Aviva Young Scholar Advantage Policy
Aviva Young Scholar Advantage is a unit linked insurance plan (ULIP) for the benefit of a child, where the parent is the Life Insured. This plan does not cover the life of a child but it is meant for the security of the child’s future even if anything happens to the parent. In this plan if the Life Insured, i.e. the parent dies within the policy tenure, the nominee, i.e. the child would receive the Sum Assured to address the immediate needs of the family. The future premiums would also be paid by the company such that the Fund Value would also be paid out on maturity of the policy.
Key Features of Aviva Young Scholar Advantage
- 3 riders are available in this plan
- Loyalty Additions are added from the end of the 11th policy year
- This policy has an inbuilt Accidental Rider and an option to decrease Sum Assured
- Systematic Transfer and Automatic Allocation of Fund Options are 2 Investment Options available with this policy along with 9 Fund Options and a facility of Systematic Partial Withdrawal provide a complete investment opportunity
Benefits you get from Aviva Young Scholar Advantage
Death Benefit – In case of death of the parent (Life Insured), the child (Nominee/Beneficiary) would get Sum Assured plus Loyalty Benefit as Immediate Death Benefit. The future premiums would be paid by the company in a lump sum and the child would also receive the Fund Value on the maturity of the tenure.
Maturity Benefit – On maturity, the Fund Value is paid to the policyholder.
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C.
Eligibility conditions and other restrictions in Aviva Young Scholar Advantage
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Minimum
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Maximum
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Sum Assured (in Rs.)
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0.5 x Policy Term x Annual Premium
or
10 x Annual Premium,
whichever is higher
|
2.5 x Policy Term x Annual Premium
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Policy Term (in years)
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10
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25
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Premium Payment Term (in years)
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5
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Equal to Policy Term
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Entry Age of Policyholder
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21
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50
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Entry Age of Child (Nominee)
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0
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17
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Age at Maturity
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-
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70
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Single Premium (in Rs.)
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NA
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NA
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Payment modes
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Yearly, Half-yearly and Monthly
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Sample illustration of premium amount in Aviva Young Scholar Advantage
Premium = Rs. 1,00,000 and Rs. 2,00,000
Age = 20 years
Policy Term = 20 years
Premium Paying Term = Regular Pay
Total Investment : Rs 1,00,000 X 20 years = Rs 20,00,000
Rs 2,00,000 X 20 years = Rs 40,00,000
Additional Features and Benefits of Aviva Young Scholar Advantage
Riders – Accidental Death Benefit Rider is an in-built rider.
There are 3 additional riders available in this policy
1. Child Education Rider- provides a monthly benefit to the family after the death of the life insured.
2. Comprehensive Health Benefit Rider- Covers Total and Permanent Disability and 18 Critical Illnesses under this rider.
3. Term Plus Rider- helps to enhance the life coverage beyond the Sum Assured provided.
Investment Fund Options
There are 9 Investment Funds available
1. Bond Fund II
2. Protector Fund II
3. Balanced Fund II
4. Growth Fund II
5. Enhancer Fund II
6. PSU Fund
7. Infrastructure Fund
8. Index Fund II
9. Dynamic P/E Fund
And 2 Investment Options available
1. Systematic Transfer Strategy
2. Automatic Asset Allocation
Top-up - The minimum Top-up amount is Rs 5,000. Top Up can be done anytime except during the last 5 years of the Policy Term and each Top-up Premium also has a Lock-in Period of 5 years. Top-Up Premium will have a Sum Assured of 1.25 times the Top-Up Premium paid.
Switching - The minimum amount that you can switch is Rs 5,000. First 12 switches in a year are free of cost.
Partial Withdrawal - Partial withdrawals are allowed only after completion of 5 policy years. Four Partial Withdrawals are allowed in each policy year upto a maximum of 25% of the existing Fund Value. The minimum partial withdrawal is Rs 5,000 subject to at least one years’ Annual Premium should remain in the Fund Value.
You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund.
The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee. It can also be revived.
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
If the policyholder surrenders the policy after completion of 5 policy years, then the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.
You want a loan against your policy - No loan is available under this plan.
Alternate ULIPs from different insurance companies
Tata AIG United Ujjwal Bhavishya Supreme
ICICI Prudential SmartKid
Aviva Young Scholar Secure
Aviva Life Saver Advantage
Aviva Life Bond Advantage
Aviva Sachin Extra Cover Advantage
