AEGON Life Future Protect Insurance Plan

Overview

Life is full of uncertainties. One day, you could be taking care of your family and providing for them financially with your excellent job and income, and the next, you could be the victim of an accident that leaves you unable to earn, or worse, dead. If the worst should come to pass, and you are rendered incapable of earning an income, your family will suffer financially. To avoid the crippling effects that a sudden unforeseen event can have on your family’s finances, you can and should opt for a good AEGON Life insurance plan. The AEGON Life Future Protect Insurance Plan not only provides you with the you need but also links your investment to the stock market to grow your money.

Eligibility Criteria for AEGON Life Future Protect Insurance Plan:

Minimum entry age	7 years on the last birthday
Maximum entry age	50 years on the last birthday
Maximum Maturity Age	65 years on the last birthday

Key Features of the AEGON Life Future Protect Insurance Plan

Plan type

Unit Linked Insurance Policy

Plan basis

Individual

Premium paying terms

Equal to the policy term

Minimum Annualized Premium

Annual – Rs.20,000 p.a.

Semi-annual – Rs.30,000 p.a.

Monthly – Rs.36,000 p.a.

Policy term

15 years, 20 years, 25 years, 30 years, 35 years

Premium payment frequency

Monthly, half yearly and yearly.

Grace period

30 days from the expected date of payment of premium (for yearly and half yearly modes)
15 days from the expected date of premium payment for monthly mode

Free Look Period

15 days from the date of availing the policy.
30 days if the policy has been purchased through Distance Marketing channels.

Policy revival

Revival period is 2 years.
Date of revival will be when all overdue premiums are paid.

Nomination

Nomination facility is available under section 39 of the Insurance Act, 1938

Sum Assured

Maximum sum assured s 20 times the annualized premium.

Policy coverage

Death Benefit:
- All partial withdrawals made from the fund in the 2 years before the death will be deducted from the sum assured.
- If the death occurs after the age of 60, all partial withdrawals made after the age of 58 but within 5 years of the date of death will be deducted from the sum assured.
- Death benefit will be the higher of Sum Assured or Fund Value.
- The death benefit will not be less than 105% of the total premiums paid up.
Increase in Base Policy Sum Assured without underwriting:
- This facility should be opted for in the first 3 months of the date of marriage or childbirth.
- Applicants for this option cannot be more than 40 years of age at the time of application.
- A balance of at least 5 years in the policy term should exist.
- This can be availed only twice.
- This is not allowed during revival period.
- Base Sum assured can be increased by up to 50% or Rs.10,00,000 (whichever is lower).
Invest Protect Option:
- Helps minimize the risk to your returns near maturity.
- Moves your investment from the Accelerator Fund to the Secure Fund in the last 3 policy years.
- 10% of the total units at the beginning of the 3^rd last policy year will be switched monthly in the Stable Fund.
- 10% of the total units at the beginning of the 2^nd last policy year will be switched monthly in the Debt Fund.
- 10% of the total units at the beginning of the last policy year will be switched monthly in the Secure Fund.
- Auto-rebalancing option.
- Premium re-direction.
- Switching option. Four free switches between funds allowed in a policy year.
Maturity Benefit:
- On maturity, policyholder will receive the Fund Value as on the maturity date.
Settlement:
- This is for when you wish to remain invested in the fund even after the policy’s maturity date.
- Maturity proceeds will be disbursed in instalments over the period of your choice.

Surrender of Policy

The policy can be surrendered at any time
If it is surrendered within the first 5 years, Discontinuance charges will be transferred to the Discontinuance Policy Fund and those proceeds will be paid after the first 5 years.
Surrendering a policy after 5 years will result in the Fund Value being paid to you.
Surrendered policies cannot be revived.

