Aviva Sachin Extra Cover Advantage
Aviva Sachin Extra Cover Advantage Plan is a Regular Premium Unit Linked Insurance Plan (ULIP). This plan is an Over the Counter Product, i.e. this plan can be purchased without any medicals, by simply filling up a “Declaration of Good Health” form. This is a Non-Traditional Plan without Bonus Facility.
In this plan, premium needs to be paid till the end. The Fund Value is provided to the Policyholder on survival till the end of the Policy Term as Maturity Benefit.
The Sum Assured is initially higher for the first 10 years and calculated according to the amount of the Annual Premium. Then the Sum Assured decreases for the last 10 years of the plan. Thus, if the Life Insured dies within the policy tenure, the nominee would receive the corresponding Sum Assured according to the year of death or the Fund Value, whichever is higher as Death Benefit.
This plan has 9 funds for investment purpose and Systematic Transfer Facility to reduce the risk of investment.
Key Features
This plan can be purchased without any medicals just by filling up a form
This is a Regular Premium Unit Linked Insurance Plan
The Fund Value is paid to the Policyholder when the policy matures
In this plan, the Sum Assured decreases after 10 years from 40, 30 or 25times the Annual premium to 21 times the Annual Premium.
In this plan, if the life insured dies within the policy tenure, the nominee would receive the corresponding Sum Assured or the Fund Value, whichever is higher as Death Benefit.
This plan offers Loyalty Additions at the end of year 15 and at maturity
This plan offers Systematic Transfer Plan to ease out the risk of investing in the equity market with growing age.
Premium = Rs 25,000 and Rs 50,000
Age = 35 years
Sum Assured= Initially, it is 40 X AP and then 21 X AP
= Rs 10,00,000 for AP= 25,000 and
= Rs 20,00,000 for AP=50,000
Policy Term = 20 years
Benefits
In case of death of the Life Insured within the policy tenure, the nominee would get the corresponding Death Benefit according to the year of death of Sum Assured or Fund Value, whichever is higher.
On maturity, the Fund Value is paid to the policyholder.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
This plan has 2 Investment Strategy:
- Self Management of Investment: There are 9 Investment Funds available
- Bond Fund II
- Protector Fund II
- Balanced Fund II
- Growth Fund II
- Enhancer Fund II
- PSU Fund
- Infrastructure Fund
- Index Fund II
- Dynamic P/E Fund
- And Systematic Transfer Plan: This option allows you to enter and then exit the market in a systematic way and not abruptly, thus reducing the overall risk of investment.
Not allowed under this plan.
The minimum amount that you can switch is Rs 5,000. First 12 switches in a year are free of cost.
Partial withdrawals are allowed only after completion of 5 policy years. Four Partial Withdrawals are allowed in each policy year with minimum withdrawal of Rs 5000 and maximum being 25% of the Fund Value at the beginning of the year. The minimum balance after withdrawal should not fall below 2 years’ Annual Premium.
Eligibility
| Minimum | Maximum | |
| Sum Assured (in Rs.) for Policy Year 1 to 10 years |
For AP= 25k, 50k and 75k, SA = 40 X AP For AP= 1lac and 1.5 lac, SA = 30 X AP For AP= 2 lac, SA = 25 X AP |
|
| Sum Assured (in Rs.) for Policy Year 11 to 20 years |
21 X AP |
|
| Policy Term (in years) |
20 |
|
| Premium Payment Term (in years) | 10 | 20 |
| Entry Age of Policyholder (in years) | 18 | 50 |
| Age at Maturity (in years) | - | 70 |
| Annual Premium (in Rs.) | 25,000 | 2,00,000 till age 40
1,00,000 above age 40 |
| Payment modes |
Only Annual |
|
FAQs
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.
What happens if You stop paying the premium after 5 years ?If the policy holder stops paying the premium after 5 years, then the accumulated Fund Value along with Loyalty Additions till the date of discontinuance shall be paid to the policy holder and the policy will be terminated immediately.
What happens if 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, according to the table of charges, 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 the Fund Value along with Loyalty Additions shall be paid immediately and the policy would be terminated.
What happens if You want a loan against your policy ?There is no loan available under this plan.
