Aviva launches Dhan Sanchay, a universal life product
Date: 16-Jun-2010
New Delhi:Aviva Life Insurance today, announced the launch of its new Universal Life Policy (ULP) “Dhan Sanchay” which works like a personal savings account for the investor and combines the best features of traditional products and ULIPs. Around 80% of India’s working population falls in the category of irregular income earners and this product is uniquely designed to address their need for investment as well as protection. Besides flexibility to deposit premium anytime suitable to the policy-holder, it also offers a life cover which is 10 times the first premium. In this policy, the life cover does not lapse even if one misses paying subsequent premiums as long as there is sufficient balance available to meet policy fees.
Speaking on the new launch Mr. T R Ramachandran, CEO and Managing Director, Aviva Life Insurance India said, “We always look segmenting our products to provide for long-term savings and protection needs of our customers. Aviva Dhan Sanchay provides a unique opportunity for customers, particularly in semi-urban and rural areas, with irregular income, through protection by the way of life cover as well as providing flexibility to pay premiums as per one’s income flows.”
He added, “We are targeting 25% of our business coming from traditional products in this financial year and we see Aviva Dhan Sanchay as a key contributor towards the same.”
Key Highlights of Aviva Dhan Sanchay
• Savings – Flexibility to pay premiums, depending on seasonality of the policy-holder’s income and priorities
• Protection – There will be an insurance cover equal to 10 times the first premium paid
• Liquidity – Easy liquidity through partial withdrawals after 3 years
• Assured growth - Interest rate will be declared in advance for every quarter of the financial year and will be credited to the Policyholder Deposit Account at the end of respective quarter. Interest once credited will become guaranteed
• The minimum and maximum first premium payments are Rs. 2,500 and Rs. 30,000 respectively which can be followed by minimum and maximum subsequent payments of Rs. 500 and Rs. 100,000 p.a respectively.
• The policy term offered is 10 years.
• Tax benefits are provided as per Section 80C, and Section 10(10D) of the Income Tax, 1961