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Aegon Life iMaximize Insurance Plan

Aegon Life Insurance Company in India is a joint venture between the Aegon N.V. and Bennett Coleman and Company. Aegon Life Insurance Company was founded in the year 2008 and has been providing excellent customer services since then. The entire team at Aegon Life Insurance Company works with a passion to spread the awareness for insurance amongst people and provides the best quality of products to the customers. With its numerous plans and products offering life insurance, there are some special products which are of great benefit to the customers. One such product is the Aegon Life iMaximize plan.

Aegon Life iMaximize plan is an online non-participating Unit Linked Insurance plan which provides the policyholders a combination of coverage and investments as well. In other words, the Aegon Life iMaximize provides dual benefits to the policyholders in the form of wealth creation by maximization of investments and life coverage in a single plan. Moreover, since the plan can be purchased online, it acts as a convenient and time-saving option for customers. The Aegon Life iMaximize plan provides both, value for money and protection. It can help you to ensure a secure future for your child in case of your absence by the help of certain special features.

Key Features of Aegon Life iMaximize Plan

Let us have a look at the major features of the Aegon Life iMaximize plan.

  • Aegon Life iMaximize plan is a Unit Linked Insurance Plan with options of Limited Pay and Regular Pay.
  • In this plan, no charges are levied for premium allocation.
  • There are a total of six unit-linked funds i.e. Blue chip equity fund, Accelerator Fund, Opportunity Fund, Stable Fund, Debt Fund and Secure Fund available and a policyholder can choose from these funds according to the investment objectives of an individual.
  • Policyholders can switch their invested premiums from one fund to another fund according to their investment objectives. A total of four switches are permitted without any charges in a policy year.
  • Another important feature available with the Aegon Life iMaximize policy is the re-direction of premium. By this feature, a policyholder can bring changes in the premium allocation that has to be applied to the future premiums and top-ups.
  • There is an option of two death benefits available i.e. Option 1 – Higher of the Sum Assured or Fund Value and Option 2 – Sum insured+ Additional Savings Benefit + Income Benefit.
  • With the triple benefit that is a part of the Death Benefit i.e. Option 2, a policyholder can secure the future of his children.
  • There is an option available by which the fund value can be boosted by investing additional amounts through top-up premiums. Top-up premiums are defined as the additional premium amount paid above the premium which is fixed in the insurance contract. The minimum amount of this top-up premium should be Rs. 5000. Top-up premiums can be made anytime in the policy apart from the final 5 years of the policy. Moreover, by paying top-up premiums in the policy, you are increasing your coverage of the insurance as well.
  • Policyholders can withdraw up to 20% of their investment after 5 years of the inception of the plan, if any such necessity arises. This feature is known as partial withdrawal.
  • Since the Aegon Life iMaximize plan can be purchased online, there are no commissions paid for this plan and it is beneficial to customers by the implementation of low charges.

Benefits of Aegon Life iMaximize Insurance Plan

The benefits of Aegon Life iMaximize plan are mentioned below.

  • Start with a low investment You can start your investment at a very low amount of Rs. 2000 per month.
  • Death Benefit There are two options of Death Benefit available for the policyholders.
  • Option 1

    In case of the death benefit Option 1, if there is a sudden demise of the life insured, then the insurance provider will be paying the nominee with the highest amount amongst the Sum insured or the Fund Value or a 105% of all the paid premiums. If there is a top-up further associated with the policy, then the higher amount amongst the top-up sum insured or top-up fund value will be paid to the nominee of the policyholder. After this, the policy will terminate forever.

  • Option 2

    In case of death benefit Option 2, on the death of the life insured, the below-mentioned amount will be paid to the nominee of the policyholder.

    • Higher amongst the Sum insured which includes the top-up sum assured as well, or 105% of all the premiums paid including the top-up premium are paid instantly to the policyholder.
    • Another benefit known as the Additional Savings Benefit is also included in this option. In this case, the insurance company will fund an amount into the Policyholder’s Unit Fund which will be used for the payment of any due premium payments. Further premium payments will cease after this.
    • Income Benefit is another major benefit associated with this option of Death Benefit. Here, an amount which will be equivalent to the Annualized Premium will be paid to the nominee of the life insured at the beginning of a policy year till the end of the policy tenure.
    • The Total Fund Value which includes the top-up fund value as well is reallocated into the Secure Fund on receiving the information about the death of the life insured. Moreover, the premiums according to the concept of Additional Savings Benefit are also put into the Secure Fund and finally, the total fund value is paid to the nominee at the end of the policy tenure.
  • Maturity Benefit

    On the maturity date of the policy, the policyholder will receive the Total Fund Value which will include the Top-Up Fund Value as well.

  • Partial Withdrawal helps in attaining liquidity

    As mentioned earlier, partial withdrawal is allowed after a period of five years from the inception of the policy. The permissible amount for partial withdrawal in a particular policy year is 20% of the Total Fund Value which is present at the beginning of that policy year. In a single policy year, a policyholder can make up to 4 partial withdrawals without any charges being levied by the insurance company. By partial withdrawals, liquidity is achieved in the policy.

