Aimed at the primary breadwinners of families, Aegon Life iTerm Insurance Plan is a simple term insurance plan that puts many financial aspects in perspective. It is meant to be a favourable policy for people who travel regularly and are prone to accidents, have dependents and more than a few financial liabilities. The plan can be applied for online, reducing the hassles associated with a plethora of paperwork.
Awards and Recognition
AEGON Life Insurance has been awarded the E-Business Leader Award for four years consecutively in 2013, 2014, 2015 and 2016. The E-Business Leader Award is given to insurers who have effectively managed online channels for lead generation, sales and marketing.
Eligibility Criteria for Aegon Life iTerm Insurance Plan:
Age - The ages mentioned are as per the last birthday
- Age at Entry - The minimum age is 18 years and the maximum is 65 years
- Age at Maturity - The maximum allowed age limit is 75 years
Features of Aegon Life iTerm Insurance Plan:
The salient features of this term insurance plan can be mentioned as follows -
- Policy Term -
- Minimum - 5 years
- Maximum - 40 years or up to 75 years
- Premium Payment Terms - The premium payment term for this policy is the same as the policy tenure
- Premium Payment Frequency - The premiums for this policy can be paid annually or in one go as a single payment. The minimum allowed
- Sum Assured - The minimum sum assured is Rs. 10,00,000 and there is no maximum limit on the same, based on the company’s discretion
Benefits offered by this policy are as follows -
- Life Insurance Benefit - In case of the death of the life insured, an amount equal to the sum assured will be paid to the nominee
- Advance Payment - On diagnosis of terminal illness, a 25% portion of the sum assured can be paid in advance
- Rider Benefits - This policy can have four riders associated with it. These riders come with their own host of benefits -
- Aegon Life AD Rider- Covering accidental death, in case this rider is activated, the cover included under this rider will be paid
- Aegon Life WOP Rider on CI- Offering cover on 4 critical illnesses, Cancer, Open Chest CABG, first Heart Attack and Stroke, this rider can waive off future premiums on the basic policy and other riders
- Aegon Life iCI Rider - This rider also covers 4 critical illnesses, Cancer, Open Chest CABG, first Heart Attack and Stroke and on diagnosis of any of these, the sum assured under this rider will be paid
- Aegon Life Women CI Rider - Covering critical illnesses pertaining to women, on diagnosis of any of the specified illnesses, a certain portion of the sum assured on the base plan will be paid
- Surrender Benefit - Only applicable for Single Pay Premium mode after completion of 3 policy years, as per the calculation Surrender Value = 0.7 * single premium (excluding any extra premium loading and service tax) * outstanding policy term (rounded off to a lower integer) / policy term
- Tax Benefits - As per the Income Tax Act of 1961, the premiums paid and the benefits from this term insurance plan are acceptable terms for tax benefits
Example Scenario -
Jyothika, aged 32 years, a chartered accountant lives with her son Vineet, aged 5 years. She lost her husband to a car accident about a year ago. She is the only breadwinner in the family and thus has to look out for Vineet’s secure future too. She applied for Aegon Life iTerm Insurance Plan with a cover of Rs. 1 crore, in addition to Aegon Life AD Rider worth Rs. 25,00,000 and Aegon Life Women CI Rider. She needs to pay an amount of Rs. 12000 annually for the policy to be in force.
After a period of 12 years, Jyothika is diagnosed with cervical cancer, and as per the rider benefit, she gets paid Rs. 5,00,000 that helps in the treatment process. She survives the illness, but unfortunately, at the age of 50, an accident claims her life. Vineet is stricken but thankfully due to the forethought of his mother, his college tuition fees won’t be hampered, neither will he have to urgently look for a job. The policy and the riders provide him with a lump sum amount of Rs. 1,25,00,000.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017