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AEGON Life iMaximize Plan

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Aegon Life iMaximize Plan

Aegon Life iMaximize Plan is a unit-linked insurance policy (ULIP) with ZERO Premium Allocation charge. That makes it unique and among the most cost efficient insurance plans which can be the perfect insurance + investment opportunity. Also this plan can be bought online which adds to the convenience.

  

Key Features of Aegon Life iMaximize Plan

  • ZERO Premium Allocation charge. All your money gets invested
  • Top-ups too do not attract any premium allocation charge
  • Special units get added from the 12th year onwards till the maturity of the policy
  • Choice of 2 investment strategies depending on your preference
  • Plan can be purchased online

COMPARE THIS PLAN WITH OTHER ULIP PLANS

 

Benefits From Aegon Life iMaximize Plan 

Death Benefit – Those opting for Single Premium plans would get the higher of Sum Assured or Fund Value. The policy holder has 2 options (in case regular premium mode has been selected) to decide on the death benefit payable to the nominee at the time of buying the iMaximize Plan.

Option 1: Higher of Sum Assured or 105% of all the premiums paid

Option 2: Higher of Sum Assured or 105% of all the premiums paid + All regular premiums due for remainder of the policy term are waived and paid by the company (Premium Continuance Benefit) +The annualised premium is paid to the nominee at the start of each policy year (Income Benefit).

Maturity Benefit – The policy holder would get the fund value of the iMaximize Plan.

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. The maturity amount you receive from this plan are exempt from tax under section 10(10D)

 

Eligibility conditions in the iMaximize Plan

The table below if for Regular Premium Paying policies (Monthly & Annual Modes)

 

Minimum

Maximum

Sum Assured

For age< 45 years

Higher of (10 x Annualised Premium) or (0.5 x Policy Term x Annualised Premium)

 

For age> 45 years

Higher of (7 x Annualised Premium) or (0.25 x Policy Term x Annualised Premium)

 

30 times x Annualized Premium.

There is an option of choosing 15/20/25 x Annualised Premium also

Policy Term (in years)

15 / 20 / 25 years

Premium Payment Term (in years)

Equal to policy term

Lock-in period

5 years

Entry Age of Policyholder

18

60

Age at Maturity

-

75

Regular premium (Annual)

Rs.24,000

No Limit

Payment modes

Monthly, Yearly & Single

Top-up premium

Rs.10,000

No Limit

 

For Single Premium Policies

 

Minimum

Maximum

Sum Assured

For age< 45 years

Higher of (10 x Annualised Premium) or (0.5 x Policy Term x Annualised Premium)

 

For age> 45 years

Higher of (7 x Annualised Premium) or (0.25 x Policy Term x Annualised Premium)

1.25xSingle Premium

 

 

 

 

 

1.10xSingle Premium

Premium Payment Term (in years)

Single

Lock-in period

5 years

Entry Age of Policyholder

7 years

Single Premium

For premiums of Rs.50,000 to 69,000 the term of the plan would be 5 years.

For premiums of Rs.70,000 to 1,24,000 the term of the plan would be 10 years.

For premiums >= 1,25,000 the term of the plan would be 25 years.

Top-up premium

Rs.10,000

No Limit

 

Additional Features and Benefits of the iMaximize Plan

Special Units – Special units are added to your fund after the 12th policy year till the time of maturity. Units equal to 0.45% of the average fund value in the last 12 months get added.

Investment Strategies – iMaximize Plan has 2 options here – you can change the strategy at any point of the policy term though. 

Trigger Portfolio Strategy – In this your premiums are invested in the Accelerator Fund (which is an aggressive equity oriented fund) and as soon as the fund value equals 110% of the premiums paid till date, the extra amount is moved to the Secure Fund (which is a conservative debt oriented fund). Due to this strategy, you can participate in the aggressive fund and secure any surplus generated by it.

Self Managed Portfolio Strategy – In this you choose between the 3 funds which are available – Secure Fund, Stable Fund & Accelerator Fund.

Top-up - You can add any amounts to your existing funds at any time after the 1st policy year and before the last 5 policy years. The minimum amount of top-up should be Rs.10,000.

Switching - You have the flexibility to switch investments from one fund to the other any time during the policy term. You have 4 free switches in each policy year.

Premium Re-direction – You have the facility to re-direct all future premiums to the funds of your choice.

Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years. You would be allowed to withdraw only 20% of the fund value at the beginning of that policy year.

 

Plan Details.

Let’s Understand The Plan With An Example:

Dr. Mahesh (age 30 years) works with a reputed hospital. His wife is a homemaker and they have a son, Anuj, who is 3 months old. Although Mahesh’s income provides well for their family, he is concerned about the rapid change in the way of life. He is also aware of the rising inflation and spiralling expenses related to education, marriage etc. Moreover, he is cognizant that life is uncertain and that the future of his family needs to be protected. He relies on Aegon Life’s iMaximize Insurance Plan.

His plan details are as follows:
Death Benefit Option 2, Cover Amount (Base Sum Assured): Rs. 12.5 lakhs, Policy Term: 25 years, Premium Payment Term: 25 years, Premium Payment Mode: Annual, Premium: Rs.1,00, 000/-. Investment Strategy: 100% Secure Fund.

Charges in AEGON Life iMaximize Plan

Premium Allocation Charge – There is no Premium Allocation Charge in this plan
 
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 Administration Charge
Frequency
Rs 100
Per month
 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.
 
Type
Charge
Secure Fund
1.00%
Stable Fund
1.35%
Accelerator Fund
1.35%
Discontinued Fund
0.5%
 
 
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, then the accumulated policy fund amount shall be paid to the policy holder after the fifth policy year. A discontinuance charge would be applicable though. After 5 years the discontinued fund vale along with an interest would be paid.

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. There is no charge which is applicable if premiums have been paid for 5 years.

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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