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Aviva Wealth Builder Plan
Aviva Wealth Builder Plan
Aviva Wealth Builder Plan is a traditional Endowment plan which provides a guaranteed maturity benefit and guaranteed death benefit. Thus the plan provides life cover and wealth creation both of which are guaranteed in absolute terms.
Highlights of the Aviva Wealth Builder Plan
This is a traditional Endowment plan which does not earn bonuses.
Any tenure can be chosen and premiums have to be paid for a limited tenure which would depend on the chosen plan tenure or in one lump-sum as the plan provides the Single Premium facility.
The maturity and the death benefit are guaranteed.
The Sum Assured is fixed at double of the total premiums payable under the plan.
Working of the Aviva Wealth Builder Plan
The policyholder chooses the policy term, premium paying frequency and the premium paying term. The Sum Assured would depend on the amount of premium and the premium paying term. It would be fixed at the total amount of premiums payable under the plan.
Premiums are required to be paid for the chosen tenure.
On death during the period, the death benefit is paid.
On maturity, the maturity benefit is paid.
COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS
Benefits and Features of Aviva Wealth Builder Plan
Maturity Benefit – If the insured survives till maturity, double of the aggregate premiums paid under the plan which is also the Sum Assured is paid to the policyholder.
Death Benefit – If the insured dies during plan term and the plan is in force, the Sum Assured is paid as the death benefit. If the life insured is a minor, in the event of death of the policyholder (who is paying the premium), any legal guardian or grandparent can pay the premiums. If premiums are not paid, the lapse provisions of the plan would be applicable.
Bonus – The plan does not earn bonuses.
Loan –Loans are not available under the plan.
Tax benefit – 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 CI benefit if received would also be tax exempt under Section 10(10D) of the Income Tax Act.
Eligibility Criteria of Aviva Wealth Builder Plan
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
Entry age (Last Birthday)
Maturity Age (Last Birthday)
Term 13 years – 18 years
Term 15 years – 20 years
Term 17 years – 22 years
Term 13 years – 63 years
Term 15 years – 65 years
Term 17 years – 67 years
13, 15 or 17 years
Limited Pay – Rs.50,000
Single Premium – Rs.1.5 lakhs
Premium Paying Term (PPT)
5, 10 years or Single Premium
Single Pay – 2 times the single premium
PPT 5 years – 10 times the annual premium
PPT 10 years – 20 times the annual premium
Absolute Sum Assured
Single Pay – Rs.3 lakhs
PPT 5 years – Rs.5 lakhs
PPT 10 years – Rs.10 lakhs
Single Pay – Rs.2 crores
PPT 5 years – Rs.10 crores
PPT 10 years – Rs.20 crores
Premium payment mode
Annually or Single Pay
Additional Benefits of Aviva Wealth Builder Plan
Riders – No riders are available under the plan.
Grace Period – A grace period of 30 days is allowed for payment of premium after the due date. The life cover under the policy would continue during the grace period.
Free Look Period – A cooling off period or a free look period of 15 days (30 days for distance marketing channels) 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.
Let's Understand The Plan With An Example:
In the eventuality of death during the term, your family gets a lump sum of Rs. 20 lacs for continued financial support.
MInimum premium is Rs.50,000 and the maximum premium is Rs.1Cr.Mimimu m age is 5 years and maximum age is 50 years Taxes including but not limited to Service tax, Cess as applicable shall also be levied as notified by the Goverment from time to time.
Tax laws are subject to change.Gurantee is subject to all due premiums paid.
Exclusions in Aviva Wealth Builder Plan
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.
Non-Payment of premium in Aviva Wealth Builder Plan
Premiums have to be paid for at least 2 years in case of limited premium plans after which the policyholder can surrender the policy or make it paid-up.
Making the policy Paid-up
If at least 2 full years’ premium has been paid, the policy would become a paid-up policy if future premiums are not paid. The Sum Assured under the plan would be reduced and would be called Paid-up Sum Assured which would be calculated as below:
Paid-up Sum Assured = Sum Assured * (Total number of premiums paid/Total number of premiums payable under the plan)
Surrendering the policy
If 2 years’ premiums are not paid for a limited payment plan, the policy would be deemed to be surrendered wherein 30% of the premiums paid would be refunded after the expiry of the period allowed for reviving the plan which is 2 years.
Single Premium plans can be surrendered anytime. In limited pay plans, surrender is allowed only after the policy becomes paid-up, i.e. after 2 full years’ 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, where the GSV Factor depends on the plan tenure and the year in which the plan is surrendered.
The SSV factors would be declared by the company based on its performance and would be calculated as:
SSV = SSV Factors * Paid-up Sum Assured
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.