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Aviva Freedom Life Advantage

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This plan has been withdrawn by the insurance company and is no longer available for sale.

 

Aviva Freedom Life Advantage Plan

 

Aviva Freedom Life Advantage Plan is a simple unit linked insurance plan (ULIP). In this plan, the premium needs to be paid till the end of the Premium Paying Term, as selected at the policy inception. In this plan, if the Life Insured dies within the policy tenure, the nominee would receive the higher of the Sum Assured or the Fund Value as Death Benefit. However, if he survives till the end of the Policy tenure, then he would receive the Fund Value.

 

This plan has Loyalty additions from 10th year onwards, 9 investment fund options and 2 investment strategy options. This plan also has 2 additional riders and 1 in-built rider available. This plan has Joint Life Insurance option as well where both the spouses can be insured under the same plan.

 

 

Key Features of Aviva Freedom Life Advantage Plan

 

  • This is a simple Unit Linked Insurance Plan
  • Joint Life Benefit is available in this policy, where both spouses can be covered under the same plan
  • There are 2 additional riders in this plan- Term Plus rider and Dread Disease Rider and 1 in-built rider- Accidental Death Benefit rider
  • Loyalty Additions is also provided in this policy from the end of the 10th policy year onwards.
  • Systematic Transfer and Automatic Allocation of Fund Options are 2 Investment Options available with this policy along with 9 Fund Options.

 

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Benefits you get from Aviva Freedom Life Advantage Plan

 

Death Benefit – In case of death of the Life Insured, the nominee would get Sum Assured or Fund Value, whichever is higher.

In case if Joint Life Policy, the policy will terminate after the first Death Benefit is paid.

 

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 Freedom Life Advantage Plan

 

 

Minimum

Maximum

Sum Assured (in Rs.) for PPT= 5 years

SA=10 x AP or SA=0.5 x PT x AP, whichever is higher

For age<=40 yrs, SA=10 x A; For age>40 yrs, SA=10 x AP or SA=0.5 x PT x AP, whichever is higher

Sum Assured (in Rs.) for PPT= PT

1.05 x PT x AP

2.5 x PT x AP

Policy Term (in years)

15 years

30 years

Premium Payment Term (in years)

5 years

Equal to Policy Term

Entry Age of Policyholder

2 years (without riders)
18 years (with riders and for Joint Life)

60 years (without riders)

55 years (single life with riders)

50 years (joint life with riders)

Age at Maturity

18 years

75 years (elder person in joint life policies)

Premium (in Rs.)

1 lac for PPT =  5 yrs

25000 for PPT = PT

No Limit

Payment modes

Yearly, Half-yearly and Monthly (ECS Only)

 

 

Sample illustration of Aviva Freedom Life Advantage Plan

 

Premium = Rs.25,000 and Rs 50,000

Age = 35 years

Policy Term = 20 years

Premium Paying Term = Regular Pay

Total Investment = Rs 25,000 X 20 years = Rs 5,00,000

Rs. 50,000 x 20 years = Rs. 10,00,000

Aviva Freedom Life Advantage Sample Benefit Illustration

 

 

Additional Features and Benefits of Aviva Freedom Life Advantage Plan

 

Riders – There are 2 riders available in this policy

1.     Aviva Dread Disease Rider

2.     Aviva Term Plus Rider

And 1 in-built rider

·         Accidental Death Benefit rider

 

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 withdrawals is Rs 5,000 subject to at least one years’ Annual Premium should remain in the Fund Value for Limited Pay Option and at least two years’ Annual Premium should remain in the Fund Value for Regular Pay Option.

 

                                             

What happens if?

 

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 - There is no loan available under this plan.



 

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