AEGON Religare Future Protect Plus Plan


Name of Policy

AEGON Religare Future Protect Plus Plan

Type of Policy

ULIP Endowment

Various Investment Options

Secure Fund Generate attractive investment income while providing the security of very low volatility risk since asset durations would Conservative be reasonably small.

Debt Fund Aims to generate attractive investment income by investing in a diversified portfolio of government debt, corporate debt Relatively safe and money market instrument of varying maturities.

Stable Fund Aims to maintain a balance between equity and debt exposure to have a stable and attractive long term return. It will also shift Moderate allocation between debt and equity to gain from asset price movements over medium to long term.

Accelerator Fund Invest in equities of various sectors to diversify the portfolio and generate attractive returns in the long term. It also has the Aggressive flexibility to invest in fixed interest assets and money market instruments up to 20%.

 Features

Parameter

Value             

Entry age

Minimum: 7 ; Maximum: 60 years

Maturity Age

Max: 75 years

Policy Term(Fixed)

Min: 15 years

Max: 40 years                            

Premium Payment Term

Equal to Policy Term

Premium Payment Term

Annual, Semi Annual and Monthly

Premium

Annual- Rs 20,000

Semi Annual and Monthly: Rs 30,000

Minimum Sum Assured

Age less than 45 years

Min SA: Higher of 10 times of Regular AP or

(0.5 x Policy Term x AP)

Age more than 45 years

Min SA: Higher of 7 times of Regular AP or

   (0.25 x Policy Term x AP)

Maximum Sum Assured

(SA Multiple * AP)

Policy Term

15

20/25

Others

SA Multiple

25

30

50

Top-Up Premium

Min: Rs 5,000

Top-Up Sum Assured

Top-up premium will increase the sum assured subject to

underwriting.

 

 

Charges

Explanation

Premium Allocation Charge (on regular premiums)

 

Year 1       

Year 2-5       

Year 6-10       

Year 11 onwards

4.40%           

3.00%            

2.00%              

1.00%

Top-up premium allocation charge is 3%

Policy Administration Charge

Annualized Premium                                         

                                                                

Monthly charge

(as % of Annualized Premium)

Less than 36,000                                                    

36,000 to less than 50,000                                   

50,000 and above                                                   

0.25%

0.18%

0.15%

This charge escalates at 5% per annum at the start of every policy year from the second policy year. This charge will not increase more than Rs. 500 per month.

Fund Management Charge (FMC)

 

Type of Fund

Charge

Secure Fund

1.00% p.a.

Debt Fund

1.10% p.a.

Stable Fund

1.35% p.a.

Accelerator Fund

1.35% p.a.

The fund management charges can be increased by the Company after IRDA approval but shall not exceed 2% p.a. at any point of time.

Life Cover

Yes

 Illustration

Let us assume a simple case:

  •      Your age: 30 years
  •       Sum assured: -Higher of 10 times of Regular AP or (0.5 x Policy Term x AP)
    •      20000*10= Rs 2,00,000
    •      0.5*15*20000= Rs. 1,50,000
    •      Therefore S.A= Rs. 2 Lakh
  •      Policy term: 15 years
  •      Premium: Rs. 20,000 p.a.

The life insurance component is miniscule, not exceeding 10 times your annual premium. If you really want life insurance, a good term plan will give you life insurance of about 500 times your annual premium – so you would rather avoid the fund.

 

Let’s see what you get:

  •       life cover plus Investment
  •      Of your first year premium of Rs. 20,000 p.a. 4.65%+ Mortality charge is removed. Most of this goes to your agent’s pocket. Only the remaining gets invested in the fund.
  •      Of your premium of 2-5 years Rs. 20,000 p.a. 3.18%+ Mortality charge gets removed again. Most of this again goes to your agent, and only the remaining gets invested.
  •       In addition to this, of your total fund, the fund management charge of ~1.35% is cut every year
  •       Instead, if this Rs Rs. 20,000 p.a. had gone into a Systematic Investment Plan in a Mutual Fund, giving a return of approximately 15% a year on a five year average, not a single Rupee would have been deducted as policy charges. It would not take a mathematician to deduce that the returns here will be much better.

In summary, investments can deliver returns only if the costs are not so high.

 

 

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