Aegon Religare iSpouse Joint Life Term Insurance Plan Review
Recently, several insurance companies started issuing Joint Life Term Insurance Plans. Aegon Religare iSpouse Joint Life Term Insurance Plan is one among such plans. If you are married individual, you need not take separate term insurance plans for you and your spouse. Instead you can go for joint life term insurance plans which comes with lesser premiums with several benefits. Should you opt for Aegon Religare iSpouse Joint Life Term Insurance Plan? What are positive factors in this plan? What are hidden factors in Aegon Religare iSpouse Term Insurance Plan?
Features of Aegon Religare iSpouse Joint Life Term Insurance Plan
- This is typical online term insurance plan where both husband and wife are covered in single term insurance plan. No need to have separate plans.
- Incase of death of one spouse or both, 100% of Sum Assured would be immediately paid to nominee of the insurance plan.
- Monthly payout of 1.75% of Sum Assured would be paid to nominee for next 5 years.
- Additional payout on accidental death.
- 4 Critical Illness Riders are covered with extra premium.
- Inbuilt Term Illness benefit.
What are the benefits available in Aegon Religare iSpouse Joint Life Term Insurance Plan?
a) Death Benefit
i) Incase of death of husband or wife or both, following would be paid to nominee:
- 100% of sum assured is paid as lump-sum and
- Monthly payment of 1.75% of Sum Assured for a period of 60 months / 5 years.
ii) Policy would terminate after payment of all monthly income benefits.
b) Accidental Death Benefit
- Incase of accident of husband or wife or both, apart from death benefit indicated above, 50% of Sum Assured would be paid as lump-sum with a maximum amount restricted to Rs 1 Crore.
c) Terminal Illness Benefit
- On diagnosis of terminal illness of husband or wife or both, an amount equal to 25% of the Sum Assured will be paid to the policy holder subject to maximum of Rs 1 Crore. Subsequent death benefit will be reduced by an amount paid under terminal illness.
- Any subsequent death payment (on either of the lives) will be reduced by the amount of the terminal illness payment.
- All the premiums falling due after the payment of this benefit will be waived.
d) No Maturity or Surrender Benefits available in this plan
e) Premiums paid under this plan are eligible for 80C tax benefits
f) Benefits received under this plan are exempted from income tax u/s 10(10D).
What are Critical Illness Riders (CIR) available under this plan?
AEGON Religare WoP on CI Joint Life Rider : This rider covers the following 4 critical illness conditions:
2. Coronary Artery Bypass Surgery
3. Heart Attack
If husband or wife or both get diagnosed with any of these four critical illnesses, future premiums payable under the base plan are waived while the life cover continues.
Aegon Religare iSpouse Term Insurance plan – explained with example
Mr.Ramesh, aged 30 years is a Software Engineer and his wife is an Business Analyst and they have a kid Amol who is 3 years. Ramesh is attuned to the fact that his wife’s income is an equal contributor to the household income. He wants to ensure that both their futures are secure. To ensure that in his or his wife’s absence they continue to live the same lifestyle as they do now, he opts for AEGON Religare’s iSpouse Insurance Plan.
He considers this plan. Cover Amount: Rs. 1 crore (Sum Assured), Policy Term 30 years, Annual Premium: Rs.26,600/- (exclusive of service tax).
- Total benefit paid = Rs 2.05 crores ( Rs 1 crore paid immediately + Rs 1.75 lakhs per month for 60 months).
- In case of an accidental death of Ramesh, Sheetal will get an additional payout of Rs. 50 Lakhs as lump sum.
- Thus, the total payout = Rs 2.05 crores ( Rs 1 crore paid immediately + Rs 1.75 lakhs for 60 months).
- In case of an accidental death of Sheetal, Ramesh will get an additional payout of Rs 50 lakhs as lump sum.
Picture credit: Aegon Religare website
What are the exclusions from this plan?
a) Suicide Dealth Exclusions:
If death occurs due to suicide within 12 months from the date of inception of the Policy or within 12 months from the date of reinstatement of the Policy, death benefit is refund of 80% of the premium(s) paid provided the policy is in-force. The policy terminates upon payment of such benefit.
b) Accidental Death Benefit Exclusions
The accidental death benefit will not be payable if the claim results from by:
- Suicide or self inflicted injury.
- War, terrorism, invasion, act of foreign enemy etc.,
- Service in the armed forces of any country at war or service in any force of an international body.
- Committing an assault, a criminal offence, an illegal activity or any breach of law with criminal intent.
- Taking or absorbing, accidentally or otherwise, any intoxicating liquor, drug, narcotic, medicine, sedative or poison, except as prescribed by a licensed doctor other than the owner of this policy or the Life Insured under this policy.
- Inhaling any gas or fumes, accidentally or otherwise, except accidentally in the course of duty.
- Body or mental infirmity or any disease.
- Participation in aviation other than as a fare-paying passenger in an aircraft that is authorized by the relevant regulations to carry such passengers between established aerodromes.
c) Terminal Illness benefit Exclusions
No terminal illness benefit will be payable if the condition arises directly or indirectly with the following:
- Self inflicted injuries, suicide etc.,
- Unreasonable failure to seek or follow medical advice.
- Alcohol or solvent abuse, or the taking of drugs except under the direction of a registered medical practitioner.
- Infection with Human Immunodeficiency Virus (HIV) or conditions due to any Acquired Immune Deficiency Syndrome (AIDS).
- When the member is engaged in aviation or aeronautics other than as a passenger on a licensed commercial aircraft operating on a scheduled route, and
- Due to injuries from war.
Should you opt Aegon Religare ISpouse Joint Life Term Insurance Plan?
This is like any other term insurance plan, however comes with joint life coverage. Premiums are less compared to general online term insurance plans. Aegon Religare website indicates that it has settled 97.36% claims for Apr-15 to Jun-15 quarter which is good. However, one should note that it had 81% claim settlement ratio for FY2013-2014 as indicated in my earlier article. You should always opt for plans from insurance companies which has higher claim settlement ratio. If you already taken term insurance plan, but looking for additional term insurance coverage, you can consider such plans.
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Aegon Religare ISpouse Joint Life Term Insurance Plan
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