Aviva LifeShield Plus is a simple term insurance policy which is solely designed to offer immediate financial support to one’s family in the case of any eventuality (one’s demise). The policy can be applied for online and purchased offline. As a barebones term insurance plan, it features really affordable premium rates.
Eligibility Criteria of Aviva LifeShield Plus
The simple eligibility criteria of this plan can be mentioned as follows -
- Age at Entry –
- Minimum – 18 years
- Maximum – 55 years
- Age at Maturity – 65 years
All ages mentioned are as per the last birthday.
Features of Aviva LifeShield Plus
Aviva LifeShield Plus is a simple term insurance plan and has a few important conditions and features to consider –
Policy Conditions –
- Term of Policy –
- Minimum – 10 years
- Maximum – 30 years
- Premium payment term –
- Regular pay (premium to be paid throughout the policy term)
- Single pay (premium paid only once in a lump sum)
- Premium payment frequency – Annual, Semi-annual, Quarterly and Monthly for regular payment option
- Sum assured –
- Minimum – INR 1000000
- Maximum – N/A (subject to acceptable underwriting)
General Features –
- A term insurance policy with high sum assured but low investment
- Simple policy with minimal hassle of paperwork
- Flexible premium payment options
- Life cover through the plan is till the age of 65 years at the max
Benefits of Aviva LifeShield Plus
Simple though it maybe, this policy still has some benefits –
- Death Benefit – Sum Assured as fixed on the date of the initiation of the policy will be paid to the nominee provided all due premiums have been paid till the date of death of the insured life
- Rebate Benefit – In case the Sum Assured matches INR 25 lakhs or is more, better premium rates are offered
- Tax Benefit – Premiums paid can avail tax benefit under Section 80C and the pay-out could possible avail benefits under Section 10(10D)
- Lower Rates for Females – The plan offers a special advantage to women and the rates of premium are lower for them even if the INR 25 lakhs limit is not met
Example of Aviva LifeShield Plus
Ms. Y is aged 30 years and opts for Aviva LifeShield Plus by paying a premium of INR 12000 per year for 30 years. In the eventuality that Ms. Y passes away between the ages of 30 years and 60 years, her nominee would receive a lump sum amount of INR 50 lakhs as death benefit
All the rates and figures in this example are for illustrative purposes only and do not include service taxes or other charges that might be levied by the insurer. Interested people should confirm the rates and offers before proceeding with the policy.
Frequently Asked Questions about Aviva LifeShield Plus
- As a term insurance policy, does the plan have any maturity benefits?
This is a pure insurance product and does not offer any maturity benefits. However, in case one has made a single premium payment option and needs to withdraw the plan, a surrender value can be obtained depending on the year of initiation and the time left for the policy to mature.
- What is the minimum sum assured under the policy?
The minimum sum assured should be INR 10 lakhs.
- What is the minimum policy term?
The minimum term of the policy will be 10 years.
- What are the exclusions to the policy?
If death of the insured is due to suicide within the first 12 months, the nominee might be entitled to 80% of the premiums paid or Surrender Value (whichever is higher)
- Are there any deductions or charges that have to be considered?
Yes, one needs to account for the service tax and ‘Swachh Bharat’ Cess that will be added to the premium amount.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017