Aviva Dhan Nirman Plan

This is a traditional Savings Plan where bonuses are declared.

Guaranteed annual payouts, expressed as a percentage of the annual premium, are paid after the completion of the premium paying tenure.

Simple reversionary bonuses are provided under the plan every year.

The policyholder can choose any term from a choice of 4 available terms and premiums are paid for a limited tenure.

Higher Sum Assured levels also attract premium rebates.

When the plan matures and the premiums have been duly paid, the maturity benefit payable would be the Maturity Sum Assured and the vested reversionary bonuses including any Terminal Bonus declared. The Maturity Sum Assured would be a multiple of the annual premium depending on the plan tenure chosen. The table shows the Maturity Sum Assured for each plan tenure

If the insured dies during plan term and the policy is in force, the death benefit payable would be highest of the following:

• 10 times the annual premium
• Maturity Sum Assured
• Sum Assured under the plan
• 105% of all premiums paid till death
  The death benefit would also include the vested reversionary bonuses and any Terminal Bonus.

If the policyholder survives till the end of the premium paying term and if all due premiums have been paid the insurer would pay regular annual payouts after the end of the premium paying term and till the end of the plan tenure. These payouts are called Survival Benefits and are paid every year except in the last policy year. The rate of such payouts would be 150% of the annual premium paid under the plan.

Simple reversionary bonuses are declared under the plan every year staring from the end of the first policy year. Bonuses are declared for plans where premiums are regularly paid. A terminal bonus may also be declared under the plan on maturity or death depending on the company’s performance.

Loans are not available under the plan.

Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received and the survival benefit would also be tax exempt under Section 10(10D) of the Income Tax Act.

Riders are not available under the plan.

• Sum Assured levels of Rs.5 lakhs and above earn premium rebates. The rate of rebate depends on the choice of the plan term and are as follows:

A grace period of 30 days is allowed for payment of premium after the due date for annual, half-yearly and quarterly modes of premium payment. For monthly modes, the grace period allowed is 15 days. The life cover under the policy would continue during the grace period.

A cooling off period or a free look period of 15 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid

Surrender is allowed only after the policy becomes paid-up, i.e. after 2years’ premiums have been paid. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid.

• GSV = {(Basic Premium paid excluding taxes * GSV Factor) – survival benefits already paid} + {GSV Factor of bonus * vested reversionary bonus}
• The SSV factors would be declared by the company based on its performance and would be calculated as follows:
  SSV = [{Total benefits payable * (number of premiums paid/ number of premiums payable)} + vested reversionary bonuses – Survival benefits already paid] * SSV Factor

The total benefits payable would depend on the plan tenure and would be calculated as follows:

Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.