Ageas Federal Life - POS Guaranteed Income Plan

Objectives

This plan provides the exact same combination - life insurance and guaranteed returns. This plan not only gives youlife insurance protection, but also ensures peace of mind with guaranteed returns. Moreover it also gives you a choiceof either income or endowment option basis your financial needs and future goals.

Benefits

Key benefits of the plan :

1. Pay premiums only for the first 5 years 2. Life-cover for entire 10 years
3. Enjoy guaranteed benefits irrespective of market conditions 4. Choose to receive your benefits as a lump sum or as regular income basisyour need 5. Get tax benefits of Sec 80C and Sec 10(10D)

Entry Age Details

Age at entry of lifeinsured (last birthday) : Minimum - 8 years for Endowment Option;13 years for Income Option

Maximum - 50 years

Maturity Age Details

Minimum Maturity Age: years. Maximum Maturity Age depends on the Premium Payment Term(PPT)

Policy Term

Fixed for 10 years

Premium Payment Term

Premium paymentperiod : Fixed for 5 Years

Premium Details

Premium(In multiples of 5,000) : Minimum - Rs.25000 Maximum - Rs.100000

Premium payment mode

Premium Frequency(Mode) : Fixed - Yearly

Death Benefits

Income Option : On death of the insured person, provided the policy isin force and all premiums have been paid in full; thebeneficiary would be paid the Death Sum Assuredsubject to waiting period. Once a death claim is paid,the policy will be terminated. Death Sum Assured is 10 times of premiums payableper annum excluding service tax, if any. Endowment Option : On death of the insured person, provided the policy isin force and all premiums have been paid in full; thebeneficiary would be paid the Death Sum Assured.Once a death claim is paid, the policy will beterminated. Death Sum Assured is 10 times of premiums payableper annum excluding service tax, if any.

Maturity Benefits

Income Option : You will receive Guaranteed Annual Payouts (GAP) on survival of life insured till the end of each policy year, from endof 6th year till end of policy term i.e. 10th year, provided the policy is in force and all due Premiums have been paid todate.GAPs are defined as percentage of the annualized premium and depend on the age at entry of the life insured and thepremium amount. There is no guaranteed sum assured payable on maturity. The last GAP will be paid on survival to maturity.GAP = GAP factor X Annualized Premium

Endowment Option: You will receive Maturity sum assured (MSA) on survival of the life insured till maturity. This is defined as a percentageof the total annualized premiums payable and depends on age at entry of the life insured and the premium amount.On this payment, the policy shall terminate. Maturity Sum Assured = Maturity Factor x Annualized premium x PPT

Tax Benefits

a) Service tax and other levies, as applicable, will be levied as per the extant laws.

b) Deduction under section 80C: The premiums thatyou pay are eligible for deduction under section80C of the Income Tax Act, 1961. For the Financialyear FY 2017 - 18 deductions can be claimed underSection 80CCE up to Rs.1,50,000 for the totalpayments, contributions made under Sections80C, 80CCC and 80CCD. c) Tax-free benefits under section 10(10D): Thebenefits received under the plan are tax-freeunder section 10(10D) of the Income Tax Act,1961.

Free Look Period

You are entitled to a free look period for 15 days fromthe date of receipt of policy. If by the end of this time,you do not wish to continue this policy then you mayrequest us in writing to cancel the policy statingreasons. We will refund the premium paid by youafter deducting proportionate premium for the coverprovided during that time and stamp duty chargesincurred by us in respect of the policy.

Grace Period

Grace period is effective from the date of the firstunpaid premium. The plan allows a grace period of 30days from the premium due date. The policy willremain in force during the grace period and benefitsunder this policy will be payable. In case of death during the grace period, before thepremium due at that time is paid, the premium dueshall be deducted from the death benefit payable. If premium is not paid beyond the grace period, thepolicy shall lapse and have no further value, except ifit has acquired any paid-up value.

Policy Loans

You can avail a loan on your policy only after itacquires a surrender value. The loan that you can availwill be from a minimum of Rs.5,000 and limited to 85%of the guaranteed surrender value at the time ofapplication, subject to terms and conditions specifiedby IDBI Federal from time to time. The current rate of interest applicable from 1stFebruary, 2017 is 9.65% p.a. basis 10 years G-Sec rateas on 1st January, 2017. The frequency of reviewingloan interest rate is 6 months.