Charges Applicable

Premium Allocation Charges:

Policy Year	Year 1	Year 2-3	Year 4-5	Year 6-10	Year 11 onwards
Premium Allocation Charge	4.50%	4.00%	3.00%	2.00%	1.00%

Mortality Charges: Deducted by cancelling units at the prevailing unit price at the beginning of each month.
Discontinuance Charges:

Where the policy is discontinued during the policy year	Discontinuance charges for annualised premium up to Rs.25,000	Discontinuance charges for annualised premium over Rs.25,000
1	Lower of 20% (AP or FV) up to a maximum of Rs.3,000.	Lower of 6% (AP or FV) up to a maximum of Rs.6,000.
2	Lower of 15% (AP or FV) up to a maximum of Rs.2,000.	Lower of 4% (AP or FV) up to a maximum of Rs.5,000.
3	Lower of 10% (AP or FV) up to a maximum of Rs.1,500.	Lower of 3% (AP or FV) up to a maximum of Rs.4,000.
4	Lower of 5% (AP or FV) up to a maximum of Rs.1,000.	Lower of 2% (AP or FV) up to a maximum of Rs.2,000.
5 onwards	Nil.	Nil.

AP – Annualised Premium

FV – Fund Value.

Fund Management Charges:

life insurance cover.

Name of Fund

Management Charges

Secure Fund

1.00% p.a.

Debt Fund

1.10% p.a.

Stable Fund

1.35% p.a.

Accelerator Fund

1.35% p.a.

Discontinuance Policy Fund

0.50% p.a.

Policy Administration Charges:

This charge is levied by cancelling units for the equivalent amount at the start of every policy month. It’s represented as a percentage of the annualized premium. This charge also escalates at 5% per annum at the start of every policy year from the second policy year onwards. This charge is also subject to a maximum of Rs.500 per month.

Miscellaneous Charges:

Option	Allowance	Charges
Auto-rebalancing	No charges	Rs.200 for addition or removal
Switching	Four free switches allowed per policy year	0.1% of the amount switched or Rs.500 per extra switch, minimum switchable amount is Rs.100
Premium redirection	Twice free per policy year	Minimum Rs.200 or maximum Rs.500 per extra request
Partial Withdrawal	Four times free every policy year, no charge for systematic partial withdrawal	Rs.200 extra per withdrawal

Advantages of the AEGON Life Future Protect Insurance Plan

Helps systematically create wealth.
Protect your investment with the Invest Protect option.
Multiple Fund choices.
Flexibility to choose the amount of life insurance cover..
Liquidity options through partial withdrawals.
Can stay invested in the fund/s for up to 5 years after maturity.
Tax benefits as per prevailing tax laws.

How does the AEGON Life Future Protect Insurance Plan Work?

Fund Name	Objective	Asset Allocation
Accelerator Fund	To invest in the equities of various sectors for a diversified investment portfolio that generates attractive returns in the long term. Also invests in fixed interest assets and money market instruments.	Equity – 80% to 100%. Fixed Interest and Money Market Instruments – 0% to 20%
Stable Fund	To invest with a view to maintain a balanced exposure to equity and debt to facilitate long term returns. Allocations will also be shifted between debt and equity to benefit from asset price movements between medium to long term.	Equity – 20% to 80%. Fixed Interest and Money Market Instruments – 20% to 80%.
Secure Fund	To invest in a diversified portfolio of money market instruments and other fixed income securities that will mature in the short to medium term. The objective here is to generate returns with low valuation risks.	Fixed interest – 60% to 100%. Money Market Instruments – 0% to 40%.
Debt Fund	This fund invests in government debt, corporate debt, money market instruments and other fixed income securities.	Fixed interest – 60% to 100%. Money Market Instruments – 0% to 40%.

Mr. Babu, a 30 year old engineer opted for the and is covered for an amount of Rs.10,00,000. His policy term is 30 years, as is his premium paying term. He pays an annual premium of Rs.50,000. He has also chosen the Invest Protect Option, and has the added benefit of minimized risk on returns. Towards the end of the policy, his money is protected as it is systematically shifted from equity funds to debt funds in the last 3 years.

If he survives the entire policy term, he will be eligible for a payout of Rs.20,45,495 (at 4%) or Rs.41,37,781 (at 8%).

If he dies after 3 years, his nominees will be eligible for the death benefit of Rs.10,00,000.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017

ULIPs

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