Aviva Life Bond Advantage Plan – Overview
Aviva Life Bond Advantage is one of the bestselling, single-premium Aviva Life Insurance ULIP plans. The plan comes packed with a host of benefits and features in order to ensure maximum returns, generous life cover and ultimate tax savings for the policyholder.
This amazing unit-linked insurance plan has been thoughtfully designed to ensure that the nominee of the policy gets higher of the sum assured or the fund value in the event of the death of the life insured. In case the life insured survives the term of the policy, they are liable to receive the fund value as the maturity benefit.
In addition, Aviva Life Bond Advantage Plan comes packed with an in-built accidental death benefit rider to ensure a financially secure future for the designated nominee of the policy. The plan also offers loyalty addition to maximize the returns on investment.
Aviva Life Bond Advantage Plan – Key Highlights
☞ Aviva Life Bond Advantage Plan is a Single Premium ULIP Plan.
☞ The plan offers higher of the fund value or the sum assured in the event of the death of the policyholder.
☞ Top-up is allowed on the plan anytime, except during the last 5 policy years.
☞ The plan comes with an in-built accidental death benefit rider.
☞ The plan offers Loyalty Additions, from the 10th policy year.
☞ Policyholders are allowed to withdraw their money partially after the completion of 5 policy years.
Aviva Life Bond Advantage Plan – Eligibility Criteria
Aviva Life Bond Advantage Plan is available for resident Indians. Read on to get acquainted with the eligibility criteria of the plan:
|Entry Age||2 years||65 years|
|Maturity Age||18 years||75 years|
|Policy Term||10 years||73 years|
|Premium Amount||Rs.50000||No limit|
|Sum Assured||1.25 or 5 times the single premium paid|
|Premium Payment Term||Single Pay|
Aviva Life Bond Advantage Plan – How it Works?
Any resident Indian can buy Aviva Life Bond Advantage plan by furnishing a ‘Declaration of Good Health.’ After buying the plan, one needs to select the single premium amount for the plan. Once done, policyholders are required to select the fund option for investment. There are 9 fund options available under this plan. These 9 investment fund options are:
☞ Bond Fund II
☞ Protector Fund II
☞ Balanced Fund II
☞ Growth Fund II
☞ Enhancer Fund II
☞ PSU Fund
☞ Infrastructure Fund
☞ Index Fund II
☞ Dynamic P/E Fund
In case of the demise of the life insured during the policy term, designated nominee is paid out the death benefit. In the event of the accidental death of the life insured, an accidental sum assured is paid out along with death benefit to the nominee of the policy. Upon survival of the policy term, life insured is paid the total fund value plus loyalty additions, if any.
Aviva Life Bond Advantage Plan – Key Features
Aviva Life Bond Advantage Plan comes with an in-built accidental death benefit rider to make sure that the nominee of the policy isn’t faced with financial troubles in the absence of the policyholder.
The plan allows Partial withdrawals after the completion of 5 years. 4 free Partial Withdrawals are allowed each year up to a maximum of 25% of the current Fund Value. In addition, the minimum balance in the Single Premium Account must not go below Rs 15,000, after the partial withdrawal.
Aviva Life Bond Advantage Plan allows policyholders to switch between funds of their choice, either completely or partially. 12 free switches are allowed every year under this plan. The minimum amount that can be switched is Rs.5000.
The plan also allows for a top-up. The minimum Top-up amount is Rs 5,000 and top-up can be done anytime during the policy tenure, except for the last 5 years. These top-up premiums come with a lock-in period of 5 years and have Sum Assured of 1.25 times the Top-Up Premium paid by the life insured.
There is a grace period of 30 days to make the premium payment.
Free Look Period
The plan allows for a free look period of 30 days of free look period to help policyholders read and understand the terms and conditions of the policy. In case, policyholders don’t agree with the terms and conditions of the plan, they may get the plan canceled within 30 days and get a refund after the deduction of mortality charge, service tax, cess, and stamp duty paid.
Aviva Life Bond Advantage Plan – Non-Payment of Premium
The plan would lapse in case the premium payment is not made within the allowed grace period. In such a case, policyholders have the option to surrender or revive the policy.
Here’s what happens when one surrenders the Aviva Life Bond Advantage Plan:
Surrender before 5 policy years
There is a lock-in period of 5 years. So if one surrenders the policy before the completion of 5 policy years, the insurance cover ceases and the fund value minus the discontinuance charge are transferred to the Discontinued Policy Fund. The discontinued Policy Fund is credited with an interest of 3.5% per year and the funds are paid to the life insured after the completion of 5 years. In the event of the death of the policyholder during this time, the accumulated fund is paid to the nominee of the policy.
After 5 years
In such a case, the total fund value accumulated till the date of discontinuance of the policy is paid to the policyholder and the
policy gets terminated.
The plan allows revival within 2 years from the date of the discontinuance of the premium payment. To revive the policy, one needs to pay the entire outstanding payment and any interests incurred.
Aviva Life Bond Advantage Plan – FAQs
Question 1: What rider options are available under Aviva Life Bond Advantage Plan?
Answer: Aviva Life Bond Advantage Plan offers an in-built accidental death benefit rider where nominee of the policy is paid an additional sum assured upon the accidental death of the life insured.
Question 2: Is there a loan available against Aviva Life Bond Advantage Plan?
Answer: There is no loan available against Aviva Life Bond Advantage Plan.
Question 3: Is there a provision of top-up available under Aviva Life Bond Advantage Plan?
Answer: Yes! The top-up facility is available under the Aviva Life Bond Advantage Plan. The minimum top-up amount is Rs 5,000 and it can be done anytime during the term of the policy, except for the last 5 years. These top-up premium payments have a lock-in period of 5 years and have sum assured of 1.25 times the amount of the top-up premium paid.
Question 4: Are loyalty additions available under Aviva Life Bond Advantage Plan?
Answer: Yes! Loyalty Additions are provided from the end of the 10th policy year onwards.
Question 5: How many investment fund options are available under this plan?
Answer: There are 9 investment fund options available under this plan. These fund options are:
- Bond Fund II
- Protector Fund II
- Balanced Fund II
- Growth Fund II
- Enhancer Fund II
- PSU Fund
- Infrastructure Fund
- Index Fund II
- Dynamic P/E Fund