Aviva LifeBond Advantage Plan

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Aviva Life Bond Advantage is a ULIP (Unit-Linked Insurance Plan ) with a single premium facility. It allows its customers to make a one-time investment and enjoy life coverage and savings facility for a longer period of time.

Policyholders are allowed to increase their existing premiums with time. They are even allowed to access their money, after the completion of first five years. Moreover, the presence of loyalty additions helps to generate more wealth for the policyholder. The policy ensures that the policyholder’s family stays well protected, in case of the policyholders’ untimely death.

Key Features of Aviva Life Bond Advantage Plan

  • The insured can choose from seven different fund options for allocating assets.
  • Both systematic partial withdrawals and partial withdrawals are allowed under this plan. Thus, this plan offers fund liquidity to the policyholder.
  • Accidental Death benefit rider is an inbuilt add-on feature available with this plan.
  •  Loyalty Additions on every tenth year enhances the benefits for the insured.
  • The policyholder may top up his or her premium with a lump sum amount.

Benefits of Aviva Life Bond Advantage Plan

  • If the policyholder outlives the entire policy term, they gets the Maturity Benefit, which is equal to the Fund Value as on the date of maturity.
  • Loyalty Additions are offered if there is no premium outstanding. The Loyalty Addition is equal to 4% of the Fund Value pertaining to the single premium at the end of the tenth policy year. The Loyalty Addition is 2% at the end of every subsequent tenth policy year.
  • On the unfortunate death of the insured person, the beneficiary is provided with the death benefit that is higher of the fund value and the basic sum assured.
  • Additionally, the higher of the Fund Value or Top-up Sum Assured pertaining to Top-up premiums, is also paid as part of the Death Benefit.
  • The benefit of accidental death is offered to the beneficiary in case of accidental demise of the life insured, provided he/she is aged between 18 and 60 years. Both the Accidental Death Sum Assured and the Base Sum Assured are equal in amount (maximum Rs.50,00,000).
  • Based on the policyholder’s risk appetite, they can choose from 7 unit linked funds for making investments.  
  • High liquidity is available as partial withdrawals are allowed, after the completion of initial five years of policy term. Rs. 5000 is the minimum amount permitted for withdrawals.
  • The policyholder can opt for regular inflow of a fixed amount of cash from the fund via Systematic Partial Withdrawals.
  • Under section 80c and 10(10D) of Income Tax Act, the insured can avail Tax benefits on the premium paid and death coverage.  

Product Specification:

 

Minimum

Maximum

Entry Age

2 years

65 years

Maturity Age (

18 years

75 years

Policy Term

10 years

73 years (subject to the maximum age of 75 of the Insured at maturity)

Premium Paying Term

Single premium

Premium Paying Frequency

Single

Annual Premium

Rs. 50000

No limit

Sum Assured

Option A: 1.25 x Single Premium

Option B: 5 x Single Premium

 

Details About Premium

Sum Assured - Option B: 5 x Single Premium

Age (Years)

Policy Term = 15 yrs / Policy Year

Single Premium (Rs.)

Loyalty Additions (Rs.)

Withdrawal Benefit (Rs.)

Death Benefit (Rs.)

20

1

350000

 

342812

1750000

21

2

 

 

347482

1750000

22

3

 

 

352218

1750000

23

4

 

 

357031

1750000

24

5

 

 

361929

1750000

25

6

 

 

366924

1750000

26

7

 

 

372023

1750000

27

8

 

 

377236

1750000

28

9

 

 

382576

1750000

29

10

 

23094

403572

1750000

30

11

 

 

409587

1750000

31

12

 

 

415732

1750000

32

13

 

 

421969

1750000

33

14

 

 

428277

1750000

34

15

 

 

434625

1750000

 

Policy Details of Aviva Life Bond Advantage Plan

Grace Period: Since it is a single payment plan, there is no Grace Period under the policy.

Surrender or Termination of Policy: The policyholder can surrender the plan after the completion of first five policy years. The policy terminates right after the fund value is paid out the policyholder. If the policyholder surrenders before the end of the initial five years, life coverage ceases, and the Fund Value is sent to the Discontinued Policy Fund. The policy will be terminated if it is not revived within the period allotted for revival. Moreover, as soon as the final benefits are paid out, the policy gets terminated.

Free Look Period:  Free Look period is a limited span of time when the policyholder is allowed to go through the policy in details. If he/she is not happy with the benefits offered by the plan, he/she is allowed to cancel the policy within this period. In return, he/she will get the fund value along with the premium that are not yet allocated. 

Inclusions

  • The policyholder can opt for the Settlement option in which his or her money remains in the fund even after maturity and is paid to the policyholder at regular intervals over a period of five years. The amount received is based on either fixed units per payout or fixed amount per payout on a monthly, quarterly, half-yearly or yearly basis via cheque or Direct Credit/ECS.
  • A Top-up premium is allowed anytime before completion of the policy term on the condition that all premiums have been paid. The minimum Top-up premium amount is Rs. 5000.
  • The policyholder is allowed to switch between the seven unit-linked funds any time during the policy term.
  • Under the Systematic Partial Withdrawal option, on the completion of five policy years, an amount of the Fund Value, at the time of the start of the Systematic Partial Withdrawal, is paid to the policyholder from his/her unit account, as structured and regular payouts.

 Additional Features or Riders

  • The policy can be revised if the policyholder applies for renewal within 2 years from the date when the first premium remained unpaid.
  • The policyholder can reduce the Sum Assured amount depending on the protection needs.
  • A number of charges are applicable under this plan. They include:
    1. Premium Allocation Charge,
    2. Policy Administration Charge
    3. Fund Management Charges
    4. Mortality Charges
    5. Switching Charge
    6. Miscellaneous Charges 

Exclusions

  • In case of suicide committed within the first year of the policy, the insurance cover gets void. The insurance company, in that case, will pay out the Fund Value. The fund value will be the amount as recorded on the day the insured died.
    1. Accidental death due to drug abuse
    2. Accidental death occurred under the influence of alcohol
    3. Accidental death caused by racing (not in case of swimming and athletics).
    4. If the deceased had any functional or mental disorder.
    5. If the deceased used to participate in risky activities, which resulted in his/her death.
    6. Death in war or riots.

Documents Required

In order to purchase this policy, the following documents are to be submitted to the insurer:

  • The filled up Application form.
  • His/her photo identity proof.
  • The proof of income

You may also like to read: Aviva Life ULIPs Plan

Frequently Asked Questions

1. What is the grace period offered by the policy?

As Aviva LifeBond Advantage Insurance Plan is a single premium plan, it does not provide any grace period.

2. How can I apply for a duplicate copy of your policy?

A duplicate copy of the policy documents can be received from the insurance company by submitting a request form to the nearest insurance branch along with all the required documents.

3. How can I check the claim status of the Aviva LifeBond Advantage Insurance Plan?

The claim status of Aviva LifeBond Advantage Insurance Plan can be checked online. The policyholder can also call the insurance company and ask about the claim status of the policy.

4.    What is the free look period offered by the policy?

A 15 days’ free look period, from the policy issue date, is provided to the insured under which he/she can cancel the policy if he/she is dissatisfied with the terms and conditions of the policy.