Aviva Live Smart Plan

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Introduction/Overview

Aviva Live Smart Plan is a unit linked endowment plans. The plan is specifically designed to help policyholders meet future expenses and reach future financial goals, as per their risk appetite. This policy offers high life coverage and ensures that the family of the policyholder stays financially well protected, even in the tragic event of the policyholders’ premature death.

Key Features of Aviva Live Smart Plan

The key features of this ULIP life insurance plan are as follows:

  • The policyholder can choose from seven different funds depending on their investment strategy.
  • The plan allows partial withdrawals as well as systematic partial withdrawals to ensure liquidity.
  • The policy offers intrinsic Accidental Death Rider which is a great thing to strengthen the protection.
  • There is a double death benefit in this policy. Both the Fund Value and the Sum Assured are paid out to the beneficiary. 

Benefits:

If the policyholder survives till the maturity of the policy, he/she receives the maturity benefit of the policy. The maturity benefit is equivalent to the fund value on the date of the maturity as well as the Loyalty Additions.

  • Loyalty Additions are received by the policyholder if all due premiums have been paid until maturity. The Loyalty Addition is 1% of the total Fund Value of the regular premiums paid at maturity.
  • In case of death of the policyholder, the nominee receives the death benefit, which is the higher of : 
    1. The Fund value plus the higher of the Base Sum Assured or 105% of the total premium paid
    2. Higher of 105% of the top up premiums paid or the top up sum assured. Added to this, the fund value on the top up premiums is also paid out to the nominee.
  • In case the policyholder dies in an accident, the nominee gets the accidental death sum assured. The amount of Accidental Death Sum Assured is equivalent to the Base Sum Assured that has an upper limit of Rs. 50 lakhs.
  • The plan offers seven Unit Linked Funds to choose from, depending on the risk appetite of the policyholder.
  • The plan also allows partial withdrawals, after the completion of the first five years of the policy. In this, one can withdraw a minimum of Rs. 5000/-.
  • According to the Income Tax Act section 80(C) and 10 (10D), the policyholder gets to enjoy tax benefits on the premiums paid and on the death benefit as well. 

Product Specification of of Aviva Live Smart Plan

 

Minimum

Maximum

Entry Age of the Life Assured (Last Birthday)

2 years

65 years

Maturity Age (Last Birthday) of the Life Assured

18 years

80 years

Policy Term (PT) in years

15 years, 20 years, 25 years, 30 years (subject to maximum maturity age)

Premium Paying Term (PPT) in years

Equal to policy term

Premium Paying Frequency

Yearly

Annual Premium

Rs. 50000

No limit

Sum Assured

10 x Annualized Premiums

45 x Annualized Premiums

 

Details About Premium

Entry Age of life insured (Yrs)

Policy year

Annual Premium (Rs.)

Sum Assured (Rs.)

Amount of Premium Allocation Charge (Rs.)

Amount available for investment (Rs.)

Loyalty Additions (Rs.)

Fund at the End (Rs.)

Withdrawal Benefit (Rs.)

Death Benefit (Rs.)

25

1

50,000

5,00,000

4000

46000

 

46532

43740

546532

26

2

50,000

 

2500

47500

 

97812

95812

597812

27

3

50,000

 

2500

47500

 

152352

150852

652352

28

4

50,000

 

2500

47500

 

210364

209364

710364

29

5

50,000

 

2500

47500

 

272072

272072

710364

30

6

50,000

 

1500

48500

 

338906

338906

710364

31

7

50,000

 

1500

48500

 

409988

409988

710364

32

8

50,000

 

1500

48500

 

485572

485572

710364

33

9

50,000

 

1500

48500

 

565934

565934

710364

34

10

50,000

 

1500

48500

 

651316

651316

710364

35

11

50,000

 

1500

48500

 

741964

741964

710364

36

12

50,000

 

1500

48500

 

838184

838184

710364

37

13

50,000

 

1500

48500

 

940300

940300

710364

38

14

50,000

 

1500

48500

 

1048651

1048651

710364

39

15

50,000

 

1500

48500

11636

1175216

1175216

710364

 

Policy Details of Aviva Live Smart Plan

Grace Period: To pay all the due, there is a time limit of 30 days from the due date of the unpaid premium.

Termination of the policy or Benefits after surrendering: The policyholder is allowed to surrender the policy after completion of five years, provided all the premiums have been paid.  After surrendering, the policyholder gets the fund value and the policy gets terminated.

