Aviva India Unveils Retirement Income Plan with Inflation Protection: Key Features Explained

Aviva Life Insurance has introduced the Aviva Signature Increasing Income Plan, a new non-linked, non-participating life insurance savings plan. This innovative plan is designed to provide retirees with a growing income stream that is safeguarded against inflation and rising living costs.

Key Features of the Aviva Signature Increasing Income Plan

Lifetime Income Guarantee

One of the standout features of the Aviva Signature Increasing Income Plan is its Lifetime Income Guarantee. This feature ensures that policyholders receive a guaranteed monthly income until they reach the age of 100. In addition, the income provided will increase by 15% every third policy year, which helps to maintain the purchasing power of the income as inflation affects the cost of living.

Inflation Protection

To address the challenge of rising living costs, the plan includes Inflation Protection. The monthly income is adjusted by 15% every third year, helping to counteract the effects of inflation. This feature is crucial for retirees who want to ensure their income keeps pace with increasing expenses over time.

Premium Return

At the end of the payout period, the Aviva Signature Increasing Income Plan offers a Premium Return. It guarantees the return of 105% of the total premiums paid. This ensures that policyholders recover a significant portion of their premiums, providing added financial security.

Inbuilt Premium Guarantee

The plan includes an Inbuilt Premium Guarantee, which covers future premiums in the event of the policyholder’s death during the premium term. This means that even if the policyholder passes away before completing the premium payments, the guaranteed income will continue for their family, ensuring financial support for their loved ones.

Flexible Payments

The Aviva Signature Increasing Income Plan offers Flexible Payments, allowing policyholders to choose from various premium payment options. This flexibility can accommodate different financial situations and preferences, making the plan more accessible to a wider audience.

Optional Riders

For enhanced protection, the plan includes Optional Riders. Policyholders can choose to add Accidental Casualty and Critical Illness riders. These riders provide additional coverage and benefits, offering extra security in case of unforeseen events.

Tax Benefits

The plan also provides Tax Benefits according to current tax laws. Policyholders can take advantage of the tax-saving opportunities available under existing regulations, adding to the plan's financial appeal.

Executive Insight

Vinit Kapahi, Senior Vice President and Head of Marketing at Aviva Life Insurance, commented on the launch:

"The Aviva Signature Increasing Income Plan represents our latest innovation for ensuring a secure retirement. It provides a growing, inflation-proof income stream, underscoring our commitment to addressing future financial needs."

Kapahi highlighted the plan’s key features, emphasizing its role in securing a stable and increasing income for retirees. The plan is designed to offer peace of mind by protecting against inflation and ensuring that retirees have a reliable source of income throughout their retirement years.

Why Choose the Aviva Signature Increasing Income Plan?

The Aviva Signature Increasing Income Plan offers several advantages for retirees seeking a reliable income source:

1. Growing Income: The 15% increase in monthly income every third year ensures that the income stream remains robust in the face of inflation.

2. Lifetime Guarantee: Guaranteed monthly income until age 100 provides long-term financial security.

3. Premium Return: The return of 105% of total premiums paid at the end of the payout period adds an extra layer of financial assurance.

4. Family Protection: The inbuilt premium guarantee ensures that the policyholder's family continues to receive income even if the policyholder passes away.

5. Flexibility: Various premium payment options accommodate different financial needs and preferences.

6. Enhanced Coverage: Optional riders for accidental casualty and critical illness offer additional protection.

7. Tax Benefits: Eligible for tax benefits under current laws, adding to the plan's financial advantages.

Conclusion

The Aviva Signature Increasing Income Plan stands out as a comprehensive solution for retirees looking for a secure and growing income stream. With its innovative features such as lifetime income guarantee, inflation protection, and premium return, the plan is designed to address the evolving financial needs of retirees. The option to include additional riders and benefit from tax advantages further enhances the plan's appeal.

For those planning their retirement, the Aviva Signature Increasing Income Plan offers a valuable opportunity to secure a stable and inflation-proof income, ensuring financial stability throughout retirement.