Introduction
LIC’s Aadhaar Shila Plan offers a combination of protection and savings. This plan is exclusively designed for female lives having Aadhaar Card issued by UIDAI (Unique Identification Authority of India). This plan provides financial support for the family in case of unfortunate death of the policyholder any time before maturity and a lump sum amount at the time of maturity for the surviving policyholder.
This plan will be available to standard healthy lives without any medical test requirement.
Table No.
844
Plan Type
Non-linked, With-Profits, Endowment Assurance
Plan Basis
Individual (Female Only)
Eligiblity Criteria
Entry Age
Minimum :
8 Years (Completed)
Maximum :
55 (Nearest Birthday)
Maturity Age
Minimum
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Maximum
70 Years (Nearest Birthday)
Basic Sum Assured
Maximum
75,000
Minimum
3,00,000
Policy Term
Minimum 10 Years
Maximum 20 Years
Policy Paying Term
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Premium Payment Frequency
Yearly, Half Yearly, Quarterly & Monthly (SSS and NACH Only)
Coverage
Death Benefit
- Death Benefit
- Maturity Benefit
- Participation In Profit
- Loyalty Addition
Key Features
- Female Only Plan
- Low Premium Plan
- Auto Cover Facility
- Paid premiums are exempted from income tax under 80C
- Maturity amount is tax free under 10 (10D)
Policy Benefits
Auto Cover
The LIC Aadhaar Shila policy 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.
Death Benefit
- On death during First Five Years of the policy:
- Death claim amount will be equal to 110% of Basic Sum Assured.
- On death after 5 years of the policy and before maturity:
- Death claim amount will be equal to 110% Basic Sum Assured + Loyalty Addition(LA).
Please Note: It understandable that Loyalty Addition is applicable after successful completion of 5 Policy years.
Maturity Benefit
On survival of year term, Maturity will be Basic Sum Assured + Loyalty Addition.
Loyalty Addition
If the policy has completed five years and full premium has been paid for at least five years, then the plan is eligible for Loyalty Addition at the time of exit in the form of death during the policy term or maturity. Under a paid-up policy, Loyalty Addition shall be payable for the completed policy years for which the policy was in force. Loyalty addition is also considered during Special Surrender Value Calculation on surrender of policy during the term, only if the policy has completed five years and at least for five years full premium has been paid.
Rebate
2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly
Profit Participation
Loyalty additions by LIC are offered to policyholders under LIC Aadhaar Shila. However, in order to be eligible for these profits, the existing policy has to have completed at least five years and the policyholder has to have paid at least five years’ premium diligently. Loyalty additions/profits from LIC are typically made available with maturity and death benefits, and at the time of exit. The terms and conditions and rates surrounding this feature are declared by LIC.
Ideal Plan
This is a plan solely designed for women who simply need to have an Aadhar Card. This plan provides financial support to a woman and allows her to ensure that the future of her loved ones is safe and secured even if she is not around. In case of her death, the nominee will receive a lump sum called the death benefit and in case she survives the term, she receives the maturity benefit. Loyalty additions which are an integral part of this scheme only add up to help a woman from a monetary point of view which makes it a brilliant plan for a woman who wishes to safeguard the future of her loved ones. The plan is provided by LIC which is one of the biggest names in the insurance industry. It has served and has been in existence for more than six decades and hence the LIC Aadhar Shila Plan is easily a popular choice among women who wish to purchase an insurance plan for themselves.
Tax Benefits
All premiums under the issued policy will have to be paid according to the Schedule mentioned in the policy documents. The premium amount will include Goods and Services Tax (GST) as well.
- Premium paid under this plan is eligible for TAX rebate under section 80c.
- Maturity under this plan is free under sec 10(10D)
Loans
The insured can also avail a loan in case of any financial requirement. Loan facility is available under this plan,after payment of premiums for at least 3 full years.
The interest rate to be charged for policy loan shall be determined at periodic intervals. For Financial Year 2016-17, the applicable interest rate is 10% p.a. payable half-yearly
The maximum loan as a percentage of surrender value shall be as under:
- For inforce policies – upto 90%
- For paid-up policies – upto 80%
Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.
Riders
Accidental Death and Disability Rider
You can avail additional accidental benefit rider under this policy. You need to pay an extra premium for the same. In the case of accidental death, accidental rider benefit along with basic sum assured shall be payable. 0.5 / 1000 Sum assured
Disability Benefit Rider
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LIC’s New Term Assurance Rider
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Surrender Value
The policy can be surrendered at any time during the policy term provided atleast three full years premiums have been paid.
Guaranteed Surrender Value
The Guaranteed Surrender Value shall be a percentage of total premiums paid (net of taxes) excluding any extra premiums and premiums for riders, if opted for. This percentage will depend on the policy term and policy year in which the policy is surrendered
Special Surrender Value
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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. However, under such policies Auto Cover Period as mentioned below shall be applicable.
Rebates
Rebate on Premium Payment Mode
2% for yearly, 1% for half yearly and Nil for other modes
Rebate on Sum Assured
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High Sum Assured and Mode Rebate
| 75,000 to 1,90,000 – Nil | |
| 2,00,000 to 2,90,000 – 1.50/ thousand sum assured | |
| 3,00,000 2.00/thousand sum assured |
Other Details
Revival Period
If premiums are not paid by the end of the grace period then the policy will lapse. A lapsed policy can be revived within a period of 2 consecutive years from the date of first unpaid premium.
Free Look Period
A free-look period of 15 days is provided.
Grace Period
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Nomination
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Assignment
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Exclusions
Suicide
The plan will cease to exist during following situations:
- If the insured commits suicide within a year of the purchasing of the policy, the scheme will cease to exist. The insurer is liable to pay only 80% of the total premiums paid, provided the policy is still active.
- If the insured commits suicide within a year of the revival of the plan, the amount whichever is higher of the total surrender value or 80% of the total premiums paid will be payable to the nominee.
Claim Process
Death Claim
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Maturity Claim
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Surrender Claim
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Examples
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FAQs
Why should you buy LIC Aadhaar Shila plan?
- LIC Aadhaar Shila is a low savings investment plan that offers high returns
- This plan takes care of liquidity needs through auto cover and provides loan facility
- Offers tax exemptions under Section 80C on premiums paid
- Maturity amount is tax free
- If higher sum assured is opted for then LIC Aadhaar Shila plan offers tax rebates