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AEGON Life Term Plan

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Aegon Life Term Plan

AEGON Life Term Plan is a Term Insurance Plan with only Death Benefit and no Maturity Benefit. It is a Traditional Plan without Bonus facility

 
 
How it works – In this plan, premium needs to be paid till the end of the policy tenure. If the Life Insured dies within the Policy Tenure, the Sum Assured is paid to the nominee. There are however 2 options for selection of Death Benefit:
  • Option 1: Where the Sum Assured is paid to the nominee as the Death Benefit if the Life Insured dies within the policy tenure and the policy terminates.
  • Option 2: Where 50% of the Sum Assured is paid to the nominee as an Immediate Death Benefit if the Life Insured dies within the policy tenure. The remaining amount is paid at the rate of 3% of the Sum Assured every month, starting the next policy month and is paid for the next 5 years. This option provides staggered Death Benefit. The nominee however has the option to withdraw the discounted value of the future payouts at any time during the said period.
This Plan offers Accidental Death Benefit Option as in-built rider. Thus, if the Life Insured dies in an accident within the policy tenure, then the nominee would get under:
  • Option 1: 200% of the Sum Assured as Death Benefit
  • Option 2: 150% of the Sum Assured as an Immediate Death Benefit along with 3% of the Sum Assured paid every month for next 5 years.
 

Being a pure Term Plan, there is no Surrender or Maturity Benefits under this plan. There are 2 additional riders available in this plan- Critical Illness Rider and Women care Rider.
 

COMPARE THIS PLAN WITH OTHER TERM PLANS
Yes
No

 

 

Additional Features and Benefits of AEGON Life Term Plan

Riders – there are 2 riders in this plan:
  1. Critical Illness Rider
  2. Women Care Rider
And it has 1 in-built Rider:
  1. Accidental Death Benefit Rider
HAVE ANY DOUBTS THAT NEED TO BE CLARIFIED?
 

Plan Details

Let's Understand The Plan With An Example:

Mr.Mahesh (age 30 years) is at a senior managerial position with a MNC. His work needs him to travel a lot. He is married and his wife does not work and takes care of their kids - Amog, 4 years and Minal who is just born. Mahesh owns a plush house and a car. However, both of these are availed through a loan. Mahesh knows that life is uncertain. To ensure that in his absence his family continues to live the same lifestyle as they do now, he opts for Aegon Life’s Term Insurance Plan.

His plan details are as follows:

Death Benefit Option 2 (Non Smoker),
Cover Amount (Base Sum Assured) = Rs.50 lakhs, 
Inbuilt Accidental Death Benefit = Rs.50 lakhs,
Policy Term = 30 years, Premium Payment Term = 30 years,
Annual Premium = Rs.12, 900 (exclusive of service tax).

Mr.Mahesh dies in an accident after 3 years

 

What Happens If?

You stop paying the premium - If the policy holder stops paying the premium, then the policy would lapse and all benefits of the policy will cease after the expiry of the grace period from the due date of the first unpaid premium. You can re-instate the policy within 2 years of lapsation by paying up all due premiums with interest.
 
You want to surrender the policy – There are no surrender benefits under this term plan.
 
You want a loan against your policy – Loan facility is not available under this policy.
 

Key Features of Aegon Life Term Insurance Plan

  • It is a pure Term Insurance Policy with Death Benefit only
  • Death Benefit is paid if the Life Insured dies within the policy tenure and nothing afterwards
  • Accidental Death Benefit rider is in-built in this plan
  • There are 2 options for selecting Death Benefit in this plan:
    • Option 1: 100% of the Sum Assured is paid as Death Benefit
    • Option 2: Where 50% of the Sum Assured is paid as an Immediate Death Benefit and 3% of the Sum Assured is paid every month, starting the next policy month and is paid for the next 5 years
  • There is no Maturity or Surrender Benefit in this plan
  • There are 2 additional riders available in this plan
    • Critical Illness Rider and
    • Women care Rider.
  • This plan offers High Sum Assured discount
  • Parent and Grandparent may also choose to opt for this plan
Eligibility conditions & other restrictions in Aegon Life Term Policy

Benefits you get from Aegon Life Term Insurance Policy

Death Benefit – In this plan, if the Life Insured dies within the Policy Tenure, the nominee would receive the Death Benefit under:

  • Option 1: 100% of the Sum Assured is paid as Death Benefit
  • Option 2: Where 50% of the Sum Assured is paid as an Immediate Death Benefit and 3% of the Sum Assured is paid every month, starting the next policy month and is paid for the next 5 years as staggered Death Benefit
 
Maturity Benefit – Since this is a pure term plan, there is no Maturity Benefit.
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity Proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions.
 

Eligibility conditions & other restrictions in Aegon Life Term Policy

 
Minimum
Maximum
Sum Assured (in Rs.)
10,00,000
No Limit
Policy Term (in years)
10
75 – Age at Entry
Premium Payment Term (in years)
Equal to Policy Term
Entry Age of Life Insured (in years)
20 years.
30 years for 10 year Policy Term
65
Age at Maturity (in years)
-
75
Annual Premium (in Rs.)
2,390
No Limit
Payment modes
Yearly, Half-Yearly and Monthly
 

Sample illustration of Premium Amount in Aegon Life Term Plan

The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs. 50 lakhs and Policy Term = 25 years.
Accidental Death Benefit= Rs.10,00,000.
**Premium is without Tax
AEGON Life Term Plan Sample Premium


 

 

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