aviva - pre-launch of my retirement

officially, aviva has scheduled the launch of their latest product, my retirement on april 04, 2012.

what is aviva my retirement?

this is a limited and regular premium participating endowment product with coverage for death and terminal illness and comes with the following features:

a. limited premium payment of 8 policy years or premium payment for up to 5
years prior to the selected retirement age which is age 50, 55, 60 or 65
years.
b. guaranteed issuance for basic plan and
c. guaranteed retirement income benefit.

the guaranteed retirement income benefit comes with the flexibility of the following options:

a. receive a monthly guaranteed retirement income benefit for 10 years
b. receive the usual full lump sum payment or
c. receive a partial lump sum payment and thereafter, receive a monthly
guaranteed retirement income benefit for 10 years.

what happens if the policyowner/life assured does not need the money when the guaranteed retirement income benefit is due?

there is an option to re-invest this with aviva at a non-guaranteed interest rate of 3.0% p.a. however, the policyowner/life assured can withdraw this partially or even fully anytime inclusive of the interest. there is a minimum withdrawl amount of $1,000.00 (in multiples of $10.00) or balance available, whichever is lower.

the minimum entry age for this product is 17 years and the maximum is 52 years.


my comments:

consumers can expect launch of new insurance products, not to be plain vanilla but more hybrid in design and features. Endowment products of the past were usually pretty basic, like on the maturity of the policy, the insurer will proceed to make a lump sum payment to the policyowner/life assured.

aviva my retirement must never be taken up for protection as the death benefit on death during the accumulation phase is 101% of total premiums paid + accrued reversionary bonus (if any) + terminal bonus (if any) and death benefit during the retirement income period is 101% of total premiums paid + accrued reversionary bonus (if any) + terminal bonus (if any) minus total retirement income paid out (if any) or cash surrender value (less any indebtedness).

furthermore, the plan does not provide for total and permanent disability benefit as well.