AEGON Life Future Protect Insurance Plan

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Aegon Life Future Protect is a unit linked insurance plan that enables the policyholder to earn the capital market return and also enjoy life insurance protection.

Aegon Life Future Protect - Key Features

  • Regular Premium Payment
  • Invest Protect Option
  • Or, below are the funds available
      • Accelerator Fund
      • Stable Fund
      • Secure Fund
      • Debt Fund

Aegon Life Future Protect - Benefits

Death Benefits: In case of death of insured,

Higher of, The Sum Assured plus the top-up Sum Assured the net of any partial withdrawals done in the last 2 years if age is less than 60 years or withdrawals made after attaining 58 years if age is more than 60 years or Fund Value including the Top-up Fund Value subject to a minimum of 105% of premiums is paid to the nominee. 

Maturity Benefits: Under this option, the funds are managed by the company to protect them against market volatility towards maturity. The allocated premium is initially invested in Accelerator Fund and in the last 3 policy years the fund value is systematically transferred first to Stable Fund, then to Debt Fund and in the last year to Secure Fund. The investments in each fund are also switched monthly to the subsequent fund @ 10%.

The insured shall get the Total Fund Value including Top-up Fund Value on Maturity which can be taken in lump sum or under the Settlement Option where the proceeds can be taken in equal installments over a period of 5 years post maturity 

Tax Benefits: All the premiums paid and income received under this plan are eligible for tax deductions Under Section 80C and 10(10D) of Income Tax Act.

Aegon Life Future Protect - Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

7 years

 50 years

Maturity Age (Last Birthday)

-

65 years

Policy Term (PT) in years

15

35

Premium Paying Term (PPT) in years

Equal to policy term

Premium Paying Frequency

Yearly, half-yearly, monthly

Yearly Premium

20,000

No limit

Sum Assured

Higher of 10*annual premium or 0.5*term*annual premium for ages<45 years and higher of 7*annual premium or 0.25*term*annual premium for ages>=45 years

20*annual premium

 

Details About Premium

Illustration for a policy term and PPT of 30 years

Age

30 years

Premium

50,000

SA

10,00,000

Maturity Benefit @ 4%

20,45,495

Maturity Benefit @ 8%

41,37,781

 

Aegon Life Future Protect - Policy Details

Grace period: In case the insured is not satisfied with his monthly premium plan then he is free to cancel it within 15 days since inception. And, in the case of other premium payment mode, he is allowed to cancel his plan within 30 days since inception.

Policy termination or Surrender Benefit: On completion of 5 years of his plan, a surrender value gets enabled. In case the insured surrenders his plan before completing 5 years, then the fund value net discontinuation charges shall be credited to his Discontinuation Policy Fund where it shall yearly grow at a minimum of 4%.

In a case, if the insured chooses to discontinue his plan after completing 5 years, then the entire fund value as on the date of surrender shall be paid to the insured without any additional charges applicable.

Free look period: In a case, the insured is not satisfied with his unit linked plan or the features and benefits provided by it, then he has the choice to cancel his policy within 15 days since inception, given no claims have been done yet.

Inclusions

  • Partial Withdrawals: Every year Partial withdrawals are allowed  for free with a maximum of 20% of the Fund Value
  • Systematic Partial Withdrawals: Periodically units are redeemed and the proceeds are transferred to the bank account of the insured
  • No Premium Allocation Charges: Every year four Free switches are allowed for switching between funds
  • Premium Redirection Option: The future premiums can be redirected to a new fund via this option which has no cost associated with it
  • Rider Top-up Covers:  With a minimum of Rs.5,000 top up covers are allowed for increasing the Fund Value

Additional Features or Riders

  • Rider Covers: Under the rider covers, sum assured amount can be increased by up to 50% of the base SA or 10 lakhs whichever is lower without any extra medical requirements within 3 months of marriage or childbirth
  • Auto Rebalancing feature: Under this, the fund is rebalanced every year according to the ratio chosen at inception

Exclusions

Suicide: In case the insured commits suicide within the first year of the plan inception or renewal, then the settlements are done by paying the total fund value as on the date of death.

Note: In case the insured commits suicide within the first 12 months of increasing the sum assured then the increased sum assured shall not be applicable with the benefits.

Required Documents

Below are the documents which are required to be insured under Aegon Life Future Protect Plan:

  • Duly filled Application form/Proposal form
  • Address Proof
  • Age Proof
  • Other KYC documents; PAN Card, Adhaar Card, Tax Details etc
  • Medical History 

**Documents required are subject to the assured sum amount chosen and the premiums paid for it. 

You may also Compare: Aegon Life ULIP Plans 

Frequently Asked Questions: 

Q. When can I make partial withdrawals against the units?

Future Protect provides liquidity through partial withdrawals after 5 years with his plan. 

Q. How does Future Protect work?

The plan works around following steps:

  • Decide the premium amount based on your requirements
  • Choose the amount of coverage required
  • Decide the policy term
  • Choose the funds you wish to invest on
  • Or,  Invest Protect Option 

Q. What is the investment share of every fund available?

The investment shares of every fund available are stated below: 

Accelerator Fund:

The fund has the flexibility to invest into fixed interest asset and money market instruments:

Equity Fund: 20%

Fixed Interest and Money Market Instruments: 0% - 20% 

Debt Fund:

Fixed Interest: 60% - 100%

Money Market Instrument: 0% - 40% 

Stable Fund:

Equity Fund: 20% - 80%

Fixed Interest and Money Market Instruments: 20% - 80% 

Secure Fund:

Fixed Interest: 60% - 100%

Money Market Instrument: 0% - 40%