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Aviva Life Pension Plans

Aviva Life Insurance Company India Limited is a leading insurance company offering quality life insurance products in order to safeguard the financial needs of its customers. One of the pioneering products of Aviva Life Insurance Company is the Aviva Life pension plans. Leading a comfortable lifestyle after retirement is a dream of every working individual. Aviva realizes this need and has designed a product called the Aviva Next Innings Pension plan that guarantees regular flow of income during the post-retirement years. The Aviva Next Innings Pension Plan helps to build a lump-sum corpus that can be utilized for leading a comfortable lifestyle during the post-retirement years.

What are Pension Plans?

Pension Plans, also known as Retirement plans, are insurance products designed to offer the investor with investment and insurance cover benefits to safeguard their financial needs that arise during the golden years of their life i.e. post-retirement. Pension plans are designed in such a manner that they offer financial aid to combat inflation, healthcare cost and satisfy monetary needs. The pension plan helps in building retirement corpus by investing regularly or one-time.

Aviva Next Innings Pension Plan is a non-linked non-deferred pension plan that helps in building retirement corpus by either investing in this pension plan for a limited period of time or through one-time investment as per the convenience of the customer. The Aviva Next Innings Pension Plan helps in getting an uninterrupted inflow of income in the golden years of your life. Let us see what features are offered by the Aviva Next Innings Pension Plan.

Features of Aviva Next Innings Pension Plan

The Aviva Next Innings Pension plan focuses on offering numerous unique features to the customers. This pension plan is designed to offer financial support to you and your family members during the golden phase of retired life. Following are the unique features offered by Aviva Next Innings Pension Plan:

  • Lump Sum Corpus: The Aviva Next Innings Pension Plan assures the investor a guaranteed amount equivalent to 210% of the total premiums paid till the maturity date of the pension plan. The lump sum guaranteed amount of corpus can be utilized for fulfilling financial needs arising in the retirement years.
  • Financial security: Investing in the Aviva Next Innings Pension Plan ensures financial security and protection in case of demise of the life insured. The plan offers payment of Premiums paid till the date of death, along with interest of 6% per annum compounded annually.
  • Limited premium Payment: While opting for Aviva Life pension plan, the investor can opt for the limited premium paying tenure in which the premium is to be paid for limited period, while the benefits can be enjoyed during the retirement innings or while nearing retirement.

Thus, in this manner, the Aviva Next Innings Pension Plan is designed to offer attractive features by keeping in mind the future financial needs arising in the golden years of retired life. The plan offers an in-built combination of securing the next innings of retired life by offering a regular flow of income and financial protection net to the family, in case of demise of the life insured. Let us understand what benefits are offered by the Aviva Next Innings Pension Plan.

Benefits of Aviva Next Innings Pension Plan

Maturity Benefit

The maturity benefit is eligible for payment at the time of maturity of the plan, provided all the due premiums have been paid. The maturity benefit payable under this plan is 210% of the total premiums till the date of maturity of the plan. The maturity benefit offered under the plan should be utilized in any one of the following manners:

  • The policyholder has an option to withdraw 1/3rd of the pension plan’s maturity proceeds while the other 2/3rd of the maturity proceeds should be utilized to purchase an Immediate Annuity plan or a Single Premium Deferred Annuity Plan from the Aviva Life Insurance Company India Limited or as per the then prevailing IRDAI Regulations.
  • Alternatively, if the policyholder does not wish to commute or withdraw a portion of the maturity proceeds, then the policyholder possibly can re-invest the entire maturity benefit proceeds to purchase an Immediate Annuity Plan or a Deferred Annuity Plan in a Single Premium Mode from the Aviva Life Insurance Company India Limited or as per the then prevailing IRDAI Regulations.

Death Benefit

The death benefit under the pension plan is payable on the demise of the life insured. If the death of the insured is during the tenure of the policy and while the pension plan is still in-force, the death benefit payable to the nominee shall be higher of the following:

  • Total premiums (excluding extra-premiums & Taxes, if any) paid till date of death of the insured along with an interest that is compounded at the rate of 6% per annum.
  • 105% of the total premiums (excluding extra-premiums & Taxes, if any) paid till the date of death of the insured.

Kindly note that the nominee can either utilize the death benefit received under the pension plan to purchase an Immediate Annuity plan from the Aviva Life Insurance Company India Limited, or can completely withdraw the entire lump sum death benefit received.

