Aviva Group Credit Life

A Non-participating non-linked group term insurance plan

Overview

In today’s world, all of us have big dreams. We aspire for great things for our families and ourselves. Things like owning a house, planning a family vacation across Europe, sending our kids to Ivy League universities etc.

To fulfil these aspirations, we tend to rely highly on EMIs, so, it is important that we secure them against any uncertainties.

Which is why Aviva Life Insurance presents the Aviva Group Credit Life Plan. It is a plan that covers loan funding, in case the borrower is not around. It safeguards the loan and lets the family enjoy the assets created through loans and hard-earned savings without any worries.

 

Specification

Entry Age

Minimum : 15 years for education loan 

                        : 18 years last birthday for other loan types

Maximum: 70 years last birthday

 

Note-Age will be computed for each life in case of joint life cover

Maturity Age

For Single Premium

Min Maturity Age: 17 years for Education Loan

                                          20 years for other loan types

For Limited Premium

Min Maturity Age: 23 years for Education Loan

                                           26 years for other loan types

Maximum Maturity Age : 75 years (last birthday)

Minimum Group Size

50 members

Policy Term

Single Premium:    2 – 30 years

Limited Premium: 8 – 30 years

PPT

Single Premium: at the time of insurance enrollment

Limited Premium: 5 years only

Sum Assured

Minimum:    Rs. 5,000

Maximum:   Rs. 10 Crores for Home Loan

                           Rs. 5 Crores for other loan types

Premium Payment Frequency (Limited Premium option)

Single Premium : N/A

Limited Premium: Yearly, Half-yearly, Quarterly & Monthly

Revival (Limited Premium option)

Within 2 years of first unpaid premium, by paying all due premiums  basis Company’s Board approved prevailing underwriting guidelines

Grace Period

Single Premium : N/A

Limited Premium: Grace period would be 30 days from the premium due date for all frequency other than Monthly mode

Grace period of 15 Days for monthly mode

 

For other than yearly frequency, installment premium shall be calculated as given below:

Half Yearly Premium       = Annual Premium * 0.5108

Quarterly Premium         = Annual Premium * 0.2591

Monthly Premium           = Annual Premium * 0.0871

 

 

Option A: Death Cover with inbuilt Terminal Illness

SINGLE  LIFE

Death Benefit+

Terminal Illness Benefit

In case of death of the insured member the Sum Assured as per certificate of insurance shall be payable.

In case the insured member is diagnosed with a terminal illness (TI), a TI benefit equal to 6 Equated Monthly Installments of the loan will be paid as a lump sum.

In case of death of the insured member after payment of Terminal Illness Benefit, remaining amount of the Sum Assured is payable.

JOINT LIFE

First Death Basis

Death Benefit+

Terminal Illness Benefit

In case of death of the any insured member (whomsoever dies first out of the 2 lives or both lives die together) the Sum Assured as per certificate of insurance shall be payable and contract will terminate thereafter.

In case of death of the any insured member (whosoever dies first out of the 2 lives or both lives die together) after payment of Terminal Illness Benefit, remaining amount of the Sum Assured is payable and contract will terminate thereafter.

In case any insured member is diagnosed with a terminal illness (TI) (whomsoever suffers first out of the 2 lives or both lives suffers at same time), a TI benefit equal to 6 Equated Monthly Installments of the loan will be paid. The Terminal Illness benefit can be claimed only once by either of the two Members.

Each Life Basis

Death Benefit+

Terminal Illness Benefit

In case of death of the any insured member the Sum Assured as per certificate of insurance shall be payable and contract will continue for the 2nd life till death of 2nd life or expiry of policy term for that member whichever is earlier.

In case of death of the any insured member after payment of Terminal Illness Benefit, remaining amount of the Sum Assured is payable and contract will continue for the 2nd life till death of 2nd life or expiry of policy term, whichever is earlier.

Death SA will be payable to both lives separately on happening of death of any life during the cover term.

In case any insured member is diagnosed with a terminal illness (TI), a TI benefit, equal to 6 Equated Monthly Installments of the loan will be paid in proportion to his/her loan share percentage.

 

Terminal Illness benefit will be payable to both lives separately on happening of terminal illness of any life during the cover term.

 

 

 

Option B: Death Cover with accelerated Accidental Total Permanent Disability

SINGLE  LIFE

Death Benefit+

Accidental Total Permanent Disability Benefit

In case of death of the insured member the Sum Assured as per certificate of insurance shall be payable and the contract will terminate thereafter.

In case the insured member suffers from an Accidental Total and Permanent Disability*, the the Sum Assured as per the certificate of insurance shall be payable and the contract will terminate.

JOINT LIFE

First Death Basis

Death Benefit+

Accidental Total Permanent Disability Benefit

In case of death of the any insured member (whomsoever dies first out of the 2 lives or both lives die together) the Sum Assured as per certificate of insurance shall be payable and contract will terminate thereafter.

In case any insured member suffers (whomsoever suffers first out of the 2 lives or both lives suffers together) from an Accidental Total and Permanent Disability*, the Sum Assured as per the certificate of insurance shall be payable and the contract will terminate thereafter.

Each Life Basis

Death Benefit+

Accidental Total Permanent Disability Benefit

In case of death of the any insured member the Sum Assured as per certificate of insurance shall be payable and contract will continue on 2nd life till death of 2nd life or expiry of policy term for that member whichever is earlier.

Death SA will be payable to both lives separately on happening of death of any life during the cover term.

In case any insured member suffers from an Accidental Total and Permanent Disability*, the the Sum Assured as per the certificate of insurance shall be payable and the contract will continue on 2nd life till ATPD of 2nd life or expiry of policy term for that member whichever is earlier.

Death SA will be payable to both lives separately on happening of ATPD of any life during the cover term.

 

For 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.

 

  1. Reserve Bank of India (RBI) regulated Scheduled Banks (including Co-operative Banks),
  2. NBFC’s having certificate of registration from RBI,
  3. National Housing Bank (NHB) regulated Housing Finance Companies
  4. National Minority Development Finance Corporation (NMDFC) and its State Channelizing Agencies and
  5. 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).

 

Maturity Benefit

There is no maturity benefit this being a term assurance plan.

Surrender Benefit:

Under Single Premium Cover, the cover may be surrendered anytime during the cover term. However, under limited premium cover where the premiums are payable upto 5 years, the cover can only be surrendered only once at least 3 full years’ premiums have been paid.

Freelook Period :

The Master Policyholder and Members have the right to review the policy terms and conditions within 15 days from the date of receipt of the policy document/certificate of insurance (COI). If the Master Policyholder/Member returns the policy/COI during freelook period, the company will refund the Premium on the date of return after deducting proportionate risk Premium, if any, and expenses incurred on medicals and stamp duty.

 

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UIN: 122N116V01