Aegon Religare iTerm Plan – Cheapest Term Plan – Review
Introduction
Few days after launching the cheapest ULIP plan (Invest Maximizer) in the industry, Aegon Religare has done it again. This time the company claims to have launched the cheapest term insurance plan in the industry. The company says that its latest term insurance plan – iTerm Plan – launched by it is cheaper by 50-60% than other similar term insurance plans available in the market. Let us have a detailed look at the plan.
Features of the Plan
The plan has been launched by the company on 5th November 2009. As per the company brochure following are the features of the plan:
| Minimum Sum Assured | Rs 10 Lakhs |
| Maximum Sum Assured | No Limit (Subject to underwriting requirements) |
| Minimum Policy Term | 5 Years |
| Maximum Policy Term | 25 Years |
| Minimum Entry Age | 18 Years (If the term of the policy is less than 10 years, then the minimum entry age needs to be 30 years) |
| Maximum Entry Age | 60 Years |
| Maximum Maturity Age | 65 Years |
| Premium Paying Term | Equal to the policy term |
| Premium Paying Frequency | Yearly |
Death Benefit: In case of unfortunate death, the sum assured is paid to the nominee.
Maturity Benefit: There is no maturity benefit in case of this policy.
Tax Benefits: The premium paid under the policy will qualify for income tax deduction under Section 80C of the Income Tax Act. The death benefit payable to the nominee under the policy is exempt from income tax under section 10(10D) of the Income Tax Act.
Comparison of Premiums
The below table shows the comparison of premiums of similar plans offered by other insurance companies in the market
| Company Name | Sum Assured | Age | Policy Tenure | Premium Amount |
| Aegon Religare iTerm Plan | INR 24 Lakhs | 30 | 25 Years | Rs 4,128 |
| Kotak Term Plan | INR 24 Lakhs | 30 | 25 Years | INR 7,492 |
| Aviva Life Shield Plus | INR 24 Lakhs | 30 | 25 Years | INR 5,850 |
| Aegon Religare Level Term Plan | INR 24 Lakhs | 30 | 25 Years | INR 5,453 |
Please Note: We have taken the premium rates from the respective websites of the insurance companies offering these products. The rates are as on 23-November-2009. For comparison purpose in all the cases we have taken an example of a 30 Years old male person. The sum assured in all the cases is taken as Rs 24 Lakhs and the tenure of the policy is taken as 25 Years.
Internet Channel
The product is very easy to understand. Unlike other insurance policies that can be bought through insurance advisors / agents, this policy can be bought exclusively through the internet channel. The buyer needs to make the payment through the internet by credit card or online banking account. It is easy and convenient for the customer to buy the policy online, from the comfort of his home. Once the customer makes the payment, he receives the policy details instantly online. The policy offers the customer the combination of convenience and value.
For the success of this product Aegon Religare is banking on the growth of internet penetration and e-commerce transactions in India. As per the company, India has 60 million internet users with recorded e-commerce transactions amounting to Rs 1800 crores in Financial Year 2008. Aegon Religare is targeting this existing internet user base and the future growth in this segment to make this exclusive online product a big success. Also by making the product available only through the internet channel, the company has bypassed the advisors / agents and other costs and thereby passing the cost savings to the customers by offering the products to the customers at a lower premium. The company claims that the premium of this product is 50-60% lower than the premium charged by other insurers for similar term insurance products. The lower premium makes this product the most attractive available in the market.
Premium Payment Mode
The premium needs to be paid annually till the term of the policy. This policy does not offer the option of paying premiums monthly, quarterly or half-yearly like other insurance products.
Procedure to buy the Policy Online
The website guides the person step by step on how to buy the policy online.
- As a first step, based on the person’s current age, retirement age and the net monthly expenses the insurance amount required to be bought is calculated.
- Next based on the insurance amount and the gender of the person and based on whether the person is a smoker or a non-smoker the annual premium is calculated. At this stage the website also offers the option to compare the premiums of other companies offering a similar product
- Next the person needs to enter his personal details, communication address, sum assured, policy term etc. The premium amount is calculated and the eQuote number is generated.
