Get ready!! LIC agents are going to approach you with new insurance ‘scheme’. The LIC has recently launched the two new insurance plans, the LIC’s Aadhaar Shila and LIC’s Aadhaar Stambh. As the name suggests, these schemes has some relation with the Aadhaar number. These days Aadhaar has become the talk of the town. So, LIC also want to encash on its recall value.
LIC Aadhaar Stambh and LIC Aadhaar Shila are the same product. The only difference is the gender. The Aadhaar Stambh is for males and Aadhaar Shila is for the females. The scheme are the same old endowment insurance plan which are regularly being promoted by the LIC. You would see that most of the schemes of LIC are Endowment plans. Endowment plans or traditional insurance schemes are the mix of insurance and Investment.
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Features of LIC Aadhaar Stambh And LIC Aadhaar Shila
Both of these new schemes are similar except some difference in premium rates. Thus following features are applicable for LIC Aadhaar Stambh as well as LIC Aadhaar Shila.
Endowment Insurance Scheme
These plans are the traditional endowment insurance plan. In this plan insurance and investment is clubbed together. You pay premium for both of these benefits. In the event of death the family gets sum assured. While in case of survival you get the maturity amount after the term ends.
Non-linked Insurance Plan
You investment part is not invested in share market. Thus your investment value does not fluctuate with the market condition. The sum assured after the maturity is fixed. It does not change. However, loyalty addition may vary. But once a loyalty addition is declared, you certainly get it at the end of the term.
The LIC Aadhaar Stambh and Aadhaar Shila gives death benefit if the policyholder dies during the insurance period. Death can be of any reason. The family of policyholder gets sum assured if the insured person dies. The sum assured is the amount which is determined at the beginning. On the basis of sum assured, the premium is decided.
In LIC Aadhaar Shila, the death benefit would be 110% of the basic sum assured.
The endowment insurance scheme gives the guaranteed sum assured. It means you would get at least the sum assured. Along with this, Aadhaar stambh and Aadhaar shila plan would also give the loyalty addition. The loyalty addition is given to those policyholders who completes a specified term.
The Loyalty Addition is given in many endowment schemes of LIC. It is also applicable in LIC Aadhaar Stambh and LIC Aadhaar Shila. You would get loyalty addition only after completing 5 years of policy and 5 annual premium payment. The amount of Loyalty addition is decided on the basis LIC’s earning.
The loyalty addition is declared time to time however the payment happens only at the end of the policy.
The scheme also gives you the benefit of a rider. You can take accident benefit rider. This rider gives extra amount in case death happens due to an accident. Note, the rider sum assured can’t exceed the basic sum assured. You can take only this rider along with the LIC Aadhaar Stambh and LIC Aadhaar Shila.
Auto Life Cover
The LIC Aadhaar Stambh and LIC Aadhaar Shila policies gives you the life insurance cover even after the policy lapses. This extra life cover is termed as the Auto life cover. However, Auto cover period differs on the basis of policy age.
If your policy has completed 3 years, the Auto cover would be for 6 months. It means if you dont pay premium after 3 years, you would get the Auto life cover of 6 months from the due date.
If your policy has completed 5 years, the Auto life cover would be for 2 years. You would keep getting life insurance cover for 2 years even after the lapse of policy.
Aadhaar Number is Mandatory
This feature is special to this scheme. The Aadhaar number is mandatory for the Aadhaar Shila and Aadhaar Stambh. However, it is not clear what is the purpose of this rule. Packaging! Marketing!
Aadhaar Stambh for Males and Aadhaar Shila for Females
This is another USP of the scheme. LIC has launched same product with two names. The name of the scheme for males and females are different. Except premium, everything else is similar. LIC could have two premium tables instead of two different names. Till now, It has been the norm.
Other Features of LIC Aadhaar Stambh And Aadhaar Shila
- Minimum Basic Sum Assured : Rs. 75,000
- Maximum Basic Sum Assured : Rs. 300,000 *
The Basic Sum Assured shall be in multiples of Rs.5,000/- from Basic Sum Assured Rs. 75,000 to Rs. 1,50,000/- and Rs.10,000/- for Basic Sum Assured above Rs.1,50,000/-.
- Minimum Age at entry : 8 years (completed)
- Maximum Age at entry : 55 years (nearest birthday)
- Policy Term : 10 to 20 years
- Premium Paying Term : Same as Policy Term
- Maximum Age at Maturity : 70 years (nearest birthday)
* Note if you take more than one policy of this scheme, the total sum assured should not exceed 3 lacs.
The plan is available for the healthy person. It does not require any medical examination.
Premium Paying term
It is same as the term of policy. Normally all the LIC policies have same premium paying terms. The LIC Jeevan Labh has the limited premium paying term. Some the policies give extended protection. It is also a way to minimize the premium paying term. The example of such policy is LIC Bima Diamond.
There is much flexibility of premium payment. You can choose any of the following option to pay premium.
- Half Yearly
However, you must know that Annual and Half yearly premium payment is cheaper to you. As, LIC gives 2% rebate for annual premium payment. The half-yearly payment is eligible for 1% rebate.
The LIC also gives you grace period to pay premium. It is 30 days or 1 month after the due date. It means your policy would not lapse till one month of the due date. This grace period comes down to 15 days for monthly premium payment.
Since LIC Aadhaar Stambh And Aadhaar Shila are the combination of insurance and investment, the premium rate is high. As you would know that in an endowment insurance plan most of the premium goes towards the investment. For A 3 lakh sum assured (Age – 30 years, policy term – 20 years) the premium is 10,322. The service charge would be extra. Following is the premium table of the LIC Aadhaar Shila and Aadhaar Stambh. The rates are give for per thousand sum assured.
Premium Table For LIC Aadhaar Stambh
Premium Table For LIC Aadhaar Shila
Revival of Policy
Like all other LIC policies, you can revive the policy after the lapse. As you must be aware that insurance policies gets lapsed if premium is not paid even during the grace period. Such policies can be revived under following conditions.
- You have to revive the policy within 2 years from the due date of last unpaid premium.
- Policy can’t be revived after the date of maturity.
- You have to pay all the unpaid premium with interest. The LIC fixes interest rate for such premium.
- The LIC can revise the premium of revived policy. It can also reject the revival request.
- You can also request for revival of the rider along with the base policy. Only rider can’t be revived.
- The Revival Period and Auto Cover Period shall run concurrently i.e. Auto Cover period does not extend period of revival.
Paid Up Value
The lapse of policy does not mean that you have lost all of your investment. Rather, there would be some value left in the lapse policy. This value is used to give you insurance cover for the remaining period of life. However, the insurance cover would be of reduced sum assured. The leftover value of the lapsed policy is called as the paid up value.
- If less than three years’ premiums have been paid and any subsequent premium be not duly paid, all the benefits under the policy shall cease after the expiry of grace period and nothing shall be payable.
- If at least three full years’ premiums have been paid and any subsequent premiums be not duly paid, the policy shall not be void but shall continue as a paid-up policy.
I have described the basic features of LIC Aadhaar Stambh and LIC Aadhaar Shila. However, you must read the review of these plans before taking any final decision.
Other LIC Plans
LIC Jeevan Labh Policy (Table 836): Features, Benefit and Terms