Revival Details

A policy which has lapsed or has been made paid-upmay be revived subject to the following conditions: a) An application for revival within two years fromthe due date of the first unpaid premium. b) The insured person must furnish us withsatisfactory evidence of health and satisfy otherrequirements according to board approvedunderwriting policies at that time. The arrears ofpremium together with interest, at such rate asdecided by the Company from time to time, isreceived along with the revival application. Theinterest rate will be 3% more than the 10 yearannualized yield of Government securities andshall be compounded quarterly. (The current rateof interest is 9.65% basis 10 years G-sec rate as on1st February, 2017 and will be reviewed post 6months). The interest rate shall be reviewed every6 months.

Surrender Charges

Income Option : The policy acquires a surrender value after paymentof two full years premiums. Surrender Value is higherof Guaranteed Surrender Value (GSV) and SpecialSurrender Value (SSV). GSV is specific percentage (GSV factor) of totalpremiums paid and will vary depending on the policyyear in which it is surrendered. Any GAPs paid will bededucted from the Guaranteed Surrender Value.

Endowment Option: The policy acquires a surrender value after paymentof two full years premiums. Surrender Value is higherof Guaranteed Surrender Value (GSV) and SpecialSurrender Value (SSV). GSV is specific percentage (GSV factor) of totalpremiums paid and will vary depending on the policyyear in which it is surrendered.

General Exclusions

Suicide exclusion: We will pay 80% of the premiums paid as the death benefit if the insured person, whether sane or insane, commitssuicide within 12 months from the date of inception of the policy. In case of suicide within one year of Revival of theplan, the benefit payable will be 80% of premiums paid till death or Surrender Value as available on the date of death,whichever is higher.

Claim & Solvency Ratio

Claim Ratio	Solvency Ratio
96% (2023-24)	3% (March 2024)

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Frequently Asked Questions About Insurance

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What is health insurance? +

Health insurance is a type of coverage that pays for medical and surgical expenses incurred by the insured. It may also provide coverage for other types of health-related costs, such as prescription drugs, mental health services, and preventive care.

Why do I need health insurance? +

Health insurance helps protect you from high medical costs. It provides access to medical care when you need it, helping to pay for doctor visits, hospital stays, surgeries, prescription medications, and other health-related services.

What is a premium? +

A premium is the amount you pay for your health insurance every month. Depending on your plan, the premium may vary based on factors like age, location, and level of coverage.

What is a deductible? +

A deductible is the amount of money you must pay out-of-pocket before your health insurance starts covering your medical expenses. For example, if you have a deductible of $1,000, you must pay $1,000 out-of-pocket before your insurance starts covering your medical bills.

What are copayments and coinsurance? +

Copayment (copay): A fixed amount you pay for a covered health care service, typically when you get the service. Coinsurance: The percentage of the cost you pay for covered health services after you've paid your deductible. For example, if your coinsurance is 20%, you pay 20% of the bill, and the insurance company pays the remaining 80%.

What is an out-of-pocket maximum? +

The out-of-pocket maximum is the maximum amount you can spend on your health insurance. If you exceed this amount, your insurance company will pay 100% of your medical expenses.

What is the difference between in-network and out-of-network providers? +

In-network providers: Health care providers that have a contract with your health insurance plan to provide services at negotiated rates. Out-of-network providers: Providers that don't have a contract with your insurance plan. Services from these providers may cost more or not be covered at all.

What is a Special Enrollment Period (SEP)? +

The Special Enrollment Period (SEP) is a special time during the year when you can sign up for or make changes to your health insurance plan. If you miss this period, you may have to wait until the next one unless you qualify for a Special Enrollment Period (e.g., due to a life event like marriage or having a baby).

Can I keep my doctor with health insurance? +

If you have a preferred doctor, it’s important to check if they are in-network with your insurance plan. If they are not in-network, you may need to pay more out-of-pocket, or you may have to switch to another doctor who is in-network.

What is a Health Savings Account (HSA)? +

A tax-advantaged account for people with high-deductible health plans (HDHPs). The funds roll over from year to year and can be used for qualifying medical expenses.

What is a Flexible Spending Account (FSA)? +

A tax-advantaged account for people with low-deductible health plans (LDHPs). The funds roll over from year to year and can be used for qualifying medical expenses.

What is a Health Maintenance Organization (HMO)? +

An HMO is a type of health insurance plan that requires you to choose a primary care physician (PCP) and get referrals from them to see specialists. HMOs often have lower premiums and out-of-pocket costs but offer less flexibility in choosing providers.

What is a Preferred Provider Organization (PPO)? +

A PPO is a health insurance plan that offers more flexibility in choosing healthcare providers and doesn’t require referrals to see specialists. You can see any doctor, but you’ll pay less if you use in-network providers.