- Next the person needs to complete the remaining formalities like medical history and other details and make the premium payment. The policy details are generated online.
Other Features of the Policy Include
Free Look Cancellation: In case the customer is not satisfied with the terms and conditions of the policy, he may choose to cancel the policy within 15 days of receiving the policy documents. The customer will be paid back the premium after some deductions like stamp duty, medical reports and proportionate premium for the period for which the risk was covered.
Grace Period: The customer is allowed to pay the premium within 30 days from the premium due date. If the customer does not pay the premium within the grace period of 30 days the policy will lapse and the insurance cover will cease. Such lapsed policy can be reinstated within the 2 year time period from the premium due date, else the policy will terminate.
Policy Surrender: On surrender of policy, no surrender value is paid as the policy does not acquire any surrender value during the tenure of the policy.
Exclusion: In case of death by suicide during the 1st policy year, no death benefit is payable.
About the Company
Aegon Religare Life Insurance is a 3 way joint venture between Netherlands Aegon, Religare Enterprises Limited (REL) and Bennet Coleman and Company Limited (BCCL).
Aegon is one of the world’s largest life insurance and pension groups present in more than 20 markets all over the globe serving over 40 million customers. Aegon holds 26% equity in Aegon Religare Life Insurance.
Religare Enterprises Limited (REL) is one of the leading integrated financial services group. It has a pan India presence. It holds 44% equity in Aegon Religare Life Insurance.
Bennet Coleman and Company Limited (BCCL) is India’s largest media house. BCCL owns brands like Times of India, Economic Times, Femina etc. BCCL hold 30% in Aegon Religare Life Insurance.
Please do let us know your comments on the article at [email protected]
35 thoughts on “Aegon Religare iTerm Plan – Review”
Hello Mr. Gidwani,
I liked the article with respect to insight into the plan features and comparison.
I suggest you wait for some time and in few weeks, probably by the Sep ’10 end, write an article about the comparison of online plans available. Like iTerm, iProtect (ICICI) and other players who might have launched it by then.
Thanks,
Jitendra
Hi Jitendra,
You can read about iProtect from IPru at the following link
http://www.jagoinvestor.com/2010/08/review-of-iprotect-term-plan-from-icici-prudential.html
Also some points of comparison are given between iTerm and iProtect
Hi Jitendra,
Your suggestion is well taken of having an article on comparison of term plans available in the market. In the below article I have done the comparison of 4 plans in the market
iTerm Plan from Aegon Religare
iProtect from ICICI Prudential
ePreferred from Kotak Life Insurance and
MetProtect from Metlife
You can read more details about the article at the below link
http://www.bachatkhata.com/2010/11/comparison-of-term-insurance-plans.html
Hi Gopal,
I’ve taken iTerm from Aegon Religare, I found it good as exclusion was only sucide within first year.
ICICI iProtect have many exclusions.
But I’m really worried about my iTerm plan as I heard lot of noice on internet about Aegon saying they are rejecting claims etc.
Please advise if this term plan is still good?
Regards,
ABHI
Hello Abhi,
I see no reason for any insurance company to reject any claim without any valid reason. The same applies to Aegon Religare also. As long as all the required documents are in place the company cannot reject the claim. In case they still reject the claim a person can always approach the company nodal officer with his case. If the person is not satified with the decision of the nodal officer also, then he can always approach IRDA with his case.
You can call up the IRDA Grievance Call Centre at 155255 (Toll Free Number) or write to IRDA at [email protected] if you have any issues against any insurance company. So dont worry about claim settlement, it will be taken care of
Dear Gidwani ji,
Thanks again for your valuable advice all along.
As requested I would like to share my experience with Aegon Religare iTerm. These are as follows-in bullets
1)Filled their online form and got equote number on 29th October- The equote remains valid for one month.
