Aviva New Group Leave Encashment Plan

Aviva New Group Leave Encashment Plan

In this policy the investment risk in the investment portfolio is borne by the Policyholder
Overview
Aviva New Group Leave Encashment Plan is a Unit Linked plan, which offers employers a flexible and cost effective way to fund their leave encashment liability

The plan provides:

- A lump sum fund to meet the leave encashment liability of your employees

- Life Insurance Cover of Rs.1,000 in case of death while in service

- Flexibility to invest in various unit linked investments funds

- The option to switch between various funds without any charges

Specifications
1. Master Policyholder: Employees

2. Coverage: The minimum group size is 10 members

3. Entry age: 18 to 70 years (last birthday)

4. Minimum contribution: Rs 1 lakh at inception

5. Sum Assured: Rs 1,000 per employee (fixed)

6. Reinstatement period: 5 years from date of lapse, post which the scheme gets terminated

7. Mortality Premium: This will be payable through cancellation of units from master policy account towards the cost of life cover.

8. Funds available: 7 Funds options

What is the amount payable to the employee (member) on death, retirement, resignation / termination of employment?
1. On encashment of leaves by a member while in service or in case of death/retirement/resignation or termination, the Master Policyholder will be paid an amount equivalent to the amount payable to the member as per the Company's Leave Encashment Rules, by canceling the units of equivalent amount from the master policyholder's account.

2. On death of a member, an additional amount of Rs.1,000/- is paid

What will the organization get?
Tax Benefits

1. Tax benefits are as per the provisions of the Income Tax Act, 1961. Tax laws are subject to change.

What are the charges applicable?
1. Allocation Charge

2. Fund Management Charge

3. Mortality Charge

4. Surrender Charge