Aviva Next Innings Pension Plan

Updated: 11-01-2024 10:22:15 AM

Aviva Next Innings Pension Plan is specially designed for your convenience during your next innings – that is your retired life. The accumulated corpus can help you become financially secured just when you do not have a regular source of income. This plan provides guaranteed regular income to the policyholder for retirement years.

Aviva Next Innings Pension Plan Details

Why Aviva Next Innings Pension Plan?

• Aviva Next Innings Pension Plan is a non-linked, non-participating deferred retirement pension plan that can help the policyholder accumulate a retirement corpus.
• You as policyholder can pay the premium either in lump-sum form or for a limited tenure.
• This plan provides a guaranteed lump-sum amount/corpus on maturity to the policyholder. The death benefit depends on the premiums paid and interest earned.

How Does Aviva Next Innings Pension Plan Work?

• A policyholder can begin the plan by choosing the policy tenure, frequency of premium payment, premium paying term and the amount of premium to be paid.
• You are free to choose the premium payment – if you want to pay it for a limited tenure or in one lump sum.
• The death benefit is paid to the nominee in case the policyholder dies during the policy period.
• The vesting benefit is paid on maturity.

 Eligibility

Parameters	Details
Entry Age	42 years to 60 years
Maximum Maturity Age	55 years to 78 years
Policy Term	13, 16 or 18 years
Premium Payment Term	Single pay 13 years term 5 years for 16 years term 10 years for 18 years term
Minimum Premium	Single premium payment Rs. 1,50,000 Limited payment term Rs. 50,000 per annum
Maximum Premium Amount	Rs 5 crore
Premium Payment Frequency	Yearly, Half-yearly, Monthly or Single payment

Features

• The policyholder is entitled to death and maturity benefits.
• The plan offers surrender benefits in case you want to surrender the policy.
• You will get guaranteed corpus upon retirement at 210% of paid-up premiums if the policy is continued till maturity.
• Limited premium paying term to free up funds and have more disposable income while nearing retirement age.
• The plan does not offer any bonus.
• No loans are available under the plan.
• This plan does not offer any riders.
• Grace Period: You are allowed a grace period of 30 days for payment of premium after the due date for annual and half-yearly modes of premium payment. For monthly modes, the grace period allowed is 15 days.
• Free Look Period: A free look period, also known as a cooling off period, of 15 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. In case if you find it unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.

Benefits of Aviva Next Innings Pension Plan

Vesting Benefit: The vesting benefit payable would be 210% of the total premiums paid under this plan. Policyholders are eligible to enjoy vesting benefits when the plan matures and the premiums duly paid. You can use the vesting benefits in any these ways:

• 1/3 of the vesting benefit can be withdrawn as a lump sum, and the remaining2/3^rd benefit should be used to buy an immediate annuity plan from the company.
• Also, you can use the entire amount of vesting benefit to purchase immediate annuity plan.
• As an alternate option, you can purchase Single Premium Deferred Annuity Plan from the company using the entire Vesting benefit availed under the plan.

Death Benefit: In case the insured dies during the policy term, the death benefit payable would be higher of the following:

• Premiums paid till death compounded at an annual rate of 6%
• 105% of the total amount of premium paid till the date of death. The nominee to purchase an Immediate Annuity Plan from the company can use this death benefit or the benefit could be completely withdrawn as a lump-sum amount.

Tax Benefits: Premiums paid under the plan would be exempt from tax under Section 80CCC up to a limit of Rs. 1.5 lakh. The benefits received would be taxable under Section 10(10A) of the Income Tax Act.

Also Check: Aviva Annuity Plus Plan

Non-Payment of Premiums

If you opt for a premium plan, the premiums have to b paid for at least two years. If, in any case, you fail to pay the premium, the policy with lapse without accruing any benefits if it is not revived within the revival period. After the first two years’ of premiums that have been paid, and later if the premiums are not paid, you as policyholder can surrender the policy or make it paid-up.

Make the Policy Paid-Up

If the premium has been paid for two full years, the policy would become a paid-up policy if future premiums are not paid. All the benefits under this plan would be reduced and would be called Paid-Up benefits. Here are the benefits paid on a paid-up policy:

Surrender Value

Surrendering the policy is allowed only after the policy becomes paid-up, and the policy becomes paid up after paying the premiums for two years for a limited premium plan. However, single premium plans can be surrendered any time after the completion of the first year of the policy. Once you surrender the policy, you will be paid the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV).

• GSV = GSV Factor * the total premiums paid
• The SSV would be declared by the company based on its performance and would be calculated as follows:
  SSV = SSV Factor * Paid-up Value where the Paid-up Value is 210% of the total premiums paid.

The policyholder can avail the Surrender Benefit in any of the following ways:

• 1/3rd of the Surrender Value could be withdrawn as a lump sum and the remaining 2/3rd of the benefit should be used to buy an Immediate Annuity plan from the company
• Also, the entire amount of Surrender Value can be used to purchase an Immediate Annuity Plan from the company.
• As an alternate option, a Single Premium Deferred Annuity Plan can also be purchased from the company using the entire Surrender Value availed under the plan.

However, in case you are not eligible to buy an Immediate Annuity Plan or a Single Premium Deferred Annuity Plan, the Surrender Value would be paid and the plan would be terminated.

Revival of Aviva Next Innings Pension Plan

You can revive the policy within two years from the date of the first unpaid premium. You will be required to pay the outstanding premium and interest charged at the rate of 9% by the insurer to revive your policy. A revival charge of Rs. 250 would be paid for the revival of the plan.

FAQs

Q1. What are the premium paying term options available?

• Single pay
• 5 years
• 10 years

Q2. What are the payment modes available under this policy?

• Single pay
• Annual
• Semi-annual
• Monthly

Q3. What are the options available for the term of this policy?

Aviva Next Innings Pension Plan offers 3 policy term options:

• 13 years
• 16 years
• 18 years

Q4. Are there riders available with this policy?

There are no rider benefits available with this policy.

Q5. How do I revive the policy?

You can revive the policy within two years from the date of the first unpaid premium. You will be required to pay the outstanding premium and interest charged at the rate of 9% by the insurer to revive your policy. A revival charge of Rs.  250 is also paid for the revival of the plan.