The recent directive issued by the Insurance Regulatory and Development Authority (IRDA) introducing caps on the charges levied by unit-linked policies has started showing results. Aegon Religare, the youngest player in the industry, has taken the first step. It has introduced a new unit-linked insurance plan (Ulip), Aegon Religare Invest Maximiser Plan, which claims to be the cheapest policy in the industry till date. But besides the costs, buyers also need to look at the product’s features and then decide whether it is worth buying.

Features

Aegon Religare’s Invest Maximiser is a type I unit-linked insurance plan that offers the higher of the two — sum assured or fund value — as death benefit. On maturity you will get the fund value accumulated till then. For those who do not wish to take the accumulated corpus at one go, the plan offers a settlement option wherein you can you can receive an equated amount over a period not exceeding five years.

Eligibility. The plan can be bought by anybody in the age group of 90 days to 50 years. The minimum premium allowed is Rs 2,000 a month or Rs 12,000 annually, which can be paid either in monthly instalments or once annually.

Life cover offered. The plan doesn’t offer buyers much choice. Unlike other Ulips that offer a sum assured of at least five times the annual premium and one can opt for more cover, this plan provides life cover of only five times the annual premium paid. For those looking to buy a Ulip mainly for its insurance cover, this plan will not suffice. “This is more like an investment product that along with returns provides you an insurance cover. For someone who wants to buy high insurance cover, there are other products in our stable, like the term cover, which can be bought,” admits Rajiv Jamkhedkar, chief executive officer, Aegon Religare Life Insurance. Besides, it allows just one policy term of 25 years.

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