What is the difference between a Health Savings Account (HSA) and a Flexible Spending Account (FSA)? +

HSA: A tax-advantaged account for people with high-deductible health plans (HDHPs) The funds roll over from year to year and can be used for qualifying medical expenses. FSA: A tax-advantaged account for people with low-deductible health plans (LDHPs) The funds roll over from year to year and can be used for qualifying medical expenses.

What does the term "pre-existing condition" mean? +

A pre-existing condition is a medical condition that you had before you got your health insurance. It could include things like diabetes, high blood pressure, or heart disease.

Can I cancel my health insurance at any time? +

Yes, you can cancel your health insurance plan at any time. However, if you cancel outside the open enrollment period, you may not be able to get another plan until the next enrollment period unless you qualify for a Special Enrollment Period.

Are prescription drugs covered by health insurance? +

Many health insurance plans cover prescription medications, but the coverage may vary. Plans typically have a formulary, or list of covered drugs, and different drugs may have different levels of coverage, depending on whether they are generic, brand-name, or specialty drugs.

What is preventive care? +

Preventive care includes health services that help prevent illnesses, such as vaccinations, screenings, and annual checkups. Under the Affordable Care Act, most preventive services are covered by health insurance plans at no additional cost to the policyholder.

What should I do if my health insurance claim is denied? +

If your claim is denied, you can appeal the decision. Review the denial letter for reasons, contact your insurer for assistance, and file a written request for a hearing. If you win the appeal, you may be able to get a refund or other compensation.

How can I choose the best health insurance plan for me? +

When selecting a plan, consider factors like: Your health care needs (e.g., frequent visits, prescriptions) The plan’s network of doctors and hospitals The cost of premiums, deductibles, copays, and out-of-pocket maximums Coverage for specialized care or treatments Compare the different plans and benefits to find one that meets your needs.

What happens if I don't have health insurance? +

If you don’t have health insurance, you can still access some health care services, such as emergency care, in-network doctors, and in-network hospitals. You may be eligible for Medicaid, which provides some health care services at no cost to you.

What is life insurance? +

Life insurance is a contract between you and an insurance company, where you pay regular premiums in exchange for a lump sum payment (death benefit) to your beneficiaries upon your death.

What are the different types of life insurance? +

Term Life Insurance: Provides coverage for a specific period (e.g., 10, 20, or 30 years). If you pass away during this term, your beneficiaries receive the death benefit. It does not build cash value. Whole Life Insurance: Offers lifetime coverage with a death benefit and also builds cash value over time, which you can borrow against or use. Universal Life Insurance: A flexible policy that allows you to adjust the premiums and death benefit while also building cash value.

How much life insurance coverage do I need? +

The amount of coverage you need depends on factors like your income, debts, family needs, and long-term financial goals. A common rule is to have coverage worth 10 to 15 times your annual income, but this can vary based on your individual situation.

What is the difference between beneficiaries and policyholders? +

The policyholder is the person who owns the life insurance policy and pays the premiums, while the beneficiary is the person or group that receives the death benefit when the policyholder passes away.

Can I change my beneficiaries? +

Yes, you can change your beneficiaries at any time during the life of the policy, as long as the policy is in force and you follow the correct procedure with the insurance company.

What is the contestability period? +

The contestability period is the time during which you have the right to contest the decision of the insurer to pay the death benefit. This period varies depending on the type of life insurance policy and the insurer.

Does life insurance cover accidental death? +

Some life insurance policies include accidental death coverage, while others may require a separate rider for this benefit. Be sure to review your policy to understand what’s covered.

Can I cancel my life insurance policy at any time? +

Yes, you can cancel your life insurance policy at any time, provided you follow the correct procedure with the insurance company.

What is cash value? +

Cash value is the accumulated value of the life insurance policy that can be used to pay for expenses, such as medical bills or funeral expenses.

How do I borrow against cash value? +

You can borrow against the cash value of your life insurance policy, but it will need to be repaid, and any unpaid loan will reduce the death benefit.

What is the difference between whole life and universal life insurance? +

Whole life insurance provides coverage for a specific period (e.g., 10, 20, or 30 years) and builds cash value over time. Universal life insurance offers lifetime coverage with a death benefit and also builds cash value over time.

How are life insurance premiums determined? +

Life insurance premiums are based on factors like age, health, lifestyle (e.g., smoking), coverage amount, and type of policy. Generally, younger, healthier individuals pay lower premiums.

