Aviva LifeShield Advantage

Transcription

1 An overview UIN: 122N081V01 Term + Return of Premiums with optional protection against disease & disability "For internal and partner use only and not to be shared with public. Violation of this could lead to immediate termination."

2 Changing Investment Trends coupled with A shift towards safe, secured and guaranteed investments Page 2

3 media reports that indicate Term + MFs superior to ULIPs Adverse press against ULIPs suggests Term + MFs a better option Page 3

4 yet customers exhibit resistance towards Term plans Typical mindset Mutual Funds Term Plans In case of my death my family gets a lump-sum but what happens if I survive My premiums go waste as I don t get anything in return!!! I can invest part of my portfolio in Mutual Funds MFs will pay off over the medium to long term! Purchase Decision Page 4

5 More than just your typical Term Plan Customer s Goal(s) Protection for the family in case of death Return of money paid in case of survival Financial support in case of disability Financial support in case of disease Protection Option Features that appeal Option A Life protection Sum Assured payable on Death Return of Premiums on survival till maturity Option B Life-cum-disability protection Sum Assured + Return of Premiums payable on Accidental PTD or Death, whichever is earlier Return of Premiums on survival till maturity Aviva DD Rider with Option A (RP) Protection against CI/PTD Aviva DD Rider Sum Assured payable on Critical Illness or PTD Policy remains inforce for base benefits Page 5

6 Enjoy rebate on opting for a Higher Sum Assured High Sum Assured Rebate Rebate on basic premium is allowed if the Sum Assured is Rs. 3 Lacs or higher: For Regular Premium policies (Option-A and Option-B), Rebate per Rs.1,000 SA Policy Term (in years) Range of Sum Assured (SA) (in Rs. lacs) SA< 3 Nil Nil Nil Nil Nil to to to to 30 3<=SA< <=SA< <=SA< <=SA< <=SA< <=SA For Single Premium policies (Option-A), Rebate per Rs.1,000 SA Policy Term Range of Sum Assured (SA) (in Rs. lacs) (in years) SA< 3 3<=SA<4 4<=SA<5 5<=SA<10 10<=SA<20 20<=SA 10 Nil onwards Nil How does this work? A 35 year old male can enjoy a rebate of up to 65.8% of Premium over a 10 year policy term!!! Option A B Sum Assured Rs. 50 lacs Annual Premium (without rebate) Rebate Annual Premium payable (after rebate) Rebate as a % of original Premium Rs. 93,150 Rs. 61,250 Rs. 31, % Rs. 102,500 Rs. 61,250 Rs. 41, % Note: The illustration is excluding Service Tax Page 6

7 The positioning

8 Life and Life cum disability protection Option A In case of death of life insured (LI) during policy term and provided all due premiums have been paid till his death, the Company will pay the Sum assured and the policy will be terminated thereafter. If LI survives till maturity and all due premiums have been paid, then Company will pay the Sum of all premiums paid (excluding rider premium, extra premiums and taxes, if any) without any interest, on the maturity date. Option B In case the LI dies, or suffers Permanent Total Disability (PTD) due to an accident, whichever is earlier (during the policy term and provided all due premiums have been paid till such date), the Company will pay the Sum Assured along with the Sum of all premiums paid (excluding rider premium, extra premiums and taxes, if any) till the date of notification of death/ptd, without any interest and the policy will be terminated thereafter. The definition of the PTD for would be: A life insured shall be regarded as Permanently Totally Disabled only if, as a result of accidental bodily injury: LI has suffered the loss by physical separation (or loss of use) of two limbs or the complete and irremediable loss of sight in both eyes or the loss by physical separation (or loss of use) of one limb, accompanied by the complete and irremediable loss of sight in one eye or LI has been continuously disabled for a period of 1 year & has been determined by the Company to be incapacitated to such an extent as to render that person unable ever to resume own or similar employment. Here limb means hand/foot at or above wrist/ankle. If LI survives till maturity and all due premiums have been paid, then Company will pay the Sum of all premiums paid (excluding rider premium, extra premiums and taxes, if any) without any interest, on the maturity date. Page 8

9 Additional protection against CI & PTD Aviva DD Rider [UIN: 122B014V01] If this rider has been opted for & LI contracts a Dread Disease (DD) covered by the rider or suffers Permanent Total Disability due to illness or accident, then on survival of LI for 30 days following confirmed diagnosis of DD covered by this rider & subsequently upon our acceptance of claim, Aviva Dread Disease (DD) Rider SA will be payable Sum Assured allowed for this Rider: Minimum: Rs. 200,000; Maximum: Base Sum Assured Note: - SA for this Rider + SA under Aviva Health Guard Rider, if opted with any other Aviva plan, cannot exceed Rs.50 lacs Aviva DD Rider - This rider is available only with Option A where PPT = PT Key Feature Document - Rider premium should not exceed 30% of premium of the base plan. Entry Age: years Maximum age for expiry of rider benefit: Same as Base product Aviva DD Rider_KFD Rider Term = Term of base plan Others: This rider can only be taken at inception subject to the prevailing underwriting requirements Aviva DD rider is offered in stand alone form and rider s benefits are independent of death benefits Upon the acceptance of a claim under this rider, Aviva DD rider benefits will cease This rider can be withdrawn at any time during the term of the rider. Once withdrawn this rider cannot be taken again No survival or death benefit is payable under this rider. The rider does not acquire any surrender or paid up value If due premium is not paid within the grace period, the policy will lapse and the rider cover ceases immediately. The rider will be available to substandard lives with appropriate extra premium as per Aviva s underwriting practice For further details refer Rider Key Feature Document embedded alongside Page 9