  • Tax Benefit

    Under the Section 80C and Section 10(10D) of the Income Tax Act, 1961 the premium paid for the Aegon Life Insurance Policy and the benefits being obtained qualify for being claimed as a tax deduction. However, the tax deductions that can be claimed depending upon the Tax Laws of the country at that point of time.

Eligibility criteria

The eligibility criteria for the Aegon Life iMaximize Plan can be represented in the below-mentioned tabular format.

ParametersBenefit Option 1Benefit Option 2
Minimum Age for entry7 years as on last birthday18 years as on last birthday
Maximum Age for entry55 years as on last birthday50 years as on last birthday
Maximum Age for maturity70 years as on last birthday65 years as on last birthday

Policy Term and Premium Details

Let us have a look at the Policy term and premium details of the Aegon Life iMaximize Plan which is mentioned below in a tabular format.

Policy Term15 years or 20 years or 25 years
Premium payment term
For Benefit Option 1:
5 years/7 years/10 years/ 15 years/ equal to the term of the policy.
For Benefit Option 2:
10 years/15 years/ equal to the term of the policy
Frequency of premium paymentMonthly or Annual
Minimum Annualized Premium
For Benefit Option 1:
For Premium Payment Term of 5 years/7 years =Rs. 36,000
For Other Term of Premium Payment= Rs. 24,000
For Benefit Option 2:
For Entry Age<45 years= Rs. 24,000
For Entry Age>=45 years=Rs. 36,000
Minimum Sum Assured
In case of the age of entry < 45 years, higher amongst the following:
  • 10 times of the Annualized Premium
  • 0.5 x Policy Term x Annualized Premium
  • In case of the age of entry >=45 years, higher amongst the following:
  • 7 times of the Annualized Premium
  • 0.25 x Policy Term x Annualized Premium
  • Maximum Sum Assured
    In case of the age of entry greater than or equal to 45 years
  • 10 times of the Annualized Premium

  • In the case of the age of entry below 45 years, the only sum assured is the minimum sum assured amount.

    Other Policy details

    Some more details related to the Aegon Life iMaximize plan can be summarized below.

    • Charges associated with the iMaximize plan

    There are some charges associated with the Aegon Life iMaximize plan.

    a. Premium Allocation charge

    No premium allocation charges are associated with the Aegon Life iMaximize plan.

    b. Policy Administration charge

    The policy administration charge is Rs.100 per month, this charge is associated with the administrative functioning of the policy and it is recovered by cancellation of units for this purpose.

    c. Fund Management charge

    Fund Management charge is levied in the form of a percentage of the asset value and is mostly calculated by adjustment of the NAV (Net Asset Value) every day.

    Type of FundFund management charge
    Secure Fund1% per annum
    Debt Fund1.10% per annum
    Stable Fund1.35% per annum
    Accelerator Fund1.35% per annum
    Opportunity Fund1.35% per annum
    Blue Chip Equity Fund1.35% per annum
    Discontinuance Policy Fund0.50% per annum

    d. Discontinuation charge

    The Discontinuation charge is levied when an iMaximize policy is being discontinued by a policyholder and it mainly depends on the year in which the discontinuance of the policy has taken place.

    e. Mortality charge

    The Mortality charge is levied on the basis of the mortality rate that has been fixed for all ages and the coverage amount being provided. It is deducted at the beginning of each policy year in the form of unit cancellation.

    • Grace Period

    The Grace period is the time period for which the discontinuity or non-payment of premium does not have any impact on the coverage or benefits provided by the insurance policy. After the completion of the grace period, the insurance company will take certain actions regarding this non-payment of premium.

    In case of the Aegon Life iMaximize plan, the grace period for those policyholders who have opted for monthly premium payment is 15 days and it is 30 days for those policyholders who have opted for an annual premium payment frequency.

    • Free-Look Period

    There can be certain cases in which the policyholder does not feel satisfied with the terms and conditions of the policy. In such a case, the policyholder can return the documents to the Company, requesting a cancellation of the policy. This can be done within 30 days of receipt of the policy documents and this particular period is known as Free-Look Period.

    In such a case, the policyholder is paid back the premium, which is non-allocated plus the charges that are levied due to the cancellation of units in addition to the Fund Value at the cancellation date of the policy.

    • Provisions for the revival of a policy

    A policyholder can revive his policy, if discontinued within a period of two years from the date of discontinuance. Some provisions related to the revival of the policy are stated below.

    a. The premiums which are due are payable, but without charging any interest.

    b. Discontinuance charges will be added back by the company at the time of discontinuance of the policy.

    c. The Company shall charge applicable Policy administration charges during the discontinuance period.

    d. Based on the prices of the unit values, the proceeds from the Discontinuance Policy Fund will be re-allocated to the Segregated Funds.

    e. The benefits related to the policy will be paid to the policyholder according to the Terms and conditions of the policy starting from the revival date of the policy.

    • Discontinuity in premium payment

    In this case, the terms and conditions to be applied will depend on two conditions i.e.

