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AEGON Life Future Protect Plus Plan

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AEGON Life Future Protect Plus Plan

AEGON Life Future Protect Plus Plan is a simple unit linked insurance plan (ULIP). Thus it is a Non-Traditional Insurance Plan without Bonus Facility.

How it works – In this plan, premium needs to be paid for the entire policy tenure.

There is a unique option of Invest Protect Option, where the policyholder can choose to systematically move out of his current investment funds 3 years before maturity so that any volatility in the market would not affect his maturity benefit.

The Fund Value would be provided to the policyholder at the end of the policy tenure as Maturity Benefit. However, if the Life Insured dies within the policy tenure, then the Death Benefit would be paid and the policy would terminate. There is Double Death Benefit in this plan, such that if the Life Insured dies within the policy tenure, the nominee would receive the Sum Assured + the Fund Value as Death Benefit.


Key Features of AEGON Life Future Protect Plus Insurance Plan

  • This is a simple Unit Linked Insurance Plan
  • This policy offers Double Death Benefit of Sum Assured + Fund Value if the Life Insured dies within the policy tenure.
  • In this plan, policyholder can select Invest Protect Option, where the funds are invested in the equity oriented fund till the last 3 years when it is systematically taken out so as to protect from equity market fall.
  • There is an option of Auto Rebalancing in this plan, where the funds would rebalance automatically according to the preferred fund allocation mentioned.
  • There is an option of 4 fund options and 2 rider options
  • The policyholder can increase Sum Assured twice during policy term only on even like Marriage and Childbirth.


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Benefits you get from AEGON Life Future Protect Plus Insurance Policy

Death Benefit – In case of death of the Life Insured within the policy tenure, the nominee would get Sum Assured + Fund Value as Death Benefit.

Maturity Benefit – On maturity, the Fund Value is paid to the policyholder.

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

 

Eligibility conditions & other restrictions in AEGON Life Future Protect Plus Plan

 

Minimum

Maximum

Sum Assured (in Rs.)

Higher of 10 times X Annualized Premium or (0.5XTermXAP) for age< 45 years

 

Higher of 7 times X Annualized Premium or (0.25XTermXAP) for age>= 45 years

25 times X AP for Policy Term 15 years

 

30 times X AP for Policy Term 25 or 30 years

 

50 times X AP for other terms

Policy Term (in years)

15

40

Premium Payment Term (in years)

Equal to Policy Term

Entry Age of Life Insured (in years)

7

60

Age at Maturity (in years)

-

75

Premium (in Rs.)

20,000 p.a. for Annual Mode

30,000 p.a. for other modes

No Limit

Payment modes

Yearly, Half Yearly, Monthly

 

Additional Features and Benefits of AEGON Life Future Protect Plus Plan

Riders – There are 2 riders available in this policy

  1. Accidental Death, Disability and Dismemberment Benefit
  2. Critical Illness Benefit

Investment Fund Options - There are 4 Investment Funds available

  1. Secure Fund
  2. Debt Fund
  3. Stable Fund
  4. Accelerator Fund

Top-up - You can invest additional premiums as top-up premiums anytime except in the last five policy years.  The minimum top-up premium is Rs. 5,000.

Switching - You have the flexibility to switch investments from one fund to the other any time during the policy term. 4 Switches are free every year. Switching is not allowed if Invest Protect Option has been selected.

Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years or life insured is at least 18 years old. 4 Partial Withdrawals are free every year.

The minimum amount of partial withdrawal should be Rs.5, 000 and the maximum is 20% of the Fund value at the beginning of that policy year. An amount equal to a minimum of 2 years’ annualised premium should be maintained as fund value after any partial withdrawal.

Systematic partial withdrawals facility is available under electronic clearing service (E.C.S.) facility only.


Plan Details

Let’s Understand The Plan With An Example:

Mr. Mahesh (age 37 years) is an engineer working with an Petroleum Company. His wife is a homemaker and they have two children, age 8 years and 5 years. Mahesh invests in various investment instruments, but is looking for a plan that offers a good life cover and provides growth for his money in the long run. Hence, he opts for Aegon Life’s Future Protect Plus Insurance Plan.

His plan details are as follows:
Cover Amount: Rs.9 lakhs,
Policy Term: 20 years, 
Premium Payment Term: 20 years,
Annual Premium: Rs.50,000/-

Apart from the above, Mahesh has also opted for the Invest Protect Option. This feature will not only help him gain from his investment but also minimise the risk to his returns. As the Policy nears maturity, it protects his money by systematically shifting his funds from equity fund to debt fund, during the last 3 Policy years.


Charges in AEGON Life Future Protect Plus Plan

Premium Allocation Charge – This charge is deducted from the Premium Paid by you

Policy Year
Premium Allocation Charge
Year 1
4.4%
Year 2-5
3%
Year 6-10
2%
Year 11 onwards
1%
 
 
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.
 
Policy Year
Policy Administration Charge
Policy Administration Charge
Rs 60 p.m.
Increases by
3% p.a.
 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.
 
Type
Charge
Secure Fund
1% p.a.
Debt Fund
1.1% p.a.
Stable Fund
1.35% p.a.
Accelerator Fund
1.35% p.a.
 
 
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.
 
Year of Discontinuation
Annual Premium <= Rs 25,000 p.a.
Annual Premium > Rs 25,000 p.a.
1st
Lower of 20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
NIL
 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.

Service Tax would be applicable on the charges depending on the applicable rates. 

 

What happens if?

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.

You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.

You want to surrender the policy – The policy can be surrendered from the 6th (sixth) policy year. The surrender value will be equal to the fund value of all the premiums paid.

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


 
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