AEGON Life iTerm Plan
AEGON Life iTerm is a pure term insurance plan which provides lumpsum payment and/or regular income to the family in the event of death of the policyholder. The policy offers coverage till the age of 80 years and offers
Lower premium rates for Females and Non-smokers
Choice of several riders against Accidental death, Critical Illness and Disability
Inbuilt Terminal Illness benefit
Option of life coverage till the age of 80 years
Option to increase your life coverage as per your increasing life stage requirements
On death of the policyholder, the nominee can receive the death benefit as:
- 100% lumpsum on death
- 100% as income benefit which will be paid across 100 months
- Part as lumpsum benefit and balance as income benefit
The death benefit is quantified in terms of the Total Sum Assured which is calculated as the sum of Lump-sum Sum Assured and Income Benefit Sum Assured.
In case of death of the Life Assured during the Policy Term, provided all due Premiums have been paid, the nominee will receive the Total Sum Assured which shall be payable in the following manner:
- Lump-sum Sum Assured will be paid immediately
- 1.2% of the Income Benefit Sum Assured will be paid monthly for 100 months.
At the time of death claim, the nominee will have the flexibility to opt for the Total Sum Assured to be paid in one single lump-sum immediately. The Policy will terminate on payment of the above benefits.
On diagnosis of any of the terminal illness an amount equal to 25% of the Total Sum Assured will be paid immediately as a lump-sum. Subsequently the total death benefit will be reduced by the amount equal to the benefit paid under this clause. Example: If the Sum Assured in the policy is 1 crore then the policyholder will receive Rs.25 Lacs on diagnosis of Terminal Illness. Subsequently the revised Death benefit amount will be Rs.75 Lacs.
The policyholder will not be required to pay future Policy Premiums once the claim under this clause is accepted by the Company.
Under the Life Stage Option, the policyholder will have the option to increase the Total Sum Assured under the plan on happening of the below events. The premium paid will be increased in proportion to the increased Sum Assured. The events are:
- On Marriage – Cover can be increased by 50% of Original Sum Assured
- Birth/Adoption of 1st child – Cover can be increased by 25% of Original Sum Assured
- Birth/Adoption of 2nd child – Cover can be increased by 25% of Original Sum Assured
If the policyholder survives till the end of the policy term then there is no benefit payable under this plan.
The plan offers the below listed riders at an additional cost which can be added to your base plan:
- Aegon Life AD Rider: This Rider covers accidental death. In case of death due to accident, the cover amount (Sum Assured) under the rider will be paid.
- Aegon Life WOP Rider on CI: This Rider covers 4 critical illness conditions: Cancer, Open Chest CABG, first Heart Attack and Stroke. On being diagnosed with any of these 4 critical illnesses, future premiums payable under the plan and riders (if any) are waived while the life cover and other rider cover continues.
- Aegon Life iCI Rider: This rider covers 4 critical illness conditions: Cancer, Open Chest CABG, First Heart Attack and Stroke. The cover amount (Sum Assured) under this rider will be paid in case of diagnosis of any of these 4 critical illnesses.
- Aegon Life Women CI Rider: This Rider covers critical illnesses pertaining to women. On being diagnosed with any of the covered illnesses, a certain percentage of the base plan cover amount (Sum Assured) will be paid.
- Aegon Life iDisability Rider: This rider pays lump-sum benefit under the rider plus waives off the future premiums payable under the base plan upon permanent disability of the Life Assured due to accident or sickness.
These riders can be attached to a base plan on policy commencement or at any time during the term of the base plan.
Note: Following rider combinations are not allowed in a single policy
- 1. The iDisability Rider and WOP on Ci Rider cannot be purchased together.
- 2. Women Ci Rider and iCI Rider cannot be purchased together.
Premiums paid under the policy are exempted from taxable income under Section 80C of the Income Tax Act. Benefits received under the policy are tax-free under Section 10(10D) of the Income Tax Act.
How it works
Let's Understand The Plan With An Example:
Mr. Abhay (Age 30 years, Non-smoker) opts for Aegon Life iTerm Insurance Plan. His plan details are:
• Total Sum Assured :Rs.1crore
o Lump-sum Sum Assured:Rs.60 lakhs
o Income Benefit Sum Assured:Rs.40 lakhs
• Policy Term: 50 years ( coverage till age 80 years)
• Premium Payment Term: 50 years
• Annualized Premium:Rs.8,676*
• Monthly premium:Rs.755*
o Premiums excluding taxes and cess
Other Details of Aegon Life iTerm Insurance Plan
If opted for Regular premium:There is no option to surrender policy in case the policyholder has opted for regular premium payment mode.
If opted for Single premium:In case the policyholder opts to pay the total premium for this policy in a lump-sum as a Single Premium, he/she has the option to surrender the policy anytime during the policy term.
On surrender, the Company will pay the Surrender Value as per the following formula:
Surrender Value = 70% * Single Premium (excluding any extra premium loading and service tax) * (outstanding Policy Term in complete months / Policy Term in months)
If the policyholder misses to pay the premium by due date then a grace period of 15 days for Policies under monthly mode and 30 days for Policies under all the other modes is provided from the premium due date to pay the premium. In case of death during the grace period, the death benefit is reduced by an amount equal to the outstanding premium.
If Policyholder stops paying the premium
If the due policy premium remains unpaid even after the expiry of Grace Period, the Policy will lapse with effect from the Due Date of the first unpaid Policy Premium (“Lapse Date”) and no benefit is payable in case of death of the Life Assured.
Free Look Period
If the policyholder is not satisfied with any of the Terms and Conditions of the Policy, he/she may return the Policy Document to the Company for cancellation within 30 days (Free look period) from the date of receipt of the Policy.
On cancellation of the Policy during the Free look period, the Company will return the premium paid subject to the deduction of:
a) Proportionate risk premium for the period of cover
b) Stamp duty paid and
c) Medical costs incurred, if any
Definition of Terminal Illness:
Terminal Illness is defined as an advanced or rapidly progressing incurable and un-correctable medical condition which, in the opinion of two (2) independent Medical Practitioners specializing in treatment of such illness, is highly likely to lead to death of the Life Insured within 6 months of the date of diagnosis of Terminal Illness. The Company must be notified of the diagnosis within 30 days of the same being made.
The Medical practitioner should neither be the insured person(s) himself nor related to the insured person(s) by blood or marriage. The Independent Medical Practitioner means a person who studies, diagnoses and treats the medical condition which the Life Insured is suffering from.
The policyholder cannot avail a loan against this policy
|Sum Assured (in Rs.)||25 Lakhs||No Limit, subject to underwriting|
|Policy Term (in years)||5||62|
|Premium Payment Term (in years)||Single / Equal to Policy Tenure|
|Entry Age of Life Insured (in years)||18||65|
|Age at Maturity(in years)||-||80|
|Payment modes||Single, Yearly, Half-yearly and Monthly|