Everything you need to know about Aviva Life ULIP plans before buying : Aviva Indian is a life assurance company which was one of the first companies to introduce the concept of unit-linked plans and unitized with profit policies in India.
It is a joint venture with Aviva plc which is a British assurance company and the Dabur Group which is one of the most recognized and popular Indian Conglomerate. Aviva had begun running its operation back in 202 with India’s oldest business house which is the Dabur Group.
Since then, Aviva Indian has employed an approximate three thousand people and has had over nine thousand financial advisors. This company has a total of 121 branches that are currently spread all across the country.
Being one of the first companies to have introduced ULIPs, Aviva Life insurance have a range of products and plans from protection plan, endowment plans, single premiums and also child policies.
ULIPS or unit-linked insurance plans are one of the most beneficial insurance products that are available in the market. It acts as an insurance plan as well as an investment scheme rat offers great tax benefits to the policyholder. Both investments and insurance are done under one single integrated plan which is a ULIP.
Aviva Life ULIP plans offer great benefits to individuals and investors and are one of the best ULIP plans there is in the investment market. Aviva Life ULIP plans are catered for the specification of every possible investor so that they may be appealing and beneficial to everyone. People who are starting out in the investment market and business to those who are experienced investors; they both can apply for Aviva Life ULIP plans and make the most out of it.
Still, no matter how lucrative and attractive any plan may seem, there are few things that one must know about it. The same applies to Aviva Life ULIP plans. Before buying an Aviva Life
ULIP plan, one should be aware of the terms and conditions and the surrounding details that the plan has to offer. Here is everything you need to know about Aviva Life ULIP plan before buying:
Under this plan, the premium that is paid is for one time only which is during the initial stages of the plan. This means that the premium that is to be paid for the ULIP plan is paid at the time of commencement of the plan. After this initial payment, no other premium is needed to be paid by the insured in Aviva Life ULIP plan.
At the time of maturity, the assured fund value can be paid by one of two ways. The fund value can be paid in one lump sum amount, or it can be paid in separate installments. This choice for the mode of payment is taken by the investor. If he or she chooses to get the fund value over a period of time in the form of installments, then the installments will be made over a period of 5 years from the point of maturity under the Settlement Option of the Aviva Life ULIP plans.
Mortality is the greatest fear of the human race. It can well be so that during the tenure of an Aviva Life ULIP plan the investor may pass away due to certain unforeseen events. If it happens to be so that the death on the investor occurs before the maturity period has ended, certain contingents plans are put to action. In such an event, the higher of the basic Sum Assured, including any top-up sum assured net of partial withdrawal is given to the nominee.
Another contingent that might take place is that the Fund Value along with any top-up fund value which is 105 % of all the premiums paid till the date of death of the insured, will be paid to the nominee mentioned in the clauses of the Aviva Life ULIP plan.
In an Aviva Life ULIP plan, there is an in-built accidental death benefit feature also incorporated. If the investor happens to die from accidental reasons, then an added accidental sum assured is paid to the nominee. This sum is equal to the base of the sum assured being subjected to a maximum amount of 50 lakh.
The Aviva Life ULIP plan allows the investor to has a certain amount of withdrawal liberties. Different ULIP plans have different options for withdrawal. These allow the investor to withdraw a partial amount of the invested money even before the completion of the maturity period.
Depending on the company and type of ULIP you have invested in, you will get a different number of free withdrawals. Aviva Life ULIP plans allow its investor to have up to 4 free withdrawals before the maturity tenure has ended. Each year, Aviva Life ULIP plan have these 4 withdrawals with a minimum amount of rupees 5 thousand.
ULIPs also offer options of switching funds each year. Similar to withdrawal benefits, different ULIP plans have a certain amount of time an investor can switch funds per year. Aviva Life ULIP plans allow the investor to switch funds a massive 12 times each year. The purpose of this option is to keep the funds moving so that during times of depression in the investment, the investor can protect his or her funds from threats and risk, thus curbing any losses he or she might bear.
As per the Income Tax Act 1961, the investor can enjoy income tax benefits on the premium paid in an Aviva Life ULIP plan which is in accordance with Section 10 (10 D) of the IT Act. This is a third bonus advantage apart from the fact that Aviva Life ULIP plans to act as both an insurance policy and also an investment plan.
Like all ULIP plans, Aviva Life ULIP plans have certain eligibility criteria that must be met before its purchase. There are some things that must be in line with the terms and conditions of the plan such age, maturity period, the premium amount payable and others.
For an Aviva Life ULIP plan, the entry and applicability for the ULIP are two years to a maximum of 65 years of age.
The maturity period is a minimum of 18years and can be for a max 75 years.
The minimum premium amount that is payable is 50 thousand. There is no upper limit for the premium payable for Aviva Life ULIP plans.
After maturity, the minimum amount of sum assured that is generated and payable to the investor is 1.25 times that amount of a single premium payment.
These are some of the eligibility criteria for investing in an Aviva Life ULIP plan. It is important to know these conditions and terms before buying an Aviva Life ULIP plan. The investor must also be sure that he or she can afford to take up this investment and follow its requirements without difficulties. Unless an individual is comfortable with the criteria and has the means to follow through with this ULIPO plan, he or she should refrain from buying this investment plan.
At the end of the 10th year for the policy, a loyalty addition is accrued at the rate of 4% and after that, a rate of 2 % every ten years is expressed as a percentage of the currently available fund value.
The total of the applicable premium charges can be re-invested by the investor in other funds. Aviva Life ULIP plan has a total of seven funds from which the policyholder can invest the net premium of applicable charges. The funds are, Bond Fund II, Enhancer Fund II, PSU Fund, Infrastructure Fund, Balance Fund II, Growth Fund II and finally Protector Fund II. Depending on the investor’s choice, any of these funds can be invested in by him or her.
Aviva Life ULIP plans are a great option for investing and generating wealth. The added tax benefits benefit the cause of wealth generation and help increase ones financial infrastructure exponentially. Aviva Life ULIP plans can be used to attain financial means to achieve long-term goals life child education and retirement plans.
Knowing what a plan has to offer is the main prospect of business. Many make the mistake of blindly investing in the first investment product they are offered/ not knowing the details and working of the policy in which you have investing your hard earned money can lead to losses and risks in the future as well as monetary instability. In this light, the above-mentioned points are everything that one needs to know about Aviva Life ULIP plans before finally sealing the deal and purchasing this particular investment product.
By knowing what Aviva Life ULIP plans have to offer, you can make the most out of it. Information about this plan will allow you to decide better whether or not you will be able to follow through and also if this plane is best suited to your particular needs.