Aegon Life iTerm Insurance Plan – Features, Benefits and Review
One of the best ways to secure your family, even in your absence is considering a term insurance plan. There are several term insurance plans in India. However, one need to choose a term insurance plan by considering its features, high claim settlement ratio, etc., Aegon Life offers term Insurance plan and has high claim settlement Ratio too. What are the features of Aegon Life iTerm Insurance Plan? What are various plan options available in the Aegon Term Insurance Plan? Should you opt for Aegon Life iTerm Insurance Plan?
Also Read: Best Term Insurance Plans in India for 2020
What is a Term Insurance Plan?
If you are already aware, skip this section. The term insurance plan is an agreement between the insured and the insurer where the insurer agrees to pay the beneficiary the policy amount in case of death of the insured within the policy term period. It is the purest and cheapest form of life insurance. If the insured survives the term of the policy, he does not get any maturity benefits.
Overview about Aegon Life Insurance
Aegon is a reputed multinational company that provides a wide range of financial services including life insurance. The entire business is online so there are no commission charges and hidden costs in the policies offered by the company. No external agents are involved to increase the premiums. The process commencing from selecting various policy options to buying the product is quite simple and quick. The policy is issued in 2 days of completion of the medical process (if applicable) and submission of documents. In the financial year 2018-19, the claim settlement ratio of the company was 96.45% with 99% of the claims settled within 30 days.
Overview about Aegon Life iTerm Insurance Plan?
Aegon Life iTerm Insurance plan is a comprehensive plan that provides financial security to your family. It offers three different plans to choose from as per the suitability of the insured. This term insurance plan comes with an inbuilt Terminal Illness Benefit that provides the insured person with the lump sum payout if diagnosed with any of the covered 36 critical illnesses. The policy also offers an Accidental Death Rider in which the family receives a larger payout in case of unfortunate death due to an accident.
What are the features of Aegon Life iTerm Insurance Plan
The key features of the Aegon Life iTerm Insurance Plan are:
The plan provides life cover till the age of 100 years.
There is a lower premium for females and non-smokers.
The InstaCover TM benefit ensures that the policy is in action the day the complete application is submitted.
This insurance plan provides for three plan options to suit the different needs of the people.
The plan provides an option for smokers to quit smoking and reduce their policy premium from 2nd year onwards.
The plan provides an option to choose the death benefit payout as a lump sum or monthly income or both.
In the case of terminal illness, the life cover amount of the insured is paid out, so that the expenses of treatment are taken care of and the family does not face any financial crisis.
It has a rider, Aegon Life AD Rider provides enhanced protection to the family in case of death due to accident.
It provides tax benefits on the premium paid and benefits received as per the prevailing laws.
Who is eligible to take Aegon Life iTerm Insurance Plan?
Here are the eligibility criteria to take Aegon Life term Insurance Plan.
The minimum age to avail this policy is 18 years and the maximum age is 50 years or 65 years, depending upon the policy and the premium payment frequency you opt.
The minimum sum assured is Rs. 25 Lakh and there is no upper limit (subject to Board Approved Underwriting Policy).
The premium payment frequency is single, annual, half-yearly or monthly.
The minimum policy term is 5 years for Life Protect, 15 years in Protect Plus, and 20 years of Dual Protect plan.
The maximum policy term is subject to the applicable minimum and maximum maturity age.
The minimum maturity age depends upon the plan opted and the maximum is 100 years.
What are various plan options available in Aegon Life iTerm Plan?
There are three plan options in Aegon Life term Plan – Life Protect, Protect Plus, and Dual Protect. All offer different features and benefits so that the individual can choose as to which additional feature is beneficial to him. The plan has to be selected before the inception of the policy and it cannot be altered at a later date.
What are various benefits under these 3 plan options?
It offers Life Protect, Protect Plus and Dual Protect. Let us look at the key benefits of these plan options
A) Life Protect Option in Aegon Life Term plan
i) This plan option provides life coverage
ii) It provides 100% payout in case of diagnosis of terminal illness
iii) This plan provides options to increase life cover at various important life stages.
B) Protect Plus Option in Aegon Life Term plan
i) This plan option provides life coverage
ii) Life cover increases by 5% every year without an increase in premium
iii) It provides 100% payout in case of diagnosis of terminal illness
C) Dual Protect Option in Aegon Life Term plan
i) This plan option provides life coverage
ii) Regular Monthly Income starting from 60 years till maturity. Monthly Income plan in term insurance is being offered by most of the insurance companies now.
iii) It provides 100% payout in case of diagnosis of terminal illness.
You can understand the benefits in simple manner with below table.
What are other Benefits available in Aegon Life Term Insurance Plan?
Here are the major benefits of this term insurance plan.
A) InstaCover™ option in Aegon Life Term insurance Plan?
Aegon life offers one unique feature which none of the insurance companies are offering which is InstaCover™ features. Generally when you apply for term plan, your insurance cover would NOT get covered till the policy is issued. However, in InstaCover™, once you apply and pay the premium the coverage would apply based on few terms and conditions. Here is how InstaCover would work.
