Aviva iGrowth Plan is a unit linked plan where the policyholder can invest premiums for capital appreciation and also enjoy insurance protection through inbuilt death cover. It is an online plan which is available easily by filling up a Declaration of Good Health. Moreover, Loyalty Additions also enhance the Fund Value if premiums are paid duly.
Step 1 – the policyholder chooses the premium amount, policy term and premium paying frequency. The minimum and maximum Sum Assured would then be calculated and the policyholder should decide the coverage amount.
Step 2 – the policyholder then chooses to invest the allocated premium in any of the available 3 funds. The funds are Balanced Fund II, Bond Fund II and Enhancer Fund II.
Step 3 – the policyholder can make partial withdrawals, premium redirections or switch his investments if required.
Step 4- in case of death during the plan term, the death benefit is paid. An additional accidental benefit is also paid in case of accidental death.
Step 5 – if the insured survives the plan tenure, the maturity benefit is paid which is the Fund Value.
Asha, aged 30 years, buys the plan with an annual premium of Rs.50, 000 and Sum Assured is Rs.5 lakhs. The policy term is 20 years.
Option 1 – Asha is involved in a road accident due to which she dies in the 4th year of the policy. As the Fund Value would possibly be lower than the Sum Assured, the nominee gets Rs.5 lakhs as death benefit. Moreover, another Rs.5 lakhs is paid as an accidental death benefit.
Asha can make partial withdrawals, switch between funds and also redirect future premiums to any other fund.
Option 3 – if the plan matures and Asha is alive, the Fund Value is paid.
If the life insured dies before reaching 60 years of age, the Sum Assured would be deducted for any partial withdrawals made during two years prior to death
If the life insured dies after attaining 60 years, any partial withdrawals made after crossing 58 years of age would be deducted from the Sum Assured.
|Policy term selected||Rate of Loyalty Addition|
|Age at entry (in completed years)||18 years||50 years|
|Age at maturity (in completed years)||NA||60 years|
|Term of the plan||10,15,20 years|
|Premium paying options||Regular pay|
|Premium Paying term||Equal to plan tenure|
|Annual premium amount||Rs.35,000||Age 18-40 years:
If Sum Assured is 10 times the annual premium – Rs.5 lakhs
If Sum Assured is 20 times the annual premium – Rs.2.5 lakhs
Age 41-50 years:
If Sum Assured is 10 times the annual premium – Rs.3 lakhs
If Sum Assured is 20 times the annual premium – Rs.1.5 lakhs
|Sum Assured (10 or 20 times the annual premium)||Rs.3.5 lakhs||Age 18-40 years – Rs.50 lakhs
Age 41-50 years – Rs.30 lakhs
In case of suicide committed within 12 months of inception or revival of the plan, the available Fund Value and any top-up premium Fund Value is paid.
In case of accidental death, death occurring after 90 days of the accident is not covered. Moreover, accidental death due to
participation in hazardous activities, war or war-like situations, alcohol or drug abuse, suicide or attempted suicide, aviation or criminal acts would not be covered under the plan.
Four partial withdrawals are allowed in a policy year all of which are free of charge.
First 12 switches in a policy year are free of charge. Extra switches are charged at Rs.0.5% of the switching amount up to a maximum of Rs.500.
Premium paying frequencies allowed are yearly, half-yearly, quarterly or monthly.
2 premium redirections are allowed in a year and the minimum allocation in a redirected fund should be 10%.
For monthly mode of premium payment, the grace period is 15 days. For annual and half-yearly mode of premium payment the grace period is 30 days.