Group Insurance January 25, 2021

Aegon Group Credit Shield Insurance Plan is meant for the regulated and non-regulated lending institutions with which they can provide a life cover to their members and safeguard the outstanding loan in case of uncertainty. Several types of loan coverage are provided under this policy. And here life insurance coverage is for both borrowers and co-borrower. You can pay a premium for Aegon Group Credit Shield Insurance Plan by choosing from payment modes – single payment, regular payment and limited premium payment. Policyholders will get a choice of two benefits – coverage only in case of death or in case of both death and critical illness. Read this page further to know more about this plan.

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Benefits of Aegon Group Credit Shield Insurance Plan

You can choose your Aegon Group Credit Shield Insurance Plan to benefit from the following two –

  1. Option 1 – In case of the insured member’s death, the coverage amount as per the sum assured mentioned in the sum assured schedule will be payable to the nominee.
  2. Option 2 – Get coverage amount in case of the insured member’s death or diagnosis of the following critical illnesses – Cancer, Heart Attack, Stroke and Open Chest CABG.

Aegon Group Credit Shield Insurance Sum Insured Options

The policyholder can choose the sum assured from the following two –

  1. Level Sum Assured – This option makes sure that the sum assured on the life of the insured member will remain constant throughout the policy term
  2. Decreasing Sum Assured – On the other hand, this option will decrease the sum assured on the life of the insured member as per the sum assured schedule.

Note – The minimum sum assured under the policy for home loan borrowers is INR 5 lakh and INR 50,000 for other loan borrowers.

Moratorium Period for Aegon Group Credit Shield Insurance

A maximum of seven years moratorium period is allowed under the policy. During this period, either the sum assured will remain constant or increase as per the accumulated interest chosen by the insured member. After the expiry of the moratorium period, the sum assured will get reduced as per the Aegon Group Credit Shield Insurance sum assured schedule.

Aegon Group Credit Shield Insurance Plan Eligibility

If you want to purchase the Aegon Group Credit Shield Insurance Plan, you need to meet the following –

  1. Entry age should be between 18 to 65 years if you choose benefit option 1
  2. Entry age should be between 18 to 60 years if you choose benefit option 2
  3. The maturity age should be 75 years if you choose benefit option 1
  4. The maturity age should be 65 years if you choose benefit option 2
  5. The minimum policy term for single pay is 2 years
  6. The minimum policy term for regular pay is 5 years
  7. The minimum policy term for limited pay is 8 years
  8. The maximum policy term for all premium payment mode is 30 years
  9. Premium payment frequency – single, yearly, half-yearly, quarterly and Monthly
  10. The minimum group size should be 50 members
  11. No maximum ceasing for group size
  12. Premium payment term available for level sum assured is single pay and regular pay
  13. Premium payment term available for decreasing sum assured is single pay and limited pay
  14. Free Look period of 15 days from the date of receiving the policy
  15. A grace period of 30 days from the due date for premium payment, except for the monthly mode payment. For this, the grace period will be of 15 days only.
  16. Revive or reinstate your Aegon Group Credit Shield Insurance Plan within 2 years from the due date of the unpaid premium

Note – Limited premium payment implies 2/3rd of the policy term rounded down to the nearest whole number.

What is Aegon Group Credit Shield Insurance Joint Life Option?

With a joint-life option, both the borrower and co-borrower will be covered under the policy for the same sum assured. And the benefit is payable on the first occurrence of either death or critical illness diagnosis. It is available only for home loans and only on a condition where both the borrower and co-borrower have jointly taken the loan.

Coverage Continuation Benefit Under Aegon Group Credit Shield Insurance

In case the master policyholder surrenders the policy during the term, the insured members can continue their respective coverages as an individual policyholder till the end of the coverage term with this feature. You can also exercise this feature in case of loan foreclosure.

Exclusions from Aegon Group Credit Shield Insurance

  1. HIV diagnosis at the time of critical illnesses cover in force
  2. The occurrence of any critical illnesses within 90 days from the date of coverage
  3. Intentional self-inflicted injury or attempted suicide
  4. Any pre-existing disease until 48 months from the date of coverage
  5. Alcohol or other solvent abuse
  6. Failure to follow medical advice/treatment
  7. War, invasion, an act of a foreign enemy, hostilities
  8. Participation in criminal or unlawful acts
  9. Engaging in professional sport or any adventurous pursuit such as potholing, rock climbing, hunting, mountaineering, deep-sea diving, skydiving, cliff diving, bungee jumping, paragliding, hand gliding and parachuting
  10. Nuclear Contamination
  11. Radioactive explosive
  12. Nuclear fuel materials or accidents
  13. Angioplasty
  14. key-hole or laser surgery
  15. Transient ischemic attack
  16. Traumatic injury of the brain
  17. A vascular disease affecting the function of the eye or optic nerve or vestibular functions
  18. Non-ST-segment elevation myocardial infarction with an elevation of Troponin I or T
  19. Acute Coronary Syndromes
  20. Any type of angina pectoris
  21. Tumors with malignant changes of carcinoma in situ
  22. Tumors that are histologically described as premalignant or non-invasive such as carcinoma in situ of breasts, Cervical dysplasia CIN-1, CIN -2 & CIN-3
  23. Skin cancer other than invasive malignant melanoma
  24. Tumors of prostate
  25. Papillary microcarcinoma of the thyroid < 1 cm in diameter
  26. Chronic lymphocytic leukemia < RAI stage 3
  27. Micro carcinoma of the bladder
  28. All tumors in the presence of HIV infection

Claim Procedure for Aegon Group Credit Shield Insurance

Regulated Lending Institutions – Group members need to give authority in favor of the master policyholder if they want to receive the outstanding loan amount in case of an insured event. Based on the authorization, the claim will proceed to the extent of the outstanding loan as on the date of the event occurrence. And the same would be payable to the master policyholder and if there remains any balance of the proceeds, the same will be payable to the insured member or nominee or beneficiary.

Non-Regulated Lending Institutions – The entire claim amount is payable to the insured member or nominee or beneficiary. This will apply even if a cheque or draft is sent to the master policyholder for administrative convenience.

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