Aegon Life Insurance: Is It Worth The Hype?

Aegon Life Insurance, formerly known as Bandhan Life Insurance Limited, is an Indian life insurance company that offers a wide range of insurance products to meet the diverse needs of its customers. The company provides both individual and group insurance policies, including term plans, savings and investment plans, child plans, and unit-linked insurance plans (ULIPs). With a focus on financial protection and affordability, Aegon Life Insurance aims to ensure that policyholders' families receive the utmost financial support in the event of their demise. The company also offers a seamless claim settlement process and responsive customer care services, making it a reliable choice for those seeking comprehensive life insurance coverage.

Term plans

Term insurance plans are a type of life insurance policy that offers financial protection for a specific period of time, known as the "term". Term plans are designed to provide coverage for individuals who want to ensure their loved ones are taken care of in the event of their untimely demise. Here is some detailed information about the term plans offered by Aegon Life Insurance, which was formally known as Bandhan Life Insurance :

Bandhan Life i-term Prime Plan

This plan offers a comprehensive package that includes life coverage, critical illness coverage, and accidental death benefits. The minimum age to apply for this plan is 18 years, with a maximum age of 65 years. The base sum assured is 25, and the policyholder can choose from annual, half-yearly, quarterly, or monthly premium payment terms. One of the key features of this plan is the high sum assured rebate, which provides enhanced coverage with rider benefits. The limited premium payment term is set at 2/3rd of the policy term.

Bandhan Life iTerm Comfort Plan

The iTerm Comfort Plan is a pure protection plan, which means it offers a guaranteed lump sum payout as a death benefit. This plan also includes accidental death and critical illness benefits. The minimum and maximum ages for this plan are the same as the i-term Prime Plan, and it offers the same premium payment frequency options. One notable feature of the iTerm Comfort Plan is its flexibility, allowing policyholders to attach or detach riders according to their needs. Additionally, the policy can be revived within 5 years.

Benefits of Bandhan Term Insurance Plans

Bandhan Term Insurance plans offer a range of benefits that set them apart from other providers. These include accidental death benefits, flexible premium payment terms, and critical illness coverage. The maximum sum assured goes up to 1.5 crores, and special premium discounts are available for women and non-smokers. Bandhan Life Insurance also boasts a high claim settlement ratio of 99.3, indicating their efficiency in settling claims.

Riders Available with Bandhan Term Insurance Plans

Riders are extra benefits that can be added to enhance the scope of coverage. Bandhan Life Insurance offers two types of riders: the Accidental Death Benefit Rider and the Critical Illness Rider. The former provides an additional payout if the policyholder passes away due to an accident, while the latter provides a lump sum payout if the policyholder is diagnosed with a listed critical illness.

Additional Benefits of Bandhan Life Term Insurance Plans

Bandhan Life Term Insurance Plans go beyond standard coverage by offering flexible premium payment terms, exit options after the age of 55, and maturity benefits equal to the total paid premiums. The plans also offer affordable premium rates, making it possible to purchase higher sum assured plans at a lower cost. Additionally, a 5% discount is provided for online purchases of term insurance plans.

Savings plans

The POS Guaranteed Return Insurance Plan has a minimum yearly premium of INR 10,000, with a guaranteed fixed payout upon the death of the policyholder and at policy maturity. The maturity benefit is calculated as the Basic sum assured + accrued guaranteed additions + loyalty booster. The guaranteed maturity amount payable is between 225% and 325% of the basic sum assured. Additionally, the policyholder receives an extra 25% of the basic sum assured as loyalty additions. In the unfortunate event of the policyholder's death, the death benefit is calculated as the Sum Assured on Death + accrued guaranteed additions, providing financial security for their loved ones.

The plan offers flexibility in choosing the policy term and premium payment term combination, with yearly, half-yearly, and monthly payment options available. One standout feature of this plan is the absence of medical screening, making it accessible to individuals who may have health concerns. This plan is a suitable option for those seeking guaranteed returns and the peace of mind that comes with comprehensive coverage.

Aegon Life Insurance also offers ULIP (Unit-Linked Insurance Plans) savings plans, which provide both insurance and investment benefits. These plans aim to maximize the policyholder's investment by ensuring their full contribution is invested in funds of their choice. While these ULIP plans do not offer rider benefits, they do provide the option to liquidate funds after a five-year lock-in period. With a focus on long-term financial growth and security, these plans can be a good choice for those seeking both insurance coverage and investment opportunities.

Retirement policies

Retirement is a significant concern for many, and Aegon Life Insurance offers a range of retirement plans to meet individual needs. These plans are designed to provide financial security and peace of mind during one's golden years. Here is a detailed overview of the retirement policies offered by Aegon Life Insurance.

