Why Aviva Retirement Insurance Plans
Aviva Life Insurance Company India Limited is a major insurance company that provides superior life insurance products to its customers in order to protect their financial needs. Aviva Life pension plans are one of Aviva Life Insurance Company’s pioneering products. Every working person wishes to live a comfortable life after retirement. Aviva recognises this requirement and has created the Aviva Next Innings Pension plan, which assures a consistent flow of income during the post-retirement years. Pension Plan assists in the accumulation of a lump-sum corpus that may be used to fund a comfortable living in the post-retirement years.
Key features of Aviva Next Innings Pension Plan
The Aviva Next Innings Pension plan focuses on providing consumers with a variety of unique benefits. This pension plan is intended to provide financial support to you and your family members during your golden years of retirement. The following are the distinctive elements of the Aviva Next Innings Pension Plan:
- Lump Sum Corpus: The Aviva Next Innings Pension Plan guarantees the investor a sum equal to 210 percent of the total premiums paid until the pension plan’s maturity date. The guaranteed lump sum corpus amount might be used to meet financial demands that arise during the retirement years.
- Investing in the Aviva: Next Innings Pension Plan gives financial security and protection in the event of the life insured’s death. The plan provides payment of premiums paid up to the date of death, as well as interest at a rate of 6% per year compounded annually.
- Limited premium payment: When choosing an Aviva Life pension plan, the investor can choose a limited premium paying tenure in which the premium is paid for a limited amount of time while the benefits are enjoyed throughout the retirement innings or as the investor approaches retirement.
- As a Result: The Aviva Next Innings Pension Plan is designed to provide appealing features while keeping future financial demands in mind throughout the golden years of retirement in mind. The plan has an in-built mix of securing the following innings of retired life by providing a regular flow of income and a financial safety net to the family in the event of the life insured’s death. Let us look at the benefits provided by the Aviva Next Innings Pension Plan.
Benefits under Aviva Next Innings Pension Plan
Following are the benefits of Aviva Next Innings Pension Plan:
- Maturity Benefit
- Death Benefit
- Loan Benefit
- Tax Benefit
If all of the plan’s due premiums have been paid, the maturity benefit is payable at the plan’s maturity. The maturity benefit payable under this plan is 210 percent of the total premiums paid until the plan’s maturity date. The maturity benefit provided by the plan should be used in one of the following ways:
- The policyholder may withdraw one-third of the pension plan’s maturity proceeds, while the remaining two-thirds must be used to acquire an Immediate Annuity Plan or a Single Premium Deferred Annuity Plan from Aviva Life Insurance Company India Limited or as per the then-current IRDAI Regulations.
- If the policyholder does not want to commute or withdraw a portion of the maturity proceeds, the policyholder may be able to re-invest the entire maturity benefit proceeds to purchase an Immediate Annuity Plan or a Deferred Annuity Plan in a Single Premium Mode from Aviva Life Insurance Company India Limited or as per the then-current IRDAI Regulations.
The pension plan’s death benefit is payable upon the death of the life insured. If the insured dies during the policy’s term and while the pension plan is still in effect, the death benefit given to the nominee shall be the greater of the following:
Total premiums paid (excluding extra-premiums and taxes, if any) until the insured’s death, plus interest compounded at a rate of 6% per annum. 105 percent of total premiums paid (excluding extra-premiums and taxes, if any) until the insured’s death.
Bonus – Under this pension plan, Aviva Life Insurance Company India Limited does not provide a bonus to policyholders.
Loan – Customers cannot obtain a loan through the Aviva Life Next Innings Pension Plan.
Tax Benefit – All premiums paid under the Aviva Life Pension plan are tax deductible under Section 80C of the Income Tax Act of 1961. The tax exemption limit is limited to a maximum of Rs.1.5 lakhs. While all benefits received by the policyholder are taxed under Section 10(10A) (iii) of the Income Tax Act of 1961.
Product Specification of Aviva Next Innings Pension Plan
The Aviva Next Innings Pension Plan’s maturity benefit may be calculated using the plan’s calculator. The calculator simplifies the computation of maturity benefit and provides the precise amount due. To calculate the maturity amount, the investor must provide personal information such as date of birth, gender, policy term, premium amount, and frequency of premium payment. Once all of the information is submitted, the investor will be able to get the maturity benefit, death benefit, and surrender benefit. Here’s an example of the total guaranteed benefit obtained through the Aviva Next Innings Pension Plan:
|Entry age of the insured (as per last birthday)||42 years||60 years|
|Maturity age of the insured (as per last birthday)||55 years||78 years|
|Policy Term (PT) in years||13 years||18 years|
|Premium Paying Term (PPT) in years||13 years = Single16 years = 5 years18 years = 10 years||13 years = Single16 years = 5 years18 years = 10 years|
|Premium Paying Frequency||Single, Annual, Semi-Annual and Monthly||Single, Annual, Semi-Annual and Monthly|
|Annual Premium||Single: Rs. 1,50,000Limited: Rs. 50,000||Rs.500,00,00,000|
Policy Details of Aviva Next Innings Pension
Grace Period: A 30-day grace period is granted from the due date to settle the overdue premium and clear all outstanding debts. The Grace Period for plans paid with monthly premiums is 15 days. If the first two years’ premiums are not paid during the Grace Period, the insurance fails or expires.
