Aviva i-Shield Online return of premium term plan – Review

Aviva i-shield

Aviva Life Insurance has launched an online term plan with return of premium. Return of premium term Insurance products, as the name suggests, gives back a certain return on the premium paid if the policyholder survives the policy term. Name of plan is Aviva i-Shield. Aviva i-Shield, provides life cover with a provision of return of 110% of paid premium if the policyholder survives the policy term.

Key Features:-

  • 110% of the premiums paid back as survival benefits, guaranteed
  • Premium rebate on choosing Sum Assured of Rs. 20 Lacs and above.
  • Free Medical examination at inception of the policy
  • Quick and hassle free buying through internet


Entry   Age (last birthday)18   years – 55 years
Maximum   Maturity Age (last birthday)65   years
Policy   Terms10   years to 25 years
Premium   Payment Term (PPT)Equal   to Policy Term
Allowed   Premium Payment Frequencies and Modal FactorYearly:1.0000Half   Yearly: 0.5108Monthly:   0.0871
Sum   Assured AllowedRs.   15 lakhs to Rs. 5 crores (in multiples of Rs.25000), subject to underwriting


Death Benefit: In an unfortunate event of your death (if you are the Life Insured) within the policy term chosen by you, your nominee will receive an assured amount. The assured amount depends upon the year of death.

Policy   Year When Life Insured DiesAssured   Death Benefit
1st   – 10th100%   of Sum Assured
11th   – 20th110%   of Sum Assured
21st   – 25th120%   of Sum Assured


The policy will terminate after the payment of death benefit.

Maturity Benefit: If you survive till maturity and pay all due regular premiums, you will receive 110% of all premiums paid, excluding taxes and extra premium, if any.


For a person with age of 25 years the premium for Aviva I-Shield works to around Rs 16400 for a 50 lakh cover, 20 year.

For a person with age of 35 years the premium for Aviva I-Shield works to around Rs 26150 for a 50 lakh cover, 20 year.

Our Opinion:-

This plan is nothing but option to combine investment with insurance. Which one should avoid.

If risk cover is only objective one should purchase term plan, where once can find 50 lac cover in approximate Rs.5000.

Remember these plans come at an additional premium cost of as much as five times of that of any regular term plan.

At the end of term company will return premium paid by you. The insurance company would invest your premium amount in low-yielding instruments such as government securities, bond, fix deposit and other approved securities to return the premium amount at maturity

So, if insurance company can invest your money in low risk component why you can’t.

I advise instead of buying this plan you can park surplus funds in high-growth instruments such as equity-linked savings schemes (ELSS) or PPF, ELSS of FD which can earn you better returns along with tax benefit.

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Article by Raviraj

Raviraj is the man behind moneyexcel.com. He is graduate in finance, engaged in blogging since 7 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

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