Aegon Life Child Plans

Aegon Life Insurance Company Limited (formerly Aegon Religare Life Insurance Company Limited) launched its operations in India in July, 2008 and since then has emerged as a strong player in the insurance industry. AEGON Life is one of the leading providers of financial services, life insurance, pension and asset management services in India. Currently, the company enjoys a good market share and has launched different types of life insurance products for meeting all the varied needs of individuals at attractive premium rates.

What are Child Plans?

Plans which provide for the child’s future in the event of the parent’s death by taking care of the financial aspects are called a child plan. These plans are designed with the sole purpose of protecting the child’s future and can have either the parent or the child as the person whose life is insured under the plan.

Some of the basic features of a child plan are:

• If the child’s life is covered under the plan, there might be a delay in providing the coverage in respect of a few starting years which is called deferment. After the deferment period is over, life cover will become active. If the child dies during the course of the deferment period, only the premiums which were paid are returned.
• The child becomes the owner of the policy after he crosses 18 years of age and attains maturity. This process is called Vesting
• If the parent is insured under the plan then in case of the parent’s death, all premiums payable will be waived by the company as per the inbuilt Premium Waiver clause while the plan will continue. The benefits will be paid as and when due .

AEGON Life Child Plans

AEGON Life Insurance offers its customers two types of child plans. While one plan is a traditional child plan, the other is a Unit Linked Insurance Plan (ULIP). Let us take a look at the different types of child plans offered by AEGON Life and the features and benefits of each.

Aegon Life EduCare Advantage Insurance Plan

A traditional money back plan which promises money back at regular intervals to take care of the financial requirements of the child. The features and benefits of the plan are as follows:

• The plan participates in the profit of the company and is eligible to earn bonuses.
• Premiums are paid for a limited term only
• On death of the insured during the term of the plan, higher of 10 times the annual premium or the Sum Assured including the vested bonuses is paid to the nominee subject to a minimum of 105% of all premiums paid till the date of death
• Money backs are paid in the last four years of the plan. The rate of money backs is 40% of the Sum Assured in the fourth last year and thereafter @ 20% every year till maturity.
• On maturity, the last installment of the money back, i.e. 20% of the Sum Assured and the vested bonuses are paid
• Loan can be availed under the plan subject to a minimum of Rs.5000 and a maximum of 60% of the Surrender Value
• Aegon Life ADDD Rider can be availed under the plan wherein additional benefit is paid in case of accidental death, dismemberment or disability

Eligibility Details

Aegon Life Rising Star Insurance Plan

A unit linked child plan where premium is paid for the entire term of the plan. The features of the plan are as follows:

• The premium paid net of charges is invested in a chosen fund where it grows
• The company offers four different fund options to choose from which includes Accelerator Fund, Stable Fund, Secure Fund and Debt Fund
• There is an option of Invest Protect wherein the funds are managed by the company to protect the fund value against market volatility. The net premium is initially invested in the Accelerator Fund and thereafter in the last 3 years of the plan, the funds are transferred annually to the Stable Fund, then the Secure Fund and in the last year to the Debt Fund. Moreover, the switching begins monthly where 10% of the fund value is transferred every month.
• There is an inbuilt Premium Waiver Rider and Income Benefit Rider under the plan.
• On death of the insured, the Sum Assured including any top-up Sum Assured is paid immediately and the future premiums are waived off under the Premium Waiver Rider. Thereafter, an amount equal to one premium is paid every year till maturity under then Income Benefit Rider and on maturity the fund value is paid
• On maturity, if the policyholder is alive, the fund value is paid which can be availed in lump sum or over the next 5 years through the Settlement Option.
• 4 free partial withdrawals and switches are available every year
• Systematic Partial Withdrawal is also available where units are redeemed periodically and paid to the policyholder
• 2 free premium redirections are allowed to redirect future premiums to a new fund than the one originally selected
• The Sum Assured under the plan can be enhanced by up to a maximum of 50% of Rs.10 lakhs whichever is lower within 3 months of marriage or child birth
• There is an option of Auto Rebalancing wherein the fund is rebalanced according to the specified ratio annually

Eligibility Details

Applying for a Child Plan from the company:

Online

The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

Why do you need to opt for a Child Plan?

As a parent, the most important responsibility in his life is to fend for the child and save enough and more so as to secure the child’s future. We dream to get the best for our children and as over protective parents, we always end up thinking a lot for our children. However, in today’s world, just thinking is not enough. In fact it was never enough. You would have had to plan, strategize, think, save and also invest so as to earn a handsome return when the child actually needs the money for his higher education. As parents, we have been thinking and dreaming a lot on behalf of our children. Whether he wants to become a doctor, or an engineer or maybe a fashion designer or an architect, etc. also, in today’s day and age the choices are so vast, that even children have a large variety of choice of education and he is also able to choose favourite subject at a very early age. Whether this is is good or not is debatable but yes, it is possible.

So, just saving for your child’s future in a piggy bank will not be possible because inflation eats the money out and actually lower the value of money. So, you need to start the investment today! Whenever you realize the need for investment, is the correct day for you to start. A very popular saying is: “a work begun is half done”. So starting to plan and save and invest prudently for a child is a work half done. As soon as you start your investment to plan for your child, is a good way to gift your child a good investment for the future!

A child plan may or may not be in the child’s name as long as it has been especially designed for the bright future of your child. It needs to be specifically for your child’s needs so that when he is ready for higher education you are ready with the money and not waiting for a period of time for it to mature or increase in value. So investing and timing are the two most considerable factors that need to be kept in mind while investing for your child!

Aegon Life Child Plans - FAQs

1. How to pay premium? What are the modes of payment available?

There are six modes of payment as offered by Aegon Life Insurance:

• Online
• Credit Card
• Internet banking
• Pay via phone app
• ECS
• EBPP
• Pay at Aegon Life branches

There is also an option of paying via cash or cheque personally in any of the branch offices in your city. IVR method of payment is possible where one needs to keep in handy the credit card information along with date of birth.

2. How can I check policy status for Aegon Life child plans?

You can check policy status via online and SMS.

For online log into the website with your Customer ID and password to check the policy status.

3. What is the policy renewal process for Aegon Life child plans?

You can renew your policy online by login into the e-portal - with valid details- policy number and policyholder’s date of birth.

For offline mode, you can approach any of the branch office to drop your cheque.

4. What is the company’s process to settle claim for Aegon Life child plans?

We offer elicit three step processes for claim settlement which includes the following:

• Claim intimation and registration.
• Payment of fund value
• Settlement Payout

E settlement facility via NEFT mode option is also available with us.

5. What is the policy cancellation process for Aegon Life child plans?

In case you are not satisfied with an existing policy, you can fill the surrender form along with the policy documents and submit it in any of the branch office, along with the cancellation charges. The policy cancellation takes 30 days to process and the refund will be submitted in your bank account.

For new policyholders, a grace period of about 15 days is given, wherein you have the option of cancelling the policy and receiving back the premium.

In either case the Unit price is calculated as per the current market value of NAV if the documents are submitted before 3:00 PM, else the next day’s NAV value is applied to calculate the refund.