Aviva Young Scholar Advantage Plan – Overview
Aviva Young Scholar Advantage is one of the best unit-linked insurance (ULIP) plans in India that has been carefully designed to ensure an iron-clad and financially strong future for a child where the parent is the life insured.
Though the plan doesn’t offer life coverage to the child, it makes sure that the child isn’t faced with financial troubles in the event of the unfortunate demise of the parent (life insured). In the event of the death of the policyholder, the child is paid out the Sum Assured. All the premium payments, thereafter, are borne by Aviva Life Insurance Company in order to make sure that the Fund Value is also paid out upon the maturity of the policy.
Aviva Young Scholar Advantage Plan – Key Highlights
☞ The plan comes with 3 different rider options in addition to its inbuilt accidental death benefit rider.
☞ Loyalty additions are added to the total fund value after 11 years of the policy.
☞ The plan comes packed with 2 different investment options – Systematic Transfer and Automatic Allocation of Fund Options.
☞ 9 different investment fund options are available under the plan.
☞ The top-up premium option is available for those who wish to make an additional premium payment towards their selected investment funds.
Aviva Young Scholar Advantage Plan – Eligibility Criteria
The plan is available for all Indian residents. Here are the eligibility criteria for Aviva Young Scholar Advantage plan:
|Entry Age||21 years||50 years|
|Entry Age (Child Nominee)||0 years||17 Years|
|Maturity Age||–||70 years|
|Policy Term||10 years||25 years|
|Sum Assured||0.5 x Policy Term x Annual Premium, or|
10 x Annual Premium,
whichever is higher
|2.5 x Policy Term x Annual Premium|
|Premium Payment Term||5 years||Equal to Policy Terms|
|Premium Paying Frequency||Yearly, Half-yearly and Monthly|
Aviva Young Scholar Advantage Plan – How it Works?
Aviva Young Scholar Advantage Plan is available for any resident Indian citizen. The plan can be bought online and there is absolutely no need to go for a medical test to purchase this amazing ULIP plan from Aviva Life Insurance Company.
Policyholders buying this plan need to choose the premium payment they wish to make and select the fund options they wish their premium payments to be invested into. There are 9 different fund options available under this plan to choose from. These 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 death of the policyholder during the policy term, child (nominee) of the policy is paid out the death benefit. And in the event of the accidental death of the life insured, the nominee is paid out the accidental sum assured along with the death benefit. Upon survival, the life insured is paid the total fund value plus the loyalty additions (if any).
Aviva Young Scholar Advantage Plan – Benefits
Accidental Death Benefit Rider Benefit
Aviva Young Scholar Advantage Plan comes loaded with an in-built accidental death benefit rider, which ensures that the nominee of the policy gets the accidental death sum assured along with regular death benefits.
Additional Rider Benefits
In addition to the inbuilt accidental death benefit rider, the plan offers options of 3 additional rider options. These rider options are:
- Child Education Rider– This rider option offers a monthly benefit to the nominee after the death of the life insured.
- Comprehensive Health Benefit Rider– This rider benefit provides coverage against total and permanent disability and 18 critical illnesses.
- Term Plus Rider– This rider option help increase the quantum of life coverage beyond the typical Sum Assured offered by the plan.
In the event of the death of the life insured (parent), the nominee (child) gets the Sum Assured plus Loyalty Benefit as Death Benefit. Also, the premiums payments due in the future are paid by Aviva Life Insurance Company in a lump sum. In addition, the Fund Value is also provided upon the maturity of the policy.
Upon the maturity of the policy, the total Fund Value is paid out to the life insured.
Income Tax Benefits
Premium payments made under the policy are tax exempt for a maximum of up to Rs.1,50,000. In addition, the maturity and death benefits are also allowed as a deduction from the taxable income each year under section 10(10D).
Aviva Young Scholar Advantage Plan – Key Features
There are two different investment options available under the plan – Systematic Transfer Strategy and Automatic Asset Allocation.
The plan allows policyholders to make top-up premium payments as per their discretion. These top-up premium payments can be done anytime during the policy, except for the last 5 policy years. The minimum top-up premium payment allowed is Rs.5000 and it has a lock-in period of 5 years. In addition, the top-up sum assured is 1.25 times the Top-Up Premium payments.
The plan also allows options for switching funds completely or partially. 12 free switches are provided under the plan and the minimum amount that can be switched is Rs.5000.
The plan also allows partial withdrawals upon the completion of 5 policy years. Each year, 4 partial withdrawals are allowed up to a maximum of 25% of the current fund value. The amount of minimum partial withdrawal amount allowed under the policy is Rs.5000.
There is a grace period of 15-30 days for making the premium payment. In case, the policyholder doesn’t make the premium payment even after the grace period, the policy would lapse.
Free Look Period
Policyholders are allowed 30 days of free look period in order to understand and get acquainted with the terms, conditions and other aspects of the plan. In case, one doesn’t agree with the terms and conditions or doesn’t like some aspect of the plan, they may choose to get the plan canceled within 30 days and get their refund after deduction of mortality charge, service tax, cess and stamp duty.
Aviva Young Scholar Advantage Plan – Non-Payment of Premium
Here’s what happens in the event of non-payment of the premium.
Before Completion of 5 Years
There is a lock-in period of 5 years for Aviva Young Scholar Advantage Plan and if someone stops making premium payments before the completion of 5 policy years, the policy lapses and the fund value is transferred to the discontinued policy fund account after the deduction of discontinuance charge. The Discontinued Policy Fund attracts a minimum interest rate of 3.5% per annum. The proceeds are paid out to the policyholder after the completion of 5 policy years. In the event of the death of the policyholder, the accumulated fund value is paid out to the nominee of the policy.
After Completion of 5 years
If the policy discontinued after the completion of 5 policy years, the total accumulated fund value till the date of discontinuance of the policy is paid to the policyholder and the policy is terminated thereafter.
It is easy to revive the policy. 2 years from the date of the first unpaid premium are allowed to revive the policy. To revive the policy, policyholders must pay the outstanding premium payment and any interests incurred.
Aviva Young Scholar Advantage 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. In addition, there are 3 additional rider options available for policyholders. These rider benefits are:
- Child Education Rider
- Comprehensive Health Benefit Rider
- Term Plus Rider
Question 2: Is it mandatory to undertake medical check-ups to buy Aviva Young Scholar Advantage Plan?
Answer: No, it is not mandatory to undertake medical check-ups to buy Aviva Young Scholar Advantage Plan. Instead, policyholders can submit a duly filled and signed self-declaration of good health in order to buy the plan.
Question 3: When are the loyalty additions added to the total fund value of the plan?
Answer: Loyalty Additions are added to the total fund value of the plan from the end of the 11th policy year onwards.
Question 4: Is it possible to take a loan against this plan?
Answer: No, this plan doesn’t allow for a loan facility. Therefore, one cannot take loans against this policy.
Question 5: What investment options are available under this plan?
Answer: There are 2 different investment options available under this plan. These investment options are:
- Systematic Transfer
- Automatic Allocation of Fund Options