The Hindu Business Line : Aviva Life's Amar Suraksha

AMAR Suraksha is a term plan with return-of-premium option from Aviva Life. Like other term policies, it pays the sum assured on death. But on survival at maturity, all premiums paid are returned without interest.

Premiums have to be paid over the entire term at half-yearly or annual intervals.

Suitability

It is different from other term plans, as it targets the lower and middle-income group who cannot afford to pay much.

The plan is also suitable for those who want to go for additional cover.

The highlights of the plan are:

Medical examination is not required.

It is the only plan that covers the risk for as low a premium as Rs 500 per annum.

You can take the plan for as low a face value as Rs 20,000. Usually the minimum sum assured is Rs 1 lakh and above.

The maximum sum assured is Rs 1 lakh. Most other plans do not have an upper limit.

The plan is open for those in the 18-45 age group. The maximum age at maturity is 50 years. This is a limitation as generally term plans can be taken till 55.

The age at maturity is 65 for most plans in the market.

The policy can be bought for a term of five, 10, 15 and 20 years.

No riders are available with the plan.

The entire premium paid is returned on survival up to maturity.

The policy acquires a surrender or paid-up value if three years premiums have been paid. In case of death in a paid-up policy, only the guaranteed surrender value is payable.

Aviva has two other term plans, one a pure term and another with return of premiums option.

These policies can be taken for a sum assured of Rs 3 lakh and above. Amar Suraksha is different from these as it can be taken for a lower sum assured.

But it also has limitations in terms of eligibility and, hence, is more suitable to those in a relatively lower-income bracket or as a supplement to an existing term plan.

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