Aegon Life launches 1st ever term insurance plan with return of sum assured

By: |
Updated: November 7, 2019 5:33:48 PM

Term Insurance Plan with Survival Benefits: Aegon Life Insurance has revamped its existing term plan and launched a new version of its flagship ‘iTerm’ Insurance Plan.

Term insurance, iTerm’ Insurance Plan, Aegon Life Insurance, survival benefits, policyholder, monthly incomeBeing a term plan, there is no maturity benefit but yet the plan comes with survival benefits.

Term insurance is the purest form of insurance as it provides only life protection with no survival benefits to the policyholder. However, not many are comfortable in paying the premium and not getting any survival benefits. There are quite a few term plans with return of premium on maturity. Aegon Life Insurance has revamped its existing term plan and launched a new version of its flagship ‘iTerm’ Insurance Plan. Even though it remains a term insurance plan, the new Aegon Life iTerm Insurance Plan provides regular monthly income ( based on sum assured) after the age of 60 and also offers life cover till the age of 100 years.

The iTerm Insurance Plan has the flexibility to choose the Death Benefit payout:
• As a lump-sum payment, or
• As fixed monthly income for 100 months, or
• As a combination of the above

In addition, as a buyer one can opt for any of the three Plan Options:

Life Protect – Under this option, on death or on the diagnosis of a Terminal Illness, the Sum Assured is paid to the nominee.

Protect Plus – Under this plan option, in addition to the benefits available under the ‘Life Protect’ plan option, there is an automatic increase of cover. The sum assured is increased by 5 per cent every year ( simple rate on initial amount) from 2nd year till the policyholder attains 55 years.

Dual Protect – Under this plan option, in addition to the benefits under the ‘Life Protect’ plan option, there are survival benefits. If the policyholder survives till age 60, a lump sum amount equal to 5 per cent of the sum assured is paid at the next policy anniversary and subsequently, survival benefit equal to 0.1 per cent of the sum assured is paid every month till the date of maturity or death or diagnosis of terminal illness, whichever is earlier.

Further, the plan comes with discounts on renewal premiums from second policy year onwards, for Smokers on quitting smoking. One will have to undergo medical tests (conducted at insurer’s cost, before the first policy anniversary) post which the applicability of this benefit will be decided by the insurance company.

Being a term plan, there is no maturity benefit but yet the plan comes with survival benefits. The plan looks to be a comprehensive life cover and suits those who wish to customize a term insurance plan to their needs.

Do you know What is ? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Next Stories
1Insurance Rules change 2019: No cap to foreign equity investment for intermediaries
2IRDAI issues new norms to crack down on mis-selling of travel insurance; Here’s how you will benefit
3Insurers need to leverage digital wave, data