Aviva Group Term Life

A Non-participating non-linked group term insurance plan

Overview

Employer or Affinity group either ways you always want a fulfilling life for your employees/members and their loved ones. One of the individual’s prime concerns is the security and safety of their families. Aviva Group Term Life is a yearly renewable group insurance plan designed to provide life cover to Employer-Employee (including schemes in lieu of Employees Deposit Linked Insurance Scheme) and affinity groups.

Specification


Entry Age
(Last Birthday)

Minimum : 18 years
Maximum:  69 years for Employer – Employee Schemes
59 years for Non Employer – Employee Schemes

Maximum Maturity Age
(Last Birthday)

70 years for Employer – Employee Schemes
60 years for Non Employer – Employee Schemes

Minimum Group Size

20 for Employer-Employee Schemes;
50 for Non Employer-Employee Schemes
For Schemes in lieu of Employees Deposit Linked Insurance Scheme, 1976:
20 members in a scheme or as per provision of Employee’s Provident Fund & Miscellaneous Provision Act, 1952, whichever is applicable

Sum Assured

 

Minimum Sum Assured

Per Member

Per Scheme

Rs. 5,000

Rs. 20,00,000

There is no limit on maximum Sum Assured, subject to the Company’s Board Approved underwriting Policy.

For Schemes in lieu of Employees Deposit Linked Insurance Scheme, 1976, the minimum sum assured would be Rs. 6,01,000 per member or as per provision of Employee’s Provident Fund & Miscellaneous Provision Act, 1952, whichever is Higher

Policy Term

Yearly renewable group insurance policy

Premium

No limit on maximum premium. It would depend upon the total Sum Assured under the scheme

Who is the Master Policyholder ?

The Master Policy Holder in the case of an "Employer Employee Group" is the Employer and for other groups it would be the entity with members who would not have come together solely for the purpose of buying insurance.

What are the benefit options available under this Product ?

Aviva Group Term Life offers three benefit options as detailed below. The Master Policyholder can select any one of these at the inception of the policy. For Schemes in lieu of Employees Deposit Linked Insurance Scheme, 1976, only benefit Option A: Pure Term Cover-Lump sum Benefit will be available to the Master Policyholder.

Option A: Pure Term Cover-Lump sum Benefit

On death of the Insured Member under the scheme, Sum Assured covered under this option shall be paid as a lump sum.

Option B: Pure Term Cover – Regular Monthly Income Benefit (RMI)

This option provides regular monthly income on death of the insured member. On death of the insured member, Sum Assured covered under this option shall be paid in form of regular monthly payouts for the payout period opted by the master policyholder.

  • This option provides life insurance coverage in the form of regular monthly payouts.

  • Master Policyholder needs to opt for a payout period of 3, 5,10 or 15 years at the time of inception of the policy for the entire scheme.

  • No change of option and the RMI term can be exercised by the Master policyholder during the entire term of the policy.

  • During the payout period, RMI will be payable to the nominee of the insured member and will increase each year by 5% p.a. compounded yearly. For example in case the RMI is Rs. 10,000 at time of death, the amount of RMI will increase to Rs. 10,500 in the second year, Rs. 11,025 in the third year and so on during the payout period.

Intial Regular Monthly Income Benefit= (Base Sum Assured)/([12 x Payout Period at Policy Inception])

Option C: Pure Term Cover with Terminal Illness Benefit

This option provides death benefit along with coverage for Terminal Illness. In case insured member is diagnosed with a Terminal Illness, benefit equal to 50% of Base Sum Assured OR Rs. 1 Crore, whichever is lower, shall be accelerated and paid.

In case of death of the insured member after payment of Terminal Illness Benefit, remaining amount of Base Sum Assured is payable. On death of the Insured Member under the scheme before Terminal Illness, Base Sum Assured covered under this option shall be paid as a lump sum.

In case death does not happen after TI within the policy term then the member will be eligible for the next renewal provided he/she satisfies the ‘actively at work’ clause at the time of renewal.

‘Actively at work ‘clause means that if an employee is not ‘actively at work’ on the day the policy goes into effect, the coverage will not begin until the employee does return to work.

Lender-Borrower Schemes:

In case the Master Policy is issued under Lender-Borrower category to any of the ‘Regulated Entities’, the Member shall have an option to issue an authorization in favour of insurer to the effect that in the unfortunate event of the Member’s death during the Coverage Term, the claim amount, if any payable under the Master Policy shall first be utilized for payment to Master Policyholder for the outstanding loan amount as specified in Master Policyholder’s Credit Account Statement and the balance amount, if any, payable under the Master Policy will be payable to the Member’s Nominees / legal heirs or legal representatives (as applicable).

Presently the list of Regulated Entities is as follows which can be amended from time to time by IRDAI.

  • Reserve Bank of India (RBI) regulated Scheduled Banks (including Co-operative Banks),

  • NBFC’s having certificate of registration from RBI,

  • National Housing Bank (NHB) regulated Housing Finance Companies

  • National Minority Development Finance Corporation (NMDFC) and its State Channelizing Agencies and

  • Small Finance Banks regulated by RBI

For ‘Other Entities’ (other than the above Regulated Entities), on the unfortunate event of the

Member’s death during the Coverage Term, the claim amount shall be payable to the Member’s

Nominee / legal heirs or legal representatives (as applicable).

Additional benefit Options available under this plan

 

Spouse Cover:

 

Under Option A ‘Pure Term Cover-Lump Sum Benefit’, primary Member of an employer-employee group can opt for spouse cover as an additional voluntary benefit by paying an additional premium. This option shall only be available at the time when primary member is being covered. If either of the lives dies first, the life insurance cover for 2nd life will continue till his/her death/exit or till next renewal date. No discount in premium is available for spouse cover.

Surrender, Maturity payable

 

Maturity Benefit

 

The plan is a pure protection plan. Hence, there is no maturity benefit payable on policy termination.

Surrender Benefit

The plan is a pure protection plan. Hence, there is no surrender value payable in case of termination of the plan.

However, in case the group policy is surrendered by the master policyholder, the insurer shall give an option to individual members of the group, on such surrender, to continue the coverage and the insurer shall continue to be responsible to serve such members till their coverage is terminated/expires.

Download Brochure  T&C and Policy Schedule

UIN: 122N115V01