Aegon iTerm Plan

Aegon iTerm insurance plan is an affordable online term insurance plan which offers life coverage till the age of 100 years. The plan gives you the flexibility to opt from 3 different plan alternatives as per your protection requirements. It offers inevitable life cover with multiple options for enhancing coverage such as accidental death cover and critical illness cover. The plan comes with a static premium amount which does not get enhanced during policy term.

Moreover, this plan allows you to cancel the plan right after buying it. You can return back the documents along with the letter that states the reason for disagreement with the company. The time period stated for such cancellation is 15 or 30 days (if policy has been purchased through the distance marketing way). On cancellation of such a policy you will be getting the complete premium paid after the deduction.

Best Features of Aegon iTerm Plan

Below-mentioned are some of the noteworthy features of Aegon iTerm Plan that make it an unparalleled life term policy in comparison to its counterparts:

• Under the plan, the assured can enjoy the life cover up to the age of 100 years
• You can opt for death benefit payout as a lump sum, or as a monthly income, or both
• Accidental Death Rider is available with the plan to offer better security to your family in case of unforeseen accidental casualties
• The InstaCoverTM feature of the  policy ensures that the coverage is available to you from the day you submit the complete application.
• The premium for non-smokers and females are comparatively lower under the plan
• A lump sum payout is released upon the diagnosis of 36 critical illnesses till 80 years of age
• In the case of a terminal illness, the entire life cover amount is payable to take care of the  financial situation of the assured and the incurred treatment costs
• The policy comes with a “it pays to quit smoking” section under which the smokers get a reduction in the policy premium from the second year onwards for quitting smoking.
• In case the policy has lapsed because of non-payment of the premium, then you can easily revive the plan again by paying your outstanding premium. The time allotted to revive the policy is within 5 years for the date of your lapsed plan.

Benefits of Aegon iTerm Plan

Listed below are some of the noteworthy benefits that one gets upon choosing Aegon iTerm Plan:

1. Terminal Illness Benefit 

In the Terminal Illness plan, if all the due premium is paid and policy is in-force, the complete amount is paid to 100%. The complete sum of the amount is given to the policy holder on the date of  diagnosis of the Terminal illness. The policy will be terminated once the payment is complete. 

2. Death Benefit

 On the policyholder’s death, the nominee can get the death benefit in the form of:

1. 100% as the income benefit which will be paid throughout 100 months
2. 100% lump sum on death
3. Part as the lump sum benefit and balance as the income benefit.

The death benefit gets quantified when it comes to the total sum assured. The latter is calculated as the sum of the lump sum assured & income benefit sum assured. 

In the scenario of death of an assured individual then the nominee will get the complete sum assured that shall be payable specifically (provided that he/she has paid every due premium)  – 

• lump sum assured will be immediately paid
• 1.2% of the income benefit sum assured will be monthly paid for 100 months.

At the time of the death claim, the nominee will get the flexibility to choose the Total Sum assured for being paid in a single lump sum quickly. This policy will terminate on the payment of the above-mentioned benefits.

3. Maturity Benefit 

No benefit of maturity is applicable under the maturity plan. Which means if an individual survives till the last date of maturity, there will be no additional benefits payable and the policy will get terminated.

4. Life Stage Benefit

With the growing cover of responsibilities, one needs to look up for the right plan for support. Choosing the life stage plan adds on with the benefit at every stage of life. Such a plan provides you with the advantage of boosting the sum assured at the time of marriage or child’s birth. An individual can easily increase the total sum to 50% on marriage while 25% can be increased at the time of two children's birth. The increase in the policy plan can be allowed without going for any medical check-up and only if the insured one is below the age of 45 at the time of child birth or marriage. The total sum of INR 50 Lakh is allowed in case of marriage and INR 25 Lakh is allowed for the child birth.

5. Riders Benefits

There are two options for the rider plan, one is the Accidental Disability Rider and the other is Critical Illness Plus Rider. You can look for the right olan according to the requirement. For adding up the support with comprehensive scope of cover one can add up the premium cover accordingly.

What is Covered?

As per the plan variant you opt for, Aegon iTerm Plan provides coverage for the following - 

A.  Aegon Life iTerm - Life Protect

The following types of coverage benefits are offered under this option:

1. Death Benefit
   In case of death of the assured during the policy term, the Effective Sum Assured will be paid to the claimant, after which the policy will be terminated. The death benefit is calculated as the sum of the assured base sum, plus any sum assured on account of exercising the Life Stage Option.
2. Terminal Illness Benefit
   In case the assured gets diagnosed with a terminal illness during the policy term, the Effective Sum Assured will be paid to the claimant, and the policy will be terminated once the benefits are settled.

