday)
  3. Policy Term: 12 years
  4. Premium Payment Ter: 12 years
  5. Payout Period: 12 years (starting from the 13th year till the 24th year)
  6. Minimum Annual Premium Amount: INR 40,000
  7. Maximum Annual Premium Amount: INR 1 Crore (per life assured)
  8. Minimum Sum Assured: INR 9,60,000
  9. Maximum Sum Assured: INR 24 Crore (per life assured)
  10. Premium Payment Frequency: Annual

Note: Sum Assured for Aviva Life New Family Income Builder Plan is calculated at 24 times the Annual Premium.

What if Aviva Life New Family Income Builder Plan Lapse?

A life insurance policy lapses when premiums aren’t paid. And in this life insurance plan, the following conditions may apply:

When a minimum of 3 years premium is not paid:

Your life insurance will lapse if the due premium is not paid before the expiry of the grace period during the first 3 policy years. The grace period of 30 days will start from the due date of the first unpaid premium. And when such a lapsed policy is not revived within two years, the policy will terminate after payment of the following at the end of the revival period:

  1. 30% of the paid premium(excluding taxes and extra premiums, if any) will be payable if the first-year premium is paid in full.
  2. 60% of the paid premiums(excluding taxes and extra premium, if any) will be payable if the first two years’ premiums are paid in full.

If the Life Assured dies during the revival period, 100% of the paid premium till the date of death (excluding taxes and extra premiums, if any) will be refunded and the policy shall terminate and no other benefits will be payable after that.

When at least 3 years premium are paid

After three years of premium payment, if any due is not paid before the expiry of the grace period, the policy will become paid-up.

Paid-up Sum Assured = Total number of paid premiums / Total number of payable premiums as per the contract x Death Sum Assured.

Reduced Paid-Up Aviva Life New Family Income Builder Plan

For a reduced paid-up plan, the following benefits will be payable:

Death Benefit

  1. 12 regular annual installments of 1.5X x (No. of premiums paid/12 (excluding taxes and extra premium, if any). The first annual installment is payable at the settlement of death claim + Guaranteed Terminal Benefit X (No. of premiums paid/12). And the remaining 11 annual installments will be payable at the death anniversary of the life insured each starting from the first death anniversary.
  2. 6X x (No. of premiums paid/12 excluding taxes and extra premium, if any) will be payable to the nominee/beneficiary along with the 12th annual installment in a lump sum.

Maturity Benefit

  1. Guaranteed Terminal Benefit x (No. of premiums paid/12 till the end of Premium Payment Term)
  2. 12 regular annual installments of 1.5X x (No. of premiums paid/12 (excluding taxes and extra premium, if any) will be payable at the end of each year during the payout period.
  3. 6X x (No. of premiums paid/12 (excluding taxes and extra premium, if any) at the end of the payout period.

What if You Surrender Aviva Life New Family Income Builder Plan?

You can surrender your life insurance policy anytime. For this, at least three years’ premiums must be paid. A policy Surrender Value is greater than the Guaranteed Surrender Value and the Special Surrender Value.

Aviva Life New Family Income Builder Plan Guaranteed Surrender Value

Entry AgeTerminal Benefit (percentage of the annual premium excluding taxes and extra premium if any)
6-1512%
16-2510%
26-358%
36-406%
41-454%
46-502%

Note – The guaranteed surrender value shown above is exclusive of taxes and extra premium.

Aviva Life New Family Income Builder Plan Special Surrender Value

Special Surrender Value = Special Surrender Value Factor x Paid-up Value

And this can be reviewed by the company from time to time by getting prior approval of the IRDAI.

Tax Benefits

Under Avia Life New Family Income Builder Plan, the Life Assured can claim tax benefits under section 80C and 10(10(D) of Income Tax Act, 1961. Your tax benefits will be as per the prevailing tax laws and can change from time to time.

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