Aviva New Family Income Builder

Entry Age

Minimum age – 6 years

Maximum age – 50 years

Maturity age

Minimum age – 18 years

Maximum age – 62 years

Policy term

12 years

Type

A non-linked non-participating life insurance plan.

Basis

Individual.

Coverage

Maturity Benefits:

On maturity the policyholder gets:

• 12 annual instalments of 1.5 times the annual premium at the end of each pay-out period.

• A huge sum of 6 times the annual premium will be paid at the end of the pay-out period.

• If the insured dies during the pay-out period, then the nominee will receive the outstanding pay-outs.

Death Benefits:

If the insured dies during the policy term, and he has paid all the premiums till the date of death, the death sum assured that is to be paid is:

• 10 times the annualised premium.

• 105 percent of the premiums paid as on the date of death.

• Maturity sum assured and the sum assured of the policy.

The sum assured is paid in regular intervals of 12 instalments, the first instalment will be paid at the time of the claim settlement. The rest will be paid on each of the death anniversary of the insured. If the nominee wishes to get a lump sum, then a discounted value is paid. The discount rate of 9 percent is compounded annually for each year.

Annual premium

Minimum – Rs.40,000

Maximum – Rs.1,00,00,000 per life

Premium paying term

12 years

Premium paying period

12 years after maturity that is from the 13^th to the 24^th year.

Premium paying frequency

Annually only.

Sum assured

Sum assured is 24 times the annual premium paid.

The minimum sum assured is Rs.40,000 multiplied by 24 that is Rs.9,60,000.

The maximum sum assures is Rs.1,00,00,000 multiplied by 24 that is Rs.24,00,00,000 per life.

Rider

Not available.

Bonuses

No bonus.

Surrender Value

The policy can be surrendered only if three years premiums have been paid. The surrender value payable is greater than the guaranteed surrender value and the special surrender value.

The special surrender value is the special surrender value factor multiplied by the paid-up value.

Loan

Loan facilities are not available.

Grace period

30 days grace period is provided to pay the premium after its due date.

Free look period

Customer gets 15 days free look period from the date of receipt of the policy. The refund will be paid after deducting the medical expenses and the stamp duty charges incurred.

Tax benefits

Up to Rs.1 lakh is allowed as deduction under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

Lapse

If the premium is not paid within the grace period in the first three years, the policy will lapse.

Revival

The lapsed policy can be revived in 2 years from the date of the first unpaid premium. If you don’t pay in that period, the policy will terminate.

You will be paid 30 percent of the first year’s premiums that has been paid by you.

If you have paid 2 years premium, then 60 percent of premium paid will be paid to you.

If the insured dies in the 2 years after the first unpaid premium, 100 percent of the premium paid till the date of death will be returned and the policy will be terminated.

If three years premiums have been paid, then the policy will become paid-up. Death and maturity benefit will reduce. If the insured dies under a paid-up policy, then paid-up sum assured is paid. If the insured survives till maturity, the paid-up value will be paid. The death and maturity benefit that were reduced will be paid in the same manner as an in-force policy.

Exclusions

If the insured commits suicide in a year, then the nominee will get the 80 percent of the premiums paid provided the policy is in force. If the policy was revived, then the nominee will get 80 percent of the premiums paid or the surrender value as on the date of his death, whichever is higher.