Aviva Life Insurance Company India Ltd has launched the Aviva Smart Return of Premium Term Plan, expanding its protection portfolio with a term insurance proposition that returns the total premiums paid if the policyholder survives until maturity, subject to policy terms and conditions.
Key features
- Policy term: 10 to 30 years
- Life cover: Rs 5 lakh to Rs 50 lakh, subject to eligibility
- Entry age: 18 to 60 years
- Maximum maturity age: 75 years
- Premium payment: monthly, quarterly, half-yearly or annually
- Return of premium: total premiums paid back at maturity, subject to policy terms and conditions
- Riders: optional Accidental Casualty and Critical Illness riders
- MWPA option: can purchase under the Married Women Property Act to safeguard benefits for spouse and/or children
- Policy loan: up to 80% of surrender value
Why this matters
Return-of-premium term plans occupy a specific niche: they cost more than pure term insurance but give back the premiums if you survive. For buyers who want the psychological comfort of getting their money back, this is an option. But the math matters: pure term insurance is significantly cheaper for the same cover. The additional premium for the return-of-premium feature is effectively an investment that earns zero or negative returns compared to simply buying cheaper term cover and investing the difference. The decision depends on whether you value the guaranteed refund more than the higher cover you could buy with the premium savings.
Context
The launch comes at a time when the term insurance market is growing rapidly after the GST exemption. Multiple insurers are competing for the same pool of buyers, and product differentiation through return-of-premium options is one way to stand out. Aviva CEO Asit Rath said the proposition combines life protection with a defined return of applicable premiums, positioning it for customers seeking both security and clarity on benefits.