Aviva India launches Family Income Builder

MUMBAI: Private life insurer Aviva India has recently announced the launch of a traditional plan - Family Income Builder. Essentially a money-back plan, it comes with a fixed premium paying term of 12 years. After the expiry of this period, the policyholder will be entitled to receive annual payouts amounting to double the annual premium paid, between years 13 and 24. In case of the life assured's death during the 12-year period, future premiums will be waived off, and the pay-outs handed over to his/her dependants. However, if the death occurs in the first year of the policy, the amount payable to the dependents will not be doubled - it will be equal to the first premium paid.

The plan is targeted at those looking at building a fund for their children's education and ensuring supplementary post-retirement income for themselves or their parents.

The age at entry under this plan is six years, while 50 is the upper-age limit. The age at maturity, that is, post the premium paying term, cannot exceed 62 years. The minimum premium payable is Rs 40,000 per year, with the maximum premium being capped at Rs 2-5 lakh, depending on your age. Premiums can be paid only in the annual mode.

Upside: If you are looking for assured returns and regular cash-flows to boost your income over a period of time, you may find this plan suitable for your requirements.

Downside: Since traditional plans (like FIB) invest only in fixed income instruments, their return-earning capability is limited. If you risk appetite is bigger, products with equity exposure would be better-suited for you.