Aviva Signature Increasing Income Plan: Can this be your perfect retirement plan? Check details

Aviva Life Insurance introduced a new product called the Aviva Signature Increasing Income Plan. This plan is a non-linked, non-participating life insurance savings plan specifically created to provide retirees with a consistently growing income stream. 

Aviva aims to address the financial concerns of retirees by offering a sustainable solution for their income needs through this unique plan. One of the key highlights of this plan is that it offers a 15% increase in monthly income every third policy year, which is designed to combat the effects of inflation and escalating living expenses. 

Key features

> The primary highlight of the plan is its regular income payouts that outpace inflation. These payments grow every three years, assisting clients in upholding their financial stability. Opting for a discounted lump sum for future payouts enables flexibility for individuals requiring larger sums immediately.

> In the unfortunate event of the policyholder's demise, beneficiaries are assured a benefit along with a monthly income. Aviva undertakes the responsibility of covering all subsequent premiums if the life assured passes away, ensuring that loved ones continue to receive the agreed benefits without any financial burden.

> Policyholders have the option to enhance their coverage by selecting riders that offer further payouts for accidental death or critical illness. Furthermore, the plan is eligible for tax benefits under Sections 80C and 10(10D) of the Income Tax Act, establishing it as a tax-efficient method for future savings.

> Additionally, policyholders can avail a loan against the policy once it attains a surrender value, enabling access to liquidity as necessary.

> When the policyholder reaches the maturity of the policy, a certain guaranteed monthly income initiates from the maturity date, continuing throughout the payout duration. It is important to note that the maturity benefit is disbursed regardless of whether the life assured is living or deceased. Upon the completion of the payout period, the policyholder receives 105% of the total premiums paid, providing an added financial cushion.

> Additionally, Aviva provides a 30-day 'free look' period, allowing policyholders to terminate their policy and receive a refund, thereby reducing the risk for new customers. Moreover, Aviva offers flexible premium payment options, enabling policyholders to switch between monthly, quarterly, half-yearly, and yearly payment frequencies at any policy anniversary.