SEBI registered Investment advisor (RIA) with Registration number – INA 000000342.
Aegon Religare i Term – Innovative Term plan

Yes, Term Insurance premiums are decreasing!

When all of us are complaining about price rises and high interest rates, there is one thing, which is really coming down for the last 2 years! Term insurance premium rates are coming down drastically in the country. If you are aged 30, you can insure your life upto age 60 for 1 Crore with an annual premium of Rs.7300/-. This comes to just Rs. 20 per day!

The pioneer among online term policy is Aegon Religare Life Insurance .Aegon Religare started offering i- term policy, from 2009. Their premium rates were much lower compared to the normal term policies available then.

Later other companies like ICICI Prudential, Kotak Life, Aviva Life, Met Life, Bharti Axa, and HDFC Life started offering term policies with different premium rates. The premium rates were on the decline. Now Aegon Religare has surprised the competitors with a heavy reduction in their premium rates for their existing i- Term policy. The reduction is around 25 – 40 % in different age groups and there are some innovations too.

i-Term policy is very attractive now

In normal term insurance policies, the sum insured is payable only in case of death of the policy holder during the term of the policy. But in the new i-term policy, the company will pay 25% of the sum assured (subject to a maximum of 1 Crore) if the policyholder contracts any terminal illnesses. The idea of this lump sum benefit is to give policyholder some financial aid while he battles for life.  The policy will not cease at this point. On death of the policyholder—during the term of the policy—the beneficiary will get the remaining sum assured.

Plan will be available in 85 cities across the country. Policy offers lot of choice in term of the policy between 5 – 40 years and offers cover upto age of 75. It covers all form of death including terrorist attack. Death due to suicide is excluded in the first year of the policy.

Reward to existing policy holders

The company rewarded the existing policy holders, by offering an automatic upgrade. Policy holders got an increase of around 25- 40% in their sum insured and inclusion of this terminal illness benefit in their existing policies without paying any extra premium. This is a good step taken by the company to reward the existing customers.

Attractive riders to add on

This policy also offers three riders to choose from. They are attractively priced also.

1. Aegon Religare Accidental Death Rider – this rider provides for payment of the rider amount in case of accidental death. The premium comes to around Rs.45 per lakh per year.

2. Aegon Religare Waiver-Of-Premium on Critical Illness – this rider covers critical ailments such as cancer,  coronary artery bypass surgery, heart attack and stroke .So if you contract any of these critical illnesses,  you need not pay the future premiums in the policy. The company will keep the policy in force till the end of the term of the policy. The premium for this is very competitive.

3. Aegon Religare Women Critical Illness – this rider covers illnesses such as cancer, pregnancy-related complications, and genetic birth defect in the child. Under this rider, the policyholder will get benefits as a fixed percentage of the sum insured.

Do it yourself

If you wish to buy this term plan, you need to first fill up the proposal form and make the premium payment online. If you are below 45 years of age, you may not be asked for a health checkup or you can skip the health checkup by agreeing to pay a higher premium. For those who need medical examination, the policy is issued after the medical examination and underwriting by the company.

Points to note while buying online

It is better to undergo the medical examination and take the policy to avoid further complications in future. The most important thing about online term policy is that there is no agent or intermediary involved for any service.

Please ensure that insurance contracts are based on utmost good faith and you are expected to disclose all health / habit related issues in the proposal forms. If you are giving a wrong declaration, the company will not verify these at the proposal stage, but will issue the policy based on the information given by you and based on the medical report. But in case of a claim, the company will verify the correctness of the information given in the proposal forms. In case, there was mis representation of any material facts, the company can reject the claim! This will defeat the purpose of taking the policy. So, disclose the following important information in the proposal forms.

  1. Details of any health problems and the treatment particulars.
  2. Details of habits like drinking/smoking etc.
  3. Details of any adverse family history like diabetics.
  4. Details of your existing policies

Read each questions and give correct answers to each questions in the proposal forms. Don’t forget to nominate the right person as the nominee. Also let your beneficiary is aware of this policy.

After all you are doing this for the benefit of your family.

8 Comments

  • GS Madhu Posted March 9, 2012 3:33 pm

    Online term plans are picking up these days!
    Well what do you think about Aviva i-Life’s term plan?
    Have you reviewed this plan? If yes please do let me know..
    Thanks 🙂

    • admin Posted March 9, 2012 3:55 pm

      Yes. Aviva i-life is also having better rates in premium. But the added features like terminal illness benefit and the riders like Premium waiver and Accidental death makes i-term a better option now.

  • suryakant Posted March 22, 2012 9:53 am

    Hello
    I am confused to go with Aegon religare or with IDBI termassurance plan… Please suggest if you have reviewed the plan of IDBI federal – – term insurance plan. which one will be the best among these two plan ? I am 33 yrs old

    • admin Posted March 22, 2012 6:38 pm

      Now, with the riders, Aegon Religare is better.

  • pritam shah Posted October 3, 2013 10:41 pm

    Which companies offer term insurance for NRI’s and which is the best one?

    • Melvin Joseph Posted October 31, 2013 6:18 pm

      Edlewise Tokio is offering to NRIs.

  • Ashish Mestry Posted June 30, 2015 9:14 pm

    Thanks for the info sir!
    My question was, there are no agents involved in the Online Term insurance
    In case of settlement will insurance company entertain the nominee properly?
    This question raised when my Insurance Agent told me that In Online Term plan don’t expect any service from the agents who helps in claim settlement for the policy taken fro them.

    • Melvin Joseph Posted July 16, 2015 12:57 pm

      This is a sales technique by the agents. If you take a policy by disclosing all the facts, the nominee will not have any problem with claims. Just inform the policy details to your nominee including the contact details of that company.

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