About Aviva MyRetirementChoice II
Aviva MyRetirementChoice II is distributed by Aviva agents and financial advisors representatives. It is an endowment plan that is designed to help one in his/her retirement planning. It aims to provide Retirement Monthly Income from the intended retirement (payout) age.
The Retirement Monthly Income is made up of 3 components, and they are
- Guaranteed Monthly Income (GMI)
- Non-Guaranteed Monthly Cash Bonus
- Non-Guaranteed Additional Monthly Income (AMI)
The policyholder can receive a lump-sum bonus (accrued reversionary bonus) at the chosen retirement age or convert the lump-sum bonus into AMI. This option has to exercise before the commencement of the policy and cannot be changed. If no option is selected, the accrued Reversionary Bonus into AMI by default.
This AMI flexibility feature is attractive to retirees who wish to enjoy a small lump sum at retirement age before receiving the monthly retirement income.
Flexibility to tailor an ideal retirement plan
Aviva MyRetirementChoice II offers a lot of flexibility in designing your retirement plan.
- Retirement age – You are free to choose your retirement. This is unlikely most insurer where the options are 55, 60 or 65
- Payout period – You can choose the duration of retirement income payout between 5 to 35 years. The last age of receiving the monthly income must not be more than age 99.
- The premium terms are 5, 10, 15, 20 or 25 years.
Care Income Benefit
Additional Guaranteed Monthly Income (GMI) will be payable if the insured becomes partially disable and meets the “Partial Disability” definition during the retirement income payout period. To illustrate:
- Additional 50% of the GMI will be paid out if the insured is unable to perform any 2 of the 6 ADLs despite the aid of special equipment and requires the physical assistance of another person to perform the ADLs; or
- Additional 100% of the GMI will be paid out if the insured is unable to perform at least 3 of the 6 ADLs despite the aid of special equipment and requires the physical assistance of another person to perform the ADLs
Do note that the Aviva MyRetirementChoice II’s Care Income Benefit can be exchanged into a lump sum by exercising Fast Forward Option (FFO).
Fast Forward Option (FFO)
This option allows the policyholder to convert the Care Income Benefit for Partial Disability into a lump-sum payout. This is a unique feature from Aviva MyRetirementChoice II and we have not seen such feture in other insurer’s retirement plan. This lump-sum amount will be lower than the total Care Income Benefit and will be determined by the insurer upon activation.
This option is available only once and must be decided upon the claiming for the first Care Income Benefit. If the option is not exercised, it will not be available once the Care Income Benefit payments have started.
The premium of Aviva MyRetirementChoice II will be waived if the insured becomes Totally and Permanently Disabled as defined in the policy before age 75.
Pros of Aviva MyRetirementChoice II
- Aviva MyRetirementChoice II is one of the most customisable retirement plans in the market.
- The Fast Forward Option (FFO) offers a unique option to cover the additional monthly partial disability benefit into one lump sum.
- Comprehensive Care Income Benefit that pays out upon inability to perform 2 out of 6 Activities of Daily Living.
Cons of Aviva MyRetirementChoice II
- The illustrated total yield (guaranteed and projected) at the end of the policy term is average compared to other insurers’ retirement plan.
- The total guaranteed yield of Aviva MyRetirementChoice II at the end of the policy term is also average compared to other insurers’ retirement plan.
Are you planning to retire?
- Will you have enough to retire?
- Would you like a retirement plan that provides a steady stream of income during retirement?
- Do you want to compare Aviva MyRetirementChoice II with retirement plan from other insurers and implement one that is most suitable to you?