2) Made payment online - 3rd November ( Busy Diwali week)
3) Aegon Religare called up wrt information on medical tests etc. and document pickup on (4th November)
4) Fixed up a date on 9th Nov. for medicals ( as per my convenience)
5) Blood /BP/Weight/Height etc. were carried out by medicos at home early morning 6.30 AM (fasting). Medicos were prompt and reported on dot 6.30 morning at my residence as per my request.
6) Tread Mill Test was carried out at a path lab in Ghatkopar at 10 AM. The experience was good.
6) All along this the tollfree helpline 18002099090 telephone guys appeared sophisticated and well mannered. Good experience.
7) Policy was issued on 16th November . Is still on the way. Hopefully I’ll receive it in a day or two.
Overall I will give Aegon Religare very good marks for my experience so far…
Hope they maintain their service to the same level in future too….
Amit
Hello Mr. Amit,
Thank You very much for your comment. It was really nice to know that http://www.bachatkhata.com helped you to finalise the insurance policy for yourself.
It was also nice to know that you had a good experience dealing with Aegon Religare. The reason I asked you to put your experience with Aegon Religare on the website was because lot of people are sceptical about the customer service and the claim settlement ratio of Aegon Religare as it is just a two year old company. Lot of people ask me about these 2 things through emails. Well you have spoken about their customer service. And about their claim settlement ratio that only time will tell. We will have to wait and see that how they fare on it.
I genuinely believe that iTerm is a good plan and it is an game changer for the Life Insurance Industry. All thanks to the cheap term insurance plan of iTerm introduced by Aegon Religare, it has forced other private insurers like ICICI Prudential (iProtect Term Plan), Kotak Life (ePreferred Term Plan), Metlife (MetProtect) to come up with online insurance plans at rock bottom premium rates with huge insurance covers. Aegon Religare took the lead and competition has forced others to follow it.
Best Regards
Gopal Gidwani
As per my reading claim to settelment ratio of Aegon Religare was 0% in 2008-09 what is reasion behind his how safe to take this company plan
Hello Nitin,
In 2008-09 the claim settlement of Aegon Religare was 0% because it was a relatively new company at that time and they must have not received any claims in that year. Since they may have not received and claims, they may have not settled any claims. And if they may have not settled any claims then the claim settlement ratio was 0%.
Even if they may have received some claims and if they were under investigation then again the claim settlement ratio will be 0%. Claims received in the 1st two years of the policy are classified as ‘Early Claims’ and insurance companies do detailed investigation of such claims and it takes time to settle these claims.
You can go for iTerm Plan. In the intial years the claims are very low and it takes time for the company to settle them. So dont go by claim settlement ratio of an insurance company in the early years. It does not give the true picture
1. I am interested to buy I term of Aegon Religare. I have ready statistics of claim paid
in year 2009-10 was 0 out of 7. I dong have figures of year 2010-11.
2. Does medicals other documents necessory after purchasing policy online.
Kindly guide me.
Nilay
Hello Nilay,
The claims must be under process. If death happens within the first 2 years the insurance company does a detailed investigation, so it takes time to settle the claim. Please remember that Aegon Religare is just a 3 year old company so the claim settlement ratio is low.
Regarding medicals depending on your age, sum assured amount and the declarations you make on your health in the proposal form; the company may decide whether you need to undergo a medical checkup or not. Also based on the health declarations the insurance company may ask you to submit the medical documents.
Think Twice. Check how many claims have been settled by this company. There are many who felt cheated.
Aegon Religare is relatively still a new company. They are into operations since 3 years or so. Many claims that come in the 1st 3 years undergo detailed investigation by the company. So it takes little more time than normal. So that should not be a problem at all. And if you disclose everything honestly at the time of taking the policy, I see no reason why the insurance company will settle the claim at the earliest
Hello,
This is Ali age 32.
I am planning to take a term plan from Aegon Religare.
I found this plan good cause its covering all types of death (even natural calamities).
I have a small shipping business so at times m out in the sea i informed them about this but m worried if any unfortunate happen to me then will my family get the sum assured.
The company was positive about this and told me that they cover all types of death ..
