Aviva Life Child Plans

Traditional Endowment Plans

These type of plans come for a longer tenure and have the following features:

• The plans may or may not be eligible to earn the bonuses which the insurance company declares. The bonus participation depends on the design of the plan. Usually child plans come with the bonus earning feature if they are offered as a traditional endowment plan.

• The premium, the term for which the premium is to be paid, Sum Assured, maturity benefit and the death benefit is fixed beforehand. While the benefits payable, except bonus, is mentioned in the policy brochure, the premium will depend on the age and the choice of Sum Assured.

• If the insured parent dies when the term is still continuing, the specified death benefit is paid to the nominee. The policy will continue but the child will not be required to pay any premiums. On maturity, the promised maturity benefit will be paid along with the accumulated bonuses.

Traditional Money-back Plans

Money-back plans are the most popular choice of child insurance plans among investors. These plans do not block the money like in case of the endowment plans but provide certain proportion of the Sum Assured at different intervals. Some features of these plans are mentioned hereunder:

• The plans have the feature of providing a part of the Sum Assured at different intervals which are mentioned in the policy.

• Bonuses are usually declared in money back plans.

• The part of the Sum Assured which is paid at different intervals in between the policy tenure is called the Survival Benefits.

• On maturity, the remaining part of the Sum Assured along with the aggregate bonuses which the policy has earned over the years is paid to the policyholder.

• If the policyholder dies, the total Sum Assured is paid to the nominee irrespective of the Survival Benefits which are already paid. The plan will continue just like in case of traditional endowment plans. Survival benefits will continue to accrue as and when they were promised. On maturity, the pre-defined maturity benefit is also payable.

Unit linked child plans

The insurance plans which are linked to reflect market growth are also available in the child plan category. Their features include:

• The policyholder will decide the amount of premium he wants to invest based on which the Sum Assured will be calculated.

• The premiums will be invested in the funds which are invested in the market. As such, the policyholder can enjoy the benefit of market growth.

• These plans promise three distinct benefits. One can enjoy wealth maximization through market participation, have insurance protection and also create a fund for the child’s future.

• The plan can be taken for shorter duration.

• There are various flexible options like partial withdrawals, premium redirection, switching, top-ups, etc.

• On maturity or on death, the fund value will be payable which will depend on the market returns on the premiums invested.

• The benefit of the inbuilt rider is also available in this variety of the plan.

Aviva Life Insurance Company is a joint venture between Dabur Invest Corp and Aviva Group. Dabur Invest Corp is one of India’s oldest and most respected business houses producing traditional healthcare products since time immemorial. Aviva Group is a UK based insurance group serving 31 million customers across 16 countries. Together Aviva Life Insurance has become a key player in the insurance sector quality products and efficient service. The company boasts of being among the first companies to introduce modern unit-linked and unitized with-profit plans. The company leads the market in protection and child plans with world-class products and a strong sales force.

Aviva Child Plans

Aviva Life Insurance Company currently offers two types of child plans to its customers each offering various features and benefits to the policyholder. Let us take a look at the different child plans offered by the company and the features and benefits of each of the plans in details.

Aviva Young Scholar Advantage Plan

A unit linked child insurance plan which protects the child’s future financially and also provides market linked returns for capital appreciation. The features and benefits of the plan are as follows:

• Premiums under the plan can be paid for the entire duration of the plan under the Regular Pay option or for a limited tenure of 5 years under the Limited Pay option of premium payment.

• The premium net of applicable charges can be either self-invested by the policyholder or invested under the Systematic Transfer Plan or Automatic Asset Allocation option.

• Under the Systematic Transfer Plan, the premium is initially invested in debt fund and then slowly redistributed to the equity fund. This transfer stops in the last 2 policy years when the funds are switched back from the equity fund to the debt fund to protect the fund from market volatility

• Under the Automatic Asset Allocation option, the net premium is initially invested in a ratio in equity and debt funds with a higher proportion in equity funds. With the passage of tenure, the funds are slowly allocated to debt fund by decreasing the equity exposure.

• The policyholder has an option of seven funds for investment if he invests the money himself. The funds are Balanced Fund II, Bond Fund II, Enhancer Fund II, Growth Fund II, Infrastructure Fund, Protector Fund II, and PSU Fund.

• Loyalty Additions accrue at the end of the 15^th policy year and thereafter twice after every 5 years and are expressed as a percentage of the available fund value

• On maturity, the Fund Value is payable.

