AVIVA i-Life Online Term Plan : Review



Salient features of AVIVA i-Life
1- The minimum sum assured for iLife plan is Rs. 25 Lakhs while there is no maximum limit set but subject to underwriting requirement.
2- The minimum and maximum entry age for iLife plan is 18 years and 55 years respectively.
3- The maximum maturity age is 70 years.
4- The policy paying term is minimum of 10 years to maximum of 35 years.
5- You can pay the premium only yearly and no half yearly or quarterly premium payment options available with iLife.
6- Tax benefit under section 80c

Other important features
Accidental Death Benefit - Offers Accidental Death Benefit rider for enhanced protection where additional sum equal to Accidental Death Benefit Rider Sum Assured shall be payable in case of accidental death.
Free Look Period - Aviva i-Life plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.
Grace period -Aviva i-Life can be paid within 30 days from the date of renewal. Policy terms will remain unchanged during grace period. However in case of death during grace period, renewal premium will be deducted from Sum Assured payable. After 30 days, if the renewal premium is not paid the policy will cease to exist.
Reinstatement -Aviva i-Life can be revived within 2 years from the premium due date. However all outstanding premiums are to be paid.
Maturity - There are no maturity benefits in Aviva i-Life plan as it’s a pure term life insurance plan.
Exclusion - During the first policy year or the year of reinstatement of policy, if policyholder commits suicide then Sum Assured will not be paid.
Payment Method – Credit/debit card are accepted by AVIVA Life.
Note – The payment can be made by the proposer/life assured only by his/her credit card. The
payment by credit card of any third party will result in decline of the proposal/payment.

Advantages on Aviva i-Life Plan
Rebate for Female Lives - An additional rebate for female lives of 5% on the tabular premium rates for male lives.
Rebate on Large Sum Assured - Premium rates depend on the size of the Sum Assured ranges – less than Rs. 50 lacs, Rs. 50 lacs to less than Rs. 1 Cr, Rs. 1 Cr to less than Rs. 5 Cr and Rs. 5 Cr & above.

Disadvantages on Aviva i-Life Plan
1- Minimum Sum Insured 25 lacs.
2- Available only online.
3- Only available in 33 cities in India. (see attachment i-Life City List)

How to buy Aviva i-Term?
You can buy Aviva i-Life Plan from AVIVA Life only online via their special tool at their website, and will need to give the necessary details, upload supporting documents and payment via online credit/debit card.
For more details about the plan, visit their site here – https://onlineproduct.avivaindia.com/rforms/jsp/rform/index.html

Comparisonwith other online term plans*

Product

Sum Insured

Age*

Term

Male/Female

Smoker

Premium Mode

Premium (in Rs.)

Aegon Religare i-term

50 lacs

31 Years

25 Years

Male

No

Annual

5900

ICICI Pru i-Protect

50 lacs

31 Years

25 Years

Male

No

Annual

5900

Aviva i-Life

50 lacs

31 Years

25 Years

Male

No

Annual

4697

*DOB of proposer – 01 May’1980, male, non smoker, premium mode – annual, term -25 years

The Bottom Line
Out of the above three products, we recommend Aviva Life’s i-Life due to low premium, long term available for selection (as life expectance is growing in India) and rebate for large sum insured.
1- In I-Protect, maximum term offered in Aviva i-Life is 35 years as compared to 25 years offered by Aegon Religare’s I-Term Plan and 30 years offered by ICICI Pru’s i-Protect.
2- Rebate for large sum insured and female lives keep it separate from Aegon Religare’s I-Term and ICICI Pru’s i-Protect.
3- Claim Ratio of ICICI Pru Life (90.17) is better than Aviva Life (87.11) and Aegon Religare (48.00) in FY 2009-10.

Company Claim Ratio (FY 2009-10)

Aegon Religare

48.00

Aviva Life

87.11

ICICI Pru Life

90.17

Attached files

i-LifeCityList.doc (45.5 KB)