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  • Aviva New Traditional Employee Benefit Gratuity Leave Encashment Plan Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    It is important for an organisation to take care of its employees and thus present them with the best of policies so as to provide them with the best of additional benefits amongst which gratuity payment is an important one. Aviva New Traditional Employee Benefit Plan is a traditional group plan by Aviva Life Insurance which aims to help employers meet the fund management needs required to pay the gratuity and leave encashment to the employees upon their resignation, retirement or death.

    Eligibility - Who is the Aviva New Traditional Employee Benefit Plan for?

    Before an organisation decides to avail this plan, it is important that it knows the requirements to become eligible for this plan. The eligibility criteria for this plan are given in the table below:

    Parameters Criteria for eligibility
    Minimum age at entry 18 years
    Maximum age at entry 74 years
    Minimum Maturity Age NA
    Maximum Maturity Age NA

    *Ages mentioned above are as on the policyholder’s last birthday.

    Sum Assured and Premium Range - What you get and what it costs?

    Sum Assured is the minimum amount that the insured will get from the insurer. The sum assured won’t contain any benefits or bonuses that the insured will be entitled to. All the relevant information regarding sum assured for this plan are given in the table below:

    Minimum Sum Assured Rs.1,000 per employee

    Premiums*

    The premiums to be paid for this plan will be decided by the master policyholder and he/she will also take care of the funds as well. The premiums to be paid will depend on various factors such as the size of the group, average age, occupation, etc. The minimum contribution amount at the inception of the policy will be Rs.1 lakh. The relevant information regarding premiums for this plan is given in the table below:

    Master Policyholder The head of the institution/employer
    Minimum group size 10
    Policy Term 1 year and subjected to be renewed
    Premium There will be a mortality charge of Rs.0.75 for every minimum sum assured that is Rs.1000.

    * Premiums will vary based on age, location, plan term, GST, and other factors.

    Some of the features of the Aviva New Traditional Employee Benefit Plan

    There are various benefits that an employee can enjoy under this plan. The policy will include various additions made to the fund from time to time. Those additions are:

    • Guaranteed non-zero positive interest: A Minimum Floor Rate of 1% will be credit to the policy account on a quarterly basis.
    • Non-zero positive additional interest rates: Ay interest rate incurred over and above the Minimum Floor Rate will be declared at the starting of each quarter and will be duly credited to the the policy account on a quarterly basis.
    • Non-zero positive residual additions: These additions will be made if any Gross Investment Yield are earned in the shadow policy account at the end of each policy year. The shadow policy account will be calculated on the basis of additions of elements like premiums, investment income etc. received and the debits made from the account in form of partial withdrawals etc., the result of which will be the Gross Investment Yield.
    Death Benefit Incase of an unfortunate death of the insured, the beneficiary will be eligible to be paid the sum assured.
    Maturity Benefit NA

    Riders/Add-On Plans – Additional coverage under the Aviva New Traditional Employee Benefit Plan

    This plan does not contain any rider or add-on plan.

    Other Key Features – Free-Look Period, Grace Period, Partial Withdrawal, etc.

    Grace Period There is no grace period for this plan.
    Free-Look Period A free look period of 15 days is provided during which the insured can return back the policy if he/she does not agree with the terms and conditions.
    Reinstatement A policy can be reinstated within five years of the date on which the policy was surrendered, lapsed or discontinued.

    Tax Benefits – How you can save with the Aviva New Traditional Employee Benefit Plan

    This particular plan provides various tax benefits to its members under the Income Tax Act,1961. The tax benefits provided are:

    • Premiums paid with respect to the member under the plan will be exempted from tax payable.
    • Gratuity equivalent to six month’s salary for each year with the minimum amount being Rs.10,000 will be exempted from tax payable.
    • The cover payable under this plan qualifies under tax exemption.

    Other Benefits of Aviva Life Insurance

    Aviva Life Insurance not only provides you with various benefits that you are entitled to, but also presents you with various other non-policy benefits as a customer of Aviva Life Insurance. Some of the benefits provided are:               

    • Information about various products: You can find comprehensive details on the products online on Aviva’s official website.
    • Buy your plan online: You can purchase plans of your choice from Aviva’s official website.
    • Manage your policy: Whether it’s paying your premium, filing your claim or even viewing your fund details, you can manage your policy all from the comfort of your home.
    • Planning: You can plan your future with the help of Aviva Life Insurance. For example if you want to compute the cost required to sustain your current standard of living post retirement or total amount you will require for your children’s education, Aviva helps you in making the right calculations based on your financial requirements.
    • Customer Service: Aviva boasts of an extensive customer care service support, available 24x7 for you. You can call them on their toll-free number or even mail them incase of any queries. Aviva ensures that any clarifications required regarding your policy are answered as soon as possible.

    Why you should buy the Aviva New Traditional Employee Benefit Plan?

    The Aviva New Traditional Employee Benefit Plan is a simple traditional group plan which aims to help the employer make it possible to pay off his/her  employees the gratuity value upon their resignation, retirement or even death. This particular plan also provides various tax benefits to the members registered, including reviving it within five years as well.

    Aviva Life Insurance is a joint venture between Dabur Invest Corp and Aviva International Holdings Limited, two of the oldest financial institutions functioning today. Aviva boasts of serving more than 40 million customers spread across 20 plus countries. It is known to have more than 13,000 financial advisors and has a large variety of products to offer to its customers. Aviva is also considered to be the best when it comes to taking care of their customers as they have 100% success in addressing their consumers’ grievances. They are the recipient of various awards including ‘Certificate of Excellence’ at the PR Week Asia Awards 2014 in Hong Kong.

    *The customer reviews/feedback/opinions expressed on this website are solely of their authors and do not reflect, in any way, the view of BankBazaar Insurance.

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