Afternoon, Product Review – AEGON Religare Money Back Plus Plan

Monday, June 11, 2012

By Manoj Aswani

A Money Back Plan with Bonus

Aegon Religare Money Back plus Plan is a traditional money back insurance plan which offers Bonus. It is a Limited Pay policy.

How does the plan work?

All you will need to do is choose the protection you need. You will receive periodic survival benefits at the end of 4th year. 8th year and 12th year at the rate of 10%, 20% and 30% of sum assured respectively. Moreover, the plan is a with profit plan wherein the Company will declare bonus rate from the first policy year onwards.

Key Features

Life cover continues for a period of 6 years after the end of premium payment term

• Bonus accrues first year onwards

• Regular inflow of income at regular intervals

• 120% of sum assured paid till maturity

• 100% of sum assured along with accrued bonus in case of death during policy term

• High Sum Assured Discount


Periodic Survival Benefits At the end of 4th, 8th and 12th policy year, you are entitled to receive a percentage of sum assured as periodic survival benefits as per the table below:


End of Year

4th Year

8th Year

12th Year

% of Sum Assured Paid





 Maturity Benefit - At the end of the policy term, you will be entitled to receive 60% of sum assured or 100% paid up sum assured, as applicable with the simpl reversionary accrued bonus.

Death Benefit - In case of your unfortunate demise, the nominee receives the sum assured or paid-up sum assured along with the simple reversionary accrued bonus and terminal bonus, if any, irrespective of the periodic survival benefits already paid and the plan cease to exist.

Bonus - Your policy will participate in the profits emerging in the participating fund managed by the Company. The Company will declare simple reversionary bonus as percentage of sum assured every year provided the policy is in force for full sum assured. Bonuses once declared form a part of guaranteed benefits of the plan. The bonus will be paid in case of maturity or on an earlier demise.

Paid-Up Policy - In case you fail to pay your premiums after 3 years, the policy still continues with the paid-up sum assured.

Surrender Benefit - The policy will acquire surrender value after completion of 3 years. You have the option to surrender the policy anytime after payment of 3 years' premium. The Surrender Value is calculated as Surrender value factor X paid up sum assured.

Tax Benefit -Premium paid under this policy will be eligible for tax benefit u/'s 80C and the benefits received under the policy will be eligible for tax benefit u/s 10(10D )


Eligibility conditions



Sum Assured On (in Rs.)



Policy Term On years


Premium Payment Term (in yrs.)


Entry  Age of Lite Insured (in yrs.)

90 days


Age at maturity (in yrs.)



Entry Age of Child (In yrs.)



Payment modes

Yearly and Half-Yearly and Monthly


 Loan - Minimum amount of loan available under the policy is Rs. 5,000 and maximum amount is not more than 60% of the surrender value.

Discontinuance of Premium - If the first 3 years premiums are not paid, the policy lapses with all the benefits including life insurance coverage will terminate. If premium is not paid after paying the premium for first 3 years', the policy continues with the paid-up sum assured which is calculated as {(Total Premiums received / Total premiums expected over the term) x (120% of Sum Assured)} - Sum of all periodic survival benefits already paid). Thereafter, the policy continues for the paid-up sum assured which is paid on death or maturity.


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