Aviva iGrowth ULIP Plan Overview
Aviva iGrowth is one of the most sought-after and bestselling unit-linked insurance plans in India. This amazing plan comes packed with the dual benefit of investment and insurance. iGrowth plan consistently ranks alongside the best ULIP plans in India that charge minimal fund allocation and mortality charges on the policy. In addition, the plan offers some of the best investment fund options available in the market today to ensure attractive and higher returns on investment. In addition, the plan offers comprehensive life insurance coverage to ensure future financial security for the life insured and their loved ones.
Aviva iGrowth Plan – Key Highlights
☞ The plan doesn’t mandate buyers to undergo a medical check-up. Interested people can simply buy this plan online by submitting a ‘Declaration of Good Health.’
☞ The plan has provisions of adding loyalty additions to maximize the return on investment for life insured and nominees of the plan. Loyalty additions are added to the overall fund value of the plan in the last three years of policy term.
☞ The plan comes with an in-built accidental death benefit rider. So in the event of the accidental death of the life insured, nominees of the plan are paid an additional Sum Assured with the maturity proceeds.
☞ The plan helps investors take their pick from three of the best fund options depending upon their risk tolerance and future investment goals.
☞ The plan charges as low as 1% on the policy in order to ensure highest and attractive returns on investment.
Aviva iGrowth Plan – Eligibility Criteria
Aviva iGrowth Plan is available for resident Indians. Listed below are the eligibility criteria of the plan for those planning to invest their hard-earned money in this amazing ULIP plan from Aviva Life Insurance Company:
|Entry Age||18 years (last birthday)||50 years (last birthday)|
|Maturity Age||–||60 years (last birthday)|
|Policy Term||10, 15 or 20 years|
|Premium amount||Rs.35, 000||Ages 18-40 years – Rs.5 lakhs|
Ages 41-50 years – Rs.3 lakhs
|Sum Assured||10/20 X annual premium (max Rs.3.5 lakhs)||Ages 18-40 years – Rs.50 lakhs|
Ages 41-50 years – Rs.30 lakhs
|Premium Payment Term||10, 15 or 20 years|
|Premium Paying Frequency||Yearly, half-yearly, quarterly or monthly|
Aviva iGrowth Plan – How it Works?
As discussed already, the plan is available for any resident Indian citizen online and can be bought easily by submitting a ‘Declaration of Good Health.’ After buying the plan, policyholders need to choose the premium amount they wish to pay for the plan. In addition, policyholders are also required to choose the fund option where they want a part of their premium payment to be invested. There are 3 fund options available to choose from. These options are:
☞ Balanced Fund II
☞ Bond Fund II
☞ Enhancer Fund II
In the event of the death of the policyholder, during the term of the plan, the nominee of the policy is paid out the death benefit. In case of accidental death of the policyholder, during policy tenure, an accidental sum assured is paid out along with other benefits to the nominee of the policy. If the life insured survives the term of the policy, maturity benefits, along with loyalty additions, are paid out.
Aviva iGrowth Plan – Benefits
On the maturity of the plan, policyholders are paid out the Fund Value plus the Loyalty Additions accrued.
In the event of the death of the policyholder, higher of the following is paid out along with the accrued Loyalty Additions:
☞ Total Sum Assured
☞ 105% X total premiums paid till death
☞ Fund Value as on the date of death
Accidental Death Benefit
In the event of the accidental death of the life insured, an additional sum assured, equal to the base sum assured subject to a maximum amount of Rs.50 Lakh, is paid to the nominee in addition to the regular death benefits.
As Aviva iGrowth Plan is essentially an investment-insurance product, the bonus is not declared. However, the plan is known to reward investors with a lucrative bonus in addition to other benefits.
Loyalty additions are added to the total fund value of the plan in the last 3 policy years provided all premium payments have been paid on time. The rate of loyalty additions largely depend upon the term of the plan and are as follows:
|Policy term||Loyalty Additions Rate|
Income Tax benefit
Since Aviva iGrowth plan is an insurance product, the premiums paid under the policy are subject to tax exemption under Section 80C of the Indian Income Tax Act for a maximum of Rs.1.5 Lakhs. In addition, the death benefit and the maturity proceeds of the policy are tax-exempt under Section 10(10D).
Aviva iGrowth Plan – Key Features
Aviva iGrowth Plan features an in-built accidental death benefit rider in order to ensure a financially secure future for the nominee of the policy.
The plan allows partial withdrawal after the completion of 5 policy years. In addition, policyholders are allowed to make 4 free withdrawals in one year under this plan and the minimum amount for partial withdrawals is Rs.5000.
Aviva iGrowth Plan allows policyholders to switch between funds of their choice, either completely or partially. Policyholders are allowed to make 12 free switches under the plan. After the 12 free switches, charges of 0.50%, subject to a maximum of Rs.550, of the amount switched is levied.
This is yet another brilliant feature that Aviva iGrowth plan offers to its policyholders. This feature helps policyholders redirect premium to their chosen fund. The plan allows 2 premium redirections in a year.
Sum Assured Reduction
The plan also allows policyholders to reduce their total sum assured after the completion of 3 policy years. In order to avail this feature, policyholders must make sure that their chosen sum assured was 20 times the premium initially.
The plan offers a grace period of 30 days payment of premium for yearly, half-yearly and quarterly premium payment. In case of monthly premium payment mode, a grace period of 15 days is allowed to make the premium payment.
Free Look Period
After buying the policy, a policyholder is given 30 days of free look period to carefully review the terms and conditions of the plan. In case policyholders do not agree with the terms and conditions of the plan, they can cancel the policy and get their refunds. Here it is important to remember that the refund is made after the deduction of mortality charge, service tax, cess and stamp duty paid.