10 How does it work? Option A On survival till maturity Option B (life + disability cover) Maturity Age 35 Premiums Age 65 Option A (with Aviva DD Rider) Maturity Age 35 Premiums RoP Age 65 Maturity Age 35 Premiums RoP RoP CI PTD On suffering PTD/CI NA Death On death Age Premiums 35 SA Policy terminates Age 35 Maturity Premiums SA + RoP Policy terminates Death Age Premiums 35 SA + RoP Policy terminates Age 65 Age 35 Premiums Age 65 RoP Aviva DD Rider SA Death Age Premiums 35 SA Policy terminates SA Sum Assured RoP Return of Premiums PTD Permanent Total Disability due to an accident CI Critical Illness (as covered under this plan) Aviva DD Rider Aviva Dread Disease Rider Page 10

11 6 easy steps to your plan Option A: Sum Assured on death, during the policy term, provided that all the due premiums are paid till death Step 1 Choose the nature of protection required Option B: Sum Assured plus return of premiums on death or on Permanent Total Disability (PTD) due to an accident, whichever is earlier, during the policy term, provided that all the due premiums are paid till death Maturity Benefit for all options is return of premiums paid, excluding extra premiums, taxes and rider premium (if any). Step 2 Step 3 Step 4 Choose the level of protection you want Minimum Sum Assured (Option-A/B): Rs. 2 lacs Maximum Sum Assured (Option-A/B): Option A - No Limit Option B Rs. 50 lacs Select rider for comprehensive protection Aviva Dread Disease (DD) Rider: [UIN 122B014V01] - with Option A (RP) only - Min. Rider SA: Rs. 2 lacs ; - Max. Rider SA: Base SA s.t. max. of Rs. 50 lacs incl. all policies with this rider - Rider premium to not exceed 30% of base premium, otherwise rider SA will be reduced accordingly. - If rider SA works out to < Rs.2 lacs then this rider won t be available Arrive at the policy term by choosing the period for which you want protection years subject to : Entry Age : years Maturity Age : years Step 5 Select the Premium frequency Step 6 Work out the premium payable along with our Financial Planning Advisor Single Premium (for Option A only) Regular (equal to policy term) for Options A / B via Yearly, Half Yearly, Quarterly & Monthly modes (only ECS/ Direct Debit allowed for Quarterly & Monthly modes) Enjoy rebate for high Sum Assured Page 11

12 Product Specifications

13 The Product Specifications Entry Age 18 to 55 years Policy Term (PT) 10 to 30 years Maturity Age 28 to 65 years Premium Paying Term (PPT) Option A: Single Premium or Regular Premium (equal to Policy Term) Options B : Regular Premium (equal to Policy Term) Premium Paying frequency Single Premium (available only under Option A) Yearly, Half Yearly, Quarterly & Monthly frequency for Regular Premium option Minimum Single Premium (option A): Minimum Regular Premium (Base Plan): Premium Rs. 12,000 Yearly - Rs. 2,400 p.a. Half-yearly: Rs. 1,250 Quarterly: Rs. 650 Monthly: Rs Service Tax, as applicable from time to time, will be applicable over & above premium payable Maximum Premium: No limit, depends on Sum Assured Premium Payment Modes Sum Assured (SA) Riders Yearly, Half-Yearly, Quarterly, Monthly Minimum: Maximum: Rs. 200,000 (Option A/B and Aviva DD Rider) Option A - No limit, subject to underwriting Option B - Rs. 50 lacs Aviva DD Rider SA- Rs. 50 lacs * Aviva Dread Disease Rider (with Option A, Regular Premium mode only) Note: * For Aviva DD Rider: SA to not exceed Rs. 50 lacs including SA for all policies issued by Aviva under Aviva DD Rider and Aviva Health Guard Rider Page 13

14 Features

15 The Product Features Death Benefit Option A: Sum Assured Option B: Sum Assured + Return of Premiums (on Death / PTD, whichever is earlier) - Return of Premiums will be excluding taxes and extra premium, if any Maturity Benefit All Options : Return of Premiums (on survival to maturity) excluding taxes, extra premium and rider premium, if any, paid There is no interest paid on the sum of premiums Aviva Dread Disease Rider Benefit If this rider has been opted for & LI contracts a Dread Disease (DD) covered by the rider or suffers a Permanent Total Disability due to illness or accident, then on survival of LI for 30 days following confirmed diagnosis of the Dread Disease(s) covered by this rider and subsequently upon our acceptance of claim, Aviva DD Rider Sum Assured will be payable This rider is available only with Option A where PPT = PT For further details refer section on Aviva Dread Disease Rider Exclusions Only Surrender Value (Guaranteed Surrender Value or Special Surrender Value whichever is higher), if any, will be payable if the death of the life insured is due to actual or attempted suicide within one year from the date of commencement or from the date of reinstatement of the policy, if any For other exclusions specific to Option B, refer to relevant sections as well as the document embedded alongside Exclusions - Option B Page 15

