Saving a part of your income in fixed-income avenues is essential as it helps in diversifying your portfolio. Moreover, when the markets are volatile, schemes that offer guaranteed returns can bring much-needed stability.

While different avenues promise guaranteed returns over the investment tenure, Aviva Nivesh Bima gives you something extra. 

Aviva Nivesh Bima – what is it?

Aviva Nivesh Bima is a money-back life insurance policy. It pays regular and guaranteed money back benefits after every 5 years, provided all due premiums are paid. The benefits are guaranteed so that you can plan for your financial needs before buying the policy. Moreover, being a life insurance policy, Aviva Nivesh Bima also offers coverage in the case of premature death, a feature missing from other fixed-income avenues.

How can Aviva Nivesh Bima help you create a considerable corpus?

Being a money-back policy, Aviva Nivesh Bima offers liquidity through regular money backs. However, if you use the money-back benefit wisely, you can create a lump sum corpus. Here’s how –

Say you are 30 years old, and you opt for a Policy Term of 20 years. The premium you choose to pay is Rs.5 lakhs. So, with Aviva Nivesh Bima, you would have to pay the premium for 15 years while the policy would continue for 20 years. Moreover, you would receive money back benefits every 5 years.

The benefits that you receive would be as follows –

Death sum assured – Rs.55 lakhs

Maturity sum assured – Rs.1,21,60,500

Money-back benefit – Rs.12,16,050 received every 5 years

Assuming that you want a lump sum corpus after the end of 20 years, here’s how you can maximize the full potential of Aviva Nivesh Bima -

After the first 5 years, you would receive Rs.12,16,050 as a guaranteed benefit. Since you want to create a savings corpus, you can invest Rs.10 lakhs in a fixed deposit scheme for 15 years.

Again, after 5 years, i.e. in the 10th policy year, you would receive Rs.12,16,050. You can, again, invest Rs.10 lakhs in another fixed deposit scheme with a maturity of 10 years.

Rs.10 lakhs can be invested in a fixed deposit scheme for 5 years with the last money back benefit.

Now, if the fixed deposit scheme pays 7% interest per annum, the benefit that you get on maturity would be as follows –

First fixed deposit maturing after 15 years	Rs.27,59,031
Second fixed deposit maturing after 10 years	Rs.19,67,151
Third fixed deposit maturing after 5 years	Rs.14,02,551
Maturity benefit paid under Aviva Nivesh Bima	Rs.85,12,350
Total benefit received after 20 years	Rs.1,46,41,083

 

You not only get to accumulate a corpus of Rs.1.46 crores, but you also get liquidity through money-back benefits that you can use to meet the financial obligations you might incur in the interim.

So, a combination of Aviva Nivesh Bima and a fixed deposit yields considerable lump sum saving and can help you plan for your long-term financial goals. Moreover, Aviva Nivesh Bima offers so much more than just guaranteed savings. If you invest in the policy, you get the following additional benefits too –

Life insurance protection

Avira Nivesh Bima offers something that other fixed income avenues don’t, life insurance protection. With an assured death benefit, the policy ensures that your family is taken care of even when you are not around. So, while creating a savings corpus, you can also use Aviva Nivesh Bima to provide financial protection to yourself and your loved ones.

Additional coverage against accidental contingencies

Aviva Nivesh Bima offers additional coverage against accidental deaths. Called the accidental death benefit rider, this coverage pays an additional sum assured if the life insured dies in an accident. With road accidents becoming increasingly common, you can add this coverage to your policy at a minimal additional premium. After that, in the case of accidental death, your family can avail of an enhanced death benefit which would offer them additional financial protection.

Guaranteed savings

Aviva Nivesh Bima does not expose your investments to the market. As such, the money that you invest is protected from market volatility and fluctuations. Moreover, you are promised guaranteed benefits as money backs and even in the case of premature death and maturity, provided you pay all due premiums. This gives you peace of mind knowing that your savings would yield guaranteed returns that would not depend on market movements.

Tax savings

Lastly, with Aviva Nivesh Bima, you can accumulate a tax-free corpus. Firstly, the premiums paid for the policy are allowed as a deduction from your taxable income. As a result, you can invest in Aviva Nivesh Bima and reduce your tax liability by up to Rs.45,000 (if you invest Rs.1.5 lakhs as a premium and you fall in the 30% tax bracket).

Even the benefits that the plan pays are entirely tax-free in your hands. Thus, you get a tax-efficient savings corpus that can be wholly used for meeting your financial needs. However, tax benefits are as per the current Tax Laws which are subject to changes.

 

The bottom line

Whether you want to accumulate a corpus for your child’s future, for retirement or for buying property, Aviva Nivesh Bima can come to your aid. With guaranteed benefits and insurance coverage, Aviva Nivesh Bima can help amass a considerable corpus if you combine the policy with fixed deposits. So, make a wise investment choice and explore the saving potential of Aviva Nivesh Bima.

 

 

Aviva Nivesh Bima- A Non-Linked Non-Participating Individual Savings Life Insurance Plan (UIN: 122N139V01)

AN May 48/21

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