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Aegon Life child plans are a type of life insurance plan offered by Aegon Life, an insurance company. It is a unit linked insurance plan (ULIP) that helps secure a child’s future. These plans are bought by parents (policyholder) in order to meet the future expenses of a child, such as his/her education cost.
Table of Contents:
Types of Aegon Life Child Plan
Aegon Life offers only one life insurance child plan, i.e. Aegon Life Rising Star Insurance Plan. The ULIP aims at providing protection in the form of insurance and market-linked returns through investment in funds.
Aegon Life Rising Star Insurance Plan
Under this plan, premiums need to be paid till the end of policy term. Through this plan, a policyholder can invest the money in chosen funds and can generate high returns from the market.
Eligibility Criteria
| Parameters | Minimum |
| Entry Age of Insured (Parent) | 18 – 48 years |
| Entry Age of Child (Nominee) | 1 day – 15 years |
| Maturity Age | 65 years |
| Minimum Annualized Premium | Rs. 20,000 |
| Policy Term | 25 years minus entry age of child |
Documents Required
To avail Aegon Life Child Plan individuals need to have below mentioned lists of documents:
- Address Proof (PAN , Voter ID, Driving License, Passport)
- Age Proof (Birth Certificate, Aadhaar, PAN, Driving License)
- Income Proof (Form 16, Employer’s Certificate)
- Photo Identity Proof (Voter ID, Driving License, Passport)
- Bank Proof (Bank Statement, Cancelled Cheque)
- Passport Size Photograph
Claim Process
Individuals availing Aegon life Child Insurance plans need to submit the duly filled claim form at the nearest Aegon Life branch office along with the other necessary documents required for claim process. Aegon Life’s concerned authority will assess the documents and after the verification is done, company will payout all the claims to the beneficiary subject to all other terms and conditions being fulfilled.
Documents Required for Claim Process
Following documents are needed for death claims:
- Certificate from the Doctor/Medical Officer stating the cause of death
- For unnatural death – Post Mortem Report, First Information Report (FIR), Inquest Report and the Final Investigation Report of the Police
- Death Certificate issued by the local authority or an authorized body
- Statement of the claimant
Time Taken to Settle Claims
All claims will be settled by the Aegon Life within 7 working days from the date of last necessary documents submitted. Aegon Life may reject or delay the claim if found with any fraudulent activity.
Fund Options
Policyholders are provided with four fund options where they can invest their premium in one or four of the funds:
- Accelerator Fund: This fund aims at investing in equities in different sectors to generate high returns in long run.
- Stable Fund: This fund aims at balancing equity and debt exposure for attractive long term returns.
- Secure Fund: Under this fund, investment is made in diversified portfolio of money market instruments and other fixed income securities to generate low risk returns.
- Debt Fund: This fund aims at generating returns through investing in corporate debt, government debt and money market instruments.
Renewal Process for Aegon Life Child Plan
Non-payment of premiums can lead to discontinuation of any policy. The renewal period for any policy is two years. In order to renew the policy, you need to pay all the due premiums in full.
Exclusions under Aegon Life Child Plan
In case the life assured commits suicide within one year from the policy date or date of revival, the plan shall be considered void and the company will pay only the Fund Value as on the Valuation Date. In another case, the increased sum assured will not be payable, if the life assured under the plan commits suicide, within one year of opting to increase the sum assured under the plan.
Advantages of Buying Aegon Life Child Plans
Maturity Benefit: Policyholder can avail fund value on the maturity date. If any policyholder doesn’t want to avail the full maturity amount, they can go for settlement option.
Death Benefit: In case of any unfortunate death of the insured, the beneficiary will receive following benefits:
- Sum assured will immediately come into effect and paid to the nominee. Nominee will receive 105% of the premiums by the company.
- All regular premiums will be waived off and future premiums will be paid by the company.
- At the end of the policy term, the nominee will receive the base fund value.
- An amount will be paid equal to the annualised premium at the start of every policy year.
Free look Benefits: A policyholder can cancel the policy within 15 days from the date of receiving the policy document. This period is called free look period.
Multiple
Fund Options: It has the benefit of investing in four different funds. This will help in meeting your investment needs and balancing your funds without having to bear the losses.
Death Benefit: Under Aegon Life
Child Plans, Policyholders can avail tax benefits u/s 80C and 10(10D) of the Income Tax Act, 1961 for the premiums paid and benefits received.
FAQs
Q1. How does Aegon Life Rising Star Insurance Plan work?
Individuals can avail this plan by following three major steps:
Step 1: Decide the amount of premium to pay every year.
Step 2: Choose the amount of insurance cover (Sum Assured)
Step 3: Decide to invest your premium in any four fund options
Q2. What is the top-up premium allocation charge?
Top-up premium allocation charge is 3%.
Q3. How many partial withdrawals are allowed in a policy year?
Policyholders are allowed four free partial withdrawals in a policy year. An additional charge of Rs. 200 is levied per extra withdrawal.
Q4. What is the premium payment frequency?
Policyholders can pay their premiums on quarterly, monthly and yearly basis.