Aegon Life Pension Plans

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• On vesting, either the entire corpus can be used to avail annuity or 1/3^rd of it can be withdrawn in cash and the rest 2/3^rd can be used to avail annuity. The withdrawn part is called commuted pension.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.

Eligibility Details

Applying for a Traditional / Investment 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.

Aegon Life Child Plans - FAQs