But as in the sea you never know you might not find a person ever what if something like that happens will the company still give the claim …
is Aegon Religare a reliable and can i take up such a term plan for my family
Thanking you
Hello Ali,
Aegon Religare is relatively a new company operating since last 3 years compared to other insurance companies some of which have been in existence since last 9-10 years. So I cannot comment on the company performance. But can say the features of the i-term plan are very good and the rates are also very competitive
Regarding your query on what if a person is not found, in this case if the court declares the person dead then the insurance company will have to pay the claim.
hi am 23 years old. i want to take this policy . in this policy maximum maturity is 70. but maximum tenure is 35. so if i take this now it will give the protection only upto my 58 ? is that correct,,, or if i want to cover my life in yerm insurance upto 70,, what needs to be done, thanks in advance
Hi Guruprasath,
The maximum maturity age of this policy is 65 years and not 70 years as mentioned by you. Also the maximum term of this policy is for 25 years and not 35 years as mentioned by you. To avail maximum benefit of this policy you will have to buy another policy at the age of 40 years for a term of 65 years so that you can be covered till the maximum allowed age of 65 years.
You can also consider the option of buying iProtect Plan from ICICI Prudential. In this you can be covered till the maximum age of 75 years and the maximum tenure is 30 years. To avail the maximum benefit of this plan you will have to buy a new policy at the age of 45 years for the maximum tenure of 30 years so that you can be covered till the maximum allowed age of 75 years.
I hope that answers your query, else you can always write back to me.
Dear Gopal
I wish to take child plan for my daughter ,she is 6 1/2, i am already investing in Mutual fund through SIP for her , Kindly advise, which child plan will be best .
Hello Satish,
I would recommend that for your daughter’s future (education and marriage) stick to mutual funds for investments. Don’t go for a child plan. You should not mix up insurance and investments. Also based on the amount you need for your daughter’s education and marriage increase your life insurance cover by going for an online term insurance plan.
Dear sir,
I wish to buy a term plan for my father (age 55 yrs) for a cover of Rs. 50 L . Kindly suggest the best policies.
An LIC agent who has been doing insurance policies for us for years has told my dad that the private insurance companies have a separate department to discover ways of rejecting insurance claims and therefore its risky to buy from the private insurance companies. How far is this true?
If I buy an online term plan, how does the insurance company take the medical tests?
If any insured person does not have a disease ( say diabetes) at the time of taking the policy, and he mentions this while buying the policy but after a couple of years he gets that disease/disorder …can the insurance company deny the claim on this basis citing that he had wrongly mentioned it in his policy details?
Hello Mayank,
You can consider ‘Click2Protect’ Policy from HDFC Life or ‘i-Life’ from Aviva or ‘MetProtect’ from MetLife Insurance.
There is no department in private insurance companies to discover ways of rejecting insurance claims. This sounds very funny…….. 🙂 Ask the agent what proof does he have to support what he is saying.
Once you pay the premium for an online plan, the insurance company customer care will get in touch with you and get the medical test appointment date and time and in a locality which is convenient to you. Then you will have to go to that place and get the medical tests done. The report is submitted by the diagnostic centre directly to the insurance company.
In case a person contracts a disease (say diabetes) after taking the policy the insurance company will not deny the claim as the disease has been contracted after taking the policy and not before taking the policy
Hi Gopal,
I read all your comments and questions of different people and I also like your advise and also want to know more that now Aegon Religeir company is 4years old and should have some claims under process and settled. Can we have some actual figures of claim settlement ration now??? And how safe to take i Term plan from this company from your point of view now? I really impress by amount of premium which is really lowest in the industry. And comment on customer service also but want to know about after sales service and claim process of this online product. How it works please explain so that I can take decision as soon as possible.
Thanks & Regards,
Shahidali M. Saiyed
Hello Shahidali,
First about the claim settlement ratio of Aegon Religare, well it was 48% in 2009-10 and it is 52.31% in 2010-11. So it has improved by 4% but it has vast scope for improvement as the market leader LIC has the best claim settlement ratio in the industry of 97.03% (2010-11). But that said it does not mean Aegon Religare is a bad company. All companies have bad claim settlement ratio in the first few years until their operations stablise.
