Aviva Young Scholar Advantage Plan

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Aviva Young Scholar Advantage is a Unit Linked Insurance Plan specifically designed to protect the beneficiary in the unfortunate event of the policyholders’ death. The Life Insured here is the parent, not the child. The beneficiary, however, is always the child. In the absence of the parent, the child’s financial needs are taken care of by the insurer. Thus the child’s future is made secure by the plan.

Key Features of Aviva Young Scholar Advantage

  • This Unit-Linked child Insurance Plan ensures comprehensive life cover.
  • The policyholder under this policy gets a choice of 7 different funds for allocating his/her assets for investments.
  • The maintenance and management of investment portfolios are made easier with options such as the Systematic Transfer Plan, the Automatic Asset Allocation or with the fund switching options.
  • Fund Liquidity is also offered under the plan.
  • The policy helps the insured secure the future of his/her child in case of his/her absence.
  • This Aviva unit linked policy has an inbuilt Rider to provide coverage against Accidental Death in order to provide added protection for the future of the beneficiary.

Benefits of Aviva Young Scholar Advantage

  • In case the policyholder survives till the maturity of the policy, he/she is entitled to receive Maturity Benefit, which is equal to the Policy’s Fund Value on the date of maturity.
  • In the unfortunate incident of the policyholder’s demise, the nominee receives the Death Benefit. The Death Benefit, which is paid along with the Top-up Sum assured (if any)  is higher of the following:
  1. Base Sum Assured, 
  2. 105% of the total premiums paid.

All the schedule future premium payments are waived off and a lump sum payout as per the provisions of the plan is made by the insurer. However, the policy continues till it reaches maturity.

  • The nominee is entitled to receive Accidental Death Sum Assured in event of the accidental death of the policyholder. The amount of Accidental Death Sum Assured is same as the Base Sum Assured. The sum assured, however, limited to Rs. 50 Lakhs.
  • Guaranteed loyalty additions are available with this policy.
  • On the basis of the policyholder’s propensity to bear risks, he is offered a choice of 7 Unit-Linked Funds for investments.
  • The policy ensures liquidity by allowing partial withdrawals. However, the withdrawals are allowable only after the completion of first 5 policy years.
  • The policyholder can opt for the Systematic Partial Withdrawal option as well after completing five policy years.
  • Tax benefits are available on the premium paid and Death Benefit received as per the Sections 80(C) and 10(10D) of the Income Tax Act, 1961.

Product Specification of Aviva Young Scholar Advantage Plan

 Criterion

Minimum

Maximum

Entry Age of the Policyholder (as per Last Birthday)

Parent (life insured) for PT = PPT: 21 – 45 years

Parent (life insured) for PT = PPT: 21 to 40 years

Child (nominee/beneficiary): 0 – 17 years

Maturity Age (Last Birthday) of the Life Assured

31 years

60 years

Policy Tenure

10 years

25 years

Premium Paying Term (PPT) in years

5 years

Equal to policy term

Premium Paying Frequency

Yearly, Half-yearly, Monthly

Annual Premium

Rs. 25000 if PT = PPT

Rs. 100000 if PT = 5 years

No limit

Sum Assured

1/2 x Policy Tenure  x Yearly Premium

or

10 x Yearly Premium

Whichever is higher of the two

 

Details about Aviva Young Scholar Advantage Plan Premium

Age of life insured (Yrs)

Policy year

Annual Premium (Rs.)

Amount of Premium Allocation Charge

Amount available for investment (out of premium) (Rs.)

Mortality Charge (Rs.)

Policy Admin Charge (Rs.)

Fund Management Charge (Rs.)

Fund at the end (Rs.)

Withdrawal Benefit (Rs.)

Death Benefit (Rs.)

21

1

100000

6000

94000

3089

1200

1268

94217

88564

1994217

22

2

100000

5000

95000

3023

1200

2602

195710

191710

1995710

23

3

100000

5000

95000

2942

1200

4023

303764

300764

2003764

24

4

100000

4000

96000

2846

1200

5550

420011

418011

2020011

25

5

100000

4000

96000

2738

1200

7177

543791

543791

2043791

26

6

100000

2000

98000

2618

1200

8941

677988

677988

2077988

27

7

100000

2000

98000

2490

1200

10819

820885

820885

2120885

28

8

100000

2000

98000

2352

1200

12819

973048

973048

2173048

29

9

100000

2000

98000

2209

1200

14948

1135074

1135074

2235074

30

10

100000

2000

98000

2137

1200

17215

1307508

1307508

2357508

 

Aviva Young Scholar Advantage Details

Grace Period: The policy allows a limited period of 30 days since the date of your first unpaid premium. The Policy’s Grace Period is of 15 days if the premiums are paid on monthly basis.