To get the benefits, all due premiums should be cleared.

How the Life Protect option works-

Example - 

Benefits payable - 

1. If Mr. Gupta dies during the tenure, an immediate lump sum amount of INR 60 Lakh is released to the beneficiaries
2. The beneficiary of the deceased receives a monthly income of INR 48,000 (1.2% of the part of the Base Sum Assured that was chosen as the income benefit) over a period of 100 months, with the total payout amounting to INR 48 Lakh
3. If Mr. Gupta suffers from a terminal illness during the policy term, he will receive an immediate lump sum amount of INR 1 Crore, and the policy will be terminated thereafter.

Surrender Benefit - It is advisable to continue the policy for the complete tenure, however, if you wish to surrender the plan in between the tenure, then the surrender benefit available will depend on the plan option chosen by you.

• For Regular Pay Policies- No benefit is payable for policies surrendered at any point over the policy term

• For Single Pay Policies - Upon surrender of the policy anytime before date of policy maturity, you will be paid the Unexpired Risk Premium Value (URPV) value as surrender benefit as per the following formula:

Surrender Value = URPV Factor * Single Premium Paid (exclusive of Taxes, Underwriting Extra Premiums and any loadings for modal premium)

• For Limited Pay policies - Upon surrender of the policy anytime before the date of maturity, you will be paid Unexpired Risk Premium Value (URPV) value as surrender benefit. On surrender, the insurance company will pay the Surrender Value as per the following formula:

Surrender Value = URPV Factor * Total Premiums Paid (exclusive of Taxes, Underwriting Extra Premiums and any loadings for modal premium).

The Policy will terminate on payment of the above benefit.

B.   Aegon Life iTerm - Protect Plus

Apart from the coverage offered under the Life Protect option (except the Life Stage Option), the Protect Plus plan comes with an ‘Auto-Increase of Cover’ benefit. The sum assured in the policy is increased by 5% of the Base Sum Assured every year, after the second Policy Anniversary, given that the Policy remains active. The Protect Plus option offers the following coverage benefits:

1. Death benefit
   If the assured dies during the policy term, the Effective Sum Assured is paid to the claimant and the policy is terminated after the benefit settlement. The Effective Sum Assured for Protect Plus is the sum of the assured base sum, plus any sum assured on account of the ‘Auto-Increase of Cover’ Benefit.
2. Terminal illness benefit
   In case the assured is diagnosed with a terminal illness during the policy term, the Effective Sum Assured is paid to the claimant, after which the policy is terminated.

All the due premiums should be paid and cleared in order to get the benefits.

How the Protect Plus option works -

Example -

Benefits payable - 

1. If Mr. Gupta dies during the tenure period, a direct lump sum payout of INR 2.25 Crore (Effective Sum Assured) will be immediately paid to the claimant, subject to all due premiums under the Policy being paid.
2. If he is diagnosed with a terminal illness, he shall receive the Effective Sum Assured benefit of INR 2.25 Crore, after which the policy will be terminated.

Surrender Benefit - Same as Life Protect variant.

C.  Aegon Life iTerm - Dual Protect

The following types of coverage benefits are offered under the Dual Protect option:

1. Death Benefit
   A lump sum amount is paid to the claimant in the scenario where the assured dies in the policy term.
2. Terminal Illness Benefit
   The death benefit is paid in a lump sum amount if the assured is diagnosed with a terminal illness during the coverage tenure.

How the Dual Protect option works-

Example - 

Benefits payable - 

1. On Policy Anniversary following Mr. Gupta’s 60th birthday, he will receive a lump sum payout of INR 5 Lakh (i.e., 5% of the Base Sum Assured)
2. Afterwards, 0.1% of the Base Sum Assured will be paid at the end of every policy month till the Date of Maturity or Date of Death/ Diagnosis of Terminal illness whichever is earlier: Monthly payout of INR 10,000 (0.1% of the Base Sum Assured, INR 1 Crore)
3. If Mr. Gupta dies during the tenure period but after his 60th birthday, a lump sum benefit of Effective Sum Assured i.e., Base Sum Assured less (lump sum payout and total monthly payout), as mentioned above
4. If he suffers from a terminal illness during the policy term, he will receive the same lump sum amount as in case of death, and all benefits will cease to exist after this payout, thereby effectively terminating the Policy.

