Aviva Life Insurance on March 16, 2023 announced the launch of Aviva New Innings Pension Plan.
It is a non-linked and non-participating individual pension plan that offers three policy terms of 16, 18 and 20 years, with premium payment terms of 5, 10 and 8 years, respectively. The 20-year term also offers a single premium payment term.
The plan has been designed to build a retirement corpus through one-time or regular premium payments, which can be utilised to secure a guaranteed stable income stream in the form of annuity after retirement, the insurer announced in a press statement.
It will provide customers with an opportunity to receive a corpus of up to 336 per cent of premiums paid, on maturity. It also provides hassle-free purchase with no medical examination, the insurer added.
The minimum and maximum entry ages for the 16, 18 and 20 year terms are 39 and 64 years, 37 and 62 years, and 35 and 60 years, respectively. The minimum and maximum maturity ages are 55 years and 80 years since last birthday.
The premiums can be paid in monthly, quarterly, half-yearly, or annual basis and even on a single-term basis for a single premium payment policy. The minimum annualised premium is Rs 50,000 for the regular plan, and Rs 1.5 lakh for the single premium plan, the insurer said.
The death benefit has been kept at 105 per cent for the first year for all plans. For the 16 and 18 year terms, they have been kept at 230 per cent if death occurs in the 16th and 18th year, respectively. For the 20-year policies, the death benefit has been kept at 270 per cent and 350 per cent for the regular plan and the single-premium plan, respectively, if death occurs in the 20th year of the policy term.
Additionally, the policy also offers maturity benefits and options on vesting, along with guaranteed surrender value.
“In case the life insured survives till vesting date, the maturity sum assured shall be payable, provided the policy is in-force and all due premiums have been paid till maturity date,” the insurer said in a product brochure.
“A single premium policy can be surrendered anytime during the policy term. A limited premium policy can be surrendered anytime provided at least two years’ premiums have been paid. Surrender value payable will be greater of the guaranteed surrender value and special surrender value,” the insurer further said in the product brochure.
There are also tax benefits under Section 80C and Section 10 (10A) (iii) of the Income-tax Act, 1961.
According to the insurer, the plan offers “better returns for policyholders aged 51 years and above, making it an ideal choice for those planning for retirement. With its flexible entry age and premium payment options, the plan allows customers to customise their retirement plan according to their needs and financial goals.”
Vinit Kapahi, head of marketing, Aviva Life Insurance said in a statement: “At Aviva India, we understand the importance of early retirement planning and the benefits of compounding effects for a financially sound future. Aviva New Innings Pension Plan aims to promote early pension corpus planning and help customers achieve financial security during their golden years. With a variety of premium payment options and the potential to earn higher returns, our policyholders can trust that their investment will help them achieve their retirement financial goals.”
