Aviva Young Scholar Advantage is a child plan, a type of life insurance plan offered by Aviva Life Insurance. It is a unit linked insurance plan that helps the insured to plan for the child’s future by meeting the financial expenses for various milestones like higher education. The plan also enables the policyholder to create corpus through best in class investments in the market funds along with getting protection when the insured is not around.
Eligibility Criteria
| Parameters | Minimum | Maximum |
| Entry Age of Insured (Parent) | 21 years | 45 years |
| Entry Age of Beneficiary (Child) | – | 17 years |
| Maturity Age | – | 60 years |
| Policy Term | 10 years | 25 years |
| Top-up Premium | Rs. 5,000 | Not exceeding sum of Regular premium paid |
| Sum Assured | 0.5 X Policy Term X Annual Premium | Depends on the policy chosen |
| Annual Premium | Rs 50,000 | No Limit |
Plan Features
- Theplan is a comprehensive protection plan that offers complete protection to child in case of an untimely death of the insured
- Policyholders can choose from seven unit linked funds to gain attractive investment returns. These seven fund options areBalanced Fund-II, Bond Fund-II, Enhancer Fund-II, Growth Fund-II, Infrastructure Fund, PSU Fund, and Protector Fund-II
- Grace period of 30 days is allowed to pay premium, if any discontinuance in made
- Loyalty additions are provided in addition to the fund value at different duration of time during the policy term
- Theplan guarantees the financial support for child’s educational expenses
- Tax benefits under Sections 80C and 10(10D) of the Income Tax Act, 1961
- The first 12 unit switches in a policy year are free of charge
- Option of premium redirecting to another fund anytime is available for up to two times in a policy year
Investment Options
Policyholders can choose from seven unit linked fund options to invest in and get market-linked high returns. Let us look at the seven funds and the investment objective they serve.
| Fund Name | Investment Objective | Investment Pattern | Allocation | Risk-Return Profile |
| Balanced Fund-II | To generate a balance of capital growth | 1. Debt
2. Money Market 3. Equity |
1. 25%-100%
2. 0%-40% 3. 0%-45% |
Medium |
| Bond Fund-II | To generate income through investment in high quality fixed income securities | 1. Debt
2. Money Market 3. Equity |
1. 60%-100%
2. 0%-40% 3. 0% |
Low |
| Enhancer Fund-II | To provide long term capital growth with high equity exposure | 1. Debt
2. Money Market 3. Equity |
1. 0%-40%
2. 0%-40% 3. 60%-100% |
High |
| Growth Fund- II | To generate long term capital growth with high equity exposure | 1. Debt
2. Money Market 3. Equity |
1. 0%-50%
2. 0%-40% 3. 30%-85% |
High |
| Infrastructure Fund-II | To generate returns through infrastructure investment and equities | 1. Debt
2. Money Market 3. Equity |
1. 0%- 40%
2. 0%-40% 3. 60%-100% |
High |
| Protector Fund-II | To generate returns through minimum exposure to equities | 1. Debt
2. Money Market 3. Equity |
1. 25%-100%
2. 0%-40% 3. 0%-20%
|
Low |
| PSU Fund | To generate returns through investment in PSU and related equities | 1. Debt
2. Money Market 3. Equity |
1. 0%-40%
2. 0%-40% 3. 60%-100% |
High |
Charges under Aviva Young Scholar Advantage
The insurance company deducts certain charges from the premium paid to manage the investments, considering the fact that this is a ULIP. The various charges are:
- Premium Allocation Charge: This amount is subtracted from the premium and the remaining is invested. The percentage of the amount depends on the policy year. It is fixed 2% for top-up premium.
- Fund Management Charge: For all the funds, this charge is 1.35% per annum.
- Policy Administration Charge: This charge is deducted every month from the unit account. For first policy year, it is zero. For 2-5 years, it is 0.02% of annualized premium every month. In case of six and above policy years, it is 0.30% of annualized premium. However, in any given month, the maximum PAC levied in a month is Rs 400.
- Switching Charge: No switching charge is levied for first 12 switches from one fund to another in a policy year. However, after this limit, the switches cost 0.5% of amount switched. The maximum amount per switch is Rs 500.
- Discontinuance Charge: In case you want to discontinue your policy that has an annualised premium (AP) of above Rs. 50,000, a certain charge will be levied depending on the policy year when you plan to do so.
- If discontinued in 1stpolicy year, it is 6% of AP or fund value, whichever is lower, though the maximum will be Rs. 6,000.
- If discontinued in 2nd policy year, it is 4% of AP or fund value, whichever is lower, though the maximum will be Rs. 5,000.
- If discontinued in 3rd policy year, it is 3% of AP or fund value, whichever is lower, though the maximum will be Rs. 4,000.
- If discontinued in 4th policy year, it is 2% of AP or fund value, whichever is lower, though the maximum will be Rs. 2,000.
- Mortality Charge: This charge functions by monthly cancellation of units from the unit account. It is levied on the Sum at Risk (SAR), which is sum assured plus top-up sum assured, if any, plus sum of future premiums payable till the date of maturity.
- Miscellaneous Charge: Various other charges like cess and GST are levied from time to time.
Cases Where you Can’t Claim Aviva Young Scholar Advantage (Exclusions)
If an insured dies due to suicide within 12 months from the date of start of the policy or from the revival date, the beneficiary will get the fund value applicable on the date of death. After this payment, the plan will end.
One shall not enjoy the benefits in case gthe accidental death is due to reasons mentioned here: alcohol or drug abuse or taking drugs not prescribed by medical practitioner; involved in racing not included under athletics; war, invasion, hostilities, etc.; beinga part of hazardous sports or games; failure to get medical treatment after accidents.
Surrender of Aviva Young Scholar Advantage
In case you are surrendering the policy during the lock-in period of first five years, the risk cover will end immediately. The fund value, considered till the date of withdrawal, will be credited to your Discounted Policy Fund after deducting the surrender charge. You will be able to get the amount at the end of the lock-in period. During this time, the fund will continue to earn the interest at 4% per annum or as per the guidelines of the IRDA.
In case you plan to surrender the policy after five years, you will get the fund value for your regular as well top-up premiums, if any. After this, the plan will end.
Advantages of Buying Aviva Young Scholar Advantage
- Death Benefit: In case of any unfortunate death of the insured during the policy term, all future premiums will be waived off and company will immediately pay higher of the base sum assured or 105% of the premium to the beneficiary
- Maturity Benefit: Under this plan, on maturity, the value of units pertaining to regular premium and top-up premium are paid
- Free look Period: Policyholder holds the right to review policy terms and condition up to 15 days from the date of receipt of the policy document
- Discontinuance: Policyholder can discontinue the policy after five years of lock in period
- Partial Withdrawal: Four partial withdrawals can be made during a policy year
FAQs
Q1. What is the policy term of the plan?
The policy term for Aviva Young Scholar Advantage ranges from 10 to 25 years.
Q2. How many unit switches are free under the plan?
The first 12 switches between the units are free in a policy year. However, a charge of 0.5% is applicable if the policyholder makes subsequent unit switch.
Q3. What is the minimum withdrawal amount under Aviva Young Scholar Advantage?
Under this plan, policyholders can avail four partial withdrawals in a policy year, amounting to minimum Rs. 5,000.