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.
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.
|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.
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.
No, loans are not allowed under the plan as this is a term insurance plan.
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)]
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.
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.
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.