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Aegon Life Regular Money Back Insurance Plan

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Aegon Life Regular Money Back Insurance Review

Aegon Life Regular Money Back Insurance Plan is, as the name suggests, a traditional Money Back plan which provides liquidity through periodic payouts of the Sum Assured besides providing insurance protection.


Highlights of the Aegon Life Regular Money Back Insurance Plan

  • This is a traditional Money Back Plan which participates in bonus declarations.
  • Guaranteed payouts are given for a fixed period of time as money back benefits.
  • The policyholder can choose any premium payment term as per his requirement. Premiums can be paid for a limited tenure or in one lump sum through the Single Pay option.


Working of the Aegon Life Regular Money Back Insurance Plan

  • The policyholder chooses the premium payment term and premium paying frequency. Based on the policyholder’s age, premium amount and premium paying term, the Sum Assured would be calculated. 
  • Premiums are to be paid for the chosen tenure while the plan tenure is fixed at 20 years.
  • Guaranteed Money Back benefits accrue from the end of the 10th year till the 19th year and are paid for 10 years.
  • On death during the period, the death benefit is paid.
  • On maturity, the maturity benefit is paid.

COMPARE THIS PLAN WITH OTHER MONEY BACK PLANS



Benefits and Features of Aegon Life Regular Money Back Insurance Plan

  • Maturity Benefit – When the plan matures and the premiums have been duly paid, the following benefits would be paid:
    Vested reversionary Bonuses +Terminal Bonus, if any
  • Death Benefit – If the insured dies during plan term and the policy is in force, the death benefit payable would be:
    Sum Assured on Death + accrued reversionary bonuses + 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 the following:
    For Limited Pay Option, higher of the following:
    • 10 times the annual premium
    • Sum Assured
      For Single Pay Option, higher of the following
    • 1.25 times the Single Premium if age is lower than 45 years or 1.10 times the Single Premium for ages 45 years and above
    • Sum Assured
  • Guaranteed Money Back Payouts – If the policyholder survives till 10 years after policy commencement, he would be eligible for the Guaranteed Money Back Payouts which will accrue from the end of the 10th policy year till the end of the 19th policy year. 10 guaranteed payouts would be paid for 10 years or up to death of the insured @ 15% of the Sum Assured if the premiums are duly paid under the plan. 
  • 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 –Loan can be taken on the policy after the policy has acquired a Surrender Value. The maximum amount of loan available is 60% of the acquired Surrender Value while the minimum amount 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 Regular Money Back 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) 7 days Limited Pay – 55 years
Single Pay – 60 years
Maturity Age (Last Birthday) NA Limited Pay – 75 years
Single Pay – 80 years
Plan tenure 20 years
Premium payable Limited Pay – Rs.12, 000 annually
Single Pay – Rs.1 lakh
No limit
Premium Paying Term (PPT) 7, 10 years or Single Pay
Sum Assured Would be calculated based on the age, premium paying term and amount of premium paid
Premium payment mode Monthly, half-yearly and annually
 


Additional Benefits of Aegon Life Regular Money Back Insurance Plan

  • Riders – Aegon Life Premium Shield Rider can be taken to increase the scope of coverage. The rider provides for waiver of premium in case of any disability or death suffered from an accident or sickness.
  • 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:
Mr. Kumar (Age 35 years) opts for Aegon Life Regular Money Back Insurance Plan. His plan details are: Annualised Premium:Rs.40,000; 
Sum Assured: Rs.3,21,396 
Policy Term: 20 years, 
Premium Payment Term: 10 years

Thus, total payout to Mr. Kumar: Rs.7,10,281 (@8%) / Rs.4,91,732 (@4%).
Bonuses represented with 4% & 8% are not guaranteed and they are
given as illustrations only


Bonuses represented with 4% & 8% are not guaranteed and they are
given as illustrations only

Premium Illustration

The graph below shows the Sum Assured available at different combinations of premium amounts, premium paying term (PPT) and age.



The associated Sum Assured table is as follows:
 
Age PPT – 7 years PPT – 10 years Single Pay
Premium - Rs.25,000 Premium - Rs.50,000 Premium - Rs.25,000 Premium - Rs.50,000 Premium - Rs.1.5 lakhs Premium - Rs.2.5 lakhs
35 years 138,278 292,416 194,013 401,746 115,053 203,738
40 years 132,563 281,172 189,375 392,569 112,500 399,145



Exclusions in Aegon Life Regular Money Back 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 Regular Money Back Insurance Plan

Premiums have to be paid for at least 2 years if the premium paying term is 7 years or 3 years if the premium paying term is 10 years. After this compulsory period, the policyholder can surrender the policy or make it paid-up.

Making the policy Paid-up

If at least2 or 3 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 * 150%} – total Guaranteed Money Back payouts already paid


Surrendering the policy

Surrender is allowed only after the policy becomes paid-up, i.e. after 2 or 3 full years’ premiums have been paid depending on the chosen Premium Paying Term. Single pay plans acquire a Surrender Value immediately. 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) – Guaranteed Money Back Payouts already paid}+ (Vested bonuses * GSV factor 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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