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Aegon Life iReturn Insurance Plan

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Aegon Life iReturn Insurance Plan Review

The Aegon Life iReturn Insurance Plan is a traditional Term Assurance Plan which also returns the premiums paid during the plan tenure on maturity. Thus, this is a Term Insurance Plan which not only provides life coverage, but also maturity benefits.


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Highlights of the Aegon Life iReturn Insurance Plan

  • This is a traditional Term Assurance plan which is available online.
  • Other than the lump sum death benefit, the plan also returns the premiums paid on maturity. 
  • There is an inbuilt Terminal Illness Benefit which enhances the scope of coverage provided under the plan.


Working of the Aegon Life iReturn Insurance Plan

  • The policyholder chooses the Sum Assured, plan tenure and the premium paying tenure based on which the amount of premium payable is determined. 
  • Premiums can be paid either in one lump sum as a Single premium, for a limited tenure of 5 years as Limited Premiums or for the entire duration of the plan as Regular Premiums. 
  • In case of death, the death benefit available under the plan is paid.
  • When the plan matures, the premiums paid are returned.

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Benefits and Features of Aegon Life iReturn Insurance Plan

  • Maturity Benefit – When the plan attains maturity and if all due premiums have been paid the maturity benefit would be the sum of all premiums paid till maturity.
  • Death Benefit – If the life insured dies during the tenure of the plan and if the policy is in-force, the Sum Assure is paid to the nominee.
  • Terminal Illness Benefit– If the insured suffers from any kind of Terminal Illness during the plan tenure, 25% of the Sum Assured would be paid immediately to the policyholder. All future premiums would be waived off and the plan would continue. If the policyholder dies after receiving the benefit and during the plan tenure, the death benefit payable would be reduced by the Terminal Illness Benefit already paid. On maturity, the maturity benefit would be paid.
  • Bonus – This is a non-participating plan and as such, bonuses are not declared. 
  • Loan –Loans are 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.

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Eligibility Criteria of Aegon Life iReturn Insurance Plan

The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
 
  Minimum Maximum
Entry age (Last Birthday) 18 years 65 years
Maturity Age (Last Birthday) NA 75 years
Plan tenure 5, 10, 15 or 20 years
Premium payable Depends on Sum Assured, age, plan tenure and premium paying term
Premium Paying Term Equal to plan term, Single Premium or Limited Premium for 5 years
Sum Assured Rs.30 lakhs Rs.4 crores
Premium payment mode Monthly, half-yearly and annually or Single Premium


Additional Benefits of Aegon Life iReturn Insurance Plan

  • Riders – Four additional riders are available which can be attached or detached to the plan at any policy anniversary. Riders are available only on limited premium or regular premium plans and would continue till the premium paying tenure in case of limited premium plans. The riders are:
    • Aegon Life AD Rider
    • Aegon Life iCI Rider
    • Aegon Life WoP Rider
    • Aegon Life Women CI Rider
  • Grace Period – A grace period of 30 days is allowed for payment of premium after the due date for allmodes of premium payment. The life cover under the policy would continue during the grace period.
  • 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.

Plan Details

Let's Understand The Plan With An Example:


Ms.Shalini (age 30 years) is an executive with a multinational firm. She is married to an adventure sports professional. They have a daughter, Anuja, who is 3 years old. While they lead a good lifestyle with an owned house and car, both are availed through loans. Shalini is aware that life is uncertain and her husband's profession does not allow him to take a very high insurance cover in his name. Hence she relies on Aegon Life's iReturn Insurance Plan.

Her plan details are as follows:
Cover Amount (Base Sum Assured): Rs.75 lakhs, Policy Term: 20 years, Premium Payment Term: 20 years, Base Premium: Rs.14,850/-. Additionally, she opts for the Women CI Rider and iCI Rider to take care of any critical illnesses. She also wants to ensure that this policy's benefits are accrued come what may, hence she opts for Waiver of Premium on CI Rider. Additional premium for Riders: Rs.2939/- p.a.

Total Payout = Rs.1.04 crore (on diagnosis of ovarian cancer: Rs. 25 lakhs for iCI Rider and Rs.3.75 lakhs for Women CI Rider + Rs.75 lakhs cover amount on death

Total Payout = All premiums returned = Rs.2,97,000/- i.e. Rs. 14,850 * 20 years


Exclusions in Aegon Life iReturn Insurance Plan

  • If the policyholder commits suicide within a year of policy issuance or revival, 80% of the premiums paid would be returned and no death benefit would be payable
  • If suicide is committed within 12 months of reviving a lapsed policy, higher of 80% of the premiums paid or the Surrender Value acquired would be paid.


Non-Payment of premium in Aegon Life iReturn Insurance Plan

Premiums have to be paid for 2 years (if the premium paying term is 5 years) or 3 years (for regular premium plans) failing which the policy lapses and no benefits are payable. If the premiums have been paid for the minimum specified duration and thereafter the premiums are discontinued, the policy can be surrendered, made paid-up or revived.

Making the policy Paid-up

One can make the policy paid-up only if 2/3 years’ premiums have been paid. On making the policy paid-up, the death benefit would be reduced while the maturity benefit would remain same. The benefits payable would be as follows:
Death benefit – Paid-up Sum Assured where Paid-up Sum Assured = (total premiums paid/total premiums payable)*Sum Assured 
Maturity Benefit – total premiums paid under the plan would be returned as maturity benefit.


Surrendering the policy

The plan acquires a Surrender Value provided at least 2 years’ premiums have been paid if the premium paying term is 5 years or 3 years’ premiums have been paid, if the premium paying term is 10 years and above. For single premium plans, the Surrender Value is available from the first policy year itself. On surrendering the plan, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid to the policyholder.
  • GSV = GSV Factor * total premiums paid till the date of surrender 
  • SSV = SSV Factor * total premiums paid till the date of surrender.

Revival 

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.


 
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