1) Aegon Life will offer the InstaCover™ benefit where they will pay the applicant, Base Sum Assured in case of death of the Life Assured within the InstaCover™ period as a lump sum, provided they have received the completed application and the requisite policy premium.
2) The InstaCover™ will apply in the period between the date they receive the completed application + premium and the earliest of:
i) The day before the policy is issued.
ii) The day the customer withdraws the application.
iii) The day we reject the application.
iv) 30 days from the date when we issued the InstaCover™ Letter.
B) Death Benefit
Like any other term insurance plan, this plan provides death benefit i.e. sum assured would be paid in case of death of insured.
C) Terminal Illness Benefit
On diagnosis of Terminal Illness, provided the policy is in-force and all due premiums have been paid, you would get 100% of the Death Benefit applicable as of the Date of Diagnosis of Terminal Illness. The Policy will terminate on payment of the above benefit.
D) Auto Increase of cover
This policy would increase the Sum Assured by 5% of the Base Sum Assured (simple rate) every year. This increase in Sum Assured will continue till the policy maturity, but till 55 years of age. The Premium will remain not change throughout the policy term. In case the Life Assured dies or is diagnosed with Terminal Illness during the Policy Term, the Effective Sum Assured will be paid out to the Claimant and the Policy will terminate.
E) Survival Benefits
If you survive till the age of 60 years and the insurance plan is active, we will pay the following survival benefits
i) 5% of the Base Sum Assured as Lump-sum benefit at the next Policy Anniversary after you attain age 60 years, and
ii) Subsequently, 0.1% of the Base Sum Assured will be paid monthly in arrears till the Date of Maturity or Date of Death/ Diagnosis of Terminal illness whichever is earlier.
iii) They will stop paying the Survival Payouts once the Life Assured has died or is diagnosed with Terminal Illness before the Date of Maturity.
iv) The Policy will terminate on the earlier of the Date of Maturity (after payment of all due Survival Payouts) or on payment of benefit on the Death or Diagnosis of Terminal Illness.
v) This benefit is available only with Single Pay and Limited Pay options
What are the Aegon Life Term Plan claim settlement ratio in the last 6 years?
The claim settlement ratio would help us to check how well the company is able to honor claims made by insured individuals. The higher claim settlement ratio indicates that in future there are greater chances that the majority of claims are honored. On other side, lower claim settlement means, that company is rejecting claims and in the future our family could be a victim. Here is the historical IRDA claim settlement ratio of Aegon Life Claim settlement Ratios
2012-13 – 66.82%
2013-14 – 81%
2014-15 – 89.78%
2015-16 – 95.31%
2016-17 – 97.11%
2017-18 – 95.67%
2018-19 – This would be published by IRDA in Jan-2020.
What are Aegon Life Term Plan exclusions?
Here are the exclusions
In case of death due to suicide within 12 months.
From the date of commencement of risk under the policy or from the date of revival of the policy, as applicable the nominee or beneficiary of the policyholder shall be entitled to 80% of the total premiums paid till the date of death or the surrender value as available on the date of death whichever is higher, provided the policy is in force.
From the date of exercising the Life Stage Option (only applicable under ‘Life Protect’ plan option), the death benefit is the aggregate sum of the following:
a) Base Sum Assured at the date of commencement of risk, plus
b) Any increase in sum assured by exercising the life stage option prior to 12 months from the date of death (due to suicide); plus
c) 80% of the total premiums paid till the date of death for the last increased additional sum assured.
Aegon Life iTerm Plan explained with an example
Aged 30 years, Mr. Verma a non-smoker opts for Aegon Life Term Plan with following features.
1) Considered base sum assured- Rs. 1 Crore
2) Lump-sum benefit – 100%
3) Policy term- 50 years (coverage till 80 years)
4) Premium paying term- 50 years (regular pay).
5) So, the annualized premium comes to Rs. 8,394 (exclusive of taxes) or monthly premium Rs. 730 (exclusive of taxes)
Subject to all due premiums under the policy being paid, the following benefits will be payable to him.
A) In case of diagnosis of terminal illness till the age of 80 years – immediate lump sum payout of Rs. 1 crore
B) In case of death before the age of 80 – immediate payout of Rs. 60 lakh and monthly income of Rs. 48,000 (1.2% of the part of Base Sum Assured chosen as Income Benefit) over 100 months.
C) The policy will terminate post payment of these benefits and no further benefits will be payable.
You may like: Which is the Best LIC Term Insurance Plan to buy for 1 Crore?
Should you opt for Aegon Life iTerm Insurance Plan?
The term insurance plan is one of the best options available to provide financial support for your family in case of the untimely death of the earning member of the family. Aegon Life iTerm Insurance Plan is a comprehensive online term plan that provides life protection with health cover too. It gives you three different plan options that contain different features and benefits to choose from so that the individuals pay the premium only for those features that are beneficial to him. Considering the unique features, high claim settlement ratio and low premium, one can consider Aegon Life Term Insurance Plan.
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Aegon Life iTerm Insurance Plan – Features, Benefits, and Review
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