Life is unpredictable. In the blink of an eye, the world as you know it can change. We all strive to provide the best for our families, building careers, homes, and futures for those we love. But what happens when life throws an unexpected curveball? How do you ensure that your loved ones are not burdened with financial stress in your absence?
The solution is Aviva Signature 3D Term Plan – Platinum as it protects your life and the financial responsibilities you leave behind. This plan offers an exclusive feature called Credit Protect, a unique feature that not only secures your life but also ensures your outstanding loans are covered.
What is Credit Protect in Aviva Signature 3D Term Plan – Platinum?
When it comes to life insurance, we typically think about life cover, which provides a financial cushion for your family in the event of your untimely demise. But life today comes with many complexities. Most people today have financial responsibilities beyond just family support—debts, mortgages, loans, and other liabilities that must be paid off. These debts don’t disappear when you pass away, and your family might be left grappling with how to manage them.
This is where Credit Protect in the Aviva Signature 3D Term Plan – Platinum comes into play. The Credit Protect feature is specifically designed to offer loan repayment support in the event of the policyholder’s death during the policy term. The Decreasing Term Assurance is a type of insurance where the premium amount reduces over time, similar to how a loan balance decreases as you make payments. For example, if you insure a ₹1,00,000 loan, the insurance payout might be ₹1,00,000 initially but would decrease as you pay off the loan, ensuring that just the remaining loan amount is covered if something happens to you.
In simple terms, Credit Protect ensures that your family is not burdened with outstanding loans after your passing. This feature offers peace of mind, knowing that your loved ones won’t have to worry about paying off loans or facing the financial stress of debt.
Why Credit Protect is the Key to Securing Your Financial Future?
Debt is a reality for many individuals. It could be in the form of a home loan, personal loan, car loan, or even credit card debt. These obligations can easily become overwhelming, especially when the primary breadwinner of the family is no longer around. In such situations, the financial strain on the surviving family members can be unbearable.
With Credit Protect, you don’t have to worry about leaving your family in financial turmoil. This feature ensures that the outstanding debt is covered, helping your family continue their lives without the added burden of financial responsibility. Instead of having to dip into their savings or liquidate assets to pay off loans, they can focus on rebuilding their lives.
The death benefit provided by Credit Protect is calculated based on a Sum at Risk Schedule, which is designed to mirror the outstanding balance of your loan. The schedule is pre-determined at the start of the policy, and it ensures that your family receives the exact amount required to settle the loan.
How Does Credit Protect Work?
The Credit Protect feature operates on a decreasing sum assured model. Here’s a step-by-step look at how it works:
- Loan Repayment Support: If you pass away during the policy term, the Death Benefit paid out will be based on a pre-decided schedule, covering the outstanding loan amount. This helps your family clear the dues, so they don’t have to bear the financial burden.
- Fixed Interest Rate: The decreasing sum assured is based on a fixed interest rate of 11% p.a., irrespective of your actual loan repayment terms. This ensures that your family is covered, even if the interest rates fluctuate in the future.
- No Lump Sum Payment: Unlike other life insurance plans that offer a lump sum payment, the Credit Protect feature offers a gradual reduction in coverage each year. This closely mirrors the structure of a loan, where the principal amount decreases as regular payments are made.
- Loan Protection for Your Family: Upon your death, the family receives the predetermined death benefit, which is based on the sum assured for that year. If you survive the entire term, no payout is made under this option.
The Credit Protect option ensures that the financial gap created by any loans is filled, offering your family the time and space to recover without worrying about the financial implications of your absence.
The Advantage of Aviva Signature 3D Term Plan – Platinum
Other than Credit Protect, Aviva Signature 3D Term Plan – Platinum offers several other advantages that make it a comprehensive financial solution for individuals looking to secure their financial future and provide debt protection to their loved ones.
1. Tax Savings Benefits
The plan provides a significant tax-saving advantage under Section 80C of the Income Tax Act, making it an ideal choice for those looking to reduce their taxable income. Premiums paid towards the plan qualify for a tax deduction of up to ₹1.5 lakh annually. Additionally, the death benefit is tax-exempt under Section 10(10D), ensuring that your loved ones receive the full payout without any deductions.
2. Flexible Premium Payments
The plan offers multiple premium payment modes—single, yearly, half-yearly, quarterly, or monthly—allowing policyholders to choose a payment structure that suits their financial situation. This flexibility ensures that the plan remains accessible and affordable, regardless of the individual’s cash flow.
3. Comprehensive Coverage with Riders
In addition to Credit Protect, policyholders can opt for additional riders such as Accidental Casualty, Critical Illness, and Cancer Cardio. These riders enhance the policy’s coverage, offering protection against life’s uncertainties and ensuring that you and your family are fully protected against various risks.
4. Special Premium Rates for Women and Non-Tobacco Users
Aviva rewards healthier lifestyle choices by offering special premium rates for women and non-tobacco users. Women, who typically have a longer life expectancy, benefit from lower premiums. Non-tobacco users, who are at lower risk for health issues, can also enjoy cost-effective premiums, ensuring that their life insurance plan remains affordable while providing ample protection.
5. Coverage Up to 80 Years of Age
The Aviva Signature 3D Term Plan – Platinum offers life coverage up to 80 years of age, providing long-term protection for you and your family. This extended coverage ensures that you are financially protected throughout the later stages of life, when health risks may increase.
In today’s world, financial responsibilities are often intertwined with emotional well-being. Aviva Signature 3D Term Plan – Platinum ensures that your family’s emotional recovery is not further strained by the financial burden of loans or debts. Whether you choose Credit Protect or simply want the peace of mind that comes with a traditional term plan, Aviva offers a solution that meets your needs while securing your family’s future.
*Standard T&C Apply
**Tax benefits are subject to change in prevalent tax laws.
***Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
****Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
