Aegon Life Group Credit Shield Insurance Plan is a plan which provides life insurance for the members of your group, as well as adequately covers their outstanding loan amount. This enables all the members of the group and their families to be financially secure in case of an unfortunate incident. Regulated lending institutions that are regulated by the RBI (Reserve Bank of India), Regulated Scheduled Banks including Cooperative Banks, NBFCs certified by RBI and NHB (National Housing Bank) regulated housing finance companies are allowed to buy this plan. Even non-regulated lending institutions that are considered as a ‘Group’ under IRDAI regulations are allowed to purchase the plan.
Eligibility Conditions for the Aegon Life Group Credit Shield Insurance Plan:
|Minimum Entry Age||18 years|
|Maximum Entry Age||Benefit Option I – 65 years Benefit Option II – 60 years|
|Maximum Maturity Age||Benefit Option I – 75 years Benefit Option II – 65 years|
|Minimum Group Size||50|
|Maximum Group Size||No limit|
Policy Terms for the Aegon Life Group Credit Shield Insurance Plan:
|Minimum||Single Pay – 2 years Regular Pay – 5 years Limited Pay – 8 years|
Premium Payments Offered by the Aegon Life Group Credit Shield Insurance Plan:
|Premium Payment Term||
|Minimum Sum Assured||
Key Features of the Aegon Life Group Credit Shield Insurance Plan:
|Type of Plan||Group life insurance plan|
|Premium Payment Frequency||Single, yearly, half-yearly, quarterly or monthly|
|Free Look Cancellation||Within 15 days from the receipt of the policy documents|
|Lapse and Reinstatement Revival||2 years from the due date of unpaid premium subject to board approved underwriting policy|
|Moratorium Period||Up to 7 years|
|Coverage Continuation Option||Available|
|Grace Period||Up to 30 days – all modes except monthly mode 15 days – monthly mode|
|Surrender Benefit||Payable – Only in Single Premium and Limited Premium Policy|
What you need to know about the Aegon Life Group Credit Shield Insurance Plan:
- Coverage for different types of loans such as home loans, car loans, education loans, loans against property, commercial vehicle loans, two-wheeler loans, three-wheeler loans, micro loans, personal loans, and many more.
- Life insurance cover for borrower as well as co-borrower.
- A moratorium period of 7 years.
- Two benefit options:
- Option I – Cover in case of death
- Option II – Cover in case of critical illness and death
- Option to choose between Level and Decreasing Sum Assured.
Advantages and Benefits of the Aegon Life Group Credit Shield Insurance Plan:
The following benefits and advantages are available under the plan:
Benefit Options: There are two types of benefit options available under this plan:
Option I – In case of the member’s death, an amount mentioned as the Sum Assured in the schedule is payable as coverage.
Option II – In case of the member’s diagnosis of any critical illness or death, an amount as mentioned in the Sum Assured schedule is payable as coverage. The critical illnesses covered under this option are cancer, stroke, heart attack, and open chest CABG.
Joint Life Option: In this option, both the borrower and co-borrower gets cover for the same Sum Assured. In case of a critical illness diagnosis or death of either of the members, the benefit amount payable is as per the chosen coverage option. The benefit is paid only on the first diagnosis of a critical illness or first occurrence of death on either of the lives. This benefit can be taken only in case of home loans when both the lives assured have jointly taken the loan.
Sum Assured: There are two options under Sum Assured, they are:
Level Sum Assured – Where, Sum Assured on the member’s life will continue to be the same throughout the policy term.
Decreasing Sum Assured – Where, Sum Assured on the member’s life decreases as per the Sum Assured schedule.
Moratorium Period: Moratorium period of up to 7 years is allowed under the Group Credit Shield Insurance Plan. During this period, the Sum Assured may either remain constant or increases as a result of accumulation of interest amount, if any. Once the moratorium period is crossed, the coverage amount decreases as per the Sum Assured schedule.
Coverage Continuation Option: Under the Aegon Life Group Credit Shield Income Plan, members of the group are allowed to continue their respective coverage as individual policyholders till the coverage term ends, in case the master policyholder surrenders the policy during the coverage term. Members can also opt for this in case of foreclosure of loans.
Free Look Cancellation: The plan allows cancellation of the plan within 15 days from the receipt of the policy documents, in case the master policyholder or member is not satisfied with the policy’s terms and conditions.
If this Aegon Life Insurance policy is cancelled within the free look period, the premiums already paid are returned subject to the deduction of proportionate risk premium, stamp duty charges, and medical costs, if any.
Grace Period: The plan allows 30 days of grace period for all modes except monthly mode, for which the grace period is 15 days. However, grace period is not applicable for Single Premium mode.
Surrender Benefit: If the policy is surrendered by master policyholder, each member is eligible for Coverage Continuation Option. In case, it is not chosen, surrender value will be payable, as applicable. However, surrender benefit is only applicable in case of Single Premium and Limited Premium Policy.
Revival: The insurance cover of members will lapse, if the premiums are not received before the grace period expires. However, there is an option of revival of policy within 2 years from the due date of unpaid premium for the member, subject to board approved underwriting policy. In case of revival or reinstatement, members are required to pay all unpaid premiums with applicable interest.
Paid Up Provision: If premiums are not paid by the members after the first payment of policy’s premium, the policy will continue with Paid up Sum Assured. Paid up value is available only for Decreasing Sum Assured with Limited Premium payment term policy.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017