Aviva Dhan Nirman Plan

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Introduction/Overview

Aviva Dhan Nirman is a savings and investment plan with bonus facility that gives guaranteed income for the financial needs of the policyholders. This policy helps policyholders to grow and expand their wealth safely while providing protection for the policyholder and his family. The policy even offers a discount on higher Sum Assured so that the policyholder receives comprehensive protection at a more affordable rate.

Key Features

  • This policy gives guaranteed annual payouts after the end of the premium payment term.
  • The policyholder receives a guaranteed lump sum payout at maturity.
  • The policyholders’ savings grow with the Simple Reversionary Bonus that the policy offers starting from the end of the first policy year.
  • Depending on the Sum Assured chosen by the policyholder, comprehensive protection is provided by the policy.

Benefits

  • If the policyholder survives until the policy matures, he or she receives a Maturity Benefit. The Maturity Sum Assured is calculated as follows:-
  1. For PT of 18 years = 8 x Annual Premium
  2. For PT of 21 years = 7 x Annual Premium
  3. For PT of 25 years = 6 x Annual Premium
  4. For PT of 30 years = 5 x Annual Premium
  • On survival until the end of the premium payment term, the policyholder receives a Survival Benefit that amounts to 150% of the Annual Premium on the policy anniversaries as mentioned:
  1. For PT of 18 years, Survival Benefit is received on the 14th to 17th policy anniversaries.
  2. For PT of 21 years, Survival Benefit is received on the 15th to 20th policy anniversaries.
  3. For PT of 25 years, Survival Benefit is received on the 16th to 24th policy anniversaries.
  4. For PT of 30 years, Survival Benefit is received on the 18th to 29th policy anniversaries.
  • In the unfortunate event of the demise of the policyholder, the nominee receives a Death Benefit.  The Death Benefit paid is the highest of the following:
  1. Ten times the annual premiums paid, or
  2. 105% of the total premiums paid, or
  3. The Maturity Sum Assured, or
  4. The Sum Assured of the policy.

The Simple Reversionary Bonus plus the Terminal Bonus as a percentage of the Sum Assured is also paid to the nominee.

  • Large Sum Assured rebates are given on Sum Assured amounts of Rs. 500000 or more.
  • Tax benefits are available on the premium paid and Death Benefit as per sections 80(C) and 10 (10D) of the Income Tax Act.
  • This policy offers the advantage of Simple Reversionary Bonus and Terminal Bonus that are paid on maturity of the policy or as part of the Death Benefit.


Product Specification:

 

Minimum

Maximum

Entry Age of the Life Assured (Last Birthday)

4 years

50 years

Maturity Age (Last Birthday) of the Life Assured

28 years

75 years

Policy Term (PT) in years

18 years

30 years

Premium Paying Term (PPT) in years

For PT 18 years = 14 year PPT

For PT 21 years = 15 years PPT

For PT 25 years = 16 years PPT

For PT 30 years = 18 years PPT

Premium Paying Frequency

Yearly, Half-yearly, Quarterly, Monthly

Annual Premium

Rs. 14486

Rs. 998000

Sum Assured

Rs. 200000

Rs. 10000000

 

Details About Premium

Age

Policy Term = 18 yrs / Policy Year

Annual Premium (Rs.)

Guaranteed Death Benefit (Rs.)

Guaranteed Survival Benefit (Rs.)

Guaranteed Maturity Benefit (Rs.)

20

1

18484

200000

 

 

21

2

18484

200000

 

 

22

3

18484

200000

 

 

23

4

18484

200000

 

 

24

5

18484

200000

 

 

25

6

18484

200000

 

 

26

7

18484

200000

 

 

27

8

18484

200000

 

 

28

9

18484

200000

 

 

29

10

18484

200000

 

 

30

11

18484

213490

 

 

31

12

18484

232898

 

 

32

13

18484

252307

 

 

33

14

18484

271715

27726

 

34

15

 

271715

27726

 

35

16

 

271715

27726

 

36

17

 

271715

27726

 

37

18

 

271715

27726

147872

 

Policy Details

Grace period: There is a limited timeframe of 30 days from the due date of the unpaid premium to pay all dues. This timeframe is reduced to fifteen days in case monthly premium payments.

Policy Termination or Surrender Benefit: The policy may be surrendered after two years on the condition that all premiums have been paid. The Surrender Value that is paid is the higher of the Guaranteed Surrender Value and the Special Surrender Value. If the policy is not reinstated within the revival period, the policy is terminated. Termination of the policy also occurs on payment of the Maturity benefit or the Death Benefit.

Free Look Period: Policyholders have a limited free look period of thirty days from the date of receiving policy documents to review the policy. If the policyholder does not wish to continue with the policy, then he or she can cancel the policy. The customer will receive premiums paid minus a proportionate premium for the risk borne by the company, including as any extra expenses, such as towards a medical examination or stamp duty charges.

Inclusions

  • Policyholders may change the premium payment mode at any policy anniversary, subject to a fee of Rs. 100.
  • Provided all due premiums have been paid, the company will declare a Simple Reversionary Bonus, which is expressed as a percentage of the Sum Assured. The Reversionary Bonus and Terminal Bonus is payable on death or maturity of the policy.

Additional Features or Riders

  • The revival of a lapsed policy is possible if the policyholder submits a request for reinstatement within a timeframe of two years from the date of the first unpaid premium.
  • If premiums for two policy years are paid and subsequently the policyholder does not pay the due premiums within the Grace Period, the policy acquires Paid- up Value.

Exclusions

  • The term insurance cover is void if the person insured, whether sane or insane at the time, commits suicide within one year from the start of the policy cover. The company will refund 80% of the premiums paid to the nominee. In case the person insured commits suicide within one year from the policy reinstatement, the nominee will receive the higher of 80% of the premiums paid or the Surrender Value.

Documents Required

The policyholder has to fill up an ‘Application form’ with photo identity proof (Passport, PAN Card or Driving License) and income proof in the form of a copy of the latest ITR or Form 16 or copies of the last three months salary slips.