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  • Aegon Life Jeevan Shanti Insurance Plan

    Aegon Life Insurance

    Overview

    Comprehensive life insurance along with systematic savings with a savings boost has never been easier than this. Steady savings and comprehensive life insurance cover, at an affordable and flexible rate of premiums. If you’re looking for monthly savings with a lump sum payout at maturity, with flexible payment options, then look no further.

    Eligibility Conditions of Aegon Life Jeevan Shanti Insurance Plan

    Entry age

    • The minimum entry age is 8 years.
    • The maximum entry age is 50 years.

    Key Features of Aegon Life Jeevan Shanti Insurance Plan

    Type

    Participating life insurance plan.

    Sum assured

    • Depends on the monthly premium option chosen.
    • Depends also on the policy term chosen.
    • Depends also on the age of the life insured.
    • Sum assured on death is calculated as the higher of 10% of annualized premium or the Sum Assured.

    Coverage

    Death benefits: The policyholder’s nominee’s will receive (on the event of the policyholder’s death) the following:

    • Sum Assured on death, plus
    • Terminal Bonus, plus
    • Accrued Reversionary Bonus.

    Death benefits are subject to a total of a minimum of 105% of the total premiums paid till death.

    Maturity benefits: If the life insured duly pays all premiums on time and survives till the end of the policy term, he/she is entitled to:

    • 100% of the Sum Assured, plus
    • Accrued Reversionary Bonus
    • Terminal Bonus (if applicable).

    Basis

    Individual.

    Premiums

    Minimum Monthly Premium

    Policy term

    Rs.750

    10 years.

    Rs.600

    15 years.

    Rs.500

    20 years.

    • Maximum premiums are set at Rs.1,000 per month.

    Premium paying modes

    There are four premium paying modes to choose from:

    • Monthly
    • Half-yearly
    • Yearly

    Policy term

    10, 15, or 20 years.

    Revival

    All policy benefits can be reinstated within 2 years of the defaulted premium. For reinstatement, the following will be required:

    • Evidence of insurability.
    • All overdue premiums to be paid up, plus an interest rate which the company will decide from time to time.

    Discounts

    • Modal discounts (for all payment modes other than monthly mode), are:
    • Half-yearly premium = Monthly premium x 6 x 97.65%.
    • Annual premium = Monthly premium x 12 x 95.80%.

    Bonuses

    • At the end of every financial year, the company will declare a simple reversionary bonus as a percentage of Sum Assured.
    • The bonus accrues on the policy anniversary that falls in the next financial year.
    • Bonus will be paid on Date of Maturity or on the death of the life insured.
    • Bonuses are guaranteed once declared.
    • Terminal Bonuses on death (also maturing policies that are in-force) will be declared depending on the experience of the With-Profit fund.

    Loan

    • A loan can be availed against the policy from the 4th policy year onwards.
    • Minimum loan amount: Rs.5,000.
    • Maximum loan amount: Not more than 60% of the Surrender Value.
    • Interest charged on loan is decided by the company every so often, but will not exceed yield to maturity on a 10 year G-Sec plus 4%.

    Other features

    • Free look period: The free look period is 15 days from the date you receive the policy document, or 30 days in case the policy was purchased through distance marketing channels.
    • Grace period: 15 days.
    • A policy can be reinstated within 2 years of it lapsing.
    • Surrender Benefit: The policy acquires surrender value after:
    • The payment of 3 years premiums.
    • The GSV is calculated as under:

    GSV of Sum Assured = (Applicable GSV Factor) X (Total Amount of Premiums Paid) plus, GSV of Bonus = (Applicable GSV Factor) X (Accrued Bonus)

    Add-on covers / Riders

    Aegon Life ADDD Rider: This rider provides coverage against death due to accident, accidental dismemberment of limbs and/or eyes, permanent total disability due to accidents. The Sum Assured under this rider becomes payable on the occurrence of any of these events.

    Tax Benefits

    Premiums paid are exempt from taxation under Section 80C and income earned through the plan is exempt from taxation under Section 10 (10D), of the Income Tax Act, 1961.

    Exclusions

    • If the life insured commits suicide within one year of the policy being in force, 80% of the premiums are refunded as the death benefit.
    • If the life insured commits suicide within one year after policy revival, the death benefit payable will be the higher of :
    • 80% of the premiums paid till the date of death, or
    • Surrender Value on the date of death.

    Benefits and Advantages of Aegon Life Jeevan Shanti Insurance Plan

    • Flexible premium payment options – monthly, annually and half-yearly.
    • Flexibility to choose policy payment terms to match individual savings requirements.
    • Bonus accrual ensures an increase in the benefit amount payable every year.
    • Comprehensive life insurance coverage that ensures financial security for the policyholder’s family.
    • Maturity benefit is a lump sum payout.
    • Premiums paid are exempt from taxation under Section 80C, of the Income Tax Act, 1961.
    • Income earned through the plan is exempt from taxation under Section 10 (10D), of the Income Tax Act, 1961.
    • Death benefit and Maturity benefit ensure coverage and financial security for the family of the life insured.
    • Aegon Life ADDD Rider provides additional cover against accidental death, accidental dismemberment and permanent total disability.

    How Does the Plan Work?

    Once you chose a policy term and decide on the policy sum assured based on your financial requirements, your annualised premium will be calculated. Once you start paying premiums for the chosen Premium Payment Term, your policy and life insurance cover is in effect.

    Let’s Understand This With an Example.

    Mr. Babu, a 35 year old software developer, wants a supplementary income and insurance cover in case the worst should come to pass. He requires his investment to give him a lumpsum payout on maturity so that he can meet future expenditures.

    Mr. Babu opts for this plan, and pays his premiums regularly. He’s in good health, and chooses a 20 year Policy Term with a 15 year Premium Paying Term for a Sum Assured cover amount of Rs.85,745. His monthly premiums is Rs.500 (+ service tax). He also has opted for the Aegon Life ADDD rider, which adds Rs.10 (+ service tax) with Sum Assured of Rs.85,745.

    If he survives till the end of the Policy Term until the Maturity Period of 20 years, Mr.Babu will be paid the Maturity payout (at 8%) of Rs.1,79,550 or (at 4%) Rs.1,27,417.

    If he dies, say by accident, in the 12th policy year, he will receive the Guaranteed Death Benefit (at 8%) of Rs.2,17,990 or (at 4%) Rs.1,90,165 + Terminal bonuses (if any).

    Riders

    • Aegon Life ADDD Rider.
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