Bandhan Life Jeevan Shanti Insurance Plan
Aegon Life Jeevan Shanti Insurance Plan is a simple traditional Endowment Assurance Plan which comes at a cheap cost and helps create savings while at the same time providing a life insurance cover for the chosen tenure.
Key Features
This is a traditional Endowment plan where bonuses are declared.
Any tenure can be chosen and premiums have to be paid for the chosen policy term.
The premium amount is to be chosen in monthly mode based on which the half-yearly or annual premium amount would be calculated. The Sum Assured would also depend on the amount of monthly premium selected.
Benefits
When the plan matures and the policy is in force, the benefit payable would be:
100% of the Sum Assured+ vested Bonuses + Terminal Bonus, if any
If the insured dies during plan term and the plan is in force, the death benefit payable would be:
Sum Assured on Death + accrued reversionary bonus+ Terminal Bonus, if any.
The death benefit payable should not be lower than 105% of the premiums paid till death
The Sum Assured on death would be higher of the following:
- 10 times the annual premium
- Sum Assured
Simple reversionary bonuses are declared under the plan and are paid every year for which the policy is in-force. A terminal bonus may also be paid on death or maturity of the plan.
60% of the acquired Surrender Value under the plan can be taken as the maximum limit of loan while the minimum loan available is Rs.5000.
Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. Premiums paid for the APC & CA option would be exempt under Section 80D. The death benefit or the maturity benefit received and the CI benefit if received would also be tax exempt under Section 10(10D) of the Income Tax Act.
Aegon Life ADDD Rider is available under the plan. The rider provides additional payment of Sum Assured if the policyholder suffers from accidental death, accidental dismemberment and/or permanent total disability due to an accident.
A grace period of 30 days is allowed for payment of premium after the due date for annual and half-yearly modes of premium payment. For monthly modes, the grace period allowed is 15 days. The life cover under the policy would continue during the grace period.
A cooling off period or a free look period of 15 days (30 days for distance marketing channels) 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 chooses the policy term, premium paying frequency and the base amount of monthly premium. The premium for the chosen frequency would be calculated based on the monthly premium. The Sum Assured would also depend on the policy tenure, age and the monthly premium chosen.
- Premiums are required to be paid for the entire duration.
- On death during the period, the death benefit is paid.
- On maturity, the maturity benefit is paid.
Ramesh, (age 30 years) is a clerk in a private school. His wife is a homemaker. Ramesh is worried about his wife & daughter’s future. He also wants to ensure that they have secured future if any unfortunate eventuality occurs.
His plan details are as follows:
* He opts for Aegon Life’s Jeevan Shanti Insurance Plan by paying a monthly premium of Rs.500 + service tax. His Policy Sum Assured is Rs.85,745.
* He also opts of Aegon Life ADDD rider with Sum Assured of Rs.85,745 by paying an additional monthly premium of Rs 10 + service tax.
Total Matuirty benefit: Rs.85,745 (Base Sum Assured) plus Rs.93,805 (Bonus @8%) or Rs.41,672 (Bonus @4%). Total lump sum benefit of Rs.1,79,550 @8% or Rs.1,27,417 @4%
His family receives total Death Benefit of Rs.85,745 (Base Sum Assured) plus Rs.85,745 (AL ADDD Sum Assured) plus Rs.46,500 (Bonus @8%) or Rs.18,675 (Bonus @ 4%).
Total lump sum payout of Rs.2,17,990 @8% or Rs.1,90,165 @4%
The associated table is as follows:
Age | Term – 10 years | Term – 15 years | Term – 20 years | |||
Monthly Premium - Rs.1000 | Monthly Premium - Rs.2000 | Monthly Premium - Rs.1000 | Monthly Premium - Rs.2000 | Monthly Premium - Rs.1000 | Monthly Premium - Rs.2000 | |
35 years | 124,060 | 250,920 | 138,830 | 297,700 | 189,480 | 398,420 |
40 years | 123,470 | 249,720 | 137,460 | 294,860 | 186,370 | 391,840 |
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 | 50 years |
Maturity Age (Last Birthday) | 18 years | 70 years |
Plan tenure | 10, 15 or 20 years | |
Monthly Premium payable | Term 10 years – Rs.750 Term 15 years – Rs.600 Term 20 years – Rs.500 |
Rs.3100 |
Premium Paying Term | 7, 10 or equal to plan tenure | |
Sum Assured | Will depend on the age, policy term and the monthly premium chosen. | |
Premium payment mode | Monthly, half-yearly and annually |
Exclusions
- If the policyholder commits suicide within a year of policy issuance 80% of the premiums paid would be returned and no death benefit would be payable.
- If suicide is committed within a year of policy revival, higher of 80% of the premiums paid till death or the Surrender Value acquired would be paid provided the policy is in force.
FAQs
Premiums have to be paid for at least 3 years after which the policyholder can surrender the policy or make it paid-up.
Making the policy Paid-up
If at least3 full years’ premium has been paid, the policy would become a paid-up policy if future premiums are not paid. The benefits under the plan would be reduced and would be called Paid-up benefits. Bonuses would not be declared under the policy and the following benefits would be paid as and when they occur:
- Death Benefit – Paid-up Sum Assured on death + accrued bonus
Paid up Sum Assured on death= (number of premiums paid/ number of premiums payable) * (higher of 10 times the annual premium or the Sum Assured) - Maturity benefit – Paid-up Sum Assured on Maturity + vested bonus
Paid-up Sum Assured on Maturity = (number of premiums paid/ number of premiums payable) * Sum Assured
Surrender is allowed only after the policy becomes paid-up, i.e. after 3 full years’ premiums have been paid. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid.
- GSV = (Basic Premium paid excluding taxes * GSV Factor)+ (Vested bonuses * GSVfactor of bonus)
- The SSV factors would be declared by the company based on its performance
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.