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AEGON Life iMaximize Single Premium Insurance Plan
Aegon Life iMaximize Single Premium Insurance Plan Review
Aegon Life iMaximize Single Premium Insurance Plan is a Unit Linked Insurance Plan where the premium is paid once while the plan provides attractive returns linked to the market along with insurance protection to the policyholder.
Highlights of the Aegon Life iMaximize Single Premium Insurance Plan
This is a Unit Linked Plan with a Single Premium Payment option and the plan can be bought online.
No premium allocation charges ensure that the plan provides maximum returns.
The plan has an option of 3 funds for investments and the policyholder can choose any one of the funds as per his risk appetite.
Working of the Aegon Life iMaximize Single Premium Insurance Plan
The policyholder decides on the amount of single premium he wants to pay, the fund in which the premiums are to be invested and the Sum Assured of the plan.
After deduction of the applicable charges, the premium is invested in the policyholder’s chosen fund.
There are 3 fund options to choose from which are:
Bluechip Equity Fund
The premium paid, net of the applicable allocation charge is invested in the above funds based on the policyholder’s risk profile.
If the policyholder dies during the tenure of the plan the death benefit is paid.
If the plan attains maturity, the maturity benefit is paid.
Benefits and Features of Aegon Life iMaximize Single Premium Insurance Plan
Maturity Benefit – On maturity, the Fund Value and any Top-up premium Fund Value available on the maturity date would be paid to the policyholder.
Death Benefit – If the insured dies when the plan is in-force, the death benefit paid would be higher of the following:
Sum Assured including top-up Sum Assured net of partial withdrawals made within the last 2 years of death
Fund Value including any top-up Fund Value
105% of all premiums paid until death.
Bonus – Being a ULIP plan, bonus is not declared.
Loan –Loan is not available under the plan.
Tax benefit – Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.
COMPARE THIS PLAN WITH OTHER ULIP PLANS
Eligibility Criteria of Aegon Life iMaximize Single Premium Insurance Plan
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
Entry age (Last Birthday)
Maturity Age (Last Birthday)
For ages up to 50 years – 10 years
For ages above 50 years – 5 years
Premium Paying Term
1.25 times the single premium if age is lower than 45 years
1.10 times the single premium if the age is 45 years and above
10 times the single premium
Top-up Sum Assured
1.25 times the top-up premium if age is lower than 45 years
1.10 times the top-up premium if age is 45 years and above
10 times the top-up premium
Premium payment mode
Applicable charges in Aegon Life iMaximize Single Premium Insurance Plan
Being a ULIP plan, there are certain charges applicable. The charges include the following:
Premium Allocation Charge – Since this is an online plan, there are no premium allocation charges.
Policy Administration Charge – A monthly charge of Rs.100 is deducted from the fund value at the start of each month.
Fund management Charge – These charges depend on the type of fund selected and are charged on a daily basis. The applicable charges are:
Bluechip Equity Fund
1.35% per annum
1.00% per annum
1.10% per annum
Discontinuance Policy Fund
0.50% per annum
Miscellaneous Charges – A maximum charge of Rs.500 could be levied as miscellaneous charge for any service offered.
Discontinuance Charge – Applicable for policies in which premiums are discontinued. The charges are:
Year of Discontinuance
Lower of 1% of single premium or Fund Value up to a maximum of Rs.6000
Lower of 0.50% of single premium or Fund Value up to a maximum of Rs.5000
Lower of 0.25% of single premium or Fund Value up to a maximum of Rs.4000
Lower of 0.10% of single premium or Fund Value up to a maximum of Rs.2000
5 year onwards
Mortality charge – This charge is deducted on the first day of each month based on the Sum at Risk and the policyholder’s age.
Additional Benefits of Aegon Life iMaximize Single Premium Insurance Plan
Riders – There are no riders under this plan.
Partial Withdrawals – Partial withdrawals are allowed in the plan after a completion of 5 policy years if the policyholder is aged 18 years or more. The maximum amount of partial withdrawal allowed would be 20% of the Fund Value as at the beginning of that policy year and the minimum amount is Rs.5000. Four Partial withdrawals are free in a year exceeding which a charge of Rs.200 per withdrawals would be levied.
Switching – This facility enables the policyholder to change between funds whenever desired. Four free switches are allowed in one policy year after which a charge of 0.1% of the amount switched to a maximum of Rs.200 would be levied.
Top-up Premiums – Additional premiums by way of top-up premiums are allowed anytime except in the last 5 policy years. The minimum amount of top-up is Rs.5000 and the top-ups increase the fund value and also the Sum Assured. The top-up premiums paid also have a lock-in period of 5 years.
Grace Period – Being a single premium plan, grace period is not applicable.
Free Look Period – A cooling off period or a free look period of 30 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.
Let’s Understand The Plan With An Example:
Mr. Mahesh (age 30 years) freelances as an art painter. 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 inconsistency in his income and rapid change in the way of life. He is cognizant that life is uncertain and that the future of his family needs to be protected. He wants to make his investment at one go. He relies on Aegon Life’s iMaximize Single Premium Insurance Plan.
His plan details are as follows:
Cover Amount (Base Sum Assured): Rs.15 lakhs, Policy Term: 10 years, Premium Payment Mode: Single, Premium: Rs.1,50, 000/-, Investment Strategy: 100% Blue Chip Equity Fund.
Exclusions in Aegon Life iMaximize Single Premium Insurance Plan
If the policyholder commits suicide anytime during the plan tenure, the available Fund Value would be paid to the nominee.
Surrendering the policy
Within the first 5 policy years
The policy has a 5 year lock-in period. If the policy is surrendered within the first 5 years, the funds in the Fund Value would be transferred to the Discontinuance Policy Fund after deducting the Discontinuation charges. The fund would earn a minimum interest of 4% in the Discontinuance Policy Fund. The money would remain in the Discontinuance Policy Fund till the completion of 5 years and the Fund Management charges would be deducted as and when applicable. If the policyholder dies during this period, the Fund Value as on the date of death would be paid. Otherwise, after the completion of the lock-in period of 5 years, the available Fund Value would be paid.
After 5 years
If the plan is surrendered any time after the completion of 5 years, the available Fund Value would be paid without deduction of any charges.
Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.