Aviva iGrowth Plan – Applicable Charges
Aviva iGrowth Plan is known to charge the lowest possible fees. Let’s look at some of the charges applicable under the plan:
Premium Allocation Charge
This is a charge for allocating the premium payment to the fund of choice of investors. Premium allocation charge is deducted every month on the receipt of the premium before it is allocated to the chosen fund. Let’s understand the quantum of premium allocation charge under the plan:
|Years||Policy Term (10 and 15 years)||Policy tenure (20 years)|
|1st to 4th year||5.00%||4.00%|
|6th year onwards||Nil||Nil|
Policy Administration Charge
Policy administration charges are the charges incurred towards the administration of the plan. The plan incurs a monthly charge of 0.10% of the annual, deducted from the fund value, towards policy admin charges, each month. After the completion of 5 policy years, these charges increase to 0.30% of the yearly premium. However, the maximum limit of deduction for policy administration charge is Rs.400 per month.
Fund management Charge
Fund management charges are charged for management of the funds chosen by the policyholder. These charges incur on a daily basis. Here a table to understand how fund management charges are charged:
|Balanced Fund II||1.35% Yearly|
|Bond Fund II||1.35% Yearly|
|Enhancer Fund II||1.35% Yearly|
|Discontinuance Policy Fund||0.50% Yearly|
This charge is applicable on the policy where premiums have been discontinued. These charges are:
|Discontinuance Year||Yearly Premiums (> Rs.25000)|
|1st year||Lower of fund value (up to max Rs.6000) or 6% of yearly premium|
|2nd year||Lower of fund value (up to max Rs.5000) or 4% of yearly premium|
|3rd year||Lower of fund value (up to max Rs.4000) or 3% of yearly premium|
|4th year||Lower of fund value (up to max Rs.2000) or 2% of yearly premium|
|5th year onwards||Nil|
Mortality charge is incurred each month and depends upon the sum assured and the age of the policyholder.
For any other services, modifications or changes to the plan, a miscellaneous charge of Rs.100 is incurred.
Aviva iGrowth Plan – Exclusions
Let’s look at some of the exclusions of Aviva iGrowth Plan:
☞ In case the life insured commits suicide in the first twelve months of the start or renewal of the plan, the available Fund Value is paid to the designated nominee of the policy.
☞ The accidental death benefit is not paid out if the policyholder meets with an accident due to the influence of alcohol, drugs or due to radiation, war, civil commotion, non-compliance of medical advice. In addition, death due to self-inflicted injury, infection, criminal acts, or due to partaking in hazardous sports and hobbies is also not covered under accidental death. Furthermore, accidental death due to diseases or medical conditions for which the policyholder was given medical treatment at least 48 months before the start or renewal of the policy is also excluded from the policy.
Aviva iGrowth Plan – Non-Payment of Premium
The plan would lapse if the premium payment is not made within the grace period. Policyholders can choose to convert the policy into a paid-up policy. Alternatively, life insured can also surrender or revive the policy.
Policyholders can choose to convert their policies into paid-up policy provided premiums have made regularly for 5 policy years. Once converted, the policy acquires paid up value. The pad up value is equal to the Sum Assured X (number of Premiums Paid / total number of premiums payable).
The inbuilt accidental death benefit is also reduced in case the policy is paid-up. In addition, paid-up policy also attracts charges for accidental death riders, Fund management Charges, Policy Administration charges, and mortality charges.
After the completion of 5 policy years, policyholders can choose to surrender their policy provided all premium payments have made on time. Here’s what happens when one surrenders the policy:
In the first 5 policy years
Aviva iGrowth plan comes with a lock-in period of 5 years. In case a policyholder stop paying the premium in the first 5 policy years, the funds accrued in the fund value are transferred to the Discontinuance Policy Fund after deduction of Discontinuation charges. The funds would earn a minimum interest of 4%. These funds remain in the Discontinuance Policy Fund for the tenure of the minimum lock-in period. In addition, fund management charges are deducted as applicable. After the completion of 5 policy years, the available fund value is paid to the policyholder. In case of the demise of the policyholder, the fund value as on the date if the death of the policyholder is paid to the nominee of the policy.
After 5 years
If the policyholder chooses to surrender the policy after the completion of first 5 years of the policy, the available fund value is paid to the policyholder and no charges are deducted from the policy.
Policyholders can choose to revive their policy within 2 years from the date of the first unpaid premium. In order to revive the policy, policyholders are required to pay the outstanding premium payment and any interests incurred on the same.
Aviva iGrowth Plan – FAQs
Question 1: What rider options are available under Aviva iGrowth Plan?
Answer: Aviva iGrowth Plan comes with an in-built accidental death benefit rider.
Question 2: Do I need to undergo a medical test to buy Aviva iGrowth Plan?
Answer: Aviva iGrowth Plan doesn’t mandate to undergo medical examinations in order to buy the plan. Instead, the plan allows buyers to fill up a self-declaration of good health when purchasing this plan.
Question 3: How much do I need to pay as the fund management charges under Aviva iGrowth Plan?
Answer: Aviva iGrowth Plan is one of the best ULIP plans available in the market that comes with the lowest fund management charges. The maximum fund management charges under this plan are 1.35%.
Question 4: Is there a provision of loan against this plan?
Answer: No! Loan facility is not available with Aviva iGrowth Plan.
Question 5: Is there a provision of loyalty addition under this plan?
Answer: Yes! Aviva iGrowth plan accumulates Loyalty Additions in the last 3 years provided the premium payments have been made on time. The rate of the Additions depends on the term of the plan:
|Policy term||Loyalty Additions Rate|