Aviva Dhan Samruddhi Plan
Aviva Dhan Samruddhi is a traditional, non-participating Money-Back Insurance Plan which provides easy liquidity through periodic cash backs and life insurance protection.
Key Features
This is a traditional Money Back Plan which does not participate in bonus declarations.
Guaranteed additions are added to the Sum Assured for an enhanced benefit.
Survival Benefits or money-backs are payable after every 5 years and are expressed as a percentage of the annual premium.
The policyholder can choose any term as per his requirement. Premiums are paid for a fixed tenure.
Higher Sum Assured levels also attract premium rebates.
The graph below shows the premiums payable at different combinations of plan tenures, Sum Assured and age of the life insured. The premiums mentioned are exclusive of any taxes.
Benefits
When the plan matures and the premiums have been duly paid, the following benefits would be paid as the Guaranteed Maturity Benefit:
(Sum Assured + accrued Guaranteed Additions) - Survival Benefit already paid.
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
Sum Assured + accrued Guaranteed Additions till the date of death
105% of all premiums paid till death
Being a money-back plan, survival benefits are paid at the end of every 5 years. 125% of the annual premium is paid as survival benefit at the end of every 5 years except on maturity.
If due premiums are paid then the plan accrues Guaranteed Additions every year till the end of the term. The rate of addition is expressed as a percentage of annual premiums and depends on the plan tenure. The applicable rates are:
Plan tenure | Guaranteed Additions |
10 years | 7% of annual premium |
15 years | 8% of annual premium |
20 years | 9% of annual premium |
This is a non-participating plan where bonuses are not declared.
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.
Sum Assured levels of Rs.5 lakhs and above allow premium discounts. The rate of discount on Sum Assured levels of Rs.5 lakhs to Rs.10 lakhs is Rs.4 per thousand Sum Assured while Sum Assured of Rs.10 lakhs and above attracts a premium rebate of Rs.5 per thousand Sum Assured.
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.
How it works
- The policyholder chooses the policy tenure, Sum Assured and the premium paying frequency. Based on the above criteria and the insured’s age, the premium is calculated.
- Premiums are to be paid for a fixed tenure of 10 years.
- Guaranteed Additions as a percentage of the annual premium are added to the plan.
- On death during the period, the death benefit is paid.
- On maturity, the maturity benefit is paid.
Eligibility
Minimum | Maximum | |
Entry age (Last Birthday) | 13 years | 55 years |
Maturity Age (Last Birthday) | 23 years | 70 years |
Plan tenure | 10, 15 or 20 years | |
Premium payable | Yearly – Rs.6464 Half-yearly – Rs.3302 Quarterly – Rs.1675 Monthly – Rs.563 |
Rs.47.53 lakhs |
Premium Paying Term (PPT) | 10 years | |
Sum Assured | Rs.1 lakh | Rs.5 crores |
Premium payment mode | Monthly, half-yearly, quarterly and annually |
Surrender Value
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
- The SSV factors would be declared by the company based on its performance and would be calculated as follows:
SSV = {(Paid-up Sum Assured + accrued Guaranteed Additions) * SSV Factor} - survival benefits already paid
Revival
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.
Exclusions
- If the policyholder commits suicide within a year of policy issuance 80% of the premiums paid would be returned and no death benefit would be payable.
- If suicide is committed within a year of policy revival, higher of 80% of the premiums paid till death or the Surrender Value acquired would be paid provided the policy is in force.