Investment Plans 155 views December 17, 2020

Aviva Life Insurance Company knows that you work hard to earn and want to save some portion of it and grow with time for greater benefits. Keeping that in Mind, Aviva Life has introduced Aviva Life i Growth plan, an Individual Unit Linked, Non-Participating Life Insurance Plan. So with this, you can achieve the right growth for your investment and protect your family and yourself at the same time. Under this plan, you have the option to switch between three funds (Balanced Fund-II, Bond Fund-II & Enhancer Fund-II). Aviva i Growth provides you three policy term options – 10, 15 and 20 years. During the policy term, you will have the freedom to make partial withdrawals after 5 years. So read this page below and know the list of benefits of the Aviva i Growth plan.

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Aviva i Growth Benefits

Maturity – If you survive till the maturity date, you will receive the fund value along with Loyalty Additions. These Loyalty additions get added to your unit funds in the same proportion as the regular premium distribution. Such additions depend upon the policy term of the Life Assured. Check out this table below and know it better:

However, if you reach 60 years of age, all your partial withdrawals made 2 years before attaining 60 years of age and after attaining the age of 60 years will be deducted from the Sum Assured.

Death – Upon your unfortunate death, your nominee will receive either the Sum Assured or 105% of the total paid premiums or the Fund Value with Loyalty Additions, whichever of these is the highest. If the cause of the Life Assured death is an accident, an amount equal to the base sum assured in addition to the above death benefit will be payable to your nominee, subject to a maximum of INR 50 Lakh.

In case the Life Insured dies after discontinuing a policy within a lock-in period (5-years), the policy will terminate with the nominee receiving the fund value. If any partial withdrawals are made 2 years before the date of death, the same will be reduced from your Sum Assured on Death.

Tax – Under Section 80C and 10(10(D) of the Income Tax Act, 1961, you will be entitled to tax benefits as per the prevailing tax laws.

Features of the Aviva i Growth Plan

This life-cum-investment plan from Aviva Life Insurance Company provides you a variety of features such as:-

Reduce Sum Assured – With this, the Life Assured can reduce the Sum Assured after 3 policy years. Exercise this feature in case your need for protection decreases. It will be available under your policy if you have opted for a life cover of 20X Annual Premium at inception. Send a written notice at least 15 days before the policy anniversary if you want to reduce the sum assured.

Note – This will not change your premium though, and once the Sum Assured is reduced, the same cannot be increased.

Partial Withdrawals – Aviva i Growth plan addresses liquidity under this policy that allows you to withdraw money from your fund without doing a complete withdrawal of your policy. A partial withdrawal from fund value is allowed after the first 5 policy years. And the Life Assured can do up to 4 partial withdrawals in a policy year, the maximum being the extent of the fund value units.

Note – The minimum balance should not fall below 2X annual premium after a partial withdrawal.

Eligibility for Aviva i Growth

Have a look at the below criteria for Aviva i Growth before you want to purchase the policy-

  1. Entry age is 18-50 years as on the last birthday
  2. The maturity age for the policy is 60 years as on the last birthday
  3. The policy term is 10, 15 or 20 years
  4. Your premium payment term will be the same as your chosen policy term
  5. The premium frequency for the policy is Yearly, Half Yearly, Quarterly and Monthly
  6. A lock-in period of 5 Years will apply from the date of commencement of the Policy where No withdrawals, part or full, is allowed.

Available Investment Funds Under Aviva i Growth

As you know from above, this plan gives you the flexibility to simultaneously invest in one or more of the three unit-linked funds. Here, the Life Insured can invest 100% of premiums in any of the funds or a combination of funds. And for this purpose, the company brings you the best performing funds –

  1. Balanced Fund-II: A medium-risk profile fund that generates a balance of capital growth and steady returns. It invests 20-100% of your premium in debt, 0-40% in the money market and 0-45% in the equity instrument.
  2. Bond Fund-II: This is a debt fund that invests primarily in debt and the money market. With this, you can get a regular income, as the investment is done in high quality fixed income securities.
  3. Enhancer Fund-II: If your risk appetite is high, this is the preferred investment fund for you. It provides long-term capital growth with high exposure to equity from 60-100%.

The minimum and maximum limits on asset categories have the investment flexibility to get the advantage of investment opportunities. And you should know that the investment pattern is subject to change as per the instructions from IRDAI. So, it is advised that your choice of funds must be based on your investment objectives and risk profile.

You can redirect your premiums to different funds anytime up to 2X a policy year. And the minimum allocation in each fund must be at least 10%. And if you want, you can switch your accumulated funds (partly or fully) between the provided three funds. For a part switch, the minimum switched amount and the balance left should be INR 5,000. Your first 12 unit switches are free of charge per policy year, but note these free switches can’t be carried forward. If you have used all your free switches in a policy year, a subsequent switch will charge you at 0.5% of the amount switched, subject to a maximum INR 5,00 (per switch).

Exclusions from Aviva i Growth

As you know a life insurance policy will cover most of your expenses and exclude some of the unnecessary expenses that you could see below.

  1. Injury/Illness due to Alcohol or Drug abuse
  2. Injury/Illness due to any crime committed by you
  3. Willful self-inflicted injury, attempted suicide or an unreasonable failure to seek or follow medical advice.
  4. Medical advice from a non-registered and unqualified medical practitioner
  5. Air Travel other than as a fair passenger in a licensed aircraft
  6. Participation in racing and other athletics
  7. Injury/Illness due to war, invasion, hostilities, civil war, rebellion, riots, social disorder, insurrection, military/usurped power or willful participation in acts of violence.
  8. Nuclear Radioactive contamination
  9. Participation in sports or any hazardous activity
  10. Any condition, ailment, injury or related condition(s) with a waiting period of 48 months
  11. A medical practitioner shall not be your close relative, resides with the policyholder or the same life insured/policyholder who is covered under the policy.

Free Look Period

The Life Assured can review the policy terms and conditions within 30 days from the date of its receipt. And if the Life Assured has any disagreement with any of those terms or conditions, return the policy stating the reason for objection. If you do this under the free look period, you will be entitled to a refund of the fund value (on the date of cancellation) plus the unallocated premium (if any), any charge deducted on the cancellation of units. Only when the proportionate risk charges and expenses incurred on medicals and stamp duty is deducted from your refund amount will you get the refund.

Suicide Clause

If you commit suicide and die within 12 months from the date of inception or the date of revival, the nominee/beneficiary will get the prevailing fund value on the date of death. And if any charges are recovered after the date of death, it shall also be payable to the nominee/beneficiary with the death benefit.

Aviva i Growth policy terminates after the payment of the said fund value, and after that, no other benefit shall be payable.

NoteAviva Life Insurance Company will not be liable to any claim until acceptance of risk and receipt of premium in full.

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