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Aviva Family Income Builder Plan

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Aviva Family Income Builder Plan

Aviva Family Income Builder Plan is an Endowment Plan. Thus, it is a Non Participating Traditional Plan, without Bonus facility.

How it works – In this plan, premium needs to be paid for 12 years in an Annual Mode and Double the Premium would be paid as Income from the end of the 13^th Policy Anniversary till 24^th Policy Anniversary, i.e. for another 12 years. However, the life risk of the individual is covered till the end of the 12^th policy year.

Thus, the Maturity Benefit in this plan is not paid upfront but in a staggered form. 200% of the Annual Premium is paid every year from the end of the 13^th Policy Anniversary to the end of the 24^th Policy Anniversary, provided all dues premiums have been paid.

However, if the Life Insured dies within the policy tenure but after the 1^st Policy Year, then also a staggered Maturity Benefit of 200% of the Annual Premium is paid every year from the end of the 13^th Policy Anniversary to the end of the 24^th Policy Anniversary, if all due premiums were paid till death. The future premiums would be waived off.

If the Life Insured dies within the 1^st Policy Year, then a staggered Maturity Benefit of 100% of the Annual Premium is paid every year from the end of the 13^th Policy Anniversary to the end of the 24^th Policy Anniversary while the future premiums are waived off.

Key Features of Aviva Family Income Builder Insurance Plan

This is a Traditional Plan without Bonus Facility
In this plan, premium needs to be paid for 12 years
200% of the Annual Premium is paid every year from the end of the 13^th Policy Anniversary to the end of the 24^th Policy Anniversary as Survival Benefit
If the Life Insured dies:
- Within the 1^st Policy Year, then 100% of the Annual Premium is paid every year from the end of the 13^th Policy Anniversary to the end of the 24^th Policy Anniversary
- After the 1^st Policy Year, then 200% of the Annual Premium is paid every year from the end of the 13^th Policy Anniversary to the end of the 24^th Policy Anniversary
After Maturity, if the policyholder wishes to take future Survival Benefit as a lump sum, then a Discounted Rate of 9% p.a. will apply
There is an inbuilt rider of Waiver of Premium Benefit in this plan

Benefits you get from Aviva Family Income Builder Insurance Policy

Death Benefit – In case of death of the Life Insured within the Policy Tenure, future premiums are waived of and if Death occurs:

Within the 1^st Policy Year, then 100% of the Annual Premium is paid every year from the end of the 13^th Policy Anniversary to the end of the 24^th Policy Anniversary
After the 1^st Policy Year, then 200% of the Annual Premium is paid every year from the end of the 13^th Policy Anniversary to the end of the 24^th Policy Anniversary

Maturity Benefit – After the Policy Matures, provided all due premiums have been paid, 200% of the Annual Premium is paid every year from the end of the 13^th Policy Anniversary to the end of the 24^th Policy Anniversary. However, after Maturity, if the policyholder wishes to take future Survival Benefit as a lump sum, then a Discounted Rate of 9% p.a. will apply

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 and the Maturity Proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.

Eligibility conditions & other restrictions in Aviva Family Income Builder Policy

	Minimum	Maximum
Sum Assured (in Rs.)	Death in Year 1 = 4,80,000 Death in Year 2+= 9,60,000	120,00,000 for Age 5- 45 yrs 48,00,000 for Age 46-50 yrs
Policy Term (in years)	12
Premium Payment Term (in years)	12
Payout Period (in years)	13^th year to 24^th year
Entry Age of the Life Insured (in years)	6	50
Age at Maturity (in years)	18	62
Annual Premium (in Rs.)	40,000	5,00,000 for Age 5-45 yrs 2,00,000 for Age 46-50 yrs
Payment modes	Only Annual

Additional Features and Benefits of Aviva Family Income Builder Plan

Riders – Premium Waiver Benefit Rider is an in-built rider.

There are No additional riders available in this policy

What happens if?

You stop paying the premium - If the policy holder stops paying the premium, the insurance cover will cease and the policy will lapse. However it can be revived within 2 years from the first unpaid premium.

You want to surrender the policy – Surrender is allowed after completion of 3 policy years provided at least 3 years’ premiums have been paid

Guaranteed Surrender Value = 30% of all premiums paid - 1^st years premium

You want a loan against your policy - There is no loan available under this plan.

Other Endowment Plans from Aviva Life Insurance

Aviva Dhan Varsha

Some Endowment Plans from other insurance companies

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DLF Pramerica Assure Money +
LIC Jeevan Amrit

HDFC Life Endowment Assurance Plan

~ By Deepak Yohannan

Note: This is a statement of facts based on the information collected from the Aviva Family Income Builder Plan brochure and insurance company's website. It should not be construed as a Critical or Favourable Aviva Family Income Builder Plan Review, Analysis or Recommendation.
Insurance is a subject matter of the solicitation.

Aviva Family Income Builder Plan

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