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  • Aegon Life Group Credit Shield Insurance Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    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.

    Eligibility – Who is the Aegon Life Group Credit Shield Insurance Plan for?

    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 and Premium Range – What you Get and What it Costs?

    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

    Modal factors:

    Half yearly premium = Annualized premium * 0.512

    Quarterly premium = Annualized premium * 0.259

    Monthly premium = Annualized premium * 0.087

    Plan Coverage – What the Aegon Life Group Credit Shield Insurance Plan Covers?

    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:
    • Cancer
    • Stroke
    • Open Chest CABG
    • Heart Attack
    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:
    • Level Sum Assured
    • Decreasing Sum Assured
    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.

     

    Add-On Plans – Additional Coverage under the Aegon Life Group Credit Shield Insurance Plan:

    This plan does not have provisions for any add-on coverage.

    Exclusions of Aegon Life Group Credit Shield Insurance Plan:

    • Suicide Exclusion - If the member commits suicide within 12 months:
      • From the commencement of the member’s risk coverage, the nominee will receive at least 80% of the premiums paid, subject to the policy being in-force.
      • From the revival date of the member’s risk coverage, the nominee will receive an amount that is higher among the following:
        • 80% of the paid premiums till the date of death
        • Surrender value of the policy on the date of death
    • Critical Illness Benefit Exclusions - The exclusions pertaining to the critical illness benefit are:
      • Presence of HIV on contracting the predefined critical illnesses.
      • If any of the critical illnesses occur within 90 days from the start of coverage, i.e., the waiting period.
      • Intentional injury or suicide attempt while the member is sane or insane.
      • Pre-existing illnesses within 48 months prior to the first coverage of the member.
      • Solvent or alcohol abuse or administration of drugs without the prescription of a registered doctor.
      • Failure to follow medical advice from a registered doctor.
      • Invasion, war, hostilities, civil war, rebellion, riots, strikes, etc.
      • Participation of the insured in a criminal act.
      • Participation in adventurous pursuits or professional sports such as racing, rock climbing, hunting, potholing, mountaineering, underwater activities, paragliding, parachuting, etc.
      • Accidents via nuclear contamination.

    Other Key Features of Aegon Life Group Credit Shield Insurance:

    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.
    Claims
    • The group member will give authority to the master policyholder for receiving the outstanding loan amount at the time of occurrence of the insured event. Based on this authorisation, the claim amount will be paid to the master policyholder and the balance proceeds, if any, will be paid to the nominee or beneficiary. This process is applicable only for Regulated Lending Institutions.
    • For Non-Regulated Lending Institutions, the entire claim amount will be paid to the insured member or the nominee, even if the cheque is forwarded to the master policyholder.

    Tax Benefits – How you can Save with the Aegon Life Group Credit Shield Insurance Plan?

    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.

    Why you Should Buy the Aegon Life Group Credit Shield Insurance Plan from Aegon Life?

    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.

    Frequently Asked Questions (FAQs):

    Q. Who can buy the Aegon Life Group Credit Shield Insurance Plan?

    A.The Aegon Life Group Credit Shield Insurance Plan can be bought by:

    • Regulated Lending Institutions - These are organizations that are regulated by any of the following:
      • RBI Regulated Scheduled Banks, including Cooperative Banks
      • NBFCs having Certificate of Registration from RBI
      • National Housing Bank Regulated Housing Finance Companies
    • Non Regulated Lending Institutions - Any other organizations that do not fall under the above definition and are administering a credit scheme for its members.

    Q. Can this policy be assigned?

    A. Assignment is not allowed under the Aegon Life Group Credit Shield Insurance Plan.

    Q. How is the Guaranteed Surrender Value calculated for each member?

    A. The GSV for each member is calculated as follows:

    • For Single premium policy: 70% * Single Premium Paid * (Outstanding coverage term / Total coverage term)
    • For Limited premium policies where the surrender happens before the end of the Premium Paying Term: 30% * Premium paid to date
    • For Limited premium policies where the surrender happens after the Premium Paying Term: 30% * Premium paid to date * (Unexpired term / (Benefit term - Premium Payment term))

    Q. How is the Special Surrender Value calculated for each member?

    A. The SSV for each member is calculated as follows:

    • For Single premium policy: Sum Assured * SSV factors
    • For Limited premium policy: (Paid up Sum Assured as on the date of surrender) * SSV factors, where the paid up sum assured is defined as,

    Paid up Sum Assured = (Premium paid till date/Total premium payable) * (Sum Assured according to the schedule)

    Q. How do I check the status of my Aegon Life Group Credit Shield Insurance policy?

    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.

    Q. Is Service Tax applicable on the policy benefits?

    A. Yes, service tax and other applicable taxes will be charged on the premium or benefits that are paid through the policy.

    Q. Is death due to terrorist attacks covered under the Aegon life insurance plans?

    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.

    Q. How do I inform the insurance company of a death claim?

    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.

    Q. How long does Aegon Life Insurance take to settle a claim?

    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.

    Q. What are the most common reasons for rejection of life insurance claims?

    A. Most life insurance claims get rejected due to the following reasons:

    • Fraudulence - This indicates a deliberate attempt to cheat the insurer by submitting false claims.
    • Not disclosing pre-existing medical conditions at the time of purchase of the policy.
    • Not disclosing lifestyle attributes such as usage of tobacco products and consumption of alcohol, at the time of policy purchase.
    • Committing suicide within the first policy year.
    • Not paying due premiums on time, leading to policy lapsation.