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  • Aviva LifeBond Advantage

    Aviva Life Insurance

    Overview

    A non-participating unit linked savings oriented plan offering life insurance coverage and options to invest in different funds with various risk-return scenarios. Along with the life cover provided by the plan, multiple fund options under this policy can steadily add to the growth of investment. This plan has a single premium payment option and is meant for people who wish to build a corpus through investing their savings in various funds or want to secure the financial future of their children. The plan comes with an in-built Accidental Death Benefit (ADB) option that further increases the risk cover.

    Eligibility Conditions for Aviva LifeBond Advantage Plan

    The eligibility conditions for availing this policy can be depicted in the table mentioned below -

    Parameter

    Minimum

    Maximum

    Policy Term

    10

    73

    Entry Age

    2 years

    65 years

    Maturity Age

    18 years

    75 years

    Key Features of Aviva LifeBond Advantage Plan

    This plan meant for wealth creation has the following salient features -

    Parameters

    Details

       

    Plan Type

    Unit-linked insurance plan

       

    Basis

    Individual policy

       

    Policy Term

    10 years to 73 years

       

    Policy Validity

    Will be for the chosen policy term subject to non-surrender

       

    Basic Sum Assured

    1.25 times the Single Premium Paid

       

    Associated ADB Sum Assured

    Will be equal to the Basic Sum Assured subject to a maximum of INR 50 lakhs

       

    Top up Sum Assured (TSA)

    1.25 times the top-up premium

       

    Coverage

    Maturity Benefit = Fund value of all units in the main account and top-up accounts less withdrawals made (if any)

       
     

    Death Benefit = Greater of the Base Sum Assured or fund value as per the single premium paid or 105% of the single premium + Greater of top-up sum assured or fund value as per top-up premiums or 105% of top-up premiums paid

       
           
     

    Surrender Benefit

    Before completion of 5 years

    After completion of 5 years

       

    Fund value minus discontinuation charges (if applicable) moved to Discontinued Policy Fund and paid out with accrued interest after 5 years’ completion

    Fund value paid out immediately

    Free look Period

    30 days in case of online purchase. 15 days otherwise

       

    Grace Period and Notice Period

    Not applicable, since this is a single premium plan

       

    Partial Withdrawals

    Allowed after a period of 5 policy years, provided the following terms are met -

    • The withdrawal amount is INR 5,000 or more (subject to remaining fund value being more than INR 15,000)

    • The insured must be of 18 years or more

    • Total number of partial withdrawals per year will be exclusively limited to 4

       

    Fund Choice Selection

    Is allowed through -

    • Switching - Moving accumulated funds from one fund to another

    • Premium Redirection - Changing the premium allocation into a different set of funds

       

    Settlement Option

    Allows the Maturity Benefit to be availed in one of two available options -

    • Instalments over a period of 5 years post maturity in frequencies of monthly to yearly pay outs

    • Entire maturity amount as a lump sum

       

    Nomination and Assignment

    Nomination and assignment facility available but only one can be chosen at a time

       

    Reinstatement or revival

    Policy has a single premium payment, thus surrender or complete withdrawal ends the policy

       

    Benefits and Advantages of Aviva LifeBond Advantage Plan

    This plan from Aviva Life Insurance utilizes different investment funds to aid in the growth of wealth and can be opted for by anyone aiming to achieve greater returns on long term savings. Life insurance provided by this policy and the inbuilt accidental death benefit throughout the policy term are added benefits. The key advantages in opting for this plan can be mentioned in the following points -

    1. Life cover is present throughout the policy term
    2. Flexible long term policy tenures for an investment portfolio with variable risk and returns
    3. Applicable tax benefits can be availed as per Section 80C and 10(10D) of the Income Tax Act
    4. Policy can be withdrawn at any time
    5. Multiple fund options and unlimited switches to and from different fund options

