Aegon Life Insurance
Aegon Life Insurance Company Limited (formerly Aegon Religare Life Insurance Company Limited) launched its operations in India in July 2008 and since then has emerged as a strong player in the insurance industry.AEGON Life is one of the leading providers of financial services, life insurance, pension and asset management services in India. Currently, the company enjoys a good market share and has launched different types of life insurance products for meeting all the varied needs of individuals at attractive premium rates.
AEGON Life Child Plans
AEGON Life Insurance offers its customers two types of child plans. While one plan is a traditional child plan, the other is a Unit Linked Insurance Plan (ULIP). Let us take a look at the different types of child plans offered by AEGON Life and the features and benefits of each.
Aegon Life Rising Star Insurance Plan
A unit linked child plan where the premium is paid for the entire term of the plan. The features of the plan are as follows:
The premium paid net of charges is invested in a chosen fund where it grows
The company offers four different fund options to choose from which includes Accelerator Fund, Stable Fund, Secure Fund and Debt Fund
There is an option of Invest Protect wherein the funds are managed by the company to protect the fund value against market volatility. The net premium is initially invested in the Accelerator Fund and thereafter in the last 3 years of the plan, the funds are transferred annually to the Stable Fund, then the Secure Fund and in the last year to the Debt Fund. Moreover, the switching begins monthly where 10% of the fund value is transferred every month.
There are an inbuilt Premium Waiver Rider and Income Benefit Rider under the plan.
On death of the insured, the Sum Assured including any top-up Sum Assured is paid immediately and the future premiums are waived off under the Premium Waiver Rider. Thereafter, an amount equal to one premium is paid every year till maturity under then Income Benefit Rider and on maturity the fund value is paid
On maturity, if the policyholder is alive, the fund value is paid which can be availed in lump sum or over the next 5 years through the Settlement Option.
4 free partial withdrawals and switches are available every year
Systematic Partial Withdrawal is also available where units are redeemed periodically and paid to the policyholder
2 free premium redirections are allowed to redirect future premiums to a new fund than the one originally selected
The Sum Assured under the plan can be enhanced by up to a maximum of 50% of Rs.10 lakhs whichever is lower within 3 months of marriage or childbirth
There is an option of Auto Rebalancing wherein the fund is rebalanced according to the specified ratio annually
Applying for a Child Plan from the company:
The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued
Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.
Why do you need to opt for a Child Plan?
As a parent, the most important responsibility in his life is to fend for the child and save enough and more so as to secure the child’s future. We dream to get the best for our children and as overprotective parents, we always end up thinking a lot for our children. However, in today’s world, just thinking is not enough. In fact, it was never enough. You would have had to plan, strategize, think, save and also invest so as to earn a handsome return when the child actually needs the money for his higher education. As parents, we have been thinking and dreaming a lot on behalf of our children. Whether he wants to become a doctor or an engineer or maybe a fashion designer or an architect, etc. also, in today’s day and age the choices are so vast, that even children have a large variety of choice of education and he is also able to choose favourite subject at a very early age. Whether this is is good or not is debatable but yes, it is possible.
So, just saving for your childs future in a piggy bank will not be possible because inflation eats the money out and actually lower the value of money. So, you need to start the investment today! Whenever you realize the need for investment, is the correct day for you to start. A very popular saying is: “a work begun is half done”. So starting to plan and save and invest prudently for a child is a work half done. As soon as you start your investment to plan for your child, is a good way to gift your child a good investment for the future!
A child plan may or may not be in the child’s name as long as it has been specially designed for the bright future of your child. It needs to be specifically for your child’s needs so that when he is ready for higher education you are ready with the money and not waiting for a period of time for it to mature or increase in value. So investing and timing are the two most considerable factors that need to be kept in mind while investing for your child!