Aviva Freedom Life Advantage allows you to choose the proportion of savings and protection and change it subsequently, in line with your changing needs, with the option to pay premiums for as few as 5 years, through Advantages like:
- Option to increase / decrease Life Cover (Sum Assured)
- Option to cover husband and wife under the same policy
- 100% allocation from sixth year if Annual Premium is Rs. 1 lakh or more
- Inbuilt Accidental Death cover
- Loyalty additions every 3 years from the end of 10th policy year
- Pay off all the premiums in 5 years or choose to pay throughout the term
- Flexibility to choose Life cover
- Enhance maturity proceeds and life cover with Top-up Premiums
- Select from two optional riders for additional protection – Aviva Dread Disease (DD) Rider and Aviva Term Plus Rider
- 8 fund options (Bond-II, Protector-II, Balanced-II, Growth-II, Enhancer-II, Infrastructure, PSU, and Index-II Funds), AAA & STP
Specifications
- Entry age: 2 to 60 years for single life and 18 to 60 years for joint life; (18-55 years and 18-50 years respectively for single life and joint life with riders).
For Joint Life option, both the Life Assureds must be 18 years of age - Policy term:15 to 30 years (maximum age at maturity 75 years)
- Premium payment term: 5 years or same as the Policy Term
- Premium Payment Frequency: Annually, Half-yearly or Monthly
- Annual Premium: Minimum Rs. 25,000 for PPT=PT and Rs 100,000 for PPT of 5 years; No limit on Maximum
- Top-up Premium: Minimum Rs. 5,000; No limit on Maximum
- Fund Options: Bond II, Protector II, Balanced II, Growth II, Enhancer II, Infrastructure, PSU and Index II Funds
- Riders Available: Aviva Dread Disease (DD) Rider, Aviva Term Plus Rider
How to go about your plan:
First Step – Decide the corpus you wish to build for your future and the time when the same should be available. This will influence the choice of premium and the policy term. (Use a “Wealth Planner” calculator to ease in decision making.)
-Policy Term (PT) – 15-30 years, subject to maximum maturity age of 75 years.
Second Step – Choose the level of protection you desire through:
- Cover on single life or joint life
- Level of Life Cover (Sum Assured)
- Riders
- Single and Joint Life Cover Option
Range of Life Cover
For PPT=PT:
Life Cover = (1.05 x PT x Annual Premium) to (2.5 x PT x Annual Premium)
For PPT= 5 years:
Fixed at (10 x Annual Premium) or (0.5 x Policy Term x Annual Premium), whichever is higher
In-built Accidental Death Cover
Optional Riders available:
- Aviva Dread Disease (DD) Rider
- Aviva Term Plus Rider
Third Step – Arrive at the amount of premium you wish to pay, which will be determined by step 1 and 2. Also choose the Premium Payment Term (PPT) and Premium Payment Frequency (PPF) based on your convenience.
- Premium paying term (PPT): 5 years or same as Policy Term
- Minimum Premium: Rs. 10,000 (if PPT=5 Years); Rs 25,000 (if PPT= PT).
No limit on maximum
- (Premium frequency: Yearly, Half-yearly or Monthly)
Fourth Step – Choose the funds you want to invest in depending on your risk appetite.
- Fund Options: Bond-II, Protector-II, Balanced-II, Growth-II, Enhancer-II, Infrastructure, PSU and Index-II Funds
- Automatic Asset Allocation (AAA) and Systematic Transfer Plan (STP)
Benefits
Death Benefit:
- In the unfortunate event of your death, the amount of Life Cover or Fund Value, whichever is higher, shall be payable to the nominee along with accrued Loyalty Additions (if any).
- Life Cover or Fund Value, whichever is higher, pertaining to top-up premiums, if any, shall also be payable.
- In case of death due to an accident between age 18 to 60, an additional amount under the in-built Accidental Death cover shall also be paid.
Rider Benefit:
Additional benefits are payable if the following riders are opted on the life of the Life Insured:
- Aviva Dread Disease (DD) Rider: additional amount equal to Aviva DD Rider Sum Assured is payable if you contract any of the 18 Critical illnesses covered or on Permanent Total Disability due to an accident or illness. This rider payout does not impact benefits payable under the base plan.
- Aviva Term Plus rider: an additional amount equal to the Aviva Term Plus Rider Sum Assured is paid on death of insured.
Loyalty Additions:
- You will be eligible for loyalty additions, if you continue paying all due premiums.
- The addition will be 3% of Fund Value at the end of year 10 and 1.75-2% of Fund Value at the end of every subsequent 3rd policy anniversary till the end of the Policy Term
Maturity Benefit:
- On maturity, the Fund Value pertaining to both regular premiums and top-up premiums will be paid to the policyholder along with accrued Loyalty Additions, if any as on the maturity date.
- Settlement option – This allows you to keep the money invested in the fund even after maturity and enables you to receive the same systematically over a period of 1 to 5 years. You can opt for this option at maturity.
Tax Benefit:
- The Policy offers tax benefits as per the prevailing laws of the Income Tax Act, 1961. Tax laws are subject to change
Benefit illustration
This illustration is for a male aged 35 years, opting for minimum Sum Assured, pays premiums yearly and invests 100% into the Enhancer Fund-II (Premium Paying Term = Policy Term) and does not opt for the riders.
| Annual premium (Rs) | Sum Assured (Rs) | Policy Term (years) | Gross Investment Return (%) | Projected Fund Value at Maturity (Rs) | Yield net of charges (% p.a.) |
|
25,000 |
1,25,000 |
20 |
6% |
823,804 |
4.54% |
|
10% |
1,304,316 |
8.45% |
|||
|
30 |
6% |
1,697,005 |
4.85% |
||
|
10% |
3,556,049 |
8.78% |
|||
|
50,000 |
2,50,000 |
20 |
6% |
1,694,710 |
4.79% |
|
10% |
2,682,700 |
8.68% |
|||
|
30 |
6% |
3,490,256 |
5.00% |
||
|
10% |
7,312,827 |
8.92% |
|||
|
1,00,000 |
5,00,000 |
20 |
6% |
3,442,605 |
4.93% |
|
10% |
5,452,201 |
8.81% |
|||
|
30 |
6% |
7,086,910 |
5.09% |
||
|
10% |
14,857,152 |
9.00% |
|||
|
2,00,000 |
10,00,000 |
20 |
6% |
6,944,464 |
5.00% |
|
10% |
11,003,933 |
8.89% |
|||
|
30 |
6% |
14,290,344 |
5.13% |
||
|
10% |
29,976,571 |
9.04% |
Policy charges:
The policy will attract charges under various heads. The details of the same are given below:
| Charges for | Year 1 | Year 2-5 | Year 6 onwards |
| Premium Allocation | 6% | 4% | 0-2%# |
| Fund Management | 1.35% p.a. across all funds | ||
| Policy Administration | 0.1% of annual premium per month subject to a maximum of Rs 400 p.m. throughout the Policy Term | ||
| Mortality | Refer to the policy brochure | ||
Note: This depends on the amount of Premium Paid every year
For further details, please refer to the policy brochure
Rider premiums depend on the rider and the cover chosen. Rider premiums are collected in addition to the base plan premiums
Complete withdrawal is allowed after 5 policy years
Get more information about insurance
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Tags: Aviva Freedom Life Advantage, Aviva Life, aviva life insurance