16 The Product Features Lapse Paid-up and Paid-up Value If premium is not paid within the grace period and if at least three full years premiums have not been paid then: Policy will lapse without acquiring any paid-up value and all risk covers will cease. Policy can be reinstated within 2 years from the due date of first unpaid premium (as per the prevailing re-instatement rules of Aviva), failing which the policy will terminate and no policy benefits will be payable If premium is not paid within grace period after at least three years premium have been paid, then policy will become paid-up and will acquire paidup Sum Assured = No. of Premiums Paid Base SA x Total No. of Premiums Payable under the Policy In case of death during the policy term after acquiring paid-up status, only the paid-up sum assured will be payable In case of survival till maturity of a paid-up policy, premiums paid till date of FUP will be returned, excluding extra premium, rider premium and taxes, if any (this is known as Paid-up Value ) Policy can be reinstated within 2 years from due date of first unpaid premium by paying all due premium + interest + revival fee Under Option B, no benefit will be paid in case the LI suffers PTD after the policy acquires paid-up status, however Death Benefit will still be payable as per Paid up Sum Assured Page 16

17 The Product Features Surrender Value Single Premium Policies (option A): Policy can be surrendered any time after completion of first policy year and acquires a guaranteed surrender value from second policy year onwards which is calculated as: 75% x (Outstanding Policy Term in Years) x Single Premium Original Policy Term in Years Outstanding Policy Term to be calculated on date of surrender; Any fraction of the year to be rounded down to zero, if fraction is less than half and up to one, if fraction is greater than or equal to half Single Premium is excluding extra premium and taxes, if any Regular Premium policies (all options): Surrender Value for the base policy payable only if at least three years premiums have been paid and after the completion of three years from the date of commencement of the policy. Surrender Value payable is greater of the Guaranteed Surrender Value and Special Surrender Value Guaranteed Surrender Value will be equal to 30% x [Total amount of premiums paid minus premiums for the first year minus extra premiums and taxes, if any] Special Surrender Value calculation for a paid-up policy will be based on paid-up value. Special Surrender Value will be equal to: [(Paid up Value) x Surrender Value Factor] Surrender Value Factors will be decided by the Company from time to time Page 17

18 The Product Features Reinstatement & Alterations A lapsed or Paid-up policy can be reinstated/revived during the policy term but within a period of 2 years from the date of first unpaid installment of regular premium To effect reinstatement, the Policyholder is required to submit a proof of continued insurability to the satisfaction of Aviva + make payment of all due premiums + interest payment at such rate as may be prevailing at the time of the payment (present interest rate is 9% p.a. compounded monthly) For policies without critical illness related riders, the proof of insurability is waived for the first six months from the date of First Unpaid Premium Aviva reserves the right to reinstate/revive a lapsed/paid-up policy The reinstatement/revival of a lapsed/paid up policy is also subject to payment of a Reinstatement fee, which is Rs.250/- at present and subject to review in future with IRDA approval. Alterations between different modes of premium payment is allowed at any policy anniversary on request (30 days prior) subject to payment of Alteration fee, which is Rs.100/- at present and subject to review in future with IRDA approval. No other alterations are allowed under this Plan Note: Company reserves the right to reinstate the lapsed policy. The revival of a lapsed/paid up policy is also subject to payment of revival fee, which is Rs.250/- at present and subject to review in future with IRDA approval. Page 18

19 The Product Features Other features Premium multiples For regular premium modes other than the Annual premium mode, the premium will be calculated by multiplying the Annual premium by the corresponding modal factors given below: - Half Yearly frequency = * Annual Premium - Quarterly frequency = * Annual Premium - Monthly frequency = * Annual Premium Loan: Loan will not be available under this policy Grace Period: 30 days Yearly, Half yearly and Quarterly frequency of premium payment 15 days Monthly frequency of premium payment (ECS/Direct Debit only) Nomination & Nomination, as defined under section 39 of Insurance Act 1938, and Assignment, as Assignment: defined under section 38 of Insurance Act 1938, are allowed under this policy. Taxation: Tax benefits will be as per the prevailing tax laws. Tax laws are subject to change. Service tax and As per the prevailing rates, these would be applicable on the above premium separately Education Cess: Staff Rebate: (the rate of service tax is presently 1.03%) For staff policies, there shall be a rebate of 7.0% on the Tabular Rate in case of regular premium policies and 2.5% in case of single premium policies for all Options Page 19

20 Aviva plc 2009