As a parent, we want to do everything we can to provide the best for our children. In providing the best, one also needs to take care of the means through which your child can achieve his or her dreams. Education is the best insurance through which your child can become what they want to be. Through Aviva Young Scholar Secure Plan, you can gift your child a secure future by systematically investing in this plan that will fund his or her education when the time comes.
Giving your child the best education is the best thing any parent can do for them. With increasing cost of education, it makes right sense to invest a portion of your savings into the child plans to be financial prepared and when the right comes. Plus, child plans by Aviva helps you to build a sound corpus from very early on. In this review, we will be discussing complete details of this plan that can help you as a parent to decide well in advance.
What is Aviva Young Scholar Secure Plan?
It is a traditional life insurance plan that helps to secure major milestone of your child education. In other words, Aviva Young Scholar Secure Plan is more of a savings oriented insurance plan that is created to provide annual cash flows to fund your child’s education as S/he grows. Since it is a non-linked, non-participating plan, very little from your premium will be invested in the equities. In a year, this traditional cum investment insurance plan gives yearly pay outs that can be used for the tuition fees and two lump-sum benefits which one can use for the higher education.
Aviva Young Scholar Secure Plan has a special rider called the Aviva Term Plus Rider which can be availed at the time of inception. This further increases the protection given to the nominee. However, one should note that the sum assured under rider cannot exceed the base sum assured amount.
Key Features of Aviva Young Scholar Secure Plan
- The insured gets four plans (Gold, Silver, Platinum, Diamond) option to choose depending upon the
- The insured can get a piece of mind his children education future is secured even in their absence.
- Aviva Young Scholar Secure Plan has an additional rider to secure his nominee in case of natural or accidental death of the policyholder.
Benefits Of Aviva Young Scholar Secure Plan
- Aviva Young Scholar Secure Plan provides survival and maturity benefits according to the premium option. In case of the demise of a policyholder, all the future premiums will be waived off and will be paid by the Aviva to the beneficiary. In case the nominee is minor at the time of death, such payment will be paid to the appointee.
- Tution Fee Support (TFS):- At the end of premium paying term, the policyholder will receive guaranteed annual pay outs every year till your child reach 17 years. These annual pay outs will fund the tuition expenses of your child up to class 12
- College Admission Fund:-When your child reaches the age of 18th, S/he will be getting lump sum amount to fund their college education
- Higher Education Reserve: – Final lump sum amount will be given to the policyholder to fund their higher education when S/he will turn 21 years.
2) Aviva Young Scholar Secure Plans are entitled to Tax benefits as per section 80C and 10 (D) of income tax act 1961
Eligibility of Aviva Young Scholar Secure Plan
Name of the plan | Entry | Maturity Age | Premium Payment
Term |
Policy Term (PT) | Premium Frequency | Sum Assured |
Aviva Young Scholar Secure Plan
|
Parent:- 21-50
Child:- 0-12 years
|
Maximum 71 years
|
0-8 years of child: 13 minus age of child
9-12 years of child : 5 years |
21 minus entry age of child | Yearly
Half-yearly Monthly
|
10 times of Annual premium or maturity sum assured or 105% of the premiums paid |
Exclusions If any under this plan
- If the policyholder dies due to suicide within 12 months from the date of the issue of the policy, the beneficiary will be entitled to 80% of the premiums paid.
- If the demise of insured happens because of suicide within 12 months from the date of revival of the policy, the nominee will be entitled to an amount which is higher of 80% of the premiums paid.
Illustration Of Aviva Young Scholar Secure Plan
If the age of parent: – 35 years
If the age of child: – 0 years
Policy Term: – 21 years
Premium Payment Term = 13 years
Sum Assured: – 13,75,000
Premium Option Gold with Annual Premium: – Rs 50000
Then the total investment would be Rs6,50,000 ( 50,000*13 years)
Also Read: Aviva Young Scholar Advantage Plan
FAQS
Q1 Why one should choose Aviva Life insurance?
Aviva Life insurance is one of the world’s oldest life insurance company and its association with India goes way back to 1834. So, by choosing to invest with Aviva, one benefits from the management experience with a history dating back to 1696. Talking specifically about Aviva Young Scholar Secure Plan, it helps you to build education fund for your child right from the starting which doesn’t hamper your expenses yet helps to fulfil your duty.
Q2 Can one take a loan on the basis of this policy?
No, there is no provision like this which allows the insured to take a loan against this policy from Aviva.
Q3 What are different ways to pay premium?
The premiums of Aviva Young Scholar Secure Plan can be paid by cash, cheque or demand draft at any of the Aviva Branch Office. The policyholder also has an option to drop their cheque or draft at the skypack drop near you.
Q4 Can one increase the fund value from this plan?
No, it is a non-participating plan that means all the premiums you pay will go towards accumulation of funds and very little will be invested in the equity. In these guaranteed plans, premiums are fixed in advance and so are the returns.
Q5 What if one doesn’t pay premium?
In Aviva Young Scholar Secure Plan, if the policyholder stops paying the premium, the policy coverage will be lapsed but can be revived within 2 years from the first unpaid premium
Q6 what is survival benefit?
It is the benefit which gets paid to the policyholder or to the beneficiary in case of demise of insured. In the Aviva Young Scholar Secure Plan, one will be paid Tuition Fee Support benefit and college admission pool.
Q7 Will one get any tax benefits in Aviva Life Child Plans?
The Aviva Life Child Plans are entitled to tax benefits as per section 80C and 10 (10D) of income tax act 1961.