Investment Plans 419 views January 20, 2021

Aegon Life Rising Star Insurance Plan is a unit-linked insurance plan by which you can secure your child’s future. There is a triple benefit insurance coverage on your life, till your child attains the age of 25 years. So invest money systematically and create wealth for your child’s future needs, as you can use this money later towards your child’s higher education, marriage, etc. There are multiple fund options for your investment needs in Aegon Life Rising Star Insurance Plan, so let’s read this page further and learn more about it.

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Fund Option in Aegon Life Rising Star Insurance Plan

The insured can choose any one or more of the following funds to invest for their child’s future –

  1. Accelerator Fund – This fund invests in various equity sectors for a diversified portfolio and attractive returns over the long term. And up to 20% will be invested in fixed-interest assets and money-market instruments.
  2. Stable Fund – It maintains a balance between your debt and equity investments, so you can gain attractive returns.
  3. Secure Fund – It invests a huge amount in fixed-income securities and money-market instruments to generate reasonable returns at a low-risk. 
  4. Debt Fund – This fund invests in a diversified portfolio of government debt, corporate debt, money-market instruments, and other fixed-income securities to generate attractive returns.

Manage Your Investment in Aegon Life Rising Star Insurance Plan

Using the following methods, you can manage your Aegon Life fund investments –

  1. Auto-rebalancing – At every policy year-end, the company automatically rebalances the allocation of your investments in various funds as per the proportions chosen by you. You can use this method at policy inception, so in the future, there will be no hassle in your investment. 
  2. Premium Re-direction – It allows you to alter your premium allocation to your future premiums and Top-ups.  Aegon Life will provide 2 premium redirections FREE of cost in a policy year.
  3. Switch – Shift your investments from one fund to another using this option. It is FREE of cost.
  4. Invest Protect – This option will help you gain more from your investment at a minimum risk as your policy nears maturity. It will shift the funds from Accelerator Fund to Secure Fund to protect your money. And this option will come into force during the last three policy years.
  5. Top-Up – You can top-up your premiums anytime after the first five policy years to enhance your insurance cover. A top-up will boost your fund value at your convenience. And this additional premium will be over and above the contractual basic premiums, subject to a minimum of INR 5,000.

Benefits of Aegon Life Rising Star Insurance Plan

You will get a bunch of benefits with the Aegon Life Rising Star Insurance Plan. So let’s have a look at them below –

Death Benefit – In case of death of the life assured, the sum assured will be paid to the nominee immediately. And all due premiums after the date of death will be waived till the date of the policy maturity. If any premium due date has passed after the date of death and before the death benefit is intimated, the same would be invested in the policy. On the date of claim intimation, the asset allocation will be changed to ‘Invest Protect Option’. At the start of every policy year after the death of the life assured, the beneficiary will get an amount equal to the annualized premium. And at the end of the policy term, the base fund value will be paid to the beneficiary. If you top-up your premium, your nominees will also receive a top-up sum assured upon your death during the policy term, while the top-up fund value continues to be invested and payable at maturity.

Note – The death benefit and the top-up death benefit will be at least 105% of the paid premiums and top-up premiums.

Maturity Benefit – On the maturity date, you will receive Fund Value + Top-Up Fund Value (if any). And if you don’t want to take this benefit in a lump sum, you can use the settlement option. Using a settlement option, you will be invested in the fund beyond maturity and can receive the maturity benefits in installments. You can choose your tenure as per your convenience as Aegon Life provides you a tenure of up to 5 years to receive the maturity benefit.  

Additional Units Aegon Life will provide additional units to your policy at different time intervals during the term to comply with the existing IRDAI regulations concerning net yield on fund value.

Partial Withdrawal and Systematic Partial Withdrawal from Aegon Life Rising Star Insurance Plan

You can partially withdraw money from your Aegon Life Rising Star Insurance Plan using the following –

Normal Partial Withdrawal – The maximum amount you can withdraw partially in any policy year is 20% of the fund value at the beginning. You can make up to 4 partial withdrawals in each policy year free of cost. 

Systematic Partial Withdrawal – With this in place, the company would redeem units periodically from your unit account and credit the money to your bank account. Life assured can opt for a systematic partial withdrawal frequency from monthly, quarterly or annually.

Eligibility for Aegon Life Rising Star Insurance Plan

Check your eligibility for Aegon Life Rising Star Insurance Plan by looking at the below-mentioned criteria of Aegon Life.

  1. The minimum annualized premium for annual mode is INR 20,000 per annum
  2. The minimum annualized premium for other mode is INR 30,000 per annum
  3. The policy term of Aegon Life Rising Star Insurance Plan is 25 years less entry age of the child in the completed years.
  4. Premium payment term is equivalent to the policy term

Base Policy Sum Assured

Age at EntryMinimum Sum AssuredMaximum Sum Assured
< 45 yearsHigher of the following:-
10X regular annualized premium

0.50 x policy term x annualized premium
18X annualized premium
>= 45 yearsHigher of the following:-
7X regular annualized premium

0.25 x policy term x annualized premium
10X annualized premium
  1. The minimum entry age for the parent is 18 years
  2. Minimum entry age for the Child 1 day to 10 years based on parent entry age
  3. The maximum entry age for the parent is 48 years
  4. The maximum entry age for the child is 15 years
  5. The maturity age of the Aegon Life Rising Star Insurance Plan is 65 years
  6. Premium payment frequency for this life insurance is yearly, half-yearly and monthly

Free Look Period on Aegon Life Rising Star Insurance Plan

You will get a 15-day free look period, which starts from the date you received the policy document. And in case the policy is purchased from distance marketing mode, the free look period will be 30 days.

On policy cancellation during the free look period, the policyholder will be entitled to the following –

  1.  Fund Value + Premium Allocation Charge + Mortality Charge + Policy Administration Charge – Stamp Duty – Medical Reports Cost – Proportionate Mortality Charge

Aegon Life Rising Star Insurance Plan Fee & Charges

  1. Premium Allocation Charge – This is the percentage of the premium appropriated towards the charges from the received premium.
    Policy YearPremium Allocation Charge
    1st year4.40%
    2nd to 5th year3%
    6th to 10th year2%
    11th year and above1%
  2. Top-Up premium allocation charge is 3.00%
  3. Fund Management Charge
    Secure Fund1.00% per annum
    Debt Fund1.10% per annum
    Stable Fund1.35% per annum
    Accelerator Fund1.35% per annum
  4. Policy Administration Charge is INR 60 per month at the start and escalates at 3% per annum, subject to a maximum INR 500. per month.
  5. Mortality Charge – Base Mortality Charge + the Premium Waiver Benefit Mortality Charge + Income Benefit Mortality Charge
  6. Extra partial withdrawal charge is INR 200 per withdrawal
  7. Extra premium redirection is charged at INR 200 per extra request 
  8. Switch charge, if you have exceeded your free switches, will be higher of the following – INR 100 or 0.1% of the amount. The maximum charge can’t exceed INR 500 per extra switch.
  9. Auto-rebalancing charge during the policy term is INR 200 for addition/removal

Note –  You can’t withdraw money or surrender the policy during the first five policy years if you invest in this insurance plan.

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