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Aviva i-Shield

Objective

This is an online term insurance policy with an aim to provide financial support to family members on death of the insured. It also allows the policyholder to surrender the policy in case of an emergency. The policy will return the premiums paid if insured person outlives the policy term.


What does it do?

The policy pays sum assured to nominees on death of the policyholder. If policyholder dies in first 10 years, insurer will pay 100 per cent of sum assured as death benefit. The death benefit will increase to 110 per cent if death occurs between 11th and 20th year. Sum assured will further increase by 10 per cent if death takes place after completing 20 policy years.
If all goes well, on maturity, the insurer will return 110 per cent of total premiums paid excluding taxes and extra premiums.
If premiums are not paid after completing three years, the policy does not end but continues as a paid-up policy with reduced benefits. Policyholder is also allowed to surrender the policy anytime after completing three policy years if the first three year premiums were paid on time.


Pros

This policy can be bought online.
Policies with sum assured above Rs 20 lakh get premium discounts.
In case of an emergency, you can surrender the policy after completing  three policy years.
Premiums paid under this policy qualify for tax benefits.


Cons

The minimum sum assured is fixed at Rs 15 lakh, which may not suit those looking for lesser coverage.


Suited for

A term insurance policy is a definite buy for all. This policy is suitable for those not convinced with the idea of paying premium without getting any return.


Our View

It is important to understand that insurance is bought for financial security of family members and not to generate returns.
This is an expensive policy as compared to pure term insurance plans which do not return premiums. Every benefit comes with a cost attached to it.

Eligibility
Entry Age (years) 
Minimum18
Maximum55
Maximum Maturity Age (years)65
Policy Term (years) 
Minimum10
Maximum25
Sum Assured (Rs) 
Minimum15 Lacs
Maximum5 Crores
Premium Payment FrequencyYearly, Half-yearly,Monthly
Premium Payment TermEqual to Policy Term
Premium Factor (multiply with annual premium)Half Yearly: 0.5108 times annual premium; Monthly: 0.0871 time annual premium
Policy CoverSum Assured depends on the year of death
Other Features 
Free Look CancellationIn case, you are not satisfied, you may choose to cancel the policy within 30 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.
Grace PeriodYou are allowed to pay premiums within 30 days from the due date.If the premium mode is monthly,then only 15 days will be allowed.
Lapsed Policy ReinstatementIf policyholder does not pay premium during first three years, the policy will lapse. A reinstatement period of two years is allowed. However if policy is not revived within the stated time period, the policy will terminate without any benefits.
In case non-payment of premium takes place after first three policy years, the policy does not lapse rather it continues as a paid up policy with reduced benefits. Again a reinstatement period of two years will be allowed. If the policy is not revived, it does not terminate, it will continue as paid- up policy. Reduced death benefit will be mentioned in the policy document.
Tax BenefitsSection 80C, 10 (10D) of the Income Tax Act, 1961 would apply.
ExclusionsIn case of death of the life insured due to actual or attempted suicide within one year from the date of commencement or the date of reinstatement of the policy, only surrender value,if any will be payable
Surrender ValueSurrender is allowed after completion of three policy years. On surrender, the company will pay higher of the Guranatedd Surrender Value (GSV) or Special Suurender Vlaue(SSV).
GSV = 30% of the sum of premiums paid till date exclusive of taxes and extra premiums if any.
SSV = 110% of premiums paid * SSV factor exclusive of taxes and extra premiums if any.
Special surrender value factor may change with time after approval from IRDA.
Customer Service 
AddressAviva Life Insurance Company India Limited, Aviva Tower,Sector Road,Opposite Golf Course, DLF Phase-V,Sector-43, Gurgaon-122003, Haryana, India
Mail Toavivaindia.com
Call On1800 180 2244
Annual Premium Option
Policy Term (in years)Age (in years)
2025303540455055
101321213670146431768923268327554726966683
1583308881998212514171762453435489NA
20662472128349107901493721359NANA
256092677180931062414791NANANA
Indicative premiums for Rs 20 lakh sum assured Premiums are exclusive of service tax and cess