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AEGON Life Insurance’s “iTerm Insurance Plan” is a pure term insurance plan which is available online. The plan comes inbuilt with a terminal illness benefit. Moreover, there are customizable coverage options under the plan which makes the plan provide an all-round coverage.
Rohit, aged 30 years, chooses iTerm Plan for a term of 50 years. He chooses a Sum Assured of Rs.1 crore. The premium he pays is Rs.9977 every year for 50 years.
Option 1 - Rohit opts for 100% lump sum benefit. In case of death within the plan term, Rs.1 crore is paid in lump sum.
Option 2 - Rohit opts for 100% income benefit. In case of death within the plan term, 1.2% of Rs.1 crore which is Rs.1.2 lakhs is paid every month for 100 months. Thus, the total death benefit paid is Rs.1.2 crores.
Option 3 - Rohit opts for 50% lump sum benefit and 50% income benefit. In case of death within the plan term Rs.50 lakhs is paid in lump sum. Thereafter, 1.2% of Rs.50 lakhs which is Rs.60, 000 is paid every month for 100 months. Thus, the total death benefit is Rs.50 lakhs + Rs.60 lakhs = Rs.1.1 crores.
Option 4 - if Rohit suffers from any terminal illness during the plan tenure, 25% of the total Sum Assured which is Rs.25 lakhs would be paid in lump sum. Thereafter, the death benefit would be reduced by the terminal illness benefit already paid.
Option 5 - Rohit can increase the coverage if he marries by Rs.50 lakhs and in case of birth of two children by Rs.25 lakhs each.
Option 6 - if the plan matures and Rohit is alive, no benefit is payable.
|Age at entry (in completed years)||18 years||65 years|
|Age at maturity (in completed years)||NA||80 years|
|Term of the plan||5 years||62 years|
|Premium paying options||Regular pay or Single Pay|
|Premium Paying term||Regular Pay - Equal to the plan tenure
Single Pay - once
|Sum Assured||Rs.25 lakhs||No limit|
If the life insured dies due to suicide within one year of plan commencement, 80% of the premiums paid are refunded.
If suicide is committed within 12 months of revival of the plan, higher of 80% of the premiums paid or the Surrender Value is paid.
For terminal illness benefit, any illness due to HIV, AIDS or attempted suicide within 12 months of plan commencement is excluded.
Below are the sample rates of premium payable by a male at different ages for different combinations of Sum Assured and plan term.