Aegon iTerm Insurance Plan vs ICICI Prudential iProtect Term Insurance – Which is better?
We as human beings think that we have complete control over what happens in our lives, but nature has the ultimate power over all things in this world. With such certainties around, you must create a conducive atmosphere for your family to live with financial stability, even in your absence. This is achieved by choosing the right term insurance policy plan that suits your budget and requirements.
Sanjana Singh is a 30-year-old business owner living with her parents. She had recently purchased an apartment for Rs 40 lakhs on loan but was scared of the future, thinking her parents may have to bear the burden of the loan in case something unfortunate happens to her. So Sanjana decided to buy a term insurance plan for one crore, for a monthly premium of Rs 8000. After that, her mind was at peace, knowing that even if she passes away during the policy term, her parents will get the lump sum of Rs.1 crore as a death benefit using which they can quickly repay the home loan and handle their expenses.
Insurance providers in India offer different term plans, allowing individuals to choose the type of policy that helps them plan for a safe future for their families. Here is a detailed look at two of the top term plans – Aegon life iTerm plan and ICICI prudential iProtect smart
Aegon Life iTerm Term Plan
This is a pure protection plan from Aegon Life that offers a comprehensive solution to safeguard your family from financial uncertainty in your absence. Its key features are:
1. Option to get life coverage till the age of 100 years.
2. Choose from 3 different plan options.
- Life Protect: under this option, the sum assured is paid to the nominee on death or diagnosis of terminal illness of the policyholder.
- Protect Plus: From the 2nd policy year, the sum assured shall be increased by 5% without any increase in the premium + 100% payout on terminal illness.
- Dual Protection: In this option, along with the life cover benefit, a regular monthly income is provided, starting from the age of 60 till maturity.
3. The Aegon iterm insurance plan offers InstaCover benefit wherein the life cover starts right away without having to wait long for coverage to begin.
4. On diagnosis of listed 36 critical illnesses, get a lump-sum payout with Aegon Life CI Care Rider.
5. It allows an increase in life coverage during essential life stages without any increase in premium
6. It Pays to quit smoking’ benefit: Smokers can reduce their policy premium from the 2nd policy year if they quit smoking.
7. Inbuilt terminal illness benefit along with life coverage that pays 100% of the sum assured to the insured on the diagnosis of a terminal illness.
8. Flexibility to choose the death benefits payouts between three options: Lump sum, fixed monthly income, or Combination of both.
9. Extend the policy coverage by adding suitable rider add-ons on payment of rider premium.
10. Income tax benefits on the premium paid under section 80D and benefit received under section 10 (10D) of the Income Tax Act, 1961.
Who must opt for Aegon Life iTerm?
With three plan options to choose from, the Aegon iTerm plan has many unique features, such as discounted renewal premiums for policyholders who quit smoking under the ‘It Pays to Quit Smoking’ benefit. Similarly, the ‘Go healthy’ benefit offers preferential terms on renewal to overcome lifestyle health-related conditions. So, if you are looking for motivation to maintain a healthy lifestyle, this policy shall act as a good starting point.
As the dual protect option provides life cover along with regular monthly income after your 60th birthday, those looking for an alternate source of income during their later years may choose this plan. If you belong to the younger age category, the increasing cover option ensures that coverage is increased on marriage, childbirth, etc., based on significant life stages.
ICICI Pru iProtect Smart Term Plan
This is one of the top-selling online term plans from ICICI Prudential not only offers protection for your entire family but also covers you against major illnesses through critical illness cover. Some of the salient features of ICICI Prudential iProtect policy are:
- It can be availed at affordable premiums with an option to make payments through yearly, half-yearly, or monthly mode.
- ICICI iProtect Smart plan has the provision to provide coverage till the age of 99 years.
- It also offers the flexibility to increase the coverage value at crucial life stages of marriage and childbirth, without any medicals.
- Select from four levels of protection by opting for the suitable ICICI iProtect smart plan options from the list below:
- Life: Death benefit + terminal illness + waiver of premium on permanent disability
- Life Plus: Death benefit + terminal illness + waiver of premium on permanent disability + accidental death benefit
- Life & Health: Death benefit + terminal illness + waiver of premium on permanent disability + accelerated critical illness benefit
- All in One: Death benefit + terminal illness + waiver of premium on permanent disability + accidental death benefit + accelerated critical illness benefit
- Choose to receive the death benefit payout under four different options: Lump sum, Income benefit, Lump sum, and Income benefit, and Increasing income.
- The minimum premium for the policy is Rs 2400, while there is no maximum limit on the sum assured.
Who must opt for ICICI Pru iProtect Smart?
A variety of customization options is provided by ICICI iProtect term plan making it a suitable choice for all types of investors. For example, those who are concerned about the rising healthcare costs can opt for the critical illness benefit or terminal illness benefits by choosing the Life & Health or All in One plan option. Do you prefer your family to receive the death benefit in monthly installments? Then, make use of the increasing income benefit payout option that pays the benefit amount in monthly installments.
With the provision of coverage till the age of 99 years, buying the policy at a young age makes a lot of sense as you will locking in at a low premium for the entire tenure. In that case, you may also use the policy’s life stage protection to increase the level of protection at key life stages of marriage and childbirth to the tune of 50% and 25%, respectively.
The bottom line is every term insurance plan comes with its set of pros and cons. However, it depends on your requirement, affordability, and preference to choose the ideal term plan. You can visit iiflinsurance.com to know details about Aegon iTerm vs. Icici Prudential iProtect Term Insurance.
