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Aviva Life Shield Advantage

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Aviva LifeShield Advantage

 

Objective

This term insurance plan provides maturity benefit to policyholders who survive the term of the plan. There are two variants available with this plan- Only Life Protection and Life-cum-Disability Protection.

What does it do?

This term plan will give out maturity benefit to policyholders equivalent to premiums paid excluding rider premiums, taxes and any extra premium paid. However, the policy does not pay out interest on the premiums paid.
The dreaded disease rider available with this plan can be availed only when making regular premium payments and not with a single premium option.

Pros

Dreaded disease rider is available only with Life Protection plan and covers 18 diseases.
Policies with Sum Assured higher than Rs 3 lakh with a tenure over ten years can avail rebate on premiums. The policy attains a surrender value after being in force for three years.
The premiums paid qualifies for tax deduction under Section 80C up to Rs 1 lakh.

Cons

There are no premium discounts for women.
The upper limit on the sum assured at Rs 50 lakh limits the scope of cover.

Suited for

This policy is suitable for those not convinced with the idea of paying premium without getting any return.

Our View

The Dreaded disease rider is a valuable one and qualifies for tax deductions under Section 80D. It terminates automatically when the policyholder contracts any of the 18 listed diseases.
Considering the rising healthcare costs, this rider could supplement an existing plain health insurance plan.
The option to return premium on survival is more of a marketing gimmick than value proposition and makes the policy an expensive one against the plain risk cover offered by the same insurer.
Although, the premium paid is returned on survival, it comes without any interest. Then, the amount received will not look meaningful as the time value of your money would have reduced a great deal.

 

Eligibility

Entry Age (years)

Minimum

18

Maximum

55

Maximum Maturity Age (years)

65

Policy Variants

Option A: Life Protection
Option B: Life Cum Disability Protection With Return of Premium

Policy Term (years)

Minimum

10

Maximum

30

Sum Assured (Rs)

Minimum

200000

Maximum

Life Protection:No Limit
Life Cum Disability Protection With Return of Premium: 5000000

Premium Payment Frequency

Yearly and Half-yearly; through ECS for Quarterly and Monthly

Premium Payment Term

Single, Regular or equal to policy term

Premium Factor (multiply with annual premium)

Half Yearly: 0.5108 times annual premium; Quarterly: 0.2591 time annual premium; Monthly: 0.0871 time annual premium

Policy Cover

Cover remains fixed for the tenure of the policy

Other Features

Free Look Cancellation

In case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.

Grace Period

You are allowed to pay premiums within 15 days for monthly and within 30 days for other premium modes from the due date. If a due premium is not received within the grace period, your policy will lapse and the life insurance cover will be terminated.

Lapsed Policy Reinstatement

You can reinstate your lapsed policy any time (within 2 years from the due date of the first unpaid premium) by paying all the due premiums and undergoing underwriting requirements, if any.

Tax Benefits

Section 80C, 10 (10D) of the Income Tax Act, 1961 would apply. Premiums paid for Dread Disease Rider may qualify for deduction under Section 80D of the Income Tax Act, 1961.

Exclusions

In case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable. Further, if the Life Assured under the policy, whether medically sane or insane, commits suicide, within one year of exercising the option to increase the Sum Assured, then the amount of increased Sum Assured will not be considered in the calculation of the Death Benefit

Paid Up Value

In case of premium non payment after payment of the first three premiums, the policy does not lapse. It acquires a paid up value. In case of death, the nominee is paid sum assured equal to paid up value. Paid up Sum Assured = Sum Assured X (Number of premiums paid/ Number of premiums payable under the policy)

Surrender Value

Allowed after three years. 30% of all basic premiums (excluding any extra premiums and first year premium) is guaranteed.
Special Surrender Value= Paid up Value X Surrender Value Factor. Surrender Value Factor will be decided by the company from time to time.
For Single Premium policies(applicable under Option A only): Surrender Value = 75% x (Outstanding Policy term in years) x Single Premium / Original Policy term in years. policies can be surrendered at any time after completion o first policy year.

Customer Service

Address

Aviva Life Insurance Company India Ltd.
Aviva Tower, Sector Road, Opp Golf Course, DLF Phase V, Sector 43, Gurgaon 122 003, Haryana

Mail To

customerservices@avivaindia.com

Call On

1800-180-22-66 between 8 am to 8 pm; Monday to Saturday

Additions to the Plan

Available Rider(s)

Aviva Dread Disease (DD)
The diseases covered are Heart Attack, Stroke, Cancer, End stage Kidney failure, Major Organ Transplant, Coronary Artery Bypass Surgery, Benign Brain Tumor, Deafness, Blindness, Aorta Graft Surgery, Heart Valve Surgery, Paraplegia, Motor Neurone Disease, Multiple Sclerosis, Coma, End stage Liver Disease, End Stage Lung Disease, Aplastic Anaemia, and Permanent Total Disability. There is a waiting period of 180 days for any claim admission under this rider. It is available with Option A Regular premium mode only.

Rider Conditions

Entry Age (years)

Minimum

18

Maximum

55

Maximum Maturity Age (years)

65

Rider Term (years)

Minimum

10

Maximum

30

Sum Assured (Rs)

Minimum

200000

Maximum

5000000

Rider Premium (Rs)

Rider premiums vary for each policyholder. For instance, if a 30-year old opts for the DD rider for Rs 5 lakh the premium works to Rs 1,390.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

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