Aviva Annuity Plus Plan

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Aviva Annuity Plus is a non-linked, non-participating, single premium pension plan designed to provide a lifetime annuity to its customers. With a regular income, this plan helps retirees maintain and enjoy their lifestyle for as long as they survive.

Key Features of Aviva Annuity Plus Plan

  • The policy offers a selection of seven annuity options to its customers.
  • The policyholders receive the guaranteed annuities for life.
  • The plan provides the policyholders with the option of topping up their pension plans to increase the annuity amount that will be paid to them after maturity.
  • Tax benefits are available as per sections 10 (10D) and 80C of the Income Tax Act.

Benefits

The policy offers the following seven options for annuity payment:

  1. Life Annuity in which the annuity amount is paid as long as the annuitant is alive and terminates upon their death.
  2. Annuity Guaranteed for 5 years and for life thereafter in which the annuity is paid for the first five years regardless of the survival of the annuitant. In case the annuitant passes away within the first five years of the policy, the annuity continues to be paid to the nominee and terminates at the end of the fifth year.  If the annuitant survives, the annuity continues to be paid for as long as s/he lives.
  3. Annuity Guaranteed for 10 years and for life thereafter in which the annuity is paid for ten years regardless of the survival of the annuitant. In case the annuitant passes away within the first ten years of the policy, the annuity continues to be paid to the nominee and terminates at the end of the tenth year.  If the annuitant survives, the annuity continues to be paid for as long as they live.
  4. Annuity Guaranteed for 15 years and for life thereafter in which the annuity is paid for fifteen years regardless of the survival of the annuitant. In case the annuitant passes away within the first fifteen years of the policy, then the annuity continues to be paid to the nominee and terminates at the end of the tenth year.  If the annuitant survives, the annuity continues to be paid for as long as they live.
  5. Annuity for Life increasing @ 3% per annum simple interest in which the amount of annuity that is paid increases at 3% per annum at simple interest rate. The annuity continues to be paid as long as the annuitant survives.
  6. Life Annuity with Return of Purchase Price that makes annuity payouts throughout the lifetime of the Annuitant and on the death of the annuitant the nominee receives the Purchase Price of the annuity.
  7. Joint Life Last Survivor Annuity in which both spouses are annuitants and annuity continues as long as at least one spouse is alive.

Product Specifications of Aviva Annuity Plus Plan

 

Minimum

Maximum

Entry Age (Last Birthday)

Aviva Pension Policyholders: 18 years 

Nominees of deceased Aviva Pension Policyholders: 0 years (18 years for joint life last survivor annuity) 

Others: 50 years

80 years

Purchase Price

Rs. 25000

No limit

Annuity Instalment

Rs. 500

-

Annuity Frequency

Yearly, Half-yearly, Quarterly, Monthly

 

Details about Premium

Age (Yrs)

Annuity Option chosen

Purchase Price

Mode of annuity payout

Annuity Amount Paid

Death Benefit

50

Annuity guaranteed for 5 years and for life thereafter

Rs. 60000

Yearly

Rs. 4093

Nil

50

Annuity for life increasing at 3% p.a. simple interest

Rs. 60000

Yearly

Rs. 3016

Nil

50

Life Annuity with return of purchase price

Rs. 60000

Yearly

Rs. 3467

Rs. 60000

50

Joint Life Last Survivor Annuity

Rs. 60000

Yearly

Rs. 3848

Nil

Policy Details of Aviva Annuity Plus Plan

Grace Period: There is no Grace Period in this plan as it is a single premium payment plan.

Policy Termination or Surrender Benefit: There is no Surrender Benefit in this policy. When the policy terminates as per the option selected, the nominees do not receive any benefit. The policy terminates on the death of the annuitant where the option of Life Annuity or Annuity for Life increasing @ 3% per annum simple interest or Life Annuity with Return of Purchase Price is chosen. The policy terminates when the annuitant passes away during the guaranteed period; or on the death of the annuitant after the guaranteed period, if Annuity Guaranteed for 5 years, or Annuity Guaranteed for 10 years or Annuity Guaranteed for 15 years has been chosen. In case of the Joint Life Last Survivor Annuity option, the policy terminates on the death of both annuitants.

Free Look Period: The policy offers a Free Look Period of 15 days starting from the date of receiving the policy documents. If the policy was sold via distance marketing, the Free Look period will be 30 days. If the policyholder is not pleased with the terms and conditions and wishes to discontinue the policy, he or she can cancel the plan during this period. If paid already, the Company refunds the Single Premium received, minus stamp duty charges.

Additional Features or Riders

  • If the policyholder buys Annuity from the Maturity Value of their pension policy, then he or she has the option of enhancing the purchase price by adding a lump sum amount from existing savings. This increase in the Purchase Price enhances the Annuity amount that is paid.
  • The annuity rate in this policy is multiplied by a multiplying factor in order to arrive at the final annuity amount that is paid based on the mode of annuity payment.
  • The mode of annuity payment can be changed on any policy anniversary by submitting a written request at least forty-five days prior to the policy anniversary date.

Exclusions

  • The Death Benefit or Annuity Benefit is paid to the nominee if the annuitant commits suicide within one year of the policy commencement date. In case of the Life Annuity option or the Annuity for life increasing @3% p.a. simple or Joint Life Survivor Annuity option, no death or annuity benefit is paid to the nominees.

Documents Required for of Aviva Annuity Plus Plan

The documents required include the filled up Application form, along with a photo identity proof (PAN Card, Passport, Driving License) and income proof (a copy of the latest ITR or last 3 months salary slips or Form 16 ).

You may also like to read: Aviva Life Pension Plans

Frequently Asked Questions on Aviva Annuity Plus Plan

Q.1) How much should I pay to buy Aviva Annuity Plus Plan?

The minimum purchase price is Rs. 25,000/- and there is no upper limit to it.

Q.2) What is the maximum maturity age allowed under this plan?

There is no maturity age under this plan. Aviva Annuity Plus is an immediate Annuity plan. Hence, you will start receiving annuities right after your pay the purchase price.

Q.3) What if I stop paying the premiums?

This plan is a single premium plan. That is to say, you pay only once, and start receiving annuities for life. So, there is no question of stop paying premiums.

Q.4)  Can I take a loan against my policy?

No, there is no loan facility available under this plan.

Q.5)  What if I want to surrender the policy?

You have no option to surrender the policy as there is no surrender value payable. If you do not like the terms and conditions of the plan, you can cancel your plan within 15 days from the date of receiving the policy documents. Once, the policy is purchased and the Free Look period is over, you cannot surrender the plan any more.