Bonus

The Aviva Life Insurance Company India Limited does not offer a bonus to the policyholder under this pension plan.

Loan

The Aviva Life Next Innings Pension Plan does not offer loan facility to the customers.

Tax benefit

All the premiums paid under the Aviva Life Pension plan are eligible for tax exemption under Section 80C of the Income Tax Act, 1961. The tax exemption limit is set up to a ceiling amount of Rs.1.5 lakhs. While all the benefits that are received by the policyholder are subject to taxation under Section 10(10A) (iii) of the Income Tax Act, 1961.

Product Specification of Aviva Next Innings Pension Plan

The maturity benefit of the Aviva Next Innings Pension Plan can be derived from the calculator of the plan. The calculator simplifies the calculation of maturity benefit and gives the exact amount of maturity benefit payable. For calculating the maturity amount, the investor has to enter the required personal details like date of birth, gender, policy term, premium amount and the frequency of premium payment. Once all the details are entered, the investor can get the maturity benefit, death benefit and surrender benefit. Here is a sample illustration of the entire assured benefit received under the Aviva Next Innings Pension Plan:

Scenario 1

Mr. A, aged 45, wants to avail the Next Innings pension plan for a term of 13 years by paying a single premium of Rs 1,50,000 and also wants to know the guaranteed Maturity Benefit, Death benefit and Guaranteed Surrender Benefit receivable under the plan. Kindly note that under the policy term 13 years, the mode of premium payment is single pay with Rs. 1,50,000 as the minimum premium amount while the maximum is Rs. 5 crore.

Age of the InsuredSingle Premium Paid at the time of commencement of policyGuaranteed Maturity BenefitGuaranteed Death Benefit payable at the end of policy year5-Y Return %
For 45 YearsINR 1,50,000.00-INR 1,59,000.00-
For 50 years--INR 2,12,778.00INR 1,50,000.00
For 55 years--INR 2,84,745.00INR 2,40,000.00
For 57 years-INR 3,15,000.00INR 3,19,939.00INR 2,70,000.00

Scenario 2

Mr. A, aged 45, wants to avail the Next Innings pension plan for a term of 16 years by paying a premium of Rs 50,000 and also wants to know the guaranteed Maturity Benefit, Death benefit and Guaranteed Surrender Benefit receivable under the plan. Kindly note for 16 years of policy term, the modes of premium payment are Yearly, Half-Yearly and Monthly, while the premium paying term under this is 5 years and for 18 years of policy term, the premium payment term is 10 years. The minimum premium amount is Rs. 50,000 while the maximum is Rs. 5 Cores. For the following illustration, we are opting annual mode of premium payment so the assured benefits received shall be as under:

Age of the insuredPolicy PremiumGuaranteed Maturity BenefitGuaranteed Death Benefit at the end of policy yearGuaranteed surrender benefit at the end of the policy year
45 YearsINR 50,000.00-INR 53,000.00-
46 YearsINR 50,000.00, INR 1,00,000.00-INR 1,09,180.00INR 30,000.00
47 YearsINR 50,000.00, INR 1,50,000.00-INR 1,68,731.00INR 45000.00
48 YearsINR 50,000.00, INR 2,00,000.00-INR 2,31,855.00INR 1,00,000.00
49 YearsINR 50,000.00, INR 2,50,000.00-INR 2,98,766.00INR 1,50,000.00
For 50 yearsINR 2,50,000.00-INR 3,16,692.00INR 1,87,500.00
For 55 yearsINR 2,50,000.00-INR 4,23,805.00INR 3,00,000.00
For 60 yearsINR 2,50,000.00INR 5,25,000.00INR 567,147.00INR 4,50,000.00

Eligibility Criteria of Aviva Next Innings Pension Plan

Following table illustrates the eligibility criteria and product specifications of the Aviva Next Innings Pension Plan:

ParticularsMinimumMaximum
Age at Entry 42 Years60 years
Age at Maturity55 Years78 Years
Tenure of the Policy
  • For Single Premium Plans: 13 years
  • For Limited Premium Payment Term: 16 years for 5 PPT or 18 years for 10 PPT
  • Annual Premium Amount
  • For Single premium Plan- Rs 1.5 Lakhs
  • For Limited Premium Plan- Rs 50,000
  • The maximum Annual Premium Amount is Rs 5 Crore.
    Premium Paying TermSingle Premium or 5 Years or 10 Years
    Premium Payment ModeMonthly/ Half-Yearly/ Annual/ Single Pay

    Policy Details of Aviva Next Innings Pension Plan

    The Aviva Life Pension Plan offers many attractive benefits apart from the ones listed above. Following are additional policy details offered by the Aviva Next Innings Pension Plan:

    Grace Period

    The Aviva Next Innings Pension Plan offers the policyholders a grace period for payment of premium. This grace period is an additional time period offered by the insurance company to the policyholder for premium payment. The grace period provided by Aviva Life Insurance Company for policies having annual and half-yearly mode of premium payment is 30 days while for policies having a monthly mode of premium payment have a grace period of 15 days.