Surrender Benefit (Under Dual Protect Variant only)

• For Single Pay Policies - Your policy will acquire a non-zero surrender value immediately after issuance. Consequently, you may surrender the policy anytime during the policy term. Upon surrender, you will be paid a surrender value equal to the higher of the Guaranteed Surrender Value (GSV) and the Special Surrender Value (SSV).
• For Limited Pay Policies - Your policy will acquire a non-zero surrender value on payment of at least 2 years’ premium in full. Upon surrender, you will be paid a surrender value (when available) equal to the higher of the Guaranteed Surrender Value (GSV) and the Special Surrender Value (SSV).

The Policy will terminate on payment of the above benefit.

What Is not Covered?

The main exclusion under the Aegon Life iTerm Plan is death by suicide. Suicide within the first 12 months of the purchase or revival of the iTerm Plan is not covered. In such a case, only the below-mentioned benefits would be paid:

• The nominee or the beneficiary of deceased policyholder will be entitled to only 80% of the total premiums paid since the date of inception of the policy (exclusive of all taxes)
• The nominee or the beneficiary of the deceased policyholder will be entitled to an amount higher than 80% of the premiums paid since the revival of the lapsed policy

Exclusions for Terminal Illness

• In case the terminal illness is a direct or indirect result of attempted suicide in the first year of the comencement or revival of the policy, the benefits applicable under this clause will not be payable
• Conditions that arise due to any Acquired Immune Deficiency Syndrome (AIDS), or Infection with Human Immunodeficiency Virus (HIV) are not covered under the policy

A terminal illness claim that is not payable due to the above-mentioned exclusions, the policy will still continue with other benefits as applicable.

Exclusions for Accidental Death Benefits and Permanent Total Disability Benefit

• Suicide or self-inflicted injury (same for medically sane or insane)
• An act of war, terrorism, hostilities, civil war, invasions, act of a foreign enemy, martial law, revolution, rebellion, insurrection, riots or civil commotion, military or usurper power (war means any declared or undeclared war)
• Participating in the naval, military, or air force operations during peaceful times
• Breaching the law with criminal intent, participating in any illegal activity, committing an assault, or a criminal offence
• Accidentally or intentionally taking or absorbing any intoxicating liquor, narcotics, drug, sedatives, poison, medicine, o any psychotropic substance (unless these substances are taken under lawful directions and prescription of a verified registered medical practitioner)
• Inhaling any toxic gases or fumes accidentally or otherwise (this exclusion intents to exclude any accidental leaks in the line of duty)
• Participation in aviations other than a fare-paying passenger in an authorised aircraft following the set regulations
• Participating in any adventure sports or hobbies.

Aegon iTerm Plan Eligibility

The eligibility parameters for buying the Aegon iTerm Plan are given below:

* All the aforementioned ages (in years) are valid as on last birthday. 

Aegon iTerm Plan Claim Process

At Aegon Life, a three-step claim process has been designed to ease the customer’s troubles. The primary objective is to take up the least amount of time while settling all valid claims. 

There are different claim forms for different types of claims. All the forms can be found at the Aegon Life website.

Natural or Accidental Death Claims

1. To initiate the claims process in case of death, the nominee of the deceased has to inform the insurance company about the death of the assured.
2. You, as a nominee, can apply for a claim by filling up the relevant claims form properly and furnishing all the correct data.
3. Once the papers and documents are found in order and verified for authenticity, Aegon Life assures to settle all the valid claims at the earliest possible moment.

Documents required along with the mandatory documents for the claimant, when applying for a natural or accidental death claim:

1. A copy of the Death Certificate issued by a recognised authority such as the Municipal Corporation
2. A copy of the FIR (First Information Report), in case of accidental death
3. A valid copy of Post Mortem report
4. In case the assured dies due to an illness/ sudden death, an additional set of documents have to be furnished:
   • A valid copy of the cause of death certificate that is issued by the attending or treating doctor
   • A copy of the statement by the attending physician
   • Medical records of the assured
   • Panchnama/ Inquest Report/Newspaper cutting, in case of death by suicide or due to accident

Dismemberment/ Accidental Disability Claims

1. The person who is legally entitled to the policy money needs to unambiguously fill in the claimants form for an accidental disability claim
2. All the details required for the release of the funds must be furnished clearly and transparently
3. You, as the assured claimant, also need to provide a copy of the statement from your attending physician
4. A valid hospital treatment certificate, a copy of the FIR, an inquest report, and a panchnama is required to complete all the formalities for the disability claim
5. Once all the documents are verified by the Aegon Life officials, the accrued funds would be released on a priority basis.

