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AEGON Life Rising Star Plan

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Aegon Life Rising Star Plan

AEGON Life Rising Star Plan is a unit linked child insurance plan (ULIP). This is a Non-Traditional Plan without Bonus facility, where the parent is the Life Insured and this plan ensures that the parent’s dreams about his child’s future are not hampered as it pays for future premiums in an unfortunate event of his death.

In this plan, premium needs to be paid till the end of the Policy Term. The policyholder gets to invest his money in his chosen fund out of the 4 funds available and receives the Fund Value as Maturity Benefit. However, if the parent i.e. the Life Insured dies within the policy tenure, the nominee or the child would receive the Sum Assured as Death Benefit and the future premiums would be paid by the insurer such that the Fund Value is paid as the Maturity Benefit to the nominee when the policy matures.
This plan has a unique option of Invest Protect Option, where the policyholder can choose to systematically move out of his current investment funds 3 years before maturity so that any volatility in the market would not affect his maturity benefit. This plan also has a feature called Auto-Rebalancing Option where the portfolio chosen by the policyholder is always maintained.

 

Key Features Of Aegon Life Rising Star Plan

  • This is a simple Unit Linked Insurance plan

  • The Fund Value is provided as Maturity Benefit

  • The Fund Value + Sum Assured is paid as Death Benefit

  • In this plan, policyholder can select Invest Protect Option, where the funds are invested in the equity oriented fund till the last 3 years when it is systematically taken out so as to protect from equity market fall.

  • There is an option of Auto Rebalancing in this plan, where the funds would rebalance automatically according to the preferred fund allocation mentioned.

  • There is an option of 4 fund options and 2 rider options

 

COMPARE THIS PLAN WITH OTHER ULIP PLANS

 

Benefits You Get From Aegon Life Rising Star Plan

  • Death Benefit – In case of death of the Life Insured, the nominee would gets 3 fold benefit:
    • The Sum Assured as immediate benefit.
    • The Future premiums would be paid by the insurer such that
    • The Fund Value is also paid on maturity of the policy.
  • Maturity Benefit – On maturity, the Fund Value is paid to the policyholder.
  • Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C


Eligibility Conditions and Other Restrictions in Aegon Life Rising Star Plan

 

Minimum

Maximum

Sum Assured (in Rs.)

Higher of 10 times X Annualized Premium or (0.5XTermXAP) for age< 45 years

 Higher of 7 times X Annualized Premium or (0.25XTermXAP) for age>= 45 years

 

30 times X AP

 

Policy Term (in years)

25 years – Age at entry of the child

Premium Payment Term (in years)

Equal to Policy Term

Entry Age of Policyholder (in years)

18

60

Entry Age of Child (in years)

1 day

15 yrs

Age at Maturity (in years)

NA

75

Payment modes

Yearly, Half Yearly, Monthly

 

Additional Features and Benefits Of Aegon Life Rising Star Plan

Riders – There are 2 riders available in this policy
  1. Accidental Death, Disability and Dismemberment Benefit
  2. Critical Illness Benefit

Investment Fund Options

There are 4 Investment Funds available

  1. Secure Fund
  2. Debt Fund
  3. Stable Fund
  4. Accelerator Fund


Top-up - You can invest additional premiums as top-up premiums anytime except in the last five policy years. The minimum top-up premium is Rs. 5,000.

 
Switching - You have the flexibility to switch investments from one fund to the other any time during the policy term. 4 Switches are free every year. Switching is not allowed if Invest Protect Option has been selected.

 
Partial Withdrawal - You are allowed to make partial withdrawals in this policy after 5 complete policy years. The minimum amount of partial withdrawal should be Rs.5,000. An amount equal to a minimum of 2 years annualised premium should be maintained as fund value after any partial withdrawal. Systematic partial withdrawals facility is available under electronic clearing service (E.C.S.) facility only.
 

Illustration 

Let's Understand The Plan With An Example:

Mr. Mahesh (Age 34 years) works with a private firm. His wife is a teacher and they have a son - Anuj who is 2 years old. Although Mahesh and his wife’s salary provides well for their family,he is concerned about the rapid change in the way of life. He is also aware of the rising inflation and spiralling education expenses. Moreover, he is cognisant that life is uncertain and the future of his family, especially his son needs to be protected. He relies on Aegon Life’s Rising Star
Insurance Plan.

 

His plan details are as follows:

Cover Amount (Base Sum Assured): Rs.10 lakhs, Policy Term: (25 – age at entry of child) = 23 years, Premium Payment Term: 23 years, Annual Premium: Rs.60,000. Invest protect option selected.

 

Total benefit: Rs.10 lakhs cover amount+Rs.11.4lakhs as income benefit + Matiruty payout @8%=rs.26,91,037/- or @4%= Rs.15,72,605, (if declared). Additional savings of Rs,11.4 lakhs due to waiver of premium.
The benefits/bonus/fund/ value represented with 4% & 8% are not guaranteed and they are given as illustration purpose only.
 

What Happens If?

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
 

You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be paid to the policy holder and the policy will terminate immediately.

 

You want to surrender the policy – The policy can be surrendered from the 6th (sixth) policy year. The surrender value will be equal to the fund value of all the premiums paid.

 

You want a loan against your policy – Loan facility is not available under this policy.

 

 

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