    The key benefits under this policy can be explained as below -

    1. Maturity Benefit - Paid once the policy reaches the maturity age, after the completion of the policy term, this amount can be paid to the policyholder or nominee. This amount includes the fund value of all the balance units in the main account and top-up account (if any)
    2. Death Benefit - In case of the death of the insured life, Death Benefit will be payable to the nominee. This will be less the partial withdrawals made by the policyholder. This sum includes the higher of every sum assured, all the fund value and 105% of all premiums
    3. Surrender Benefit - Policy has a lock-in period of 5 years. If surrendered within the lock-in period, funds move to Discontinuance Policy Fund and get paid after 5 years are complete. In case surrender is done after 5 years, fund value is paid out immediately
    4. Tax Benefit - Benefits are dependent on the prevailing tax laws

    Investment of Funds under Aviva LifeBond Advantage Policy

    This unit-linked plan from Aviva Life Insurance comes with seven active fund options that offer a variable mix of risk and return. The premiums paid could be used over all of the fund options, a specific few as chosen by the policyholder or even in a single one.

    The details about the available funds have been mentioned in the table below -

    Fund Name

    Details

    Asset Categories

       

    Risk and Return Rating

       

    Equity

    Debt

    Money Market

     
       

    Fund Ratios

         

    Protector Fund II

    Generates steady returns and minimum exposure to equities

    0-20%

    25-100%

    0-40%

    Moderately Low

    Bond Fund II

    Steady income through investment in quality fixed income securities

    0%

    60-100%

    0-40%

    Very Low

    Balanced Fund II

    Balance of growth of capital and steady returns

    0-45%

    25-100%

    0-40%

    Moderately Low

    Growth Fund II

    Long term capital growth through high equity exposure

    30-85%

    0-50%

    0-40%

    Moderately High

    PSU Fund

    Steady returns through investment in PSU and similar equities

    60-100%

    0-40%

    0-40%

    Very High

    Infrastructure Fund

    Steady returns by investment in infrastructure and similar equities

    60-100%

    0-40%

    0-40%

    Very High

    Enhancer Fund II

    High equity exposure for aggressive long term capital growth

    60-100%

    0-40%

    0-40%

    Very High

    Charges in Aviva LifeBond Advantage Policy

    Being an insurance plan that relies on various funds to generate wealth on the investment made, the policy entails charges on quite a few aspects of itself. The applicable charges on this policy are as follows -

    Charge

    Particulars

    Premium Allocation Charge

    Premium ranges - INR 50,000-99,000 – 4%, INR 1,00,000-4,99,999 – 3%, INR 5,00,000 and above – 2%. For top-up premiums, it is 2%. All rates are per annum

    Fund Management Charge

    1.35% per annum of fund value, chargeable daily for all seven active funds and 0.50% per annum for Discontinued Policy Fund

    Policy Administration Charge

    Subject to INR 40 per month through cancellation of units

    Mortality Charge

    Dependent on policyholder’s age and level of cover

    Miscellaneous Charges

    N/A

    Partial Withdrawal Charges

    N/A

    Switching Charges

    0.5% of the amount being switched, subject to a maximum of INR 500 and minimum of INR 25 per request, post the first free 12 switches in a year

    Premium Redirection

    N/A

    Premium Payment for Aviva LifeBond Advantage Policy

    The details of premium payment for this plan can be summarised in the table below -

    Premium Parameter

    Details

    Premiums

    Single Premium for Main Account – Minimum of INR 50,000 and no maximum limit. Top-up premiums – Minimum of INR 5000 and maximum up to the amount of single premium

    Premium Paying Term (PPT)

    Once

    Premium Paying Frequency

    Once

    Premium Paying Modes

    ECS, debit cards, credit cards, cheques and other acceptable modes

    Premium Discontinuation Scenario

    In case a policyholder opts for a complete withdrawal within the first five years of the policy initiation, the fund value (as on the date of policy discontinuance) minus the discontinuance charge (depends on the insurer) will be shifted into a Discontinued Policy Fund and the interest rate applicable on this fund is 4% per annum as of October 2015. This fund shall attract an FMC of 0.50% per annum. If this scenario happens within the first five policy years, the funds shall be paid out at the end of the lock-in period of five years. If the discontinuance or complete withdrawal happens after 5 policy years, one can withdraw the fund value as on the particular date. Risk cover ceases immediately upon opting for complete withdrawal.

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