Aviva Live Smart Plan

Details About Premium

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:

• 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. 
• Policy Administration Charge gets deducted every month at the very beginning. 
• 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. 
• Mortality Charges get subtracted each month by the cancellation of units from the fund value.
• 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.
• For those who wish to discontinue the plan before the end of the policy, a Discontinuance Charge will be levied.
• 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. 

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