Ageas Federal iSecure Plan: Good or Bad? An Insightful Review
Is the Ageas Federal iSecure Plan truly the safety net your family deserves, or just another overhyped promise?
Does the Ageas Federal iSecure Plan offer genuine long-term security, or just peace of mind on paper?
Is the Ageas Federal iSecure Plan the protection you’ve been searching for, or a plan you might regret later?
This article explores the plan’s key features, benefits, and drawbacks to help you make an informed decision.
What is the Ageas Federal iSecure Plan?
What are the features of the Ageas Federal iSecure Plan?
Who is eligible for the Ageas Federal iSecure Plan?
What are the benefits of the Ageas Federal iSecure Plan?
Grace Period, Discontinuance and Revival of the Ageas Federal iSecure Plan
Free Look Period for the Ageas Federal iSecure Plan
Surrendering the Ageas Federal iSecure Plan
What are the advantages of the Ageas Federal iSecure Plan?
What are the disadvantages of the Ageas Federal iSecure Plan?
Research Methodology of Ageas Federal iSecure Plan
Benefit Illustration – IRR Analysis of Ageas Federal iSecure Plan
Ageas Federal iSecure Plan Vs. Other Investments
Ageas Federal iSecure Plan Vs. Pure-term + PPF/Equity Mutual Fund
Final Verdict on the Ageas Federal iSecure Plan
Ageas Federal iSecure Plan is a Non-linked, Non-participating, Individual, Pure Risk Premium and Savings Life Insurance Plan.
The plan provides easy flexibility to tailor it based on your life needs and comes with features that tie in with your payment preferences, as well as comprehensively enhance your protection.
Option 1 – Life Cover
Maturity Benefit is not applicable under this option
Option 2 – Life Cover with Return of Premium
Upon survival of the Life Assured till date of maturity of the policy, provided the policy is in force, the Maturity Sum Assured equal to Total Premiums Paid till date for the base plan option shall be payable in a lump sum.
With respect to the base plan option, in the unfortunate event of the death of the Life assured during the Ageas Federal iSecure Plan policy term, provided the policy is in force, the Death benefit equal to the Death Sum Assured shall be payable in a lump sum to the beneficiary.
Death Sum Assured for Limited and Regular Pay will be the higher of:
Death Sum Assured for Single Pay will be the higher of:
For other than Single pay policies
i).Grace Period
Grace period is 30 days for Yearly and Half-Yearly mode and 15 days for Monthly mode from the due date for the payment of Premium.
ii).Lapse
For Option 1 – Life Cover and for Add-on-Benefits
Regular Pay: In case of non-payment of due Premiums within the grace period, the Ageas Federal iSecure Plan policy shall lapse, and no benefits are payable.
Limited Pay: In case of non-payment of due Premiums during the first three consecutive policy years within the grace period, the Ageas Federal iSecure Plan policy shall lapse, and no benefits are payable
For Option 2 – Life Cover with Return of Premium
Regular or Limited Pay: In case of non-payment of due Premiums within the grace period for the first full policy year, the policy shall lapse, and no benefits are payable.
iii).Paid-up
For Option 1 – Life Cover
This is a pure protection plan option and therefore does not acquire paid-up value. However, a Refund Value (as applicable) shall be payable as mentioned under the surrender section.
For Option 2 – Life Cover with Return of Premium
After acquisition of Surrender Value, in case of non-payment of due Premiums within the Grace Period, the Ageas Federal iSecure Plan policy shall be made paid-up with reduced benefits.
If the reduced paid-up policy is not revived before the end of the revival period, the policy shall continue as a reduced paid-up policy.
iv).Revival
A policy which has lapsed or paid up can be revived for full benefit within 5 consecutive complete years from the due date of the first unpaid premium or before the end of the Ageas Federal iSecure Plan policy term, whichever is earlier
In case you do not agree to any of the Ageas Federal iSecure Plan policy terms and conditions, or otherwise and have not made any claim, you have the option to return the policy within a free look period of 30 days beginning from the date of receipt of the policy document (whether received electronically or otherwise).
a).For Option 1 – Life Cover
This is a pure protection plan option and therefore does not acquire any surrender value.
