Aviva LifeShield Advantage Review
Plan Name: LifeShield Advantage
Insurer: Aviva Life Insurance
Category: Return of Premium Term Life Insurance Plan
Objective: Financial Protection of Family
Aviva Life Shield Advantage is return of premium term life insurance plan which provides financial security to your family in case you are not there to look out for them. You get good cover at low cost. If something unfortunate happens to you, Sum Assured is paid to the nominee. If you survive throughout the term, the base premium will be returned at the end of policy term.
There are two options with Aviva LifeShield Advantage:
Option (a): Life protection
Option (b): Life-cum-disability protection along with return of premium
Aviva LifeShield Advantage is comprehensive in form and provides additional benefits through riders at nominal additional premium.
Who can buy LifeShield Advantage?
Aviva LifeShield Advantage return of premium term life insurance plan can be bought by anyone who is 18 years old and not more than 55 years. The policy term varies from 10 years to 30 years. In this term insurance plan, the maximum age at policy maturity cannot be more than 65 years.
How Much Cover?
The minimum cover in Aviva LifeShield Plus term insurance plan is Rs 2 lacs and the maximum depends on your requirement. Issuance of cover is subject to underwriting.
What cover should you get?
Rule of Thumb: The typical cover should be ten times your annual income.
18 years-55 years
Maximum – 65 years
Rs 200,000 (minimum)
Yearly, Half Yearly, Quarterly, Monthly
What do I get?
Maturity Benefit: If the life insured survives the policy term, base premium paid is returned.
Death Benefit: In the event of life insured’s unfortunate demise (during policy term), the sum assured and sum of all premiums are paid to the nominee (parents, wife or children) if the insurance policy is in force.
Disability Benefit: If you have opted for Option (b), Sum Assured and sum of all premiums are paid to the life insured if the latter is permanently disable because of accident.
Tax Benefits- The premium paid is eligible for tax benefits under Section 80C, 10 (10D) of the Income Tax Act, 1961.
Illustration: Virat aged 32, to secure his family buys return of premium term insurance plan- LifeShield Advantage with policy term of 25 years.
With yearly premium of just Rs 16,369 he gets cover of Rs 40 lacs. Virat nominates his wife as the beneficiary of return of premium term insurance plan.
Consider these Scenarios:
Scenario1: Virat dies in the 2nd policy year; Virat’s wife will get 40 lacs. This is true for the whole policy term.
Scenario 2: Policy is in grace period and Virat dies, Sum Assured minus renewal premium will be paid.
Scenario 3: Policy lapses on the 22nd year, Virat dies, nothing will be paid. However lapsed policy can be revived within 30 days from the date of renewal.
Scenario 4: If Virat survives the policy term, all base premium would be returned.
Riders are very useful additional benefits which could be beneficial to the policyholder. They are low priced but their utility is huge. Riders can be added only at the commencement of the term plan or on its anniversary depending upon company’s policies. Rider available with LifeShield Advantage term life plan insurance is:
Aviva Dread Disease: This term life insurance rider provides additional sum assured if the policyholder is diagnosed with specific 18 diseases or suffers disability due to illness or accident. The rider’s minimum Sum Assured or cover is 2 lacs and maximum amount is Rs 50 lacs. The life assured has to survive for period of 30 days after the disease has been diagnosed to get the Rider’s cover. These dread diseases include:
End Stage Kidney Failure
Major Organ Transplant
Coronary Artery Bypass Surgery
Benign Brain Tumour
Aorta Graft Surgery
Heart Valve Surgery
Motor Neurone Disease
End Stage Liver Disease
End Stage Lung Disease
Permanent Total Disability
How to buy: Contact Policybazaar and we will assist you in buying LifeShield Advantage return of premium term plan without any issues.
Free Look Period: Aviva LifeShield Advantage can be cancelled within 15 days of receiving the policy contract. The policy document can be returned to the nearby branch along with letter of cancellation. The premium will be paid back minus some charges like medical examination, stamp duty.
Grace period: Aviva LifeShield Advantage premium can be paid within 30 days from the date of renewal. In case of quarterly and monthly modes payments, grace period is 15 days. However in case of death during grace period; renewal premium will be deducted from Sum Assured payable. After the grace period, if the renewal premium is not paid the policy will cease to exist.
Reinstatement- LifeShield Advantage can be revived within 2 years from the premium due date. Also beyond 6 months, proof of good health will be required. All the unpaid premiums plus relevant interest have to be paid to revive the policy.
Maturity: LifeShield Advantage is a return of premium term insurance plan and has survival benefits.
Surrender: LifeShield Advantage term insurance plan can be surrendered (only for single premium) after completion of one year.
The surrender value in Aviva LifeShield Advantage is equal to = 0.75*(remaining policy term*single premium)/policy term
Payment Method: Aviva LifeShield Advantage payment method is cash, cheque, credit card/debit card.
Exclusion: In term life insurance, death caused by suicide in the first year or within first year of revival, no Sum Assured will be paid.
Death Claim: The nominee can apply for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim.
Bajaj Allianz Life TermCare, IDBI Federal Life Termsurance, ICICI Pru LifeGuard, Met Suraksha TROP, Reliance Life Special Term Plan
Policybazaar take on Aviva LifeShield Advantage
Aviva LifeShield Advantage plan is excellent term life insurance plan that offers spread out benefits with more disease coverage; it covers 18 diseases as compared to usual 6-12 critical diseases. Return of premium implies that you get all your base premiums back as well. Aviva LifeShield Advantage is economical term plan which will fulfill your requirements.
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