Compare AEGON Life iInvest Plan

BAEGON-Life-Insurance-Company

AEGON Life iInvest Plan

AEGON Life iInvest Plan is a Unit Linked Plan which can be easily bought online. Being an online plan there are no premium allocation charges ensuring that the highest amount of premiums are invested. The plan not only provides wealth maximization, it also has various flexible options of managing your investment.

Key features of the plan

  • This is an online ULIP plan with no premium allocation charges.
  • Premiums can be paid regularly or for a limited tenure.
  • There are two investment portfolio strategies and the policyholder can choose any strategy as per requirement.
  • Loyalty additions help in boosting the Fund Value.
  • The plan provides tax benefits on both the premiums paid and the benefits received.

How does the plan work?

Step 1 – the policyholder chooses the premium amount, plan term and the premium paying term. The minimum and maximum Sum Assured is then calculated using the age of the insured and the plan term. The policyholder can choose any Sum Assured from the minimum and maximum range.

Step 2 – the policyholder also chooses the investment strategy. There are 2 strategies which are as follows:

  • Self-Managed Portfolio Strategy – under this strategy, the policyholder can choose to invest the allocated premium in any of the available six fund options. The available funds are – Blue Chip Equity Fund, Accelerator Fund, Opportunity Fund, Stable Fund, Secure Fund and Debt Fund.
  • Lifestyle Portfolio Strategy – this strategy works on the ‘Years to Maturity’ principle. The premiums are invested in three funds - Secure Fund, Debt Fund and Blue Chip Equity Fund in a pre-defined ratio where equity exposure is high. As the plan approaches maturity, the funds are reallocated to debt-oriented funds (Secure and Debt Fund) in a pre-defined proportion. Under this strategy, the funds are reallocated from equity exposure to debt exposure to protect returns generated from market volatility. 

Step 3 – the policyholder can make partial withdrawals or switch his investments from one fund to another of from one strategy to another.
Step 4 – top-ups can be done to increase the investment in a chosen fund.
Step 5- in case of death during the plan term, the death benefit is paid.
Step 6 – if the insured survives the plan tenure, the maturity benefit is paid.

Example

Seema, aged 40 years, buys iInvest Plan and invests a premium of Rs.40, 000. She chooses a term of 10 years and the Sum Assured of Rs.4 lakhs. She pays premiums throughout the plan tenure.

Option 1 – She chooses the Self-Managed Portfolio Strategy and allocates 100% of the premiums in Blue Chip Equity Fund. In case of death during the tenure, the death benefit would be paid to the nominee which would be higher of the Sum Assured or Fund Value. On maturity, the Fund Value is paid.

Option 2 – She chooses Lifestyle Portfolio Strategy. The allocated premium is invested in Bluechip Equity Fund and Debt Fund in the ratio 90:10. Every year the allocation rate changes. It moves from equity-oriented funds to debt funds. On death, higher of Sum Assured or Fund Value is paid. On maturity, the Fund Value is paid.

Seema can make partial withdrawals, switch between funds and also pay top-up premiums during the plan tenure. She can also switch the portfolio strategy chosen and redirect future premiums if Self-Managed Strategy is selected.

Plan benefits

  • Death benefit – if the life insured dies during the plan term and due premiums have been paid, the death benefit would be payable. The death benefit is higher of -
  • Sum Assured including any top-up premium Sum Assured
  • Fund Value including any top-up premium Fund Value
  • Provided that the death benefit is at least 105% of the total premiums paid till death

    • Maturity Benefit – when the plan matures, the available Fund Value as well as any top-up premium Fund Value is paid to the policyholder. The policyholder can receive this maturity benefit in lump sum or in instalments over a 5-year period after maturity through Settlement Option feature.
    • Loyalty Units – if the policyholder chooses a policy term of 15, 20 or 25 years, Loyalty Units are added to the Fund Value in the last 5 years of the plan. The rate of Loyalty Units depends on the premium payment term and is calculated on the average Fund Value in the preceding 48 months. For premium payment terms 5 and 7 years, the rate of Loyalty Units is 1.70% and for premium payment term of 10 years or in case of regular premiums, the rate is 1.80%.
    • Partial withdrawals – the policyholder can make partial withdrawals after the first 5 years. The maximum amount of withdrawal is limited to 20% of the Fund Value and four withdrawals a year are free of cost.
    • Switching – under the Self-Managed Portfolio Strategy, the policyholder can switch for changing funds. The portfolio strategy can also be changed anytime during the plan term. One free switch is allowed in each case, i.e. for changing funds or for changing the strategy.
    • Premium redirection – in case of Self-Managed portfolio strategy, future premiums can be redirected to different funds than originally selected.
    • Top-up Premiums – additional premiums can be paid through top-ups. The minimum amount of top-up is Rs.5000.

    Eligibility:

      Minimum Maximum
    Age at entry (in completed years) 7 years 55 years
    Age at maturity (in completed years) NA 70 years
    Term of the plan 10,15,20,25 years  
    Premium paying options Regular p
      Minimum Maximum
    Age at entry (in completed years) 7 years 55 years
    Age at maturity (in completed years) NA 70 years
    Term of the plan 10,15,20,25 years  
    Premium paying options Regular pay or limited pay  
    Premium Paying term Regular pay – equal to plan term
    Limited pay – 5,7,10 years
     
    Annual premium amount Premium payment term 5 years – Rs.48,000
    Premium payment term 7 years – Rs.36,000
    Premium payment term 10 years or regular pay – Rs.24,000
    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
     

    ay or limited pay

     
    Premium Paying term Regular pay – equal to plan term
    Limited pay – 5,7,10 years
     
    Annual premium amount Premium payment term 5 years – Rs.48,000
    Premium payment term 7 years – Rs.36,000
    Premium payment term 10 years or regular pay – Rs.24,000
    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
     

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.

Premium Illustration

Below is a sample illustration showing the benefits under the plan payable on maturity or death. The annual premium chosen by the policyholder is assumed to be Rs.1 lakh.

Aviva-New-Family-Income-Builder

FAQs

What is the premium paying frequencies?

Premiums under the plan are allowed only in the annual mode. There are no other premium paying frequencies available under the plan.

What happens when premiums are discontinued?

If premiums are discontinued, the benefit payable depending on the number of premiums paid. If only one premium is paid, 30% of the premium paid is returned and the policy terminates. If 2 years’ premiums have been paid, 60% of the premiums are returned and the plan terminates. However, if at least the first 3 years’ premiums have been paid, the plan acquires a reduced paid-up value.

What happens when the policy becomes paid-up?

The paid-up Sum Assured is calculated which is paid in instalments for 12 years either on maturity or death. The Paid-up Sum Assured is calculated as follows:
(Total number of premiums paid/ number of premiums payable) * Death Sum Assured

Is the Guaranteed Terminal Benefit also reduced if the plan becomes paid-up?

Yes, the Guaranteed Terminal Benefit also reduces if the policy becomes paid-up. The Guaranteed Terminal Benefit is calculated as - Guaranteed Terminal Benefit * (number of premiums paid/12)

Are there any additional riders?

No, the plan does not offer any additional riders.


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