Organisations that help customers financially by providing them loans for their varied needs can benefit largely from the Aegon Life Group Credit Shield Insurance Plan. In the case of unfortunate death of a member of the group, his/her outstanding loan amount can be safeguarded through this policy.
The Aegon Life Group Credit Shield Insurance Plan is effectively a life insurance product that also covers the outstanding loan amount of group members. The plan ensures that the financial interests of the policyholder and the families of members are looked after in the event of their death. The plan offers coverage for various types of loans, such as home loan, car loan, education loan, etc. It also provides life insurance coverage for the borrower and the co-borrower. Additionally the plan offers the flexibility to choose between two benefit options. Members can also decide on a level or decreasing sum assured.
For a customer to be eligible to purchase the Aegon Life Group Credit Shield Insurance Plan, he/she should satisfy certain criteria. These eligibility conditions are associated with the age of the customer and the amount of coverage he/she requires.
These factors are detailed in the table below:
|Minimum group size||50 employees|
|Maximum group size||No limit|
|Minimum Entry Age||18 years|
|Maximum Entry Age||Benefit Option 1 - 65 years Benefit Option 2 - 60 years|
|Maximum Maturity Age||Benefit Option 1 - 75 years Benefit Option 2 - 65 years|
|Minimum Policy Term||Single Pay - 2 years Regular Pay - 5 years Limited Pay - 8 years|
|Maximum Policy Term||30 years|
The age specified above is with respect to the last birthday of the insured.
Sum Assured : Under the Aegon Life Group Credit Shield Insurance Plan, the sum assured on the life of the member will be a constant throughout the term of the policy if he/she opts for the Level Sum Assured facility. Alternatively, the member can choose to opt for the facility in which the sum assured will decrease according to a schedule.
|Limit||Home Loan||Other types of loans|
|Minimum Sum Assured||Rs.5,00,000 per member||Rs.50,000 per member|
Premium Range :
Premium for the policy can be paid on a single, yearly, half-yearly, quarterly, or monthly basis. The premium amount will vary based on the frequency of premium payment through the inclusion of modal factors.
|Criteria||Level Sum Assured||Decreasing Sum Assured|
|Premium Payment Term||Single Pay or Equal to the term of the policy||Single Pay or Limited Pay (equal to 2/3 of the policy term rounded down)|
|Premium Payment Frequency||Single, Annually, Semi-annually, Quarterly, Monthly|
Half yearly premium = Annualized premium * 0.512
Quarterly premium = Annualized premium * 0.259
Monthly premium = Annualized premium * 0.087
|Benefit Options||There are two benefit options included under the plan:
Option 1 - If the member faces death, the coverage amount equal to the sum assured in the Sum Assured Schedule will be paid to the nominee.
Option 2 - In the event of death of the member or the diagnosis of any of the critical illnesses mentioned below (whichever occurs earlier), the sum assured mentioned in the Sum Assured Schedule will be paid to the nominee.
The critical illnesses covered under the policy are as follows:
|Joint Life Option||This option covers the borrower and the co-borrower for the same amount in sum assured. In the event of death or diagnosis of critical illness of either of the members, benefits will be paid as per the Benefit Options 1 or 2. It should be noted that the benefit will be paid only at the first occurrence of death or CI diagnosis of either of the members. This option is available only for home loans that have been purchased by the members jointly.|
|Sum Assured Option||As mentioned above, there are two options for availing sum assured on the policy:
|Moratorium Period||The Aegon Life Group Credit Shield Insurance Plan includes a moratorium period of up to 7 years. During this time, the sum assured may remain constant or increase through the accrual of an interest amount, based on the member’s choice. After the moratorium period, the coverage amount will reduce based on the Sum Assured Schedule.|
|Coverage Continuation Option||This option allows the group members to continue on their respective coverage till the end of the policy term as individual policyholders, subject to the master policyholder surrendering the policy during the coverage term. This option is also available for foreclosure of loans.|
This plan does not have provisions for any add-on coverage.
Some key features of the Aegon Life Group Credit Shield Insurance Plan are listed below:
|Free Look Period||If the members or the master policyholder are not satisfied with the terms and conditions specified in the policy, they can return the same to the insurer within 15 days from the receipt of the policy documentation. When the policy is cancelled during the free-look period, the insurance company will return the premium paid towards the policy after deduction of the stamp duty and medical costs. Once the payment is made, the policy will terminate with no further benefits.|
|Grace Period||Apart from the monthly mode of premium payment, all other frequencies have a grace period of 30 days from the premium due date, provided the policies are of the Regular and Limited Pay modes. For monthly mode of payment, the grace period is 15 days. For the Single Premium mode, there is no grace period.|
|Policy Lapse and Revival||If the premiums are not paid within the grace period, the insurance cover for the member will lapse. However, the policy can be reinstated during the revival period of 2 years from the premium due date. At the time of reinstatement, the member would have to pay all unpaid premiums and applicable interests. The insurance cover cannot be reinstated after the revival period.|
|Surrender Benefit||When the policy is surrendered by the master policyholder, every member will be eligible for the Coverage Continuation Option. If this option is not chosen by the member, Surrender Value will be payable. The Surrender Benefit is paid only in the case of Limited Premium and Single Premium policies. The Surrender Value will be the highest amount among the Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).|
|Paid Up Provision||When the premium is not paid subsequent to the first policy year’s premium payment, the policy will continue with Paid up Sum Assured. Paid up Sum Assured = (Premium paid till date) / (Total payable premium) * (Sum Assured according to schedule) In the event of death or diagnosis of a critical illness when the policy is in paid-up status, the paid up Sum Assured as on the date of the event is payable. The paid up value is only available for policies with decreasing sum assured and limited premium payment terms.|
The benefits received through the Aegon Life Group Credit Shield Insurance Plan are eligible for tax benefits under the Income Tax Act, 1961. However, this is subject to change based on revisions in tax laws.
Aegon Life is a leading insurance provider in India, with a presence across 46 cities and an extensive network of 59 offices in the country. There are 9600 insurance agents employed with them and they have served more than 4 lakh customers in the past. Aegon Life has been observing a steady growth in the insurance market through their superior products and efficient customer service.
A.The Aegon Life Group Credit Shield Insurance Plan can be bought by:
A. Assignment is not allowed under the Aegon Life Group Credit Shield Insurance Plan.
A. The GSV for each member is calculated as follows:
A. The SSV for each member is calculated as follows:
Paid up Sum Assured = (Premium paid till date/Total premium payable) * (Sum Assured according to the schedule)
A. The status of your policy can be checked by contacting the insurance company through their toll-free number or by sending them an email.
A. Yes, service tax and other applicable taxes will be charged on the premium or benefits that are paid through the policy.
A. All Death Benefit claims under the base insurance policy when the death was caused by terrorist attacks is covered under the Aegon life insurance plans. Only the ADDD rider excludes this cover.
A. The claimant is required to submit all relevant documents, including claim forms, to the nearest ALIC branch. It is also possible to raise claims through the insurer’s online portal.
A. Aegon Life Insurance is dedicated to settling claims within 7 working days after they receive all documents from the claimant. In case there is a need to perform additional investigation on the claim, the insurer will initiate the same at the earliest. The final decision will be communicated to the claimant through a letter.
A. Most life insurance claims get rejected due to the following reasons:
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