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AEGON Life Jeevan Shanti Insurance Plan

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This plan has been withdrawn by the insurance company and is no longer available for sale.

Aegon Life Jeevan Shanti Insurance Plan Review

Aegon Life Jeevan Shanti Insurance Plan is a simple traditional Endowment Assurance Plan which comes at a cheap cost and helps create savings while at the same time providing a life insurance cover for the chosen tenure.


Highlights of the Aegon Life Jeevan Shanti Insurance Plan

  • This is a traditional Endowment plan where bonuses are declared.
  • Any tenure can be chosen and premiums have to be paid for the chosen policy term.
  • The premium amount is to be chosen in monthly mode based on which the half-yearly or annual premium amount would be calculated. The Sum Assured would also depend on the amount of monthly premium selected.


Working of the Aegon Life Jeevan Shanti Insurance Plan

  • The policyholder chooses the policy term, premium paying frequency and the base amount of monthly premium. The premium for the chosen frequency would be calculated based on the monthly premium. The Sum Assured would also depend on the policy tenure, age and the monthly premium chosen.
  • Premiums are required to be paid for the entire duration.
  • On death during the period, the death benefit is paid.
  • On maturity, the maturity benefit is paid.
COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS


Benefits and Features of Aegon Life Jeevan Shanti Insurance Plan

  • Maturity Benefit – When the plan matures and the policy is in force, the benefit payable would be:
    100% of the Sum Assured+ vested Bonuses + Terminal Bonus, if any
  • Death Benefit – If the insured dies during plan term and the plan is in force, the death benefit payable would be:
    Sum Assured on Death + accrued reversionary bonus+ Terminal Bonus, if any.
    The death benefit payable should not be lower than 105% of the premiums paid till death
    The Sum Assured on death would be higher of the following:
    • 10 times the annual premium
    • Sum Assured
  • Bonus – Simple reversionary bonuses are declared under the plan and are paid every year for which the policy is in-force. A terminal bonus may also be paid on death or maturity of the plan.
  • Loan –60% of the acquired Surrender Value under the plan can be taken as the maximum limit of loan while the minimum loan available is Rs.5000.
  • Tax benefit – Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. Premiums paid for the APC & CA option would be exempt under Section 80D. The death benefit or the maturity benefit received and the CI benefit if received would also be tax exempt under Section 10(10D) of the Income Tax Act.


Eligibility Criteria of Aegon Life Jeevan Shanti 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) 8 years 50 years
Maturity Age (Last Birthday) 18 years 70 years
Plan tenure 10, 15 or 20 years
Monthly Premium payable Term 10 years – Rs.750
Term 15 years – Rs.600
Term 20 years – Rs.500
Rs.3100
Premium Paying Term 7, 10 or equal to plan tenure
Sum Assured Will depend on the age, policy term and the monthly premium chosen.
Premium payment mode Monthly, half-yearly and annually
 


Additional Benefits of Aegon Life Jeevan Shanti Insurance Plan

  • Riders – Aegon Life ADDD Rider is available under the plan. The rider provides additional payment of Sum Assured if the policyholder suffers from accidental death, accidental dismemberment and/or permanent total disability due to an accident.
  • Grace Period – A grace period of 30 days is allowed for payment of premium after the due date for annual and half-yearly modes of premium payment. For monthly modes, the grace period allowed is 15 days. 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 15 days (30 days for distance marketing channels) 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:
Ramesh, (age 30 years) is a clerk in a private school. His wife is a homemaker. Ramesh is worried about his wife & daughter’s future. He also wants to ensure that they have secured future if any unfortunate eventuality occurs.
His plan details are as follows:
* He opts for Aegon Life’s Jeevan Shanti Insurance Plan by paying a monthly premium of Rs.500 + service tax. His Policy Sum Assured is Rs.85,745. 
* He also opts of Aegon Life ADDD rider with Sum Assured of Rs.85,745 by paying an additional monthly premium of Rs 10 + service tax.


Total Matuirty benefit: Rs.85,745 (Base Sum Assured) plus Rs.93,805 (Bonus @8%) or Rs.41,672 (Bonus @4%). Total lump sum benefit of Rs.1,79,550 @8% or Rs.1,27,417 @4%

His family receives total Death Benefit of Rs.85,745 (Base Sum Assured) plus Rs.85,745 (AL ADDD Sum Assured) plus Rs.46,500 (Bonus @8%) or Rs.18,675 (Bonus @ 4%).
Total lump sum payout of Rs.2,17,990 @8% or Rs.1,90,165 @4%

Premium Illustration

The graph below shows the Sum Assured available at different combinations of term, monthly premium levels and age.



The associated table is as follows:
 
Age Term – 10 years Term – 15 years Term – 20 years
Monthly Premium - Rs.1000 Monthly Premium - Rs.2000 Monthly Premium - Rs.1000 Monthly Premium - Rs.2000 Monthly Premium - Rs.1000 Monthly Premium - Rs.2000
35 years 124,060 250,920 138,830 297,700 189,480 398,420
40 years 123,470 249,720 137,460 294,860 186,370 391,840



Exclusions in Aegon Life Jeevan Shanti Insurance Plan

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



Non-Payment of premium in Aegon Life Jeevan Shanti Insurance Plan

Premiums have to be paid for at least 3 years after which the policyholder can surrender the policy or make it paid-up.

Making the policy Paid-up

If at least3 full years’ premium has been paid, the policy would become a paid-up policy if future premiums are not paid. The benefits under the plan would be reduced and would be called Paid-up benefits. Bonuses would not be declared under the policy and the following benefits would be paid as and when they occur:
  • Death Benefit – Paid-up Sum Assured on death + accrued bonus
    Paid up Sum Assured on death= (number of premiums paid/ number of premiums payable) * (higher of 10 times the annual premium or the Sum Assured)
  • Maturity benefit – Paid-up Sum Assured on Maturity + vested bonus
    Paid-up Sum Assured on Maturity = (number of premiums paid/ number of premiums payable) * Sum Assured


Surrendering the policy

Surrender is allowed only after the policy becomes paid-up, i.e. after 3 full years’ premiums have been paid. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid.
  • GSV = (Basic Premium paid excluding taxes * GSV Factor)+ (Vested bonuses * GSVfactor of bonus)
  • The SSV factors would be declared by the company based on its performance

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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