Aegon Life Pension 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 is one of the world’s leading providers of financial services. 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 Pension Plans?
Pension Plans or annuity plans are plans which are designed to take care of the income flow for the individual after retirement. Post retirement when the income of the individual dries up, the lifestyle expenses continue and there must be a provision to meet such expenses. Retirement plans in India help in providing a regular cash flow to individuals so that they can enjoy their retirement peacefully.
Pension Plans have some unique features which are listed below:
- There is a concept of vesting which is the date at which the plan terminates or matures
- Pension plans can be taken as Immediate Annuity Plans or Deferred Annuity Plans. Under Immediate Annuity Plans, a lump sum is paid by the policyholder and the annuity payments start immediately from the next period chosen. Under deferred annuity, premiums are first paid by the policyholder which accumulate into a corpus and thereafter annuity payments start from the vesting date
- There is no life cover. Annuity payments stop when the annuitant (or his spouse in case of joint life annuity) dies. However, under deferred annuity, death benefit is applicable if the annuitant dies in the deferment period
- On vesting, either the entire corpus can be used to avail annuity or 1/3rd of it can be withdrawn in cash and the rest 2/3rd can be used to avail annuity. The withdrawn part is called commuted pension.
Why Pension Plans
Being dependent on others, especially financially is a curse. It is always better to provide for one’s finances even when there is no income. Retirement is a period where the expenses remain the same or maybe increase but income either decreases or diminishes completely. Having an insurance plan is prudent in such a scenario as the plan will provide an individual with the necessary finance required in the old age. Pension plans offered by life insurance companies provide a regular stream of income and come in many variants. They can be taken to cover the life of the policyholder’s spouse as well under the joint annuity plans. So, buying a pension plan is a prudent step towards an individual’s retirement planning.
Aegon Life Pension Plan
Aegon Life Insurance Company offers one kind of pension plan in the traditional version which offers guaranteed benefits. Let us take a look at the plan in details.
Aegon Life Guaranteed Income Advantage Insurance Plan –
A traditional pension plan which provides guaranteed benefits. The features and benefits of the plan are as follows:
- The plan participates in the profits of the company by way of earning bonuses declared by the company from time to time
- Premiums are payable for a limited period only under the Limited Pay option of premium payment.
- Guaranteed payouts @ 7.5% of the Sum Assured is paid every year after the completion of the Premium Paying Term and till the policyholder attains 85 years of age
- Bonuses accruing during the premium paying term are paid at the end of the Premium Payment Term. Bonuses accruing post the premium paying term are paid either on death or maturity.
- On maturity when the policyholder attains 85 years of age, the accrued bonuses along with any Terminal Bonus is paid to the policyholder
- On death of the insured during the Premium Paying Term, higher of 10 times the annual premium or the chosen Sum Assured is paid. If death occurs after the completion of the Premium Paying Term, the accrued bonuses and any Terminal Bonus is paid to the nominee subject to a minimum of 05% of all premiums paid till the date of death
- Aegon Life ADDD Rider can be availed under the plan wherein additional benefit is paid in case of accidental death, dismemberment or disability
- Tax benefit is available on the premium paid and the claim received. The premiums paid are exempt from taxation under Section 80C of the Income Tax Act and the claim received in exempt under Section 10(10D) of the Income Tax Act.
85 – entry age
Annual Premium Amount
Depends on the cover, age, term and PPT
Premium Payment Term
15 or 20 years
Premium Payment Frequency
Yearly, half-yearly or monthly
Applying for a Traditional / Investment Plan from the company:
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
Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.
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:
- Credit Card
- Internet banking
- Pay via phone app
- 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 pension Plan?
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 pension Plan?
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 pension Plan?
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 pension Plan?
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.
You may also like to read What is NPS Scheme
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.
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