You can go for iTerm from Aegon Religare. But make sure you disclose everything correctly and honestly in the application form so that there is no problem later at the time of claim settlement. Also you can have a look at online term policy of HDFC Life which is Click2Protect. Their claim settlement ratio is 95.41% (2010-11) and their premiums are very competitive.
If the Insurance Companies provide transparent claims rejection history year wise & region wise with reasons of rejection on the Company’s website it will create better consumer awareness while disclosing the details in the proposal forms. Will Companies do?
Hello Mr. Ramakrishnan,
This is a good suggestion. But whether insurance companies will do that or not, well that is for them to answer and I cannot comment on that. I can only hope they take up your suggestion and implement it.
Hi Gopal,
Thanks for sharing valueable information on term insurance. I have Doubt on aegon releigare i-term policy. I am planning to buy policy online n calculated the premium with Addon-on coverage like Personnel accident and critical illness cover. I am going for SA of 1crore where they say that accidental coverage is 54 lakhs. Is it inclusive of SA? If yes then the life coverage for a person is 1crore-54 Lakhs=46Lakhs. If person die due to Cardiac attack within the term selected then does his family gets 46 lakhs or 1crore? If person dies due to accident within the term selected then does his family gets 1crore+54 lakhs=1.54crore or 1crore only? Please clarify. Waiting for your reply.
Hello Vinay,
The base SA and rider cover (personal accident in this case) are 2 different things. The rider is an optional add-on offered with the base plan. If the base SA chosen is Rs. 1 crore and accidental coverage is 54 lakhs, then in case of normal death (or Cardiac attack death as you have mentioned in your example) the amount paid to the family will be Rs. 1 crore (base SA). If death happens due to an accident then the amount paid to family will be Rs. 1.54 crores (base SA 1 crore + accidental coverage 54 lakhs).
I hope I have cleared your doubt. If not, then please do write back.
Dear Mr Gopal
You are helping out so many peoples through this website . Its good job by you.
I want to take new term policy with Sum Assured of 1 Cr . Now i am confused between HDFC life and Agon Religare as HDFC life is offering term of 30 years whereas Agon is offering cover up to age of 75 Years. Shall i split this term plan as 50 -50 as claim settlement ratio of Agon is less compare to HDFC life , i know company is very much new in market still i worried. Please guide me .
Thanks
Shashank
Hello Shashank,
You may split the insurance cover among 2 companies.
You need to declare all material information honestly and correctly in the application form. This will ensure that there is no problem at the time of claim settlement, irrespective of the company that you go for.
Hi Gopal
I am in dilemma over choosing either iterm from aegon religare or clicktoprotect from hdfc life.
for clicktoprotect, the representative is mainly focusing on claim settlement rate and the fact that there are only two cases where claim rejected (suicide in 1st yr and drunk driving). he is claiming that except these two, any other reason is covered.
Please advise if iterm plan has any cause of death except these two listed above for rejecting claim on cause of death.
aslo, i was told that there are some “hidden clauses” in iterm plan which are causing the low claim settlements in aegon religare. is it true?
Hello Amiya,
I am not aware of any hidden clauses in iTerm. It is a good plan but their CSR is low. You may go for Click2Protect as they have a good CSR with little higher premium as compared to iTerm
Hi,
I am 33yrs old & am a smoker,planning to take term insurance plan, i have gone through some quotations with aegon I term & Aviva I life, Aviva Life shield (offline) plans.I have come to conclusion to balance this i have decided to go for 50 lakhs with aegon with rider & 50 lakhs with aviva life shield advantage. Is this would be a right decision. please suggest,it would be highly appreciated if it is at the earliest.
Regards,
Shivaraj
Hello Shivraj,
You may split your life insurance in 2 plans: 1) iTerm from Aegon Religare 2) I would suggest you go for ‘Click2Protect’ from HDFC Life rather than ‘Life Shield Advantage’ from Aviva.
Going for one online plan and one offline plan will not make any difference. Life insurance companies treat both: online and offline plans in the same manner