Insta Pension Insurance Plan

The Insta Pension Insurance Plan is a unique offering from Aegon that provides a guaranteed source of income for life. This plan is ideal for those seeking a regular income post-retirement. The key features of this plan include:

• One-time payment: Individuals only need to make a single payment to secure a regular income for life.
• Minimum and maximum entry age: This plan is available to those aged between 50 and 85 years.
• Minimum sum assured: The plan offers a minimum sum assured of INR 2,50,000.
• Annuity payout options: The plan provides two annuity payout options, allowing individuals to choose the one that best suits their needs. The first option is a life annuity plan, which pays a regular income for life, but the policy terminates without any additional payout upon the policyholder's death. The second option is a life annuity with a return of the purchase price, where the annuity is paid for life, and the purchase price is returned to the nominee upon the policyholder's death.
• Premium range: The minimum monthly premium is INR 1,044, and the maximum premium is INR 13,051.
• Loan facility: It is important to note that this plan does not offer a loan facility.

Jeevan Riddhi Insurance Plan

The Jeevan Riddhi Insurance Plan is another retirement option offered by Aegon Life Insurance. This plan provides a combination of life coverage, savings, and protection. The key features of this plan include:

• Entry age: Individuals between the ages of 18 and 55 years can enrol in this plan.
• Maximum maturity age: The plan has a maximum maturity age of 70 years.
• Death benefit: In the unfortunate event of the policyholder's death during the policy term, the beneficiary will receive the sum assured on death, accrued guaranteed additions, accrued reversionary bonus (if any), and a terminal bonus (if any).
• Maturity benefit: Upon survival at the end of the policy term, the policyholder will receive the maturity benefit, which includes the sum assured, accrued guaranteed additions, accrued reversionary bonus (if any), and a terminal bonus (if any).
• Guaranteed extra income: The plan offers a guaranteed extra income of 5% of the sum assured for every year of premium payment.
• Bonus accumulations: The benefit amount increases every year through bonus accumulations or accruals.
• Lump-sum payout: The policyholder receives a lump-sum payout at maturity.
• Tax benefits: The plan offers tax advantages under sections 80C and 10 (10D) of the Indian tax laws.
• Accidental death benefit: The plan includes an inbuilt accidental death benefit equal to 50% of the sum assured.
• Premium waiver: The policyholder can choose a premium waiver option in case of disability.
• Loan facility: A loan facility is available once the policy acquires a surrender value.
• Minimum annualized premium: The minimum annualized premium for this plan is INR 15,000.

Regular Money Back Insurance Plan

The Regular Money Back Insurance Plan is another retirement option offered by Aegon Life Insurance, which provides guaranteed payouts and life cover. The key features of this plan include:

• Entry age: This plan is available to individuals from seven days to 60 years of age.
• Policy term: The policy term for this plan is 20 years.
• Minimum annualized premium: The minimum annualized premium is INR 12,000 (for 7 years/10 years pay).
• Guaranteed money-back payouts: The plan guarantees money-back payouts every year from the 10th to the 19th policy year, provided all due premiums have been paid.
• Bonus accumulations: Similar to the previous plan, this plan also offers increasing benefit amounts through bonus accumulations or accruals.
• Loan facility: A loan facility is available once the policy acquires a surrender value.
• Premium waiver: The plan offers a premium waiver option in case of disability.

Rural Term Insurance Plan

The Rural Term Insurance Plan is designed specifically for individuals in rural areas, offering life insurance coverage and a single-premium payment option. The key features of this plan include:

• Entry age: This plan is available to individuals between the ages of 18 and 45 years.
• Maturity age: The maturity age for this plan is 70 years.
• Premium range: The premium for this plan ranges from a minimum of INR 300 to a maximum of INR 1,000.
• Policy term: The policy term is five years.
• Death benefit: In the unfortunate event of the policyholder's death during the policy term, the sum assured is paid as a death benefit.
• Single-premium payment: This plan offers the convenience of a one-time premium payment for a five-year life insurance cover.
• Surrender value: The policy acquires a surrender value after paying the full single premium.

Group life insurance policies

Group life insurance is a single contract that provides coverage to a group of people, typically those who work for the same company. The employer owns the policy, which covers the employees. The beneficiaries of the insured will get a payout if the insured passes away while covered by group insurance.

The most common group life insurance policy is provided by employers, but some churches, professional associations, alumni groups, unions, and other affiliate organizations also offer group life insurance to members.

