Aegon Religare Decreasing Term Plan

Aegon Religare Decreasing Term Plan is another variant of the standard term insurance plan. The sum assured decreases by 5% each year till it reaches 5% of the initial Sum Assured in 20 years. This is a steady decrease in Sum Assured over the years. And the premium needs to be paid only for 11 years even for a 20 years policy. So it makes maximum sense to take a policy for 20 years and never less than that.

Compare Term Insurance Plans

• It is a Decreasing Term Insurance Policy with Death Benefit only
• The Sum Assured decreases each year by 5% till it becomes 5% of the initial Sum Assured
• Maximum of only 11 years of premium paying term for whatever is the tenure of the policy

Death Benefit – Nominee would receive the Sum Assured in event of death of the life insured during the policy tenure. The sum assured that would be payable is the Sum Assured of that year according to the Decreasing sum assured chart that had been provided at the onset of the policy

Maturity Benefit – Since this is a pure term plan, there is no maturity benefit

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
 

The below illustration is for a healthy Male (non-tobacco user) opting for a Sum Assured = Rs. 50 lakhs and Policy Term = 20 years

 

Riders – There are no additional riders in this plan.

You stop paying the premium –Then the policy would lapse and no further benefits would be payable even if the life insured dies. The policy can be revived within 2 years of lapsation.

You want to surrender the policy – Being a protection plan, there are no surrender benefits under this term plan.

You want a loan against your policy – Loan facility is not available under this policy