    Free Look Period

    If the policyholder of Aviva Next Innings Pension Plan is not satisfied with the terms and conditions of the policy, the policy can be cancelled. The insurance company offers a cooling off period of 15 days after the issuance of the policy. Within the period of 15 days, the policyholder can cancel the policy by returning back it to the insurance company. On receipt of policy within the cooling-off period, the insurance company shall cancel the policy and refund the premium amount after deducting relevant charges like applicable taxes, stamp duty etc.

    FAQs on Aviva Life Pension Plans

    What is the death benefit under a pension plan?

    The death benefit receivable under the Aviva Life Pension Plan is as follows: Total premiums (excluding extra-premiums & Taxes, if any) paid till date of death of the insured along with an interest that is compounded at the rate of 6% per annum. 105% of the total premiums (excluding extra-premiums & Taxes, if any) paid till the date of death of the insured.

    Can I make an early withdrawal from my pension plan?

    Early withdrawal is possible by surrendering the policy. A single premium policy can be surrendered after completing one full policy year while a limited premium policy can be surrendered after completing two full policy years.

    What is meant by way of Annuity in a pension plan?

    The way of annuity refers to the manner in which the policyholder wishes to avail the income after the policy is matured.

    Are there tax advantages accompanying Pension Plans in India?

    The tax advantages received under the plan are as per the provisions of Section 80C and Section 10 (10A) (iii) of the Income Tax Act, 1961.

    What are the modes of payment available?

    The modes of annuity payment available under the Aviva Next Innings pension plan are either to buy an Immediate Annuity plan or to buy a Single Premium Deferred Annuity Plan from Aviva Life Insurance Company India Limited. The option of selecting the mode of annuity payment can be decided at the time of investing the maturity benefit.

    How can I check the policy status for Aviva Life Pension Plan?

    The policyholder can check the policy status by logging in to the official website of Aviva Life Insurance company or by visiting the nearest office or branch of Aviva Life Insurance Company.

    What is the policy renewal process for Aviva Life Pension Plan?

    The policy renewal process is very simple. Aviva Life insurance company has introduced many methods for renewal of policy by paying due premiums through modes like direct debit, payment through wallets, NEFT, Credit card, online payment etc. The policyholder can choose the policy renewal premium payment method as per their convenience.

    What is the company’s process to settle claim for Aviva Life Pension Plan?

    The company processes the claim once the claim has been registered with the Aviva Life Insurance Company. The claimant can either walk-in to the nearest office or branch of Aviva or can register the claim online by login to the website of Aviva Life Insurance Company.

    What is the policy cancellation process for Aviva Life Pension Plan?

    The cancellation of Aviva Life Pension plan is possible in the free look period of 15 days. Policyholders can cancel the policy within 15 days from the date of issuance of the policy.

    What is the criteria for entry age in order to buy the Aviva Next Innings Pension Plan?

    The minimum entry age criteria is 42 Years (Last Birthday) and maximum entry age criteria is 60 Years (Last Birthday).

    By when can the person start opting for pension under Aviva Next Innings Pension Plan-minimum age as well as maximum age?

    The Minimum Maturity Age under the plan is 55 Years (Last Birthday) while Maximum Maturity Age is 78 years (Last Birthday).

    Can I pay monthly premium in Aviva Next Innings Pension Plan?

    The premium payment mode options available under the Aviva Next Innings Pension Plan are Single Premium, Annually, Half-Yearly and Monthly. So, you can choose accordingly.

    What are the possible term options available for Aviva Next Innings Pension Plan?

    There are 3 options for opting for policy tenure for Aviva Next Innings Pension Plan, namely 13 Years, 16 Years and 18 years.

    Is there any additional benefit in this plan or a rider that can be attached to Aviva Next Innings Pension Plan?

    No, the Aviva Next Innings pension plan does offer a rider benefit.