Surrender Value or Termination Benefit: A policy with a single premium payment option gets Surrender Value after one complete policy year. As a result, it may be relinquished after the first policy year, provided that all premiums have been paid. Surrender Value is acquired by a Limited premium policy after two full policy years, and it may therefore be relinquished after paying all premiums for two full policy years. As the Surrender Value, the higher of the Guaranteed Surrender Value or the Special Surrender Value is paid out. The insurance is also terminated when the Death Benefit or Maturity Benefit is paid.
Free Look Time: The insured enjoys a 15-day free look period from the day the policy paperwork is received to study the features and benefits of the policy. If the policyholder decides not to renew the insurance coverage, he or she can cancel it. However, the consumer would be responsible for the insurance company’s policy charges, such as medical examination fees, etc.
Alterations: It is possible to switch from Yearly to Half Yearly frequency and vice versa. The change can be made at any policy anniversary by paying a fee of ‘100 plus relevant taxes, if any.
Acceptance: Receipt of the completed proposal and first payment by the Company does not constitute any obligation on the Company’s side to underwrite the risk, and the Company shall not be liable until it has insured the risk and issued the Policy.
Nomination and Assignment :
Additional Features or Riders -Renewal of a lapsed insurance policy is available if the insured makes a reinstatesment request within two years after the date of the first unpaid premium. The insured will be required to pay all past-due premiums, interest, and a Rs. 250 revival fee. A satisfactory proof of insurability must also be presented.
If the policyholder has paid all of the premiums for the first two policy years and subsequently fails to pay any premiums until the conclusion of the Grace Period, the policy will have a Paid-up Value.
Exclusion – There are no exclusions under this plan.
Documents Required – The insured must complete a ‘Application form’ and submit it with a picture ID evidence
1. Driving License
3. PAN Card
4. Proof of income (such as a copy of the most recent Income Tax Return, a copy of wage slips for the past three months,
5. Form 16)
What is Pension Plan/ Retirement Plan?
A pension plan is the retirement amount that an individual receives from their insurance company on a monthly or lump sum basis. There are a variety of such programmes available in the nation, provided by various firms. However, having more options might be confusing and make it harder for people to pick the best one. It is feasible to build a significant corpus via regular investments, which when mature provides a regular monthly income for taking care of your post-employment years. The amount you earn might be referred to as an annuity or a pension.
Why do you need a Retirement /Pension Policy?
Every individual works extremely hard and makes several sacrifices in order to ensure a secure future. We maintain track of our finances throughout our working lives and focus on creating investments that will assist ensure our future. The availability of financing after retirement is a vital component that makes our future safe and worry-free. Retirement is typically the time when individuals want to do things, they have never been able to accomplish, such as spend quality time with their extended family or go on vacations that would not be possible without appropriate retirement preparation. Pension plans or retirement plans are the only lifelines that may assure you keep excellent living standards while also satisfying your desires.
How to Choose a good Retirement / Pension Plan?
Some of the essential factors to consider while selecting the best pension plan are as follows:
1. Does the plan allow you to save consistently over time and pick your retirement or vesting age?
2. Does the plan provide a minimum guarantee of the principal invested?
3. Can you invest in shares and debt in a balanced manner under the plan?
4. Because it is critical to plan for retirement for both you and your spouse, an ideal retirement plan should also
Provide you with the option of acquiring supplemental life insurance.
5. As your salary rises, you must guarantee that your monthly contributions to your retirement fund rise in a
Regular manner each year. Ideal retirement options should provide you the option of gradually expanding your funds.
How Aviva’s Retirement / Pension plan Secure the financial future of your family?
Every person views and lives life in a unique way. Keeping this in mind, we have created strategies to help you achieve your life objectives and support your dreams even after you retire.
Aviva Retirement Pension Plans have the following advantages:
1. Obtain a savings corpus that is assured.
2. Choose a lump sum investment.
3. Take advantage of tax breaks on premiums paid under section 80C of the Income Tax Act.
4. You may also select the time period for which you want to use the plan’s advantages. Some of our plans are also arranged in such a way that, in the event of the annuitant’s death, the nominee will receive the benefits until the annuity period expires.
How does a Retirement/ pension plan work?
A Retirement Pension Plan is divided into two stages:
The accumulation stage is when you begin and continue to invest in insurance in order to develop a retirement corpus.
You begin by selecting a pension plan and the anticipated amount you want to receive upon maturity. This will assist you in aligning your insurance term with your planned retirement age. Preference for investment time (Premium Paying Term) – You must determine how long you want to pay the premium for the plan based on your lifestyle choices as well as your investment and risk tolerance. In the case of a lump sum investment, you will pay the entire amount all at once.
Vesting age: The age at which your pension plan begins to pay out benefits. Your decision to leave your employment at a young age will be heavily influenced by your financial situation. When your retirement pension insurance matures, you will be able to access the created corpus based on the annuity alternatives you selected.