Aviva Annuity Plus is a single premium non-linked, non-participating immediate annuity plan. Under this traditional annuity plan, the pension starts immediately after the plan begins. It provides lifetime annuity to its customers. The regular income provided under this plan helps retirees maintain their lifestyle and financial independence.
Aviva Annuity Plus Insurance Plan Details
Why Immediate Annuity?
Annuity plans provide regular payments (like a pension), thus, it can be used as your potent retirement strategy. If you wish to avail this plan, you have to pay a lump sum amount at the beginning of the plan to receive annual payments in the form of Annuity for the rest of your life. Hence, the most significant benefit of this plan is that you would start receiving the payment immediately without having to wait. You can also choose to receive the payment after your death in order to help your family meet the financial requirements. By paying a lump sum amount, one can avail the benefits of Aviva Annuity Plus for lifelong security.
Eligibility
| Particulars | Minimum | Maximum |
| Purchase Price of Annuity | Rs. 25,000 | No Limit |
| Annuity Payout | Rs. 500 | No Limit |
| Premium Payment Term | Single | Single |
| Entry Age of Aviva Pension Holders | 18 years | 80 years |
| Entry Age of nominees of deceased Aviva Pension Holders | 0 years | 80 years |
| Entry Age for others | 50 years | 80 years |
| Payment modes for Annuity | Yearly, Half-yearly, Quarterly or Monthly | Yearly, Half-yearly, Quarterly or Monthly |
Features
- Aviva Annuity Plus Plan is an immediate pension plan
- The policy offers 7 annuity options
- Policyholders receive guaranteed annuities for life
- Annuity may be paid quarterly, half-yearly or yearly
- No medical proofs or documents are required to avail this plan
- Policyholders are entitled to tax benefits under Section 10 (10D) and 80C of Income Tax Act
- Grace Period: There is no Grace Period in this plan, as it is a single premium plan.
- Policy Termination of Surrender Benefit: There is no Surrender Benefit in this policy. If and when the policy terminates as per the chosen option, the nominees do not receive any benefit. The policy terminates in case the annuitant dies during the guaranteed period.
- Free Look Period: The policy offers a Free Look Period of 15 days, which starts from the date of receiving the policy documents. If the policy was sold via distant marketing, the Free Look period will be 30 days. In case the policyholder does not agree with the terms and conditions and wishes to discontinue the policy, he can do so within the Free Look Period. In case, the payment has been done, the company refunds the Single Premium received after deducting the stamp duty charges.
What are the Annuity Options available under Aviva Annuity Plus?
Life Annuity
- Annuity is paid immediately from the next installment.
- Continues till the death of the Annuitant.
- Nothing further is payable on or after death.
Annuity Guaranteed for 5 years and Life thereafter
- Annuity is paid for first five years , till death if the Annuitant.
- However, if the annuitant dies before five years of annuities paid, the annuity till the 5th year is paid to the nominee after which, the policy terminates.
- In case the annuitant survives the guaranteed period, annuity is valid till the annuitant survives.
Annuity Guaranteed for 10 years and life thereafter
- Annuity is paid for 10 years till death of the annuitant.
- However, if the annuitant dies before 10 years, the annuity is paid to the nominees till the end of the 10th year, after which the policy terminates.
- On surviving the guaranteed period, annuity is applicable till the annuitant survives.
Annuity Guaranteed for 15 years and life thereafter
- Annuity is paid for 15 years without considering the survival of the annuitant.
- However, if the annuitant dies before 15 years, the annuity is paid to the nominee till 15th year, after which the policy terminates.
- In case the annuitant survives the guaranteed period, the annuity continues as long as the annuitant survives.
Increasing Annuity
- Annuity is paid till the annuitant is alive at an increasing rate of 3% per annum, and nothing is payable to the nominee on the death of the annuitant, and the policy terminates.
- Annuity may be paid quarterly, half yearly or yearly. It starts from the next possible interval as chosen.
Life Annuity with Return of Purchase Price
This option helps the Annuitant get annuity throughout lifetime.
On the death of the Annuitant, the nominee is paid the Purchase Price of the annuity (excluding taxes).
Joint Life Last Survivor Annuity
Both the spouses are Annuitants under this option.
Payment will be made till one of the two Annuitants is alive (Joint Life Last Survivor).
Documents Required to purchase Aviva Annuity Plus
- Filled application form
- Photo ID proof – PAN card, passport, driving license
- Proof of income (salary slips, copy of latest ITR or Form 16)
Benefits of Aviva Annuity Plus
Death Benefit
In case of the death of the Annuitant, the payment depends on the pension option chosen:
Annuity for Life: Pension stops when Annuitant dies, and nothing would be paid further to the nominee.
Annuity Guaranteed for Certain Period: 1. During the Guaranteed Period – Pension is paid to the nominee till the end of the guaranteed period after which it stops. 2. After the Guaranteed Period – Pension stops when Annuitant dies and nothing further would be paid to the nominee.
Increasing Annuity
Pension stops when Annuitant dies. Nothing further would be payable to the nominee.
Maturity Benefit
Being an Immediate Annuity Plan, this plan offers no Maturity Benefit.
Income Tax Benefit
Premiums paid under the life insurance policy are exempted from tax under
Section 80 CCC. Pension that is received is taxable.
Increasing the Annuity Amount
- If the policyholder buys Annuity from the Maturity Value of their pension policy, then he/she has the option of enhancing the purchase price by adding a lump sum amount from existing savings. The increase in the Purchase Price enhances the annuity amount.
- A multiplying factor multiplies the annuity rate in this policy in order to arrive at the final annuity amount that is paid based on the mode of annuity payment.
- The mode of annuity payment can be changed on any policy anniversary by submitting a written request 45 days prior to the anniversary date of the policy.
Exclusions under Aviva Annuity Plus
The Annuity Benefit or Death Benefit is paid to the nominee if the annuitant commits suicide within one year of the date of policy commencement. In case the Life Annuity Option or the annuity for life increasing at 3% per annum simple or Joint Survivor Annuity Option, no death or annuity benefit is paid to the nominee.
FAQs
Q1. What happens if I stop paying the premium?
As Aviva Annuity Plus Plan is a single premium plan, there is no question of stopping further premiums.
Q2. In case I want to surrender the policy, what is the surrender value?
There is no Surrender Value for this plan, and it cannot be paid. There is no Surrender Benefit in this policy. If and when the policy terminates as per the chosen option, the nominees do not receive any benefit. The policy terminates in case the annuitant dies during the guaranteed period.
Q3. How much should I pay to buy Aviva Annuity Plus Plan?
The minimum purchase price is Rs.25,000, and there is no upper limit.
Q4. Can I take a loan against my policy?
No loan facility is available under this plan.
Q5. Is any rider available with this plan?
No riders can b opted under this plan.
Q6. What is the Free Look period under this plan?
The policy offers a Free Look Period of 15 days, which starts from the date of receiving the policy documents. If the policy was sold via distant marketing, the Free Look period will be 30 days. In case the policyholder does not agree with the terms and conditions and wishes to discontinue the policy, he can do so within the Free Look Period. In case, the payment has been done, the company refunds the Single Premium received after deducting the stamp duty charges.