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Aegon Life Group Gratuity Plan

Aegon Life Group Gratuity Insurance Plan is a unit linked group gratuity plan offered by Aegon Life Insurance Company. It helps employers in funding the statutory gratuity obligation in a scientific way. The company also offers life insurance coverage to the employees who are included in this this plan. This policy offers gratuity benefit, death benefit, tax benefits and multiple fund options to policyholders, which helps them in achieving their financial goals.

Eligibility -Who is the Aegon Life Group Gratuity Insurance Plan for?

Aegon Life Group Gratuity Insurance Plan can be availed by employers to make employee groups. Here, the employer is the policyholder and he/she can add a minimum of 25 employees to this group.

Type Unit linked group gratuity plan
Maximum Age at Maturity (age as on last birthday) As mentioned in the scheme rules. (Maximum – 75 years)
Maximum Age at Entry (age as on last birthday) As mentioned in the scheme rules. (Maximum – 74 years)
Minimum Age at Entry (age as on last birthday) 18 years

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

Aegon Life Group Gratuity Insurance Plan offers the following Sum Assured:

Minimum Sum Assured Rs.1,000 for each member.
Maximum Sum Assured As mentioned in the scheme rules.

Under Aegon Life Group Gratuity Insurance Plan, there are two types of premium. These are:

  • Contributions Towards Gratuity – It is the premium for Gratuity benefit. It has to be paid every year. This contribution is not levelled and may differ every year. Each contribution that the company receives from the policyholder will be allotted among the investment funds (selected by the policyholder) in a proportion as chosen by the policyholder. The company has not set a limit for this contribution.
  • Life Insurance Premium – It is the premium for life insurance cover. It has to be paid during policy inception or renewal and is dependent on the total sum assured of all the members included in the plan. It is calculated on the basis of age specific rates and is guaranteed for 1 year only. The premium rate will be a unit rate (constant throughout the policy year) for new members that join during the policy year, which is calculated as total life insurance divided by total sum assured x 1000.
Minimum Policy Term 1 year.
Maximum Policy Term No limit, subject to the term ending when individual members attain the age of 75 years.

Plan coverage – What the Aegon Life Group Gratuity Insurance Plan Covers?

Aegon Life Group Gratuity Insurance Plan offers the following:

Benefit Details
Gratuity Benefit The accrued gratuity benefit will be paid in the event of termination/resignation/retirement of an employee, provided that the fund has sufficient money.
Death Benefit The accrued gratuity benefit is paid in the event of death of an employee, provided that the funds has sufficient money and the sum assured is applicable for that particular employee. The life cover and accrued gratuity benefits in case of death claims will be paid to the policyholder.

*If the amount is not sufficient to pay the benefits, then policyholder will pay the difference amount.

The plan offers the following two fund options:

  Equities Segregated Fund Identification Number (SFIN) Fixed Interest Securities and Money Market Instruments
Group Equity Fund 80% to 100% ULGF00228/03/11GEQUITY0138 0% to 20%z
Group Debt Fund 0% ULGF00128/03/ 11GDEBT0138 100%

Add-On Plans – Additional Coverage Under the Aegon Life Group Gratuity Insurance Plan:

Aegon Life Group Gratuity Insurance Plan does not offer any add-on plans.

Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

Aegon Life Group Gratuity Insurance Plan policy has many other important features. Some of them are mentioned below.

Particulars Details
New Members All new employees are included in this group plan, provided they fulfil the eligibility requirements. The life cover for them will initiate from the date of joining or as per the scheme rules. Policyholder can submit the details of the new joinees on a monthly basis.
Discontinuance Policy can be discontinued at any time. On discontinuing the policy, the policyholder will receive the fund value minus market value adjustment.
Grace Period 30 days.
Freelook Period 15 days.
Policy Revival Within a period of 2 years.

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

Aegon Life Group Gratuity Insurance Plan policyholders can enjoy tax benefits under the Income Tax Act of 1961 in the form of Deductions and Exemptions. Exemptions can be claimed under Section 10 of the IT Act.

*Tax Benefits are dependent on the tax laws and may change at any time. It is advisable to consult someone who is an expert in tax matters.

Other benefits – How you can Save with the Aegon Life Group Gratuity Insurance Plan?

Aegon Life Group Gratuity Insurance Plan has many other benefits to offer other than the ones mentioned above. Some of these benefits are mentioned below.

Switch Option This plan allows unlimited switches between the funds, which can be done at any time for free.
Contribution Redirection Contributions can be redirected into funds for investments. The company permits unlimited redirections for free.
Additional Units Units may be added by the company into the policyholder’s account at different times during the policy term.
NAV (Net Asset Value) Declaration It is declared daily, thus helping people in tracking the performance of their selected funds.
Transparency Portfolio Disclosure of funds happens on a quarterly basis to help members manage their funds better.
Unit Pricing The contribution that received is converted by the company into number of units based on each unit’s NAV at that time.
Customer Care Customers can contact the customer care service for any queries related to claims or the policy.
Application Status Policyholders can easily track the status of their applications on the website of Aegon Life Insurance Company.

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

You should buy the Aegon Life Group Gratuity Insurance Plan from Aegon Life Insurance because it is one of the leading insurance providers in the world. In India, the company is co-owned by Aegon and The Times Group. It has around 53 branches across 46 cities of the country. The company offers various types of life insurance, pensions and asset management products out of which Aegon Life Group Gratuity Insurance Plan is the most popular.

FAQs about Aegon Life Group Gratuity Insurance Plan:

  1. How much does the plan charge for Premium Allocation and Policy Administration?

    A. The plan does not charge any fee for Premium Allocation and Policy Administration.

  2. What is the charge for discontinuing the policy?

    A. There is no charge for discontinuing the policy.

  3. What is NAV and how is it calculated?

    A. NAV stands for Net Asset Value and it is calculated using the following formulae:

    NAV= (Market/Fair value of scheme’s investments + Current Assets – Current Liabilities & Provisions)/Number of units outstanding under the plan.

  4. How can policyholders revive the plan?

    A. To revive the plan, policyholders have to submit the following within a period of 2 years from the date of 1st unpaid life insurance premium:

    Proof of insurability of the members.

    Payment of an amount equal to the life insurance premium that is applicable on the revival date.

  5. When can policyholders increase or decrease the Sum Assured?

    A. The Sum Assured can be increased or decreased by the policyholders at the time of policy renewal.

  6. What is the Fund Management Charge for Aegon Life Group Gratuity Insurance Plan?

    A. The Fund Management Charge for Aegon Life Group Gratuity Insurance Plan is 0.30% p.a. It may be increased, but will not be more than 1.35% p.a. for any fund.

  7. How is the claim paid?

    A. First, the policyholder has to send the particulars of the member for whom the claim request is made. The company will pay the claim amount to the policyholder or on submission of written instructions of the policyholders, it will be paid to the member or his/her nominee or heir

  8. Does the Aegon Life Group Gratuity Insurance Plan provide loan facility?

    A. No, the Aegon Life Group Gratuity Insurance Plan does not provide loan facility.

  9. How is the premium for life insurance coverage of new joinees paid?

    The premium for life insurance coverage of new joinees has to be paid annually and in advance on a pro-rata basis.

  10. Who do I contact to get more information about this policy?

    A. You can contact the customer care team of the company or visit its website or any branch to get more information about this policy.