Term insurance plans may be preferred for their low premium charges, but they typically only offer death benefits to the nominee of the deceased policyholder.
In case the life assured survives the policy, no benefits are paid out to the investor. Aegon Life, with its Dual Protect Option, has helped bridge these gaps in traditional term plans. This option is a new variant of the company's flagship insurance product - the Aegon Life iTerm Insurance Plan.
Rolled out to investors in November 2019, the Dual Protect Option ensures that the premiums paid by the policyholder do not amount to nothing. Survival benefits form a key part of this variant of the term plan.
Important features of the iTerm Insurance Plan
- Policyholders can invest in this plan as early as 18 years of age, or as late as 65 years (in case of single pay option).
- The eligible maturity age ranges from 70 years to 100 years, thus ensuring whole life coverage.
- The plan allows for three different premium payment options, namely regular payment, single payment, and limited payment.
- Premiums can be paid on a monthly, half-yearly, or annual basis.
Survival benefits offered by the Dual Protect Option
The survival benefits offered by the Dual Protect Option set this variant apart from other conventional term plans. If the policyholder survives past the age of 60 and the policy continues to remain in-force, Aegon Life pays out the following survival benefits.
- A lump sum payout equivalent to 5% of the base sum assured.
- A regular monthly payment amounting to 0.1% of the base sum assured, made to the policyholder till the date of maturity of the plan.
In case the insured person dies or is diagnosed with any terminal illness before the date of maturity, the regular monthly payments will be stopped. Instead, Aegon Life shall pay out the effective sum assured to the claimant and then terminate the policy.
Understanding these survival benefits: An illustrative example
If a 30-year-old investor purchases a Dual Protect iTerm Insurance Plan with a base sum assured of ₹1 crore, this is how the timeline of the policy and payouts would play out.
- The investor pays out the premium regularly from the age of 30 to the age of 60.
- On the policy anniversary that follows the policyholder's 60th birthday, Aegon Life pays out 5% of the base sum assured as a lump-sum payment. This amounts to ₹5 lakhs.
- Thereafter, at the end of each policy month, the investor receives 0.1% of the base sum assured as regular payments from the company. This translates to a monthly income of ₹10,000.
- These payments continue until any one of the following three events occur:
- The policy reaches the date of maturity.
- The policyholder dies.
- The policyholder is diagnosed with a terminal illness.
In case the policyholder dies or is diagnosed with terminal illness, Aegon Life pays out the effective sum assured to the nominee or the insured person.
More reasons to opt for the Dual Protect iTerm Insurance Plan
What sets the Dual Protect iTerm Insurance Plan apart from other traditional term plans is that it offers both term protection as well as survival benefits. By investing in this flagship product from Aegon Life, policyholders enjoy a protective life cover, 100% payout on diagnoses of terminal illness, and regular monthly earnings from the age of 60 till the policy matures.
The advantages of the Dual Protect iTerm Insurance Plan don't end there. This comprehensive term insurance plan also offers the following additional benefits.
- Flexible premium payment options.
- Policy term ranging from as low as 20 years to as high as 82 years.
- Additional rewards for policyholders who quit smoking and switch to a healthier way of life.
- Instant life coverage benefits.
- Tax benefits as per section 80C of the Income Tax Act.
- An option to enhance coverage with the Aegon Life AD Rider, which comes into play in case of accidental death of the insured.
With its monthly payout feature, the Dual Protect variant of the Aegon Life iTerm Plan makes up for the lack of survival benefits under conventional term plans. As Vineet Arora, the MD & CEO of Aegon Life Insurance explained, "This new avatar of the term plan provides monthly earnings after the age of 60 and coverage up to 100 years of age. This not only secures the future of the policyholder's family financially, but it also provides them with a regular income to fall back on after retirement."
About Aegon Life Insurance Company
Aegon Life, one of the leading digital insurance companies in India, is a new-age digital service company and is amongst the first companies to launch Online Term Plan in India. Being the online protection specialists, AEGON Life has a company-employed service team that is fully geared to provide customers the highest levels of service.
With a vision to be the most recommended new age Life Insurance Company, the company's Direct to Customer focus establishes a direct dialogue with the customers to make for greater clarity and transparency.