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
Key Features
Death Benefit is paid if the Life Insured dies within the policy tenure and nothing afterwards.
- 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
- Accidental Death Benefit rider is in-built in this plan
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.
- Accidental Death Benefit Rider
This plan offers High Sum Assured discount
Parent and Grandparent may also choose to opt for this plan
Benefits
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
Since this is a pure term plan, there is no Maturity 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.
How it works
- 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.
- 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.
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
Sample illustration of Premium Amount in Aegon Life Term Plan:
**Premium is without Tax
Eligibility
|
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
|
|
FAQs
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.
What Happens If you want to surrender the policy?There are no surrender benefits under this term plan.
What Happens If you want a loan against your policy?Loan facility is not available under this policy.
