Aviva New Family Income Builder is a traditional saving-cum insurance plan specially designed to provide financial assistance in the form of guaranteed returns and ensures annual cash inflow. The policy ensures that the lifestyle and financial situation of the families of the policyholders are also protected in the unfortunate event of the demise of the policyholder.
On survival until the end of the policy term when the policy matures, the Life Insured receives the Maturity Sum Assured or the Maturity Benefit. The Maturity Benefit is payable in two ways:
The policyholder receives twelve annual installments of 1.5 times the annual premium, at the end of each policy year during the payout period.
The policyholder receives a lump sum amount of six times the annual premium at the end of the payout period.
If the person whose life is insured passes away during the payout period, the nominee receives the balance outstanding payouts.
In the unfortunate event of the demise of the policyholder, the nominee receives a Death Benefit. Death Benefit is higher of ten times the annualized premium, or the Maturity Sum Assured or 105% of the premiums paid, or the Sum Assured of the policy.
The nominee receives the Sum Assured in the following ways:
The Sum Assured is paid in twelve annual installments of 1.5 times the annual premium. The first installment is paid when the claim is being settled, and the balance eleven installments are paid on each death anniversary of the Life Insured.
The nominee receives a lump sum amount of six times the annual premium along with the twelfth annual installment on the eleventh death anniversary of the Life Insured.
Tax benefits are available as per sections 80(C) and 10 (10D) of the Income Tax Act.
Additional Features or Riders
The revival of a lapsed policy is possible if the policyholder submits a request for reinstatement within a timeframe of two years from the date of the first unpaid premium. The policyholder will have to pay all due premiums plus interest and a revival charge of Rs. 250. Sufficient evidence of insurability also has to be provided.
If the policyholder pays all premiums for three policy years and subsequently does not pay any more premiums even within the Grace Period, the policy will acquire Paid-up Value.
The term insurance cover is void if the person insured, whether sane or insane at the time, commits suicide within one year from the start of the policy cover. The company will refund 80% of the premiums paid as on the date of death. In case of the suicide occurring within a year of policy reinstatement, the company will refund the highest of 80% of the premiums paid or the Surrender Value.