There are several types of group life insurance:

• Fixed multiple-of-earnings benefit plans: These plans tie the death benefit amount to a multiple of the insured's wages, such as two times their annual salary.
• Variable multiple-of-earnings benefit plans: These plans' benefits are based on multiples of the insured's earnings at certain thresholds. For example, the death benefit might be equal to the salary if the insured makes under a certain amount, or it might be two times their annual earnings if they make over a certain amount.
• Flat-dollar-amount benefit plans: These plans pay the same amount to all employees, with payouts ranging from $10,000 to $25,000 being the most common.
• Variable-dollar-amount benefit plans: Payouts can vary based on the insured's earnings and length of service.

The purpose of group life insurance is to provide peace of mind for employees and their families, knowing they will have some financial security if the insured passes away. Businesses offer group life insurance to help attract and retain talent, showing employees that they are valued and their well-being is a priority.

Group life insurance is generally less expensive than individual life insurance because the employer pays all or most of the cost. It is also often easier to qualify for, as there is usually no medical exam required unless the insured wants to buy extra coverage. Additionally, group life insurance is easy to sign up for, as employees can typically sign up during onboarding or open enrollment.

However, there are also some disadvantages to group life insurance. If an employee leaves their job, they often lose their coverage unless their policy is "portable," meaning they continue to buy the group life insurance at their own cost after leaving the job. The death benefit of a group life insurance policy is also usually lower than that of an individual policy, and most group policies don't have cash value, meaning the insured can't borrow against them.

ULIP plans

Aegon Life Insurance offers a range of Unit Linked Insurance Plans (ULIPs) to cater to different needs and risk appetites. ULIPs are financial products that combine the benefits of life insurance with the potential for investment returns. Here is a detailed overview of the ULIP plans offered by Aegon Life Insurance:

Aegon Life Future Protect Insurance Plan:

This plan provides life cover and investment opportunities, allowing individuals to secure their family's future while growing their savings. The key features include an entry age range of 7 to 50 years, a maturity age of 70 years, and policy terms of 15 to 35 years. It offers tax benefits and partial withdrawals. In case of the policyholder's death, the nominee receives the base sum assured plus the fund value. At maturity, a lump sum of the fund value is paid.

Aegon Life Rising Star Insurance Plan:

The Rising Star Insurance Plan is designed to secure a child's future and support their academic milestones. The entry age for parents is 18 to 48 years, with the child as the nominee, aged between 1 day and 15 years. The maturity age limit is 65 years. The policy term is 25 years minus the child's age at entry. It offers tax benefits and partial withdrawals. In the event of the policyholder's death, the nominee receives 105% of all premiums paid immediately, future premiums waived, and the annual premium paid until the end of the policy. At maturity, a lump sum of the fund value is paid.

Aegon Life Future Protect Plus Insurance Plan:

This ULIP plan offers a sum assured plus fund value as a death benefit. It allows individuals to protect their money by switching from an Accelerator Fund to a Secure Fund during the last 3 years of the policy. The entry age is 7 to 50 years, with a maturity age of 70 years. The policy term is 15, 20, or 25 years, with the same premium-paying term. It provides tax benefits and partial withdrawals. In case of the policyholder's death, the nominee receives the base sum assured plus the fund value. At maturity, a lump sum of the fund value is paid.

Aegon Life iMaximize Insurance Plan:

The iMaximize Insurance Plan offers a low-cost option with a monthly premium as low as Rs. 2,000. The entry age is 7 to 50 years, with a maturity age of 70 years. It provides tax benefits under Section 80C. The plan offers two death benefit options: Option 1 provides the higher amount of either 105% of all premiums paid or the Sum Assured or Fund Value. Option 2 offers the maximum of the Sum Assured or 105% of premiums paid, with future premiums waived, and the nominee receives an annual premium until the end of the policy. This plan has no charges for fund allocation and offers three different fund options.

Aegon Life iMaximize Single Premium Insurance Plan:

This plan requires a one-time single payment and offers online convenience without insurance intermediaries. The entry age is 8 to 60 years, with a maturity age range of 18 to 65 years. It provides income tax benefits under Section 80C and allows partial withdrawals after 5 years of the policy, up to 20% of the fund value. In the event of the policyholder's death, the nominee receives the higher amount of either the sum assured or the fund value. This plan has no charges for fund allocation and offers three different fund options, along with a top-up facility.

Aegon Life Insurance's ULIP plans provide individuals with a range of options to secure their future and that of their loved ones, while also growing their investments. These plans offer flexibility, tax benefits, and the ability to choose from different investment strategies and funds based on individual needs and risk appetites.

Frequently asked questions