Everyone wants to protect their family from uncertainties and emergencies. There are many unfortunate events that cannot be avoided, but what can be avoided is financial crisis due to these situations. This is possible with right financial planning, and one method is investments. One of the tools of investment is Unit Linked Insurance Plans (ULIP), which are investment cum insurance policies. Aegon Life offers Aegon Life Future Protect Insurance Plan, a ULIP plan that can help you manage your investments while making provision for death benefits.
What the Plan has to Offer?
The plan has many benefits that set it apart from other options in the market. These features are listed as follows:
- The plan involves investment of your premium amount systematically so that you can ensure maximum income generation.
- They are suitable liquidity options that you can avail after 5 years with the help of partial withdrawals.
- There is an option to pay additional premiums with the help of investing through top-ups.
- The plan gives an option to keep your money invested in the market for up to 5 years after the maturity.
- There is flexibility to choose the amount of insurance coverage as per the needs of your beneficiaries.
- You can easily enhance the amount of coverage during the policy term in case you feel the need.
- The feature of “Invest Protect” can help you invest smartly, along with safeguarding your investment from the losses if you choose to avail it.
- There is also the flexibility to select from the various option of investment funds that make sure that your investment needs are satisfied.
- It also offers tax benefits.
Options of Investment Funds
When it comes to ULIPs, the whole return and benefits system relies on the allocation of the premium in various investment funds. The investment funds vary due to the composition of investment in various type of companies and financial instruments. In the type of funds, the ones with higher investment in safer options are safe, and those with investment in high-risk commodities are risky. The one basic principle of investments is higher the risk; higher the returns. The types of investment funds are:
| Fund Name | Equities | Fixed Interest Securities | Money Market Instruments | Risk Factor |
| Accelerator Funds | 80-100% | 0-20% | 0-20% | High |
| Stable Fund | 20-80% | 20-80% | 20-80% | Moderate |
| Secure Fund | 0% | 60-100% | 0-40% | Low |
| Debt Funds | 0% | 60-100% | 0-40% | Moderate |
Accelerator Funds: In accelerator funds, the funds are allocated to diversify the portfolio by investing in companies with diversity in sectors. Such a way, funds can generate more returns in the long-term. The fund can also help you make an investment in money market instruments and fixed interest assets with an upper limit of 20% in each. The risk involved in this type of fund is high, and hence the investment made by you cannot guarantee promising results.
Stable Fund: The stable fund maintains a balance between exposure in debt and equity resulting in promising results for long-term goals. The fund will also make sure that the investments are shifted among equity and debt so that maximum income can be generated in the long run. This is a profile fund with moderate risk.
Secure Fund: Secure fund generates the income but keeps the principal amount safe, this will be done by keeping the liquidity of funds high. The portfolio is diverse and consists of short-term fixed interest securities and money market instruments. This is a profile fund with low risk.
Debt Fund: In debt fund, the generation of returns is ensured with the help of fixed income securities with diverse maturity, money market instruments, corporate debt, and government debt. The returns generated are attractive, and the risk profile is moderate.
Apart from the options suggested above, there are options for you that focus on further optimization of your investment in the capital markets. The features are explained as follows:
- Premium Re-Allocation:There is a feature of Premium Re-allocation that supports you in changing the allocation of your top-up premium in other funds. You can avail up to 2 premium allocations for free in a given year.
- Switching Between Funds:Investments made by you can be easily switched from one fund to other. This switching of funds can be done 4 times in a year.
- Auto Re-balancing: Aegon Life Future Protect Insurance Plan provides you with the feature of Auto Re-balancingthat makes sure that your investment is allocated accordingly to maintain balance in funds on an annual basis. This re-balancing of the funds is done automatically in the proportions chosen by the policyholder at the end of every year.
Details of Eligibility
The plan is not available for every individual; there are some criteria that are essential for being eligible for the plan.
| Particulars | Details |
| Minimum Premium |
|
| Entry Age | 7 – 50 Years |
| Maximum age of Maturity | 65 Years |
| Policy Term | 15/20/25/30/35 years |
| Premium Payment Term | Equal to the term of the policy |
Benefits of Future Protect Insurance Plan
Death Benefit
The death benefits can be availed if the insured dies unfortunately during the policy term. The death benefit that is provided to the beneficiaries of the insured will be calculated as follows:
- Partial withdrawals that are made two years prior to the death of insured are deducted from sum assured, and the remaining amount is paid to the beneficiaries.
- If the insured passes away after the age of 60, the amount of partial withdrawal made after the age of 58 is deducted from the sum assured.
- In case the policy is in the discontinued status, only the fund amount from discontinued policy fund is payable by the insurer,i.e. Aegon Life.
Maturity Benefit
There are two options which can be chosen by the policyholder at the time of maturity to reap benefits of the policy.
- Lump Sum Receipt
When the policy matures, the insured will receive the entire fund value, including the top of fund value as a lump-sum payment. If the insured wishes not to avail the complete amount in one single installment, he can go for settlement option.
- Settlement Option
In settlement option, the policyholder can avail the fund value in installments over a period of time (maximum 5 years). The remaining amount after each installment will stay invested in the chosen funds under the complete fund value is paid out.
Also Read: Aegon Life Future Protect Plus Insurance Plan
Other Features of Aegon Life Future Protect Insurance Plan
The benefit and investment options are the core of the policy but there are other features that influence the policy largely, and they are:
- Free-Look Period
The free look period in the policy is of 15 days for canceling the policy but only if it is a monthly premium plan. If the policyholder pays the premium at other frequencies, this term is of 30 days.
- Surrender of Policy
Surrendering the policy possible after a time period of 5 years since policy inception. If the policyholder wishes to discontinue the plan before the end of 5 years, the fund value will be credited to the discontinuation policy fund. This amount is deposited to this fund after the discontinuation charges are deducted. After the amount is submitted to the discontinued policy fund, returns of a minimum 4% can be expected out of the amount. If the policy is surrendered after the time period of 5 years is completed, the entire fund value is paid to the insured without making any deductions.
- There is no payment of sum assured if the policyholder commits suicide within 12 months of purchasing the policy. The beneficiaries are only paid the fund value in this case.
- There are no charges for the allocation of premium.