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  • Aegon Life Guaranteed Income Advantage Insurance Plan

    Aegon Life Insurance

    Overview

    A traditional participating insurance plan which helps provide pension income based on savings made in the form of premiums. In addition to the life cover that the plan provides, it doubles up as a pension scheme that offers assured benefit on death or at vesting. This is a limited premium paying plan with two premium payment terms and it is meant for people who wish to have a secure financial retirement or are planning to attain a lump sum value through limited savings over a chosen period.

    Eligibility Conditions for Aegon Life Guaranteed Income Advantage Insurance Plan

    The plan could have a payment tenure as low as 15 years and as high as 20 years and as per those, the eligibility conditions for availing this policy can be depicted in the table mentioned below -

    Parameter

    Minimum

    Maximum

    Entry Age

    20 years

    55 years for 15 years Premium Payment Term

    50 years for 20 years Premium Payment Term

    Maturity Age

    N/A

    85 years

    All the ages mentioned are as per the last birthday.

    Key Features of Aegon Life Guaranteed Income Advantage Insurance Plan

    This plan meant for being an option towards pension payment has the following salient features -

    Parameters

    Details

     

    Plan Type

    Traditional participating

     

    Basis

    Individual policy

     

    Policy Term

    85 years less the age at time of entry subject to minimum policy term of 30 years

     

    Policy Validity

    Will be for the chosen policy term in case all premiums have been paid

     

    Basic Sum Assured

    Minimum of INR 100,000.

    No maximum cap.

     

    Additions/Bonuses

    Guaranteed Payout (% of Sum Assured on Maturity per year)

    Bonus

     

    7.5% per annum till insured reaches the age of 85 years

    Simple reversionary bonuses as a percentage of Sum Assured per year included in guaranteed benefits

    Coverage

    Maturity Benefit = Sum Assured on Maturity + Guaranteed Accrued Bonus + Terminal Bonus (based on applicable components)

     
     

    Death Benefit – (subject to a minimum of 105% of premiums paid till death)

    1. If death occurs before end of premium payment term, this amount will be >= 10 times annualised base premium or Sum Assured + Accrued Bonuses
    2. If death occurs after the end of premium payment term, this amount will be >= 10 times annualised premium or Sum Assured + Accrued Bonuses + Terminal Bonus

    Bonuses will be paid based on availability

     
     

    Surrender Benefit = Guaranteed Surrender Value or Special Surrender Value (subject to payment of premiums of 1 year in full)

     

    Free look Period

    30 days in case of online purchase. 15 days otherwise

     

    Grace Period

    15 days for monthly payment, 30 days for all other premium payment frequencies

     

    Riders

    Aegon Life ADDD Rider – Pays an additional amount on death due to accident, dismemberment and/or permanent disability

     

    Nomination and Assignment

    Nomination and assignment facility available but only one can be chosen at a time

     

    Reinstatement or revival

    Policy, if not surrendered, can be revived within two years from the date of last unpaid premium

     

    Benefits and Advantages of Aegon Life Guaranteed Income Advantage Insurance Plan

    This plan from Aegon Life allows a limited premium payment term to build a secure financial scenario for retirement. Life insurance provided by this policy throughout the policy term is an added benefit. The key advantages in opting for this plan can be mentioned in the following points -

    1. Life cover is present throughout the policy term
    2. Two policy tenures for a secure pension plan
    3. Flexible premium payment modes
    4. Applicable tax benefits can be availed as per Section 80C and 10(10D) of the Income Tax Act

    The key benefits under this policy can be explained as below -

    1. Maturity Benefit - On survival of the life insured till the maturity age, after the completion of the policy term, this amount can be paid to the policyholder. This amount includes the Sum Assured, Guaranteed Pay outs and Terminal Bonus (if any)
    2. Death Benefit - In case of the death of the insured life, a death benefit will be payable to the nominee. It will be the higher of 10 times annualised premium and sum assured plus bonuses as applicable
    3. Surrender Benefit - In case 1 year’s premiums has been paid, the policy would acquire a Guaranteed Surrender Value and the same will be paid to the policyholder. In certain cases, the insurer may also pay an amount higher than the GSV which will be a Special Surrender Value
    4. Tax Benefit - The contributions made towards the premiums of this policy can be tax deductible as per Section 80C and the received benefits can fall under Section 10(10D). Though these benefits are dependent on the prevailing tax laws

    Premium Payment for Aegon Life Guaranteed Income Advantage Insurance Plan

    The details of premium payment for this plan can be summarised in the table below -

    Premium Parameter

    Details

    Premiums

    Based on Sum Assured. Higher Sum Assured gets better premium rates per 1000. The lowest possible rate would be INR 52.40 for Sum Assured more than INR 500,000 and entry age being 50 years

    Premium Paying Term (PPT)

    Limited premium payment term of 15 years and 20 years

    Premium Paying Frequency

    Premiums can be paid in monthly, quarterly, half-yearly and annual frequencies

    Premium Paying Modes

    ECS, debit cards, credit cards, cheques and other acceptable modes

    How Guaranteed Income Advantage Plan Works

    Aged 30 years, Dinesh is a working professional with a wife and a son. His wife is also salaried and their son Harish is 5 years old.

    Dinesh decides to opt for a Guaranteed Income Advantage plan and chooses the 20-year payment term for a Sum Assured of INR 10 lakhs. Thus the policy term becomes 55 years (85-30). The monthly premium would be around INR 6,635 (not including tax).

    In case Dinesh survives through the policy period –

    1. Post the 20th policy year, the accrued bonus would amount to INR 93,000 or INR 9.28 lakhs at 4% p.a. or 8% p.a. respectively (if any)
    2. From the 21st policy year, each year Dinesh would receive at Guaranteed Pay out of INR 75,000
    3. At the end of the 55th year, or when Dinesh reaches the age of 85, the maturity amount would include accrued bonus (if any) of INR 1.82 lakhs or INR 16.48 lakhs at 4% p.a. or 8% p.a. respectively, terminal bonus (if any) and the sum assured of INR 10 lakhs

    In case Dinesh passes away at the age of 80 years –

    1. Post the 20th policy year, the accrued bonus would amount to INR 93,000 or INR 9.28 lakhs at 4% p.a. or 8% p.a. respectively (if any)
    2. From the 21st policy year, each year Dinesh would receive at Guaranteed Pay out of INR 75,000
    3. The maturity amount would include INR 16.72 lakhs or INR 24.38 lakhs at 4% p.a. or 8% p.a. respectively and terminal bonus (if any)
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