Compare AEGON Life iMaximize Insurance Plan

AEGON-Life-Insurance-Company

AEGON Life iMaximize Insurance Plan

AEGON Life iMaximize Insurance Plan is a Unit Linked Child Plan which not only secures the child’s financial future, it also helps create a corpus which is inflation proof. The plan can be easily bought online and the purchase process is easy.

Key features of the plan

  • There are two death benefit options under the plan. While one option pays higher of the Sum Assured or Fund Value, the other pays both the Sum Assured and Fund Value along with additional benefits.
  • There are no premium allocation charges and so the entire premium paid is invested in the chosen fund.
  • There is a choice of 6 funds and the policyholder might choose any one or more of such funds for investing the premium.
  • Top-ups are allowed to increase the Fund Value.
  • Premiums can be paid either regularly or for a limited tenure.

How does the plan work?

Step 1 – the policyholder chooses the premium amount, the coverage option, policy term and the premium payment term.

Step 2 – the policyholder then chooses to invest the allocated premium in any of the available 6 funds. The funds are Bluechip Equity Fund, Accelerator Fund, Opportunity Fund, Stable Fund, Debt Fund and Secure Fund.

Step 3 – the policyholder can make partial withdrawals, premium redirections or switch his investments if required. Top-up can also be made to increase the Fund Value.

Step 4- in case of death during the plan term, the death benefit is paid according to the coverage option selected.

Step 5 – if the insured survives the plan tenure, the maturity benefit is paid which is the Fund Value including top-up premium Fund Value.

Example

Ravi, aged 40 years, buys the plan paying a premium of Rs.50, 000. He chooses a Sum Assured of Rs.5 lakhs and allocates his premiums to Opportunity Fund.

Option 1 – He chooses Death Benefit option I. If he dies during the plan term, higher of Rs.5 lakhs or the Fund Value is paid to the beneficiary.

Option 2 – He opts for Death Benefit Option II. On his death during the plan term, Rs.5 lakhs is paid immediately to the beneficiary. Thereafter, Rs.50, 000 is contributed by the company towards the policy and premiums are waived off. Moreover, every year, Rs.50, 000 is also paid by the company to the beneficiary. On maturity, the Fund Value is paid.

Ravi can make partial withdrawals, switch between funds, invest additional premiums through top-ups and also redirect future premiums to any other fund.

Option 3 – if the plan matures and Ravi is alive, the Fund Value is paid.

Plan benefits

  • Death benefit – there are two coverage benefits and the benefit paid depends on the coverage benefit selected. It is described as follows:
  • Benefit Option I– on death under this benefit, higher of the Sum Assured including top-up Sum Assured or Fund Value including Top-up Fund Value is paid to the nominee. The minimum death benefit payable would be 105% of the premiums paid till death.
  • Benefit Option II – under this benefit, if the insured dies, the nominee receives multiple benefits. Firstly, higher of the Sum Assured including top-up premium Sum Assured or 150% of premiums paid is paid. Secondly, future premiums would be waived (Additional Savings Benefit) and the company would pay the premium towards the Fund Value and the plan would continue. Thirdly, the annual premium is paid to the beneficiary (Income Benefit) at the start of each policy year after death of the insured. Lastly, the Fund Value including the top-up Fund Value would be paid to the beneficiary when the plan matures.
  • Maturity Benefit – when the plan matures, the available Fund Value including top-up Fund Value is paid to the policyholder.
  • Partial withdrawals – the policyholder can make four free partial withdrawals after the first 5 years. The maximum amount of withdrawal allowed is Rs.20% of the Fund Value.
  • Switching –the policyholder can change the choice of funds and reallocate the Fund Value among different funds through switching. Four free switches are allowed every policy year.
  • Premium redirection – If the policyholder wants, he can choose to redirect future premiums to another fund different from the one in which the premium is currently being allocated to.
  • Top-up – additional premiums can be invested in the plan through top-up facility. The minimum top-up is Rs.5000 and it can be done anytime except in the last 5 policy years.

Eligibility Criteria

  Minimum Maximum
Age at entry (in completed years) Death Benefit Option I – 7 years
Death Benefit Option II – 18 years
Death Benefit Option I – 55 years
Death Benefit Option II – 50 years
Age at maturity (in completed years) NA Death Benefit Option I – 70 years
Death Benefit Option II – 65 years
Term of the plan 15,20,25 years
Premium paying options Regular pay or Limited Pay
Premium Paying term Death Benefit Option I – 5,7,10,15 years or equal to plan term
Death Benefit Option II – 10,15 years or equal to plan term
Annual premium amount Death Benefit Option I:
If Premium Paying Term is 5,7 years – Rs.36,000
Other Premium Paying Terms – Rs.24,000
Death Benefit Option II:
Age less than 45 years – Rs.24,000
Age 45 years and above – Rs.36,000
No limit
Sum Assured If age is below 45 years – higher of 10 times the annual premium or 0.5*term*annual premium
If age is 45 years and above – higher of 7 times the annual premium or 0.25*term*annual premium
If age is 45 years and above– 10 times the annual premium
For other ages, the minimum Sum Assured would be the maximum too.

What is not covered in the policy?

In case of suicide committed within 12 months of inception or revival of the plan, the available Fund Value and any top-up premium Fund Value is paid.

FAQs

What is the top-up premium Sum Assured?

If the insured is aged below 45 years, the minimum increase in Sum Assured is 1.25 times the top-up premium. If age is 45 years and above, the minimum increase in Sum Assured is 1.10 times the top-up premium. The maximum top-up Sum Assured is limited to 10 times the top-up premium if age is up to 35 years.

What happens to the fund selection in Death Benefit option II when the insured dies?

The funds are reallocated to Secure Fund when the insured dies so that the Fund Value is protected from market volatility.

What is the tax benefit under the plan?

Premiums paid are exempted from tax under Section 80C up to a maximum of Rs.1.5 lakhs. Death benefit received would be tax-free under Section 10(10D).

What is the free-look period?

A period of 30 days is allowed as free-look period for cancelling the plan after issuance.

What is the lock-in period?

The lock-in period is 5 years.

popup close button
Looking for an insurance policy? Get Instant Quotes from 44+ insurers Click Here
popup close button
Child's date of birth
/ /
Enter Correct Age(Maximum 17 years) Child & Parent's Age Difference should be 18 year
Parent's date of birth
/ /
Enter Correct Age(Minimum 18 years)
Gender
Male Female
Annual Income
{{size.text}} Select a Value from list
Enter Your name
Enter Your Name
Enter Your email
Enter Your Email Id
Mobile No.
Enter Your 10 digit Number
OTP