Mr.Mahesh (age 30 years) is at a senior managerial position with a MNC. His work needs him to travel a lot. He is married and his wife does not work and takes care of their kids - Amog, 4 years and Minal who is just born. Mahesh owns a plush house and a car. However, both of these are availed through a loan. Mahesh knows that life is uncertain. To ensure that in his absence his family continues to live the same lifestyle as they do now, he opts for Aegon Life’s Term Insurance Plan.

His plan details are as follows:

Death Benefit Option 2 (Non Smoker),

Cover Amount (Base Sum Assured) = Rs.50 lakhs, 

Inbuilt Accidental Death Benefit = Rs.50 lakhs,

Policy Term = 30 years, Premium Payment Term = 30 years,

Annual Premium = Rs.12, 900 (exclusive of service tax).

Mr.Mahesh dies in an accident after 3 years

Total Payout = 330% of cover amount (Base Sum Assured)= Rs.1.65 crores(Rs.25 lakhs i.e. 50% of cover amount + Rs. 50 lakhs i.e. 100% of accidental death benefit)+ Rs.1.5 lakhs (3% of Sum Assured) every month for the next 5 years.

The lump sum payout of Rs.75 lakhs received by Mahesh’s family will help them repay loans. Additionally, the monthly payout of Rs.1.5 lakhs over the next 5 years will help them maintain their current lifestyle.