Bandhan Life iMaximize Single Premium Insurance Plan
Aegon Life iMaximize Single Premium Insurance Plan is a Unit Linked Insurance Plan where the premium is paid once while the plan provides attractive returns linked to the market along with insurance protection to the policyholder.
Key Features
This is a Unit Linked Plan with a Single Premium Payment option and the plan can be bought online.
No premium allocation charges ensure that the plan provides maximum returns
The plan has an option of 3 funds for investments and the policyholder can choose any one of the funds as per his risk appetite.
Benefits
On maturity, the Fund Value and any Top-up premium Fund Value available on the maturity date would be paid to the policyholder.
If the insured dies when the plan is in-force, the death benefit paid would be higher of the following:
- Sum Assured including top-up Sum Assured net of partial withdrawals made within the last 2 years of death
- Fund Value including any top-up Fund Value
- 105% of all premiums paid until death.
Being a ULIP plan, bonus is not declared.
Loan is not available under the plan.
Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.
There are no riders under this plan.
Partial withdrawals are allowed in the plan after a completion of 5 policy years if the policyholder is aged 18 years or more. The maximum amount of partial withdrawal allowed would be 20% of the Fund Value as at the beginning of that policy year and the minimum amount is Rs.5000. Four Partial withdrawals are free in a year exceeding which a charge of Rs.200 per withdrawals would be levied.
This facility enables the policyholder to change between funds whenever desired. Four free switches are allowed in one policy year after which a charge of 0.1% of the amount switched to a maximum of Rs.200 would be levied.
Additional premiums by way of top-up premiums are allowed anytime except in the last 5 policy years. The minimum amount of top-up is Rs.5000 and the top-ups increase the fund value and also the Sum Assured. The top-up premiums paid also have a lock-in period of 5 years.
A cooling off period or a free look period of 30 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.
How it works
- The policyholder decides on the amount of single premium he wants to pay, the fund in which the premiums are to be invested and the Sum Assured of the plan.
- After deduction of the applicable charges, the premium is invested in the policyholder’s chosen fund.
- There are 3 fund options to choose from which are:
- Bluechip Equity Fund
- Secure Fund
- Debt Fund
- The premium paid, net of the applicable allocation charge is invested in the above funds based on the policyholder’s risk profile.
- If the policyholder dies during the tenure of the plan the death benefit is paid.
- If the plan attains maturity, the maturity benefit is paid.
Let’s Understand The Plan With An Example:
Mr. Mahesh (age 30 years) freelances as an art painter. His wife is a homemaker and they have a son, Anuj, who is 3 months old. Although Mahesh’s income provides well for their family, he is concerned about the inconsistency in his income and rapid change in the way of life. He is cognizant that life is uncertain and that the future of his family needs to be protected. He wants to make his investment at one go. He relies on Aegon Life’s iMaximize Single Premium Insurance Plan.
His plan details are as follows:
Cover Amount (Base Sum Assured): Rs.15 lakhs, Policy Term: 10 years, Premium Payment Mode: Single, Premium: Rs.1,50, 000/-, Investment Strategy: 100% Blue Chip Equity Fund.
Eligibility
The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
| Minimum | Maximum | |
| Entry age (Last Birthday) | 8 years | 60 years |
| Maturity Age (Last Birthday) | 18 years | 65 years |
| Plan tenure | For ages up to 50 years – 10 years For ages above 50 years – 5 years |
|
| Premium payable | Rs.1 lakh | No limit |
| Premium Paying Term | Single premium | |
| Sum Assured | 1.25 times the single premium if age is lower than 45 years 1.10 times the single premium if the age is 45 years and above |
10 times the single premium |
| Top-up Sum Assured | 1.25 times the top-up premium if age is lower than 45 years 1.10 times the top-up premium if age is 45 years and above |
10 times the top-up premium |
| Premium payment mode | Single Premium | |
Exclusions
If the policyholder commits suicide anytime during the plan tenure, the available Fund Value would be paid to the nominee.
FAQs
Surrendering the policy- Within the first 5 policy years
The policy has a 5 year lock-in period. If the policy is surrendered within the first 5 years, the funds in the Fund Value would be transferred to the Discontinuance Policy Fund after deducting the Discontinuation charges. The fund would earn a minimum interest of 4% in the Discontinuance Policy Fund. The money would remain in the Discontinuance Policy Fund till the completion of 5 years and the Fund Management charges would be deducted as and when applicable. If the policyholder dies during this period, the Fund Value as on the date of death would be paid. Otherwise, after the completion of the lock-in period of 5 years, the available Fund Value would be paid.
- After 5 years
If the plan is surrendered any time after the completion of 5 years, the available Fund Value would be paid without deduction of any charges.
Revival
Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.
