The Live Smart Plan offered by Aviva Life Insurance Company is a non-participating, unit-linked, endowment policy. This plan offers policyholders a high risk cover. Nominees receive the Sum Assured and the Fund Value, if the policyholder meets with an untimely death. Further, the additional in-built Accidental Death Benefit provides extra protection for the life assured and his/her family. For this plan, the minimum premium to be paid is Rs.50,000. Policyholders are entitled to receive tax benefits, under this policy.
Policyholders who wish to purchase this plan need to meet the insurer’s eligibility criteria, which is listed below:
|Parameters||Criteria for eligibility|
|Minimum age at entry||2 years, provided the age at maturity is not lesser than 18 years.|
|Maximum age at entry||50 years, provided the age at maturity does not exceed 65 years.|
|Minimum age at maturity||18 years|
|Maximum age at maturity||65 years|
*Ages mentioned are as on the life assured’s last birthday.
The Sum Assured is an amount of money that will be payable to you or your nominee, by the insurer. For this plan, the minimum sum assured amount will be the multiple of your annual premium, but will have to fall within the minimum and maximum limits given below.
|Minimum Sum Assured Multiple||
|Maximum Sum Assured Multiple||Same as the tenure of the policy|
|Top-Up Sum Assured||Top-up premium times 1.25|
|Accidental Death Sum Assured||Same as the Base Sum Assured, provided it doesn’t exceed Rs.50 lakh|
You will have to pay your insurer a premium, on a regular basis, in order to keep your life cover running. The various features related to your premiums are listed below:
|Minimum term of the policy||15 years|
|Maximum term of the policy||30 years|
|Premium Payment Term||Equal to policy tenure|
|Life Cover Ceasing Age||
|Minimum Annual Premium Amount||Rs.50,000|
|Maximum Single Premium Amount||No limit, but is subject to the company’s approval|
|Minimum Top-Up Premium Amount||Rs.5,000|
|Maximum Top-Up Premium Amount||The top-up premium amount should not be higher than the base premium amount|
|Lock-In Period||For Base Policy: 5 years from when the policy is purchased For Top-Up Premiums: 5 years from when the top-up premium is paid|
*Premiums vary based on age, location, plan term, GST, and other factors
|Death Benefit||Aviva Life will pay the nominee the following, as the death benefit:
|Maturity Benefit||The insurer will pay the fund value pertaining to both regular premiums and top-up premiums, and loyalty additions, as the maturity benefit.|
There are no additional riders that are available for the policyholder to purchase along with this policy. However, the Live Smart Plan comes with an in-built Accidental Death Cover.
The Live Smart Plan from Aviva comes with a suicide exclusion for non-accidental death. If the life assured commits suicide within 1 year from the date of commencement/revival of the policy, the insurer will only pay the Fund Value to the nominee.
The Accidental Death Cover Sum Assured will only be payable if the life assured’s death is not caused due to any of the following:
|Free-Look Period||If you are unsatisfied with the policy terms and conditions, you can return it within the free-look period, which is limited to 15 days, for this policy. If the policy was purchased through distance marketing modes, the free-look period will be 30 days.|
|Loyalty Additions||You will also receive guaranteed loyalty additions, which will be a certain percentage of your fund value, on certain policy anniversaries.|
|Lock-In Period||The lock-in period for this policy is 5 years from the date of commencement of the policy. Discontinued policy proceeds will not be paid to you during this period.|
|Discontinuance of Policy||Discontinuance of the insurance policy can occur if you do not pay your due premiums or if you surrender your policy. Discontinuance can take place during the lock-in period or after the lock-in period.|
|Partial Withdrawal||Policyholders can partially withdraw from funds pertaining to your regular premiums after 5 policy years, and funds pertaining to your top-up premiums 5 years after the date of payment of the top-up. The policyholders can make a maximum of 4 withdrawals each policy year, and the minimum amount that you withdraw needs to be at least Rs.5,000. In order to partially withdraw, you need to be a minimum of 18 years.|
|Reduction of Sum Assured||Policyholders can reduce their Sum Assured, as long as their Sum Assured Cover Multiple is more than the minimum amount that’s required for this policy.|
|Choice of Funds||Policyholders can invest in one or more of the funds listed below, either in part or whole. The funds are:
|Top-Up Premiums||In order to increase your investment, you can make an extra top-up premium any time during the policy tenure, except for the last five years. You will need to inform the insurer of which fund you want to invest your top-up premiums in.|
|Unit Switches and Premium Re-direction||The investment fund you opted for at the inception of the policy is not permanent and can be changed during the policy tenure, either in full or in part. You also have the added option of re-directing your premiums to different funds.|
|Charges||While being enrolled under this policy, you will have to pay the insurer certain charges, including the premium allocation charge, fund management charge, policy administration charge, mortality charge, discontinuance charge, switching charge, and miscellaneous charges, which include taxes.|
|Assignment||Assignment is allowed under Section 38 of the Insurance Act, 1938.|
|Nomination||Nomination is permitted under Section 39 of the Insurance Act, 1938.|
Apart from the many benefits already offered to you and your nominee by this policy, you can also use this policy to claim for tax benefits. However, tax laws are subject to change without prior notice, and you must consult with a tax advisor to be notified of any changes.
The Live Smart Plan from Aviva offers the policyholder a comprehensive life protection and the nominee a substantial death benefit if the policyholder passes away. This policy also offers members the option to choose between 7 different investment funds, and reap its returns. By way of a top-up premium, the life assured can also choose to increase his/her savings and coverage limit during the policy term.
Aviva Life Insurance Company is a joint venture between the Aviva Group and Dabur Invest Corp, and was setup in the year 2002. The insurer has a wide presence across India and has around 108 branches. They have a wide range of insurance products for both individuals and groups and 13,500 plus insurance advisors. The company has a Claim Settlement Ratio of 90.60% for the financial year 2016-2017.
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