AEGON Religare iTerm Plan
Plan Name: iTerm
Insurer: AEGON Religare Life Insurance
Category: Term Life Insurance Plan
Objective: Financial Protection of family
AEGON Religare iTerm Plan is recently revised term life insurance plan which offers financial protection to the dependents in case of untimely demise. You pay relatively small premium to the insurer for the comprehensive cover and get your family secured. If policyholder passes away, Sum Assured will be given to the nominee. Since AEGON Religare iTerm is a pure risk plan, there are no survival benefits.
Who can buy iTerm Plan?
AEGON Religare iTerm life insurance plan is for any individual who is at least 18 years or below 65 years. iTerm policy term is minimum of 5 years and maximum of 57 years. So if you are 50 years old the maximum term you can opt for is 25 years. That is because iTerm plan maturity age cannot exceed 75 years.
How Much Cover: The minimum Sum Assured is Rs 10 lacs. iTerm allows you to take as much high cover as you want. However you have to meet underwriter’s requirement to get the cover you want, which depends on your annual salary, age etc.
So how much cover should you get?
Rule of Thumb: The typical cover should be ten times your annual income.
Summarized Table:
|
Entry Age |
18 years-65 years |
|
Maturity Age |
Maximum – 75 years |
|
Sum Assured |
Rs 1,000,000-unlimited( subject to underwriting) |
|
Policy Term |
5Years - 57years |
|
Premium Pay Term |
Single, Same as policy term |
|
Premium Mode |
Annual |
What do I get?
Death Benefit: The predetermined Sum Assured is paid to the beneficiary who could be your parents, wife, son or daughter. The policy should be in force to receive the benefit.
Terminal Illness Benefit: If life insured is diagnosed with critical illness, 25% of Sum Assured is paid and Sum Assured is reduced by that amount.
Riders: You can add the following riders with the plan:
Accidental Death: In case of death as a result of accident, Sum Assured under the rider will be payable.
Waiver of Premium on Critical Illness: On diagnosis of four critical diseases namely Cancer, Coronary Artery Bypass Surgery, Heart Attack and Stroke, future premiums will be waived off and policy will continue.
Women Critical Rider: This feature is for women life insured and pays additional % of Sum Assured on diagnosis of critical illness.
Tax Benefits: Section 80C, 10 (10D) of the Income Tax Act, 1961 are applicable.
Under Section 80C you can avail tax benefit, yearly premium (not more than 1lac) will be deducted from taxable income.
Under Section 10(10D) death claim is completely tax free.
The following example will make the plan crystal clear.
Illustration:
Ravi is 32 years old with wife and 2 kids. His yearly salary is Rs 6 lacs and makes savings of one lac per year.
Suppose Ravi dies after 5 years, he will have left paltry 5 lacs to his dependents. Under same scenario, he buys AEGON Religare iTerm Plan (no medicals) with Sum Assured equal to Rs 40 lacs and policy term of 25 years.
He would have to pay a paltry premium of Rs 6133 (approx).
With just around Rs 6133 yearly, you can get sum assured of 40 lacs which will financially secure your family. Additionally most of the savings stay intact.
Your family gets = Rs 40 lacs (Sum Assured) + 4-5lacs (Your Savings)
Consider these Scenarios
Scenario1: Ravi dies in the 4th policy year- Ravi’s family will get 40 lacs. Same is true for all policy years.
Scenario 2: Policy is in grace period and Ravi dies, Sum Assured minus renewal premium will be paid.
Scenario 3: Policy lapses on the 22nd year, Ravi dies, nothing will be paid.
What Else?
How to buy: iTerm plan can be bought online. Buying Online is very easy and hassle free process.
Free Look Period: iTerm plan can be cancelled within 15 days of receiving the policy contract. A written application can be submitted to any branch for the same. The premium will be paid back minus some charges like stamp duty, medical reports.
Grace period: iTerm can be paid within 30 days from the date of renewal. Policy terms will remain unchanged during grace period. However in case of death during grace period, renewal premium will be deducted from Sum Assured payable. After 30 days, if the renewal premium is not paid the policy will cease to exist.
Sum Assured: The policyholder cannot change the sum assured of iTerm once taken. However he can opt for another term plan as per his needs.
Reinstatement- iTerm can be revived within 2 years from the premium due date. However all outstanding premiums are to be paid.
Maturity: There are no maturity benefits in AEGON Religare iTerm plan as it’s a pure term life insurance plan.
Payment Method: Net banking, credit/debit card are accepted by AEGON Religare.
Exclusion: During the first policy year or the year of reinstatement of policy, if policyholder commits suicide then Sum Assured will not be paid.
Death Claim: The nominee can request for the death claim (Sum Assured) after filling claim forms along with submitting list of documents which will prove authenticity of the claim.
Close Competitors
Aviva i-Life, Future Generali Smart Life, ICICI Pru iCare, Kotak e-Preferred, Met Protect term plan
Policybazaar take on AEGON Religare iTerm Plan
AEGON Religare iTerm has been revised and launched again. There have been many changes in the plan. The maturity age has been increased to 75 years. Many riders have been introduced in the plan. If you choose to take medical tests, premium would be lower as well.
|
Compare with other term plans now! |
 |