Critical Illness or Women Critical Illness Claims

1. For those of you who have chosen a plan variant that covers the critical illnesses, you need to fill the critical illness claim intimation form for the claim
2. A statement from the attending physician and a treatment certificate from the hospital, along with all the medical reports (from the date of diagnosis to the last date of treatment received by the assured) is all that is required to settle all the valid claims
3. Information regarding any list of further requirements or decisions made on the claims will be communicated to you via email, SMS, or written correspondence.

Terminal Illness Claims

1. The assured needs to fill in the terminal illness claim form to receive the valid policy money
2. A form filled in by your attending specialist also needs to be furnished
3. All the information regarding the illness should be disclosed to the officials at Aegon Life in a clear and transparent manner to ensure a smooth settlement process.

Maturity Claims

1. If the life insurance variant you chose came with a maturity benefit or survivor claim, then you need to send the Policy Discharge form at least a month before the policy expires
2. You need to provide your name (as reflected on the policy), the sum assured according to the policy, and other details such as bank account details, designation, address, etc.
3. A list of documents that are required when claiming maturity:
   • The original documents of the Aegon iTerm policy
   • A valid identity proof
   • An address proof
   • A bank mandate form along with the correct bank details
   • A self-attested cancelled cheque.
4. After proper verification from the Aegon Life officials, the appropriate funds (maturity benefits) will be released to your designated bank account after the policy matures. You can also opt for a post-dated cheque to be delivered to your address. You can encash the cheque after the policy expires.
5. In case the policyholder dies after the policy matures, but before the maturity claim, the next of kin or the legal heir of the deceased will be eligible for the insurance benefits.

Online Mode

You can provide intimation to the insurance company for your claim online by following the steps mentioned below:

• Visit https://www.aegonlife.com/ and click on the ‘Insurance Claims’ page under the ‘Services’ tab
• Go to the Online Claims Intimation page, and enter your Policy no. and Date of Birth information
• Enter the applicable claims details and follow the claim process for a hassle-free settlement.

Alternatively, you can visit the nearest Aegon Life branch or contact the Head Office to intimate about the claims. 

Aegon iTerm Plan Riders

As mentioned earlier, Aegon iTerm Plan offers optional Riders for extra coverage. The details of the Riders are given below:

• Aegon Life Accidental Death Rider
  This add-on rider offers extra coverage in case of an accidental death. A lump sum benefit equal to the Rider sum assured is provided in case of death of the assured due to accident. After the payment of the Accidental Death benefit, the Rider will terminate and is not valid for any further benefits.
• Aegon Life Critical Illness Rider
  Under this Rider, critical illness conditions such as Open Chest CABG, Cancer, first heart attack, & stroke are covered. A lump sum payout on the diagnosis of the covered illnesses and disabilities is offered. All future premiums of Base Policy are waived off, including other Rider premiums (if any), in case of diagnosis of 36 critical illnesses covered under the ‘Premium Care’ benefit option.

Aegon iTerm Plan Review

Aegon iTerm Insurance Plan is a highly cost-effective protection plan for you and your loved ones. With an option of life coverage till the age of 100 years, iTerm Plan is truly one-of-a-kind in its unparalleled coverage. It is the best plan for you to choose as you get an additional lump sum amount on 36 critical illnesses diagnosis up to the age of 80 years when you opt for the Aegon Life CI Care Rider. This includes coverage of illnesses such as kidney failure, cancer, heart attack, etc. The amazingly affordable premiums on all the Aegon Life plans to ensure that no extra burden is put on the assured at any time. 

This plan offers a grace period of 15 days, while the ones who used the other modes of paying the premium can submit the premium within 30 days. Aegon Life Insurance has featured a high claim settlement ratio of 96.45% in the FY 2018-19. Aegon Life has been ‘One of the Best BFSI Brands in India’ for the year 2019. This plan is best suitable for people who are interested in purchasing a life insurance plan that not only provides life cover but also provides cover against critical illness.