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Aviva Annuity Plus Plan

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Aviva Annuity Plus Plan


Aviva Annuity Plus Plan is a Single Premium Immediate Annuity Plan. This is a Traditional Annuity Plan. In this plan, pension starts immediately after the plan starts from the next instalment.

What is Immediate Annuity – An Annuity is a product which provides regular payments and can be used as a Retirement Strategy. The person who purchases the annuity is called the annuitant.

In this plan, you need to pay a lump sum amount of money at the beginning of the plan so that you receive annual payments in the form of Annuity for the rest of your life. Thus, in this plan, you would start to receive the payment immediately without having to wait. You can choose to receive the payments even after your death, for as long as your spouse is alive. The rate at which you would receive the Annuity depends on the type of the Annuity chosen.

Hence this plan is a good choice if you have not planned your retirement before but would like to avail pension now by paying a lump sum amount for lifelong security. Hence it is very suitable for people who have not bought a pension plan before and would like to buy one with retirement money.

 
How it works –In this plan, a Lump sum amount of Money needs to be paid to purchase Annuity which starts immediately payments without any delay. There are 5 Annuity Options in this plan.
The 5 Annuity Options are:
  1. Life Annuity- In this option, Annuity is paid immediately from the next instalment and continues till the death of the Annuitant and nothing further is payable on death 
  2. Annuity Guaranteed for 5 years and then Life thereafter- In this option, Annuity is definitely paid for the certain number of years of 5 years and then till the death of the Annuitant. However, if the Annuitant dies before 5 years of annuities are paid, they are paid to the nominee and then the policy terminates 
  3. Annuity Guaranteed for 10 years and then Life thereafter- In this option, Annuity is definitely paid for the certain number of years of 10 years and then till the death of the Annuitant. However, if the Annuitant dies before 10 years of annuities are paid, they are paid to the nominee and then the policy terminates 
  4. Annuity Guaranteed for 15 years and then Life thereafter- In this option, Annuity is definitely paid for the certain number of years of 15 years and then till the death of the Annuitant. However, if the Annuitant dies before 15 years of annuities are paid, they are paid to the nominee and then the policy terminates 
  5. Increasing Annuity- In this option, Annuity is paid till the Annuitant is alive at an increasing rate of 3% p.a. and nothing is payable to the nominee on his death and then the policy terminates.
Annuity may be paid quarterly, half yearly or yearly intervals. It starts from the next possible interval as chosen.
 

Key Features of Aviva Annuity Plus Plan

  • This plan is an immediate pension plan
  • There are 5 annuity options in this plan
  • Annuity may be paid quarterly, half yearly or yearly intervals
  • There is no requirement for any medicals in this plan

COMPARE THIS PLAN WITH OTHER PENSION PLANS


Benefits you get from Aviva Annuity Plus Plan

 
Death Benefit – In case of death of the Annuitant it entirely depends upon pension option chosen
  • Annuity for Life- Pension stops when Annuitant dies and nothing further would be payable to nominee
  • Annuity Guaranteed for Certain Period-
    • During the Guaranteed Period - Pension is paid to the nominee till the end of the guaranteed period after which it stops
    • After the Guaranteed Period- Pension stops when Annuitant dies and nothing further would be payable to nominee
  • Increasing Annuity- Pension stops when Annuitant dies. Nothing further would be payable to nominee.
Maturity Benefit – Being an Immediate Annuity Plan, there is no Maturity Benefit in this plan.
Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C. Pension that is received is taxable.
 
 

Eligibility conditions and other restrictions in Aviva Annuity Plus Plan

 
Minimum
Maximum
Purchase Price of Annuity (in Rs.)
25,000
No Limit
 Annuity Payout (in Rs.)
500
No Limit
Premium Payment Term (in years)
Single
Entry Age of Aviva Pension Holders (in years)
40
80
Entry Age of nominees of deceased Aviva Pension Holders (in years)
20
80
Entry Age for others (in years)
50
80
Payment modes for Annuity
Yearly, Half-yearly, Quarterly or Monthly

 

Sample illustration of annuity payouts for Aviva Annuity Plus Plan

The below illustration is for a healthy Male (non-tobacco user) opting for:
If you pay a Lump Sum Amount called Purchase Price= Rs 1,00,000
Annuity Option= Life Annuity and Annuity Guaranteed for 5 years

Annuity Mode= Yearly

 

Sample Annuities in Aviva Annuity Plus Plan


Additional Features and Benefits of Aviva Annuity Plus Plan

 
Riders- There are No Additional Riders available in this plan.
 
Annuity Options – There are 5 Annuity Options in this plan
  1. Life Annuity
  2. Annuity Guaranteed for 5 years and then Life thereafter
  3. Annuity Guaranteed for 10 years and then Life thereafter
  4. Annuity Guaranteed for 15 years and then Life thereafter
  5. Increasing Annuity
 

What happens if?

You stop paying the premium – This plan is a single premium plan and hence there is no question of stopping further premiums.
You want to surrender the policy – There is no Surrender Value for this plan and it cannot be paid up.
You want a loan against your policy – Loan facility is not available under this policy



 
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