However, If the Ageas Federal iSecure Plan policyholder voluntarily opts to close the policy after payment of all due Premiums for at least the first three consecutive policy years, the following Refund Value shall be payable:
For Limited Pay: Refund Value = 70% x Total Premiums Paid till date for base plan option x [(Policy Term – Premium Payment Term) / Policy Term] x [Unexpired Policy Term (in months) / Policy Term (in months)]
For Single Pay: Refund Value = 70% x Total Premium Paid for base plan option x (Unexpired Policy Term (in months) / Policy Term (in months))
For Regular Pay: Refund Value is nil
b).Option 2 – Life Cover with Return of Premium:
For Regular and Limited Pay: Policy shall acquire Surrender Value after completion of the first policy year, provided one full year’s premium has been received.
For Single Pay: Policy shall acquire Surrender Value immediately upon payment of a single premium.
For all premium payment options, Surrender Value payable shall be the higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).
The Ageas Federal iSecure Plan offers life coverage for a fixed term, with two variants — with Return of Premium and without Return of Premium — based on the maturity benefit.
If the Ageas Federal iSecure Plan policyholder survives the policy term and has chosen the ‘Return of Premium’ option, the total premiums paid are returned as a lump sum maturity benefit.
However, under the ‘Without Return of Premium’ option, no maturity benefit is payable.
For instance, consider a 35-year-old male who purchases the plan with a Sum Assured of ₹1 crore and coverage up to age 65. The annual premium for this life cover is ₹36,570, under Plan Option 2 – Life Cover with Return of Premium.
| Male | 35 years |
| Sum Assured | ₹ 1,00,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 30 years |
| Annualised Premium | ₹ 36,570 |
Over 30 years, he has paid a total of ₹10.97 lakh, which is returned at maturity. The IRR (Internal Rate of Return) for this cash flow is zero, as there are no bonuses or value additions.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -36,570 | 1,00,00,000 |
| 36 | 2 | -36,570 | 1,00,00,000 |
| 37 | 3 | -36,570 | 1,00,00,000 |
| 38 | 4 | -36,570 | 1,00,00,000 |
| 39 | 5 | -36,570 | 1,00,00,000 |
| 40 | 6 | -36,570 | 1,00,00,000 |
| 41 | 7 | -36,570 | 1,00,00,000 |
| 42 | 8 | -36,570 | 1,00,00,000 |
| 43 | 9 | -36,570 | 1,00,00,000 |
| 44 | 10 | -36,570 | 1,00,00,000 |
| 45 | 11 | -36,570 | 1,00,00,000 |
| 46 | 12 | -36,570 | 1,00,00,000 |
| 47 | 13 | -36,570 | 1,00,00,000 |
| 48 | 14 | -36,570 | 1,00,00,000 |
| 49 | 15 | -36,570 | 1,00,00,000 |
| 50 | 16 | -36,570 | 1,00,00,000 |
| 51 | 17 | -36,570 | 1,00,00,000 |
| 52 | 18 | -36,570 | 1,00,00,000 |
| 53 | 19 | -36,570 | 1,00,00,000 |
| 54 | 20 | -36,570 | 1,00,00,000 |
| 55 | 21 | -36,570 | 1,00,00,000 |
| 56 | 22 | -36,570 | 1,00,00,000 |
| 57 | 23 | -36,570 | 1,00,00,000 |
| 58 | 24 | -36,570 | 1,00,00,000 |
| 59 | 25 | -36,570 | 1,00,00,000 |
| 60 | 26 | -36,570 | 1,00,00,000 |
| 61 | 27 | -36,570 | 1,00,00,000 |
| 62 | 28 | -36,570 | 1,00,00,000 |
| 63 | 29 | -36,570 | 1,00,00,000 |
| 64 | 30 | -36,570 | 1,00,00,000 |
| 65 | 10,97,100 | ||
| IRR | 0.00% |
Essentially, the return of premium is merely the sum of total premiums paid, without accounting for the time value of money, resulting in zero investment returns as per the Ageas Federal iSecure Plan maturity calculator,.
