Compare Aegon Life iIncome Insurance Plan

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AEGON Life iIncome Insurance Plan

AEGON Life iIncome Insurance Plan is an online term insurance plan which pays monthly incomes after the death of the life insured. Thus, the plan provides the bereaved family with a regular source of income even in the absence of the life insured.

Key features of the plan

  • This is an online term plan with ease of purchase.
  • A lump sum amount is paid on death and then the plan pays increasing monthly incomes after the death of the life insured.
  • The plan has an inbuilt partial and permanent disability benefit which waives off the future premiums in case the life insured suffers from any disability during the plan tenure. Moreover, the monthly incomes start from the next policy year after the disability benefit is paid.

How does the plan work?

Step 1 – the policyholder chooses the monthly income he wants his family to receive and the premium paying frequency.

Step 2 – the policyholder can choose to add the available AEGON Life WoP on CI Joint Life Rider which covers 4 critical illnesses.

Step 3 – if the life insured suffers from any disability during the plan tenure, the future premiums are waived off. From the next policy anniversary, 25% or 50% of the chosen monthly income is paid depending on the disability suffered. These monthly incomes increase by 5% every year.

Step 4 - if the life insured dies during the term of the plan, the death benefit is paid. This benefit is 12 times the chosen monthly income. Thereafter, the chosen monthly incomes are paid from the next policy anniversary till 5 years or till the life insured would have attained 60 years of age, whichever is later.

Step 5 – If the plan matures, no benefit is paid.

Example

Akshay, a non-smoking male aged 35 years, buys iIncome Plan for a term of 25 years. He chooses to receive Rs.40, 000 as the monthly incomes.

Option 1 – Akshay suffers loss of sight in both eyes due to an accident and becomes disabled in the 10th year of his policy. Since this is a permanent partial disability, Akshay qualifies for the inbuilt disability benefit. His future premiums are waived off when he suffers this disability. From the next policy year, Akshay receives 50% of his chosen monthly income which is Rs.20, 000 for the remaining policy tenure of 15 years. Moreover, the income increases every year by 5%.

Option 2 – Akshay does not suffer from any disability but dies in the 10th policy year when he is aged 45 years. 12 times the chosen monthly income in the year of death is paid immediately. From the next policy anniversary, the monthly incomes are paid for 15 years.

Option 3 – in case the plan matures, Akshay wouldn’t receive anything.

Plan benefits

  • Death benefit – the death benefit is paid in case of death of the life insured during the plan tenure and if all premiums have been paid. In case of death, 12 times the chosen monthly income is paid in lump sum. From the next policy anniversary, the chosen monthly income is paid every month. The incomes increase every year by 5%.
  • Disability benefit – in case the life insured suffers from any partial and permanent disability during the term of the plan, the future premiums would be waived off. 25% or 50% of the chosen monthly incomes (depending on the disability suffered) is paid from the next policy anniversary till the end of the plan tenure or till the life insured reaches 59 years of age, whichever is later. These incomes also increase by 5% every policy year.
  • Maturity Benefit – there is no maturity benefit payable under the plan

Eligibility Criteria

  Minimum Maximum
Age at entry (in completed years) 25 years 50 years
Age at maturity (in completed years) NA 60 years
Term of the plan 60 years – age at entry  
Premium paying options Regular pay  
Premium Paying term Equal to the plan tenure  
Monthly Income Rs.30,000 No limit

What is not covered by the plan?
If the life insured dies due to suicide within one year of plan commencement or within one year of revival of a lapsed policy, 80% of the premiums paid are refunded.

For the Partial and Permanent Disability benefit, disability suffered due to suicide, self-inflicted injury, hazardous activities, criminal acts, nuclear contamination, war, aviation, etc. would not be covered.

Premium Illustration
Below are the sample rates of premium payable by a non-smoking male for different combinations of age and choice of monthly incomes. The plan term would be 60 years less the entry age and the premiums are assumed to be paid annually.

AEGON-Life-iIncome-Insurance-Plan

FAQs

  • Does the plan allow loan facility?
  • No, loans are not allowed under the plan as this is a term insurance plan.

  • How are the monthly incomes in each policy year computed?
  • Monthly incomes payable under the policy increase by 5% every year. To compute the income payable in any policy year, the following formula is used:
    Monthly income payable in any year (denoted by ‘t’) = (monthly income chosen by the policyholder)* [1.05^(t-1)]

  • Are there any conditions to avail the partial & permanent disability benefit?
  • To avail the partial & permanent disability benefit inbuilt in the plan, the life insured should suffer the disability during the term of the plan, the disability should be suffered due to an accident and the disability should persist for 180 days after it is diagnosed. Moreover, the diagnosis of the disability would be done by a medical practitioner appointed by the insurance company.

  • What are the premium paying frequencies available in the plan?
  • The policyholder can choose to pay the premiums annually, after every 6 months or monthly. The half-yearly premium would be 0.512 times the annual premium and the monthly premium would be 0.087 times the annual premium.

  • Is the premium refunded in case of cancellation of the plan during the free-look period?
  • The company allows cancellation of an issued policy within 30 days of receiving the policy documents. This period is called the free-look period. When the plan is cancelled during this period, the premiums paid are refunded after deducting some charges for pro-rated cost of life cover extended before cancellation, stamp duty paid and any medical examination charges incurred by the company.

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