Key Features of Aviva Live Smart Plan
The key features of this ULIP life insurance plan are as follows:
The policyholder can choose from seven different funds depending on their investment strategy.
The plan allows partial withdrawals as well as systematic partial withdrawals to ensure liquidity.
The policy offers intrinsic Accidental Death Rider which is a great thing to strengthen the protection.
There is a double death benefit in this policy. Both the Fund Value and the Sum Assured are paid out to the beneficiary.
If the policyholder survives until the maturity of the policy, he/she receives the maturity benefit of the policy. The maturity benefit is equivalent to the fund value on the date of the maturity as well as the Loyalty Additions.
Loyalty Additions are received by the policyholder if all due premiums have been paid until maturity. The Loyalty Addition is 1% of the total Fund Value of the regular premiums paid at maturity.
In case of death of the policyholder, the nominee receives the death benefit, which is the higher of :
The Fund value plus the higher of the Base Sum Assured or 105% of the total premium paid
Higher of 105% of the top up premiums paid or the top up sum assured. Added to this, the fund value on the top up premiums is also paid out to the nominee.
In case the policyholder dies in an accident, the nominee gets the accidental death sum assured. The amount of Accidental Death Sum Assured is equivalent to the Base Sum Assured that has an upper limit of Rs. 50 lakhs.
The plan offers seven Unit Linked Funds to choose from, depending on the risk appetite of the policyholder.
The plan also allows partial withdrawals, after the completion of the first five years of the policy. In this, one can withdraw a minimum of Rs. 5000/-.
According to the Income Tax Act section 80(C) and 10 (10D), the policyholder gets to enjoy tax benefits on the premiums paid and on the death benefit as well.
Additional Features or Riders
To revive a lapsed policy, the policyholder needs to submit a reinstatement request, and it can be done within two years from your first unpaid premium. The plan offers the leverage to decrease the sum assured by the policyholder wherever the requirement of the protection goes down.
Following are the Charges Applied to This Policy:
The term offers a Premium Allocation Charge which gets deducted from the premium which is paid by the customer. The balance amount gets into the investments which the policyholder chooses.
Policy Administration Charge gets deducted every month at the very beginning.
Talking about annual charges, we have Fund Management Charge that gets deducted annually at a rate of 1.35% on all funds, excluding the Discontinued Policy Fund.
Mortality Charges get subtracted each month by the cancellation of units from the fund value.
In a policy year, the policyholder is allowed 20 free switches. Besides the free switches, each switch costs 0.5% of the amount switched by the user. This is known as switching charge. The maximum amount permitted is Rs. 500/-per switch.
For those who wish to discontinue the plan before the end of the policy, a Discontinuance Charge will be levied.
Along with these charges, there are miscellaneous charges that are levied on a timely basis in the form of education cess and service tax.
Let us suppose the policyholder commits suicide, within one year of opting for the policy cover, irrespective of the mental condition of the person, the insurance cover becomes null. The Fund Value will be refunded on the date of death.
Any accidental death cover is not given to the person when the death is caused by factors that have a direct or indirect connection to drug abuse, alcohol, inability to seek or follow any medical advice, indulging in communal riots or war, functional or mental disorder, engaging themselves in heinous pastimes, participating in racing, excluding athletics, etc.
The policyholder needs to fill in an `Application form that requires his photo identity proof (PAN Card, Passport or Driving License) along with income proof such as your latest ITR or Form 16 or even your salary slips of last three months.
Policyholder has to fill up an `Application form/ proposal form with accurate medical history along with the details of every group member.