Aegon ‘iTerm' plan offers life cover up to 100 years

Aegon Life Insurance recently launched the ‘iTerm' plan offering insurance cover up to 100 years. According to Aegon, the product was launched keeping in mind the increasing life expectancy of Indians. Term plans are generally known for their affordability and large covers. Long-term plans are suited for those looking for life coverage for a specific period at lower premiums.

Benefits of `iTerm' plan

The iTerm plan can be purchased online. Life cover under this plan can be increased according to one’s changing needs. In the case of diagnosis of a terminal illness, 25 per cent of the death benefit would be paid. All future premiums would also be waived.

The scheme offers flexibility in premium payment. You can pay a lumpsum amount, monthly payments over a defined period of time or a combination of either of the above options. Add-on covers such as accidental death benefit, disability benefit and critical illness benefit can be included in the plan. Income tax benefit is available under Section 80C on the premium paid. The death benefit payout is covered under Section 10(10 D) of the Income Tax Act.

What is a term plan

Term plans are basically a type of life insurance that provides coverage for a certain period of time or years. If the insured dies during the policy tenure, the sum assured is paid out. The premiums charged on term policies are generally much lower than other plans. There is no survival benefit in case the insured lives past the policy’s maturity.

Term plan Vs Whole life plan

The introduction of the 100-year term plan could raise questions about the difference between a term and a whole life plan. In term insurance, one pays premium only for death benefit, whereas in whole life plan, it is paid to build cash value, which can be used later in life or gets added to the death benefit payout.

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