Aviva Life Insurance launches retirement income plan: Check details
Source: Business Standard
Aviva Life Insurance has introduced a non-linked, non-participating life insurance savings plan that the company says will provide retirees with a “steadily growing” income stream.
The Aviva Signature Increasing Income Plan provides policyholders with a monthly payout that grows by 15 per cent every three policy years. The feature is designed to keep up with inflation and help customers maintain their purchasing power in retirement, according to the company.
Key features of Aviva Signature Increasing Income plan
The plan’s key feature is its regular, inflation-beating income payouts. These payments increase every three years, helping customers maintain financial security.
Policyholders can opt to receive future payouts in a lump sum at a discounted rate, offering flexibility for those who need larger sums at once.
In case of the policyholder’s death, beneficiaries are guaranteed a benefit and a monthly income.
If the life assured passes away On a policyholder’s death, Aviva covers all future premiums, ensuring loved ones continue to receive the promised benefits without financial strain.
Policyholders can enhance their coverage by opting for riders that provide additional payouts for accidental death or critical illness.
The plan qualifies for tax benefits under Sections 80C and 10(10D) of the Income Tax Act, making it a tax-efficient way to save for the future.
Policyholders can take a loan against the policy once it acquires a surrender value, providing liquidity when needed.
Maturity benefit
If the policyholder survives until the policy’s maturity, a guaranteed monthly income begins from the maturity date, continuing throughout the payout period. Notably, the maturity benefit is paid out even if the life assured is no longer alive. At the end of the payout period, 105 per cent of the total premiums paid is returned to the policyholder, creating an additional financial buffer.
Aviva offers a 30-day ‘free look’ period, during which policyholders can cancel their policy and receive a refund, making the plan low-risk for new customers. Furthermore, there are flexible premium payment options, and policyholders can switch between monthly, quarterly, half-yearly, and yearly payment modes at any policy anniversary.
First Published: Sep 11 2024 | 1:52 PM IST