• On death of the insured during the tenure of the plan, higher of the basic Sum Assured including any top-up Sum Assured or 105% of all premiums paid till the date of death is paid immediately to the nominee. Moreover, all future premiums are waived off and the total of such premiums is credited to the Fund Value which grows for the remaining tenure. On maturity, the applicable fund value is paid to the nominee

• There is an inbuilt Accidental Death Benefit feature under which in case of accidental death of the insured, an additional Accidental Sum Assured is paid which is equal to the base Sum Assured subject to a maximum of Rs.50 lakhs

• 4 free partial withdrawals are allowed every year with a minimum amount of Rs.5000

• 12 free switches are allowed annually to change between funds and premium redirection facility is also available to redirect future premiums into another fund

Eligibility Details

Child Savings Plan vs Sukanya Samriddhi Yojana Scheme and Public Provident Fund

Aviva Young Scholar Secure Plan

A traditional child insurance plan to protect the child’s future even in the absence of the parent. The features and benefits of the plan are as follows:

• Premiums under the plan are paid for a limited tenure only which depends on the age of the child

• The plan has four variants depending on the amount of premium paid and the benefits payable depend on the plan variant chosen. For instance, for a premium of Rs.25, 000 the applicable variant is Silver, for Rs.50, 000 it is Gold, for Rs.1 lakh is Diamond and for levels above this the variant is Platinum.

• Various payouts are paid under the plan to take care of the child’s expenses

• A Guaranteed Annual Payout called the Tuition Fee Support depending on the premium variant is paid out every year after the completion of the premium paying tenure and till the child reaches 17 years of age.

• A lump sum amount is given as College Admission Fund when the child reaches 18 years of age

• Another lump sum amount called the Higher Education Reserve is paid when the child attains 21 years of age

• While the Tuition Fee Support Fee and the College Admission Fund is a fixed amount depending on the premium amount and variant, the Higher Education Reserve is calculated as the maturity Sum Assured net of the Tuition Support Fee and the College Admission Fund already paid.

• In case of death of the insured during the tenure, the death Sum Assured will be paid which will be higher of 10 times the annual premium or maturity Sum Assured or 105% of all premiums paid till the date of death. Furthermore, the above mentioned benefits will accrue as and when they fall due.

• Aviva Term Plus Rider can be availed for a more enhanced protection

Eligibility Details

Other Aviva Child Plans:

• Aviva DhanNirman

  In addition to giving a guaranteed regular stream of income at the end of premium payment term, this plan also offers a bonus at the end of the policy term. There are 4 policy terms to choose from and the maximum sum assured amount per life is Rs. 1 crore.

• Aviva DhanSamruddhi

  This traditional life insurance plan helps meet short-term as well as long-term requirements by giving guaranteed cash back every 5 years in addition to a maturity benefit which is also guaranteed. It also offers guaranteed yearly additions up to 9% of annualised premium.

• Aviva Life Bond Advantage

  This is a medium to long term plan offering the option to switch between 7 different fund options to grow one’s wealth. In addition to a life cover, one can partially withdraw money after 5 years.

• Aviva Live Smart

  This unit linked insurance plan offers the flexibility of making personal investment decisions from 7 funds which have varying degrees of equity and debt exposure for long-term growth. If the need arises, one can partially withdrawal after 5 years without any penalty.

• Aviva Wealth Builder

  The plan offers the option of 3 policy terms and guarantees to double the amount of money paid by way of premiums at maturity. The maximum premium per life is Rs. 1 crore.

• Aviva i-Growth

  This plan offers a choice of 3 policy terms and 3 funds, with total administrative charges being as low as 1%. It also allows partial withdrawals after 5 years to meet unexpected expenses.

• Aviva New Family Income Builder

  This savings cum protection plan guarantees returns as regular payouts for 12 years. The maximum annual premium per life is Rs. 1 crore and sum assured is 24 times the annual premium.

• Aviva DhanVriddhi Plus

  The unique attraction of this plan is that it offers 100% return on premiums paid at the time of maturity as guaranteed benefit. If there is any accumulated bonus, one also gets that to meet long-term needs. There are 3 payment term options and the premium has to be paid on an annual basis.

Applying for a Child Plan from the company:

1. Online

   The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued

2. Intermediaries

   Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

Applying For Child Plans through PolicyBazaar

• On the PolicyBazaar homepage, click on Child Plans under the Personal tab.

• Click New Quotes to compare.

• Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.

• Fill in your name, email address, city, country code, and mobile number. Click Continue.

• You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.

• After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.

• You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.

• This will take you to the insurer’s website. Fill in the necessary details to buy the plan.

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Aviva Life Child Plans - FAQs