Aviva Life Pension Plans

Aviva Life Insurance Company is a 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 market by offering 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.

What are Pension Plans?

Annuity plans are those plans which provide a steady stream of pension payments after retirement so that the policyholder can plan for his retirement needs.

Some of the common features of pension plan are discussed underneath:

• The plan matures and payment of annuity starts from the Vesting Date
• Deferred and Immediate are two annuity options. Deferred annuity is one where payments are deferred or delayed and are payable after the lapsation of the accumulation phase where the customer is supposed to pay premiums. Death during deferment calls for the payment of death benefit. Immediate annuity is one where no waiting is required as annuity payments accrue from the next period as chosen by the policyholder after paying the single premium. In case of death, the company stops paying annuity.
• 1/3^rd of the accumulated corpus can be withdrawn in cash which does not attract tax while the other 2/3^rd is to be availed as a pension attracting tax in the policyholder’s hand.

Aviva Pension Plans

Aviva Life Insurance Company is offering two types of retirement plans to its customers. Let us look at the types of plans available.

Aviva Next Innings Pension Plan

Is a traditional deferred annuity plan which aims to build a guaranteed corpus for retirement. The features and benefits are as follows:

• Premiums under the plan are payable either for a limited tenure under the Limited Pay option or in one lump sum under the Single Pay option of premium payment.
• On maturity, a guaranteed benefit of 210% of total premiums paid till maturity is payable which can be used in multiple ways. The policyholder can choose to commute 1/3^rd and avail annuity from the remaining corpus or avail annuity payouts guaranteed for life from the corpus. A one-time premium Deferred Annuity can also be purchased alternatively
• If death happens, the death benefit will be given to the nominee which and it will be higher of the aggregate premiums paid until death compounded @6% annually or 105% of total premiums paid till death
• The nominee can choose to either withdraw the amount entirely in lump sum or avail annuity from the amount.
• Section 10(10A) exempts commuted pension while Section 80CCC exempts premiums from taxation. Section 10(10D) also exempts death benefit received

Eligibility Details

Aviva Annuity Plus Plan

It’s a traditional immediate annuity plan where annuity payments start immediately after the single premium. The features and benefits of the plan are:

• The annuity payment startssimultaneously from the next chosen frequency after the premium has been paid
• There are different payout options which inlcude:
• Lifetime annuity
• Lifetime Annuity along withtotal purchase price payable on death
• Life Annuity which is guaranteed for 5 years and thereafter for life
• Life Annuity guaranteed for 10 years and thereafter payable for life
• Life Annuity guaranteed for 15 years and thereafter payable for life
• Life Annuity which increases at a simple rate of 3% p.a.
• Joint Life Last Survivor annuity
• The policyholder can increase the annuity payout rates if he supplements the purchase price utilizing his own savings if the purchase price is the maturity proceed of an existing pension plan from the company
• Section 80CCC of the Income Tax provisions exempts the premium amount paid for the plan

Eligibility Details                                                                                     

Applying for a Pension Plan from the company:

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

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 Pension Plans through PolicyBazaar

1. On the PolicyBazaar homepage, click on Retirement under the Personal tab.
2. Click New Quotes to compare and choose from top insurance providers.
3. 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.
4. Fill in your name, email address, city, country code, and mobile number. Click Continue.
5. 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.
6. After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.
7. 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.
8. This will take you to the insurer’s website. You will have to fill in the necessary details to buy the plan.

How is an annuity plan different from a life insurance plan?

An annuity plan is actually the exact opposite of a life insurance plan. In the case of a life insurance policy, the payments commence once the policyholder dies. But in an annuity plan, the payments stop after the death of the policyholder. Also, in a life insurance plan, the risk lies on the insurance company as they cover the life of the policyholder. However, in an annuity plan, the risk lies with the policyholder as he or she pays the purchase price without knowing whether or not they will survive till the time the annuity period begins.

How much Annuity do I need?

The amount of annuity you need depends on a number of factors like your financial liabilities, goals, daily expenses, lifestyle, savings etc. You need to evaluate what your spending would be after you retire and then you will know how much annuity insurance to opt for.

My children are married and I have my own house and car. How much annuity do I need?

If the major financial liabilities, like your children’s marriages are already taken care of, you need not opt for a very large annuity. This is because you just need the financial assistance to pay your day to day bills, not to pay for a major event or an investment. If on the other hand, a person has a financial liability left, he may need a higher annuity.

Aviva Life Term Insurance Plans- FAQs

1. How to pay premium? What are the modes of payment available?

For receiving continuity of your benefits, it is critical to pay premiums on time. You can pay your AVIVA Life Insurance premium through these 7 methods:

• Airtel money
• Auto Debit card or Credit card
• HDFC/SBI/AXIS Bank debit card
• ECS SYSTEM
• NEFT
• Cash/Cheque Payments
• Change Payment Mode

Step 1: Enter your policy details – policy number and policyholders date of birth

Step 2: Select your online bank account or debit/ credit card to make the payment

Step 3: Authenticate and confirm your payment details and receive online confirmation

2. How can I check policy status for Aviva Life pension plans?

As a registered user, you must log into the e-portal with your Client ID and password to check the policy status.

3. What is the policy renewal process for Aviva Life pension plans?

Online Policy Renewal facility is available to all Aviva customers. The process is as follows;

Step 1: Login into e-portal with your Client ID and password.

Step 2: Select the policy due for renewal payment. Click Pay Renewal Premium Now

Step 3: Choose payment option- NEFT, Credit Card/Debit Card

Step 4: Authenticate and confirm your payment details and print out the payment receipt

4. What is the company’s process to settle claim for Aviva Life pension plans?

For Aviva Health Plus policyholders, Cashless facility is permitted in case of for surgery or hospitalization. For others the process is as follows;

Step 1: Complete the claim form

As per your policy T&C and options, you need to duly fill the forms for claims against riders, hospital cash benefit, death benefit, gratuity and group term insurance.

Step 2: Arrange for correct documents

Based on the claims made, you need to attach the correct supporting documents. You can submit the documents in original or photocopies attested by a Gazetted officer or Magistrate.

Step 3: Arrange for medical reports for medical related claims

In case of hospitalization or surgery; produce the relevant medical reports and bills, issued by the attending physician, who is qualified to issue such a report.

Upon completion of the above-stated documentation, submit them to your nearest AVIVA branch office. Alternatively, you can send the documents to us by post:

Our Address:

Claims Department

Aviva Life Insurance Company India Limited

Aviva Towers, Sector 43,

Opposite DLF Golf Course,

Sector 43,

Gurgaon 122003

5. What is the policy cancellation process for Aviva Life pension plans?

The Aviva Life Insurance policyholders must attach all the relevant policy documents along with a duly filled surrender form at any of the branch locations in their city. The value of their units will be calculates at the current market rates, if documents are submitted before 3:00 PM, else the next day’s market rates will be used to calculate unit price.