Aviva New Family Income Builder
Aviva New Family Income Builder Plan is an Endowment Plan without Bonus facility. In this plan, premium needs to be paid for 12 years and Double the Premium would be paid as Income from the end of the 13th Policy Anniversary till 24th Policy Anniversary, i.e. for another 12 years. However, the life risk of the individual is covered till the end of the 12th policy year. Thus, the Maturity Benefit in this plan is not paid upfront but in a staggered form.
6 times the Annual Premium is paid as Maturity Benefit
(On death), the policy pays the Guaranteed Survival Benefits for a period of 12 years
(After Maturity), the policyholder can take future survival benefit as a lump sum
Inbuilt rider of Waiver of Premium Benefit
In case of death of the Life Insured within the Policy Tenure, the Death Benefit will be the highest of:
- 10 times the Annual Premium, excluding taxes and additional premium
- Maturity Sum Assured
- Sum Assured of the Policy
Subject to a minimum of 105% of all premiums paid, excluding taxes and additional premium.
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 13th Policy Anniversary to the end of the 24th 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
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.
How it works
Let's Understand The Plan With An Example:
You are 35 years old and pay Rs.1 lac + applicable taxes per year for 12 years. You will get Rs.8000 at the end of the year 12 as Guaranteed Terminal Benefit and get Rs.24 lacs over the next 12 years as a regular incomes equal to Rs.1.5 lacs at the end of each year from 13th to 24th year and enhanced benefit of Rs.6 lacs payable along with the last payout at the end of 24th year.
In case of death of the life Insured (35 years old at inception of the policy) during the sixth Policy Year
* Policy issuance date: 1st Nov.2015
* Policyholder pays Rs.1 lac plus taxes, as annual permium for 6 years and dies on 1st Dec, 2020
* Claim gets settled on 1st Jan, 2021
* The Nominee/Beneficiary shall receive
Rs.1.5 lacs on 1st Jan 2021, along with the Rs.8000 gtb
Rs.1.5 lacs on 1st Dec of every subsequent year for the next 11 years
Rs.6 lacs along with the 12th instalment of Rs.1.5 lacs
The total benefits payout to the nominee/beneficiary would hence be Rs.24,08,000/-
|Sum Assured (in Rs.)
|24 X Annualized Premium
|Policy Term (in years)
|Premium Payment Term (in years)
|Payout Period(in years)
|13th year to 24th year
|Entry Age of the Life Insured(in years)
|Age at Maturity(in years)
|Annual Premium (in Rs.)
If the policy holder stops paying the premium, the insurance cover will cease and the policy will lapse. However, if at least 3 years’ premiums have been paid, the policy becomes paid up. However it can be revived within 2 years from the first unpaid premium.
Surrender is allowed after completion of 3 policy years provided at least 3 years’ premiums have been paid
Guaranteed Surrender value is according to the year of surrender, subject to a minimum of 30% of premiums paid and a maximum of 90% of the premiums paid, exclusive of the taxes paid.
There is Special Surrender Value also.
There is no loan available under this plan.