Surrender Benefit or Policy Termination: This policy might be surrendered post 3 policy years, provided all the premiums are paid. In case the policy is not renewed within the given time, then the policy shall be terminated. Termination of this insurance policy also occurs in case of payment of Death Benefit or Maturity benefit.

Free Look Period: The policy allows the insured a limited time of free look period (15 days) since the receipt date of the policy documents in order to review the features of the policy. In case the insured does not want to keep the policy, he/she may cancel it. The policyholder shall receive the paid premium after deducting a proportionate amount of premium for bearing the risk for the time of free look period and all sorts of extra expenses.

Inclusions under Aviva Young Scholar Advantage

  • Top-up premium is allowed at anytime during the term of the policy, provided all premiums are paid. The minimum amount for the Top-up premium is Rs. 5000.
  • The policyholder can switch between 7 unit-linked funds anytime during the term of the policy.
  • The policy also allows the policyholder to redirect the future premiums towards different funds twice a year at any time of the policy year.
  • The policy offers a settlement option for policyholders where they may opt for keeping their money invested in the funds even after maturity. In that case, the policyholder may receive the return systematically over a period of one to five years.
  • With the Systematic Transfer Plan, the policyholder can enter the equity market at different times and different levels.
  • The Automatic Asset Allocation plan helps to decrease the policyholders’ exposure to equity and increase the exposure to debt as time goes on.

Additional Features or Riders offered under Aviva Young Scholar Advantage

  • The renewal of lapsed policy can be done if the insured submits a reinstatement request within a period of 2 years since the date due for the payment of first unpaid premium.
  • The following are the various charges applicable to this policy:
  1. Premium Allocation Charge is subtracted from the premiums paid by the insured. The balance premium is invested towards the investment funds selected by the insured.
  2. Policy Administration Charges are deducted in the beginning of each month.
  3. Fund Management Charge is deducted every year and differs as per the funds selected by the insured.
  4. In the starting of every month, Mortality Charges are subtracted by cancelling some units from the fund value.
  5. Switching Charge – The policy allows 12 free switches in one policy year. Post that, every switch is charged at the rate of 0.5% of switched amount, subject to a maximum of Rs. 500 per switch.

Exclusions under Aviva Young Scholar Advantage

  • The life insurance coverage becomes void in case the policyholder (sane or insane), commits suicide in the first year of the policy or renewal. The insurer shall refund the Fund Value as on the date of death.
  • Accidental Death Benefit shall not be payable in case the death occurred indirectly or directly because of drug abuse or alcohol, not obtaining or not following medical advice, engaging in racing excluding swimming and athletics, riots, war, participation in dangerous activities, any functional or mental disorder, etc. 

Documents Required

The insured person needs to fill up an ‘Application form’ along with:

  1. A photo ID proof, such as PAN Card, Driving License, or Passport.
  2. An income proof, such as a copy of Form 16 or last ITR, copy of salary slips or last 3 months.

 You may also like to read: Aviva Life Child Plan

FAQs

Q1. How and when are loyalty additions allocated under Aviva Young Scholar Advantage Plan?

A. Aviva allocates Loyalty Additions on the occasion of policy anniversaries in the following manner:

Policy Year

Loyalty Additions (% age of Fund value pertaining to Regular Premium)

At the end of the 10th Policy Year

1.0%

At the end of the 15th Policy Year

3.0%

At the end of the 20th Policy Year

4.0%

At the end of the 25th Policy Year

5.0%

 

Q2. How can I apply for a duplicate Aviva Young Scholar Advantage policy?

A. In case you have lost your policy document, you are required to fill up a request form and present it to your nearest branch of the company along with all the required documents in order to receive the duplicate copy of the policy from the insurer.

Q3. What are the Entry age criteria for Aviva Young Scholar Advantage Plan?

A. For parents or the life insured:

  • Minimum Entry Age – 21 years
  • Maximum Entry Age – 50 years

For Child or the nominee:

  • Minimum Entry Age – 0 years
  • Maximum Entry Age – 12 years

Q4. What is the policy term offered under Aviva Young Scholar Advantage Plan?

A. The term of Aviva Young Scholar Advantage Plan is equal to 21 years minus the age of the child at the time of entry into the plan.

Q5. What is the maturity age allowed under Aviva Young Scholar Advantage Plan?

A. The policy does not imply any minimum age for the maturity of the policy but the maximum maturity age for the parents is 71 years.