Can I borrow money from my life insurance policy? +

If you have a whole life or universal life policy, it may build cash value over time. You can borrow against this cash value, but it will need to be repaid, and any unpaid loan will reduce the death benefit.

What happens if I stop paying my life insurance premiums? +

If you stop paying premiums, your policy may lapse. For permanent policies like whole or universal life, the cash value may cover the premiums for a time, but eventually, if premiums are not paid, the policy will end.

What is auto insurance? +

Auto insurance is a contract between you and an insurance company that provides financial protection against damage or injury caused by accidents, theft, or other incidents involving your vehicle. It covers both liability and your vehicle's repair costs depending on the type of policy.

What types of auto insurance coverage are available? +

There are several types of auto insurance coverage, including liability, collision, comprehensive, uninsured/underinsured motorist, and additional coverage like roadside assistance and collision damage waiver.

How much auto insurance do I need? +

The amount of coverage you need depends on factors such as the value of your car, your driving habits, your state's legal requirements, and whether you own or lease your vehicle. A good starting point is to meet your state's minimum required coverage, but you may want additional coverage for added protection.

Can I cancel my auto insurance policy at any time? +

Yes, you can cancel your auto insurance policy at any time, provided you follow the correct procedure with the insurance company.

What is the difference between liability and comprehensive coverage? +

Liability coverage covers the damages and injuries caused by accidents, while comprehensive coverage also covers non-accident damages, such as theft or vandalism.

How do I choose the right auto insurance policy? +

When selecting an auto insurance policy, consider factors such as the type of coverage you need, your driving habits, the value of your vehicle, and your state's legal requirements.

What factors affect my auto insurance premium? +

Several factors impact your insurance premium, including: Your driving history (accidents, tickets), The make, model, and age of your car, Your location (accident rates in your area), Your age, gender, and marital status, The level of coverage you choose, Your credit score (in some states).

What is a deductible? +

A deductible is the amount you must pay out of pocket before your insurance policy starts to cover the remaining cost of repairs or claims. For example, if you have a $500 deductible and incur $2,000 in damages, you will pay $500, and your insurer will pay the remaining $1,500.

What is the difference between comprehensive and collision coverage? +

Collision coverage pays for repairs to your vehicle after a collision with another vehicle or object, regardless of who is at fault. Comprehensive coverage covers non-collision incidents, such as theft, vandalism, or damage from natural disasters.

Can I get uninsured/underinsured motorist coverage? +

Yes, uninsured/underinsured motorist coverage is available in some states. This coverage provides financial protection for you if another driver is uninsured or underinsured.

Is auto insurance required by law? +

Yes, in most states, you are required to have a minimum level of liability insurance. Some states also require additional coverage like Personal Injury Protection (PIP) or uninsured motorist coverage. The requirements vary by state, so it’s important to check your local laws.

What happens if I don’t have auto insurance? +

If you drive without insurance, you risk facing legal penalties, fines, and the possibility of your driver's license being suspended. If you're involved in an accident, you could be held responsible for the damages.

Can I add other drivers to my auto insurance policy? +

Yes, you can add other drivers, such as family members or friends, to your policy. However, their driving record and age may affect your premium. It's important to inform your insurer about all the drivers in your household.

What should I do if I get into an accident? +

If you're in an accident, follow these steps: Ensure safety by moving to a safe location if possible. Call the police and file a report. Exchange contact and insurance information with the other driver(s). Take photos of the accident scene, vehicle damage, and injuries. Notify your insurance company about the accident as soon as possible.

What is home insurance? +

Home insurance is a contract between you and an insurance company that provides financial protection against damage or loss caused by natural disasters, theft, or other incidents.

What types of home insurance coverage are available? +

There are several types of home insurance coverage, including flood, fire, burglary, and liability. You may also have coverage for water damage, mold, and other property damage.

How much home insurance do I need? +

The amount of home insurance coverage you need depends on the value of your property, the type of coverage you want, and your insurance provider. You may also need additional coverage for water damage, mold, and other property damage.

Can I cancel my home insurance policy at any time? +

Yes, you can cancel your home insurance policy at any time, provided you follow the correct procedure with the insurance company.

What is the difference between flood and fire coverage? +

Flood coverage covers damage caused by floods, while fire coverage covers damage caused by fires.

How do I choose the right home insurance policy? +

When selecting home insurance, consider factors such as the type of coverage you need, the value of your property, and your insurance provider.

What factors affect my home insurance premium? +

Factors such as the type of coverage you need, the value of your property, and your insurance provider can significantly impact your premium.