    1. Discontinuity in premium payment within the first five years of the policy inception

    After the expiry of the Grace period, the policyholder will receive a notice from the Insurance Company with two options.

    a. The policyholder should revive the policy within a period of 2 years from the date of discontinuity of the premium payment. In this case, if the policyholder does not revive the policy within the given time period, then all the proceeds of the policy will be paid out to the policyholder at the end of the lock-in period. b. The policyholder should withdraw or surrender the policy without availing any life coverage. In case no action is taken by the policyholder within a period of 30 days after receipt of the notice, the policy would be considered as surrendered or withdrawn. In this case, the Discontinuance value will be shifted to the ‘Discontinuance Policy Fund’. After the expiry of the Lock-in period, the proceeds of the ‘Discontinuance Policy Fund’ are paid to the policyholder.

    2. Discontinuity in premium payment after the first five years of policy inception In this case, after the grace period expires, the Insurance Company will send a notice to the policyholder for taking an action out of the below-mentioned three options.

    a. The Revival of the policy within a period of 2 years. b. Surrender of the policy. c. Conversion of the policy into a Paid-Up policy with Paid-Up Sum Assured

    Paid-Up Sum assured can be calculated as per the below-mentioned formula.

    Paid-Up Sum Assured= (Sum Assured) x (total number of premiums that are paid)/ (the original number of premiums payable)

    • Termination or Surrender of policy

    After completion of five years from the date of inception of the policy, a policyholder can surrender or terminate the policy. The major advantage of the surrender of the policy after five years is that the entire Fund Value will be paid to the policyholder without making any changes. But in case of surrender before 5 years, the net fund value due to charges of discontinuance will be credited into the ‘Discontinuance Policy Fund’ where it can get growth at the rate of 4% per annum. Once 5 years are completed, the fund value present in the ‘Discontinuance Policy Fund’ will be paid to the policyholder.

    Documents required For Aegon Life iMaximize Insurance Plan

    Usually, there is an application form which needs to be filled by the applicant. Furthermore, the necessary documents needed for the purchase of the policy are:

    • Identity Proof- Aadhaar Card, Voter Identity Card, PAN Card, etc.
    • Address Proof- Aadhaar Card, Passport, Voter Identity Card, Driving License, Passport, etc.
    • Age Proof- Passport, Voter Identity Card, Driving License, etc.
    • Income Proof- Income Tax Return receipts, Salary slips, statement of bank transactions, etc.
    • Passport-sized photograph of the applicant

    Exclusion of Aegon Life iMaximize Insurance Plan

    One of the exclusions of the Aegon Life iMaximize plan is Suicide exclusion. If the death of the life insured occurs due to suicide within a time period of 12 months from either the revival date of the policy or from the date of commencement of risk, then the nominee of the life insured is eligible to receive the Fund Value which is available on the date of death of the life insured. Moreover, if there are any such charges which are being recovered after the death of the life insured, they would also be paid back to the nominee together with the death benefit.

    Furthermore, another exclusion in Aegon Life iMaximize plan is the non-availability of loan facilities against the policy. Policyholders cannot avail the facility of taking a loan against the policy and utilizing it for some other financial purpose.

    Review of Aegon Life iMaximize Insurance Plan

    The Aegon Life iMaximize plan is a renowned insurance policy today due to its dual benefits. In addition to linked returns and insurance cover, this policy also guarantees cover up to a large extent for the education expenses of kids. It ensures that your child will receive adequate financial security which he needs. Along with being a value for money investment, the Aegon Life iMaximize plan also provides a choice to the policyholder for selecting the protection which is suitable for him. Moreover, the policy provides flexibility to the policyholders in case of making investment according to the risk that can be borne by him.

    The method of procurement of the policy is also quite easy by an online method and involves no hassle of contact with agents, commuting, etc. So, if an individual is willing to enjoy the benefits of investment at optimum costs, Aegon Life iMaximize plan is the best choice available in the insurance market.

    FAQs on Aegon Life iMaximize Insurance Plan

    How can a policyholder check the status of his Aegon Life iMaximize plan?

    You can check your Aegon Life iMaximize plan’s status by calling the Customer Support Team on a toll-free number or by email communication with the company authorities or logging into the customer portal.

    Are there any charges levied for re-direction?

    For a particular policy year, two premium re-directions are allowed free of any cost. However, after that, a charge of Rs. 100 is levied for each re-direction in a particular policy year.

    Can the sum assured of an Aegon Life iMaximize plan be changed?

    For making any changes into the sum assured of the Aegon Life iMaximize plan, a request has to be submitted to the Insurance Company, if the same is feasible under the plan’s terms and conditions, the request would be processed.

    How can a claim be made in an Aegon Life iMaximize plan?

    The Company should be immediately informed in case of the death of a policyholder. Later on, the filed claims along with the necessary supporting documents must be submitted to the Company. The processing of claims usually starts after the completion of necessary verifications by the insurance company.

    Are there any policy administration charges levied for the Aegon Life iMaximize plan?

    Yes, the policy administration charge is levied from the fund of the policy at the rate of Rs. 100 each month at the starting of each month.