Policies with a return of premium feature generally come with higher premiums compared to those without it. In contrast, pure-term life insurance policies (without return of premium) offer significant life coverage at a much lower cost.
The premium saved can be invested separately to build a meaningful corpus over time.
For instance, for a Sum Assured of ₹1 crore, a pure-term life insurance policy costs about ₹20,400 per annum for a 30-year term.
In comparison, the Ageas Federal iSecure Plan with the return of premium option charges ₹36,570 per annum for the same coverage and term.
This shows how insurers create the illusion of an “added benefit” (the return of premium) while actually charging a substantially higher premium.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 1,00,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 30 years |
| Annualised Premium | ₹ 20,400 |
| Investment | ₹ 16,170 |
By opting for a pure-term plan, you save ₹16,170 annually, which can be invested separately in any suitable financial instrument. Let’s consider two scenarios:
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 36 | 2 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 37 | 3 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 38 | 4 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 39 | 5 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 40 | 6 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 41 | 7 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 42 | 8 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 43 | 9 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 44 | 10 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 45 | 11 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 46 | 12 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 47 | 13 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 48 | 14 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 49 | 15 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 50 | 16 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 51 | 17 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 52 | 18 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 53 | 19 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 54 | 20 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 55 | 21 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 56 | 22 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 57 | 23 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 58 | 24 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 59 | 25 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 60 | 26 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 61 | 27 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 62 | 28 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 63 | 29 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 64 | 30 | -36,570 | 1,00,00,000 | -36,570 | 1,00,00,000 |
| 65 | 16,65,608 | 39,00,565 | |||
| IRR | 2.57% | 7.28% | |||
Scenario 1 – Investment in PPF:
Investing the annual savings of ₹16,170 in a Public Provident Fund (PPF) results in a maturity value of ₹16.65 lakh after 30 years.
The combined IRR (for the pure-term insurance plus PPF investment) works out to 2.57%. Although this return is lower than inflation, the maturity value is still higher than what the Ageas Federal iSecure Plan provides.
Scenario 2 – Investment in Equity Mutual Fund:
If the same amount is invested in an equity mutual fund, the after-tax maturity value comes to around ₹39 lakh, yielding a post-tax IRR of 7.28%. This return comfortably beats inflation and helps you build a substantial corpus over the 30-year period.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 30 years | 43,70,631 |
| Purchase price | 4,85,100 |
| Long-Term Capital Gains | 38,85,531 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 37,60,531 |
| Tax paid on LTCG | 4,70,066 |
| Maturity value after tax | 39,00,565 |
In essence, the Ageas Federal iSecure Plan merely returns the premiums you’ve paid—without any real growth—while charging higher premiums than a pure-term plan.
This comparison highlights the fundamental difference between a pure-term life insurance policy (without profit or return of premium) and a traditional policy (with profit or return of premium).
The Ageas Federal iSecure Plan offers life cover protection for individuals, with optional features such as an Accidental Death Benefit Rider and the ability to increase the Sum Assured upon milestone events.
The plan comes in two variants – one without return of premium and another that returns the premium if the Ageas Federal iSecure Plan policyholder survives till the end of the term.
However, these added features come at a higher premium cost, and the benefit received does not justify the extra expense.
The return of premium option may seem appealing, but it is not the real advantage of this plan and it also has a high agent commission.
The difference in premiums between this and a pure-term life insurance policy can be invested more effectively in suitable instruments aligned with your financial goals.
The primary purpose of life insurance is to ensure financial security for your family in your absence — a goal that is best achieved through a pure-term life insurance policy with adequate coverage.
Hence, the Ageas Federal iSecure Plan is not an ideal choice for your insurance portfolio.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
Instead, opt for a pure-term life insurance plan with a sufficient Sum Assured and consult a Certified Financial Planner (CFP) to create a goal-based financial plan that helps you achieve your life aspirations.
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