If the policyholder wishes to give up the policy before five years, then you get to end up the insurance cover, and the amount in the Fund gets wired to the Discontinued Policy Fund.  The policy gets terminated if the policy is not restored within the specified period of revival. The policy can also get terminated once the death benefit or the maturity benefit is paid out.

Free Look Period: In case the policyholder does not like the conditions and term of the policy, the company offers a free look period of 15 days starting from the receipt of the documents of the policy.

If the policy is cancelled during this period, the policyholder will get the fund value and the total unallocated premiums, after deducting the proportionate risk charges.

Inclusions

The policy permits a top-up premium at any point during the policy, provided the policyholder has paid all the premiums. The top-up amount for premium starts from Rs 5000/-.

  • The policyholder has the leverage to move from one unit-linked fund to another, at any point of time during the term of the policy.
  • The policyholder can also redirect their future premiums to any other funds around two times in a year, and this can be done at any point of time.
  • After the completion of five years of the policy, the policyholder can avail the Systematic Partial Withdrawal option. On account of this, a percentage of the Fund Value at the inception of the Systematic Partial Withdrawal is given to the policyholder as well properly structured payouts apart from their unit account. 

Additional Features or Riders

To revive a lapsed policy, the policyholder needs to submit a reinstatement request, and it can be done within two years from your first unpaid premium. The plan offers the leverage to decrease the sum assured by the policyholder wherever the requirement of the protection goes down. 

Following are the Charges Applied to This Policy:

  1. The term offers a Premium Allocation Charge which gets deducted from the premium which is paid by the customer. The balance amount gets into the investments which the policyholder chooses. 
  2. Policy Administration Charge gets deducted every month at the very beginning. 
  3. Talking about annual charges, we have Fund Management Charge that gets deducted annually at a rate of 1.35% on all funds, excluding the Discontinued Policy Fund. 
  4. Mortality Charges get subtracted each month by the cancellation of units from the fund value.
  5. In a policy year, the policyholder is allowed 20 free switches. Besides the free switches, each switch costs 0.5% of the amount switched by the user. This is known as switching charge. The maximum amount permitted is Rs. 500/-per switch.
  6. For those who wish to discontinue the plan before the end of the policy, a Discontinuance Charge will be levied.
  7. Along with these charges, there are miscellaneous charges that are levied on a timely basis in the form of education cess and service tax. 

Exclusions 

Let us suppose the policyholder commits suicide, within one year of opting for the policy cover, irrespective of the mental condition of the person, the insurance cover becomes null. The Fund Value will be refunded on the date of death.

Any accidental death cover is not given to the person when the death is caused by factors that have a direct or indirect connection to drug abuse, alcohol,  inability to seek or follow any medical advice, indulging in communal riots or war, functional or mental disorder, engaging themselves in heinous pastimes, participating in racing, excluding athletics, etc. 

Documents Required

The policyholder needs to fill in an ‘Application form’ that requires his photo identity proof (PAN Card, Passport or Driving License) along with income proof such as your latest ITR or Form 16 or even your salary slips of last three months. 

You may also like to read: Aviva Life ULIP Plans

Frequently Asked Questions 

Q.1 why should I opt for this policy?

This policy offers comprehensive protection to the insured and his/her family in case of any unfortunate event such as death. The policy pays higher of the chosen sum assured or 105% of premiums paid along with the Fund Value in order to help you out with immediate financial crisis needed by you and the people dependent on you. Along with this, the plan offers an extra death cover in case of the life insured dies in an accident. 

Q.2 Why is this policy more convenient than others?

This policy offers great convenience to its users as they have the leverage to increase their savings and offers more coverage during the term of the policy as it allows the users to pay the premium through top-ups also. Further, the plan also allows partial withdrawals after the completion of 5 years. 

Q.3 Are there any tax benefits? 

Yes, there are tax benefits under section 80C and 10(10 D) of Income Tax Act 1961.

Q.4 What are the major charges I will be paying?

The policy charges the user under the following heads, such as Premium Allocation Charge, Fund Management Charge (FMC) and Policy Administration Charge, and Mortality Charge. 

Q.5 What are the Maturity benefits?

On reaching the maturity date, the insured gets the regular premium, top-up premium (if applicable), plus the loyalty additions.