Introduction
LIC’s Aadhaar Stambh Plan offers a combination of protection and savings. This plan is exclusively designed for male 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.
Table No.
843
Plan Type
This is a non-linked, with-profit endowment assurance life insurance plan available only for male applicants holding an Aadhaar Card
Plan Basis
Individual
Eligiblity Criteria
Entry Age
Minimum :
The applicant must at least be 8 years of age when first applying for the plan
Maximum :
The applicant must not be above 55 years of age when applying for the plan for the first time
Maturity Age
Minimum
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Maximum
The applicant’s maximum age at the time of plan maturity must not be above 70 years
Basic Sum Assured
Maximum
The min. basic sum assured offered under the plan is Rs.75,000; the max. basic sum assured is Rs.3,00,000; basic sum assured will be provided in multiples of Rs.5,000
Minimum
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Policy Term
This policy will be issued for a term of 10 years to 20 years
Date of risk commencement
The risk coverage under this plan will commence immediately from the date of policy issue
Policy Paying Term
The premium payment term for this plan will be the same as the policy term
Premium Payment Frequency
Premiums for the plan can be paid on an annual, semi-annual, quarterly, or monthly basis; premium payment on a monthly basis will only be allowed under the NACH method
Coverage
Death Benefit
- Death Benefit
- Maturity Benefit
- Participation In Profit
- Loyalty Addition
Key Features
- Male 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)
1. This plan provides auto cover facility i.e. it takes care of liquidity needs through its Auto cover as well as loan facility.
2. This plan is only available for males.
3. It is low premium plan.
4. It is an Endowment policy wherein the amount is given as a lump sum at maturity i.e. at the end of the term.
5. In this plan Loyalty Addition will be paid additionally if the death occurs after 5 years, whereas normal insurance coverage will equal to Basic Sum Assured.
6. At the maturity of this plan the policyholder receives Basic Sum Assured + Loyalty Addition.
7. Critical illness benefits are not available under this plan.
8. Loan facility is available under this plan but only after completion of three years.
9. Benefits like LIC’s Accidental Rider and permanent disability rider are available.
10. Revival of lapsed policy is available under this policy within the two years of first unpaid premium.
11. Paid premiums are exempted from income tax under 80c.
12. Maturity amount is tax free under 10 (10D).
Policy Benefits
Auto Cover
The LIC Aadhaar Stambh 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
In case of the death of the policyholder before the end of the policy term, the nominee will receive the highest of the following:
- Basic Sum Assured
- 10 times the Annualised Premium
- 105% of all premiums paid till date of death
The premiums mentioned above refer to premiums without the tax component and also does not consider any rider premiums.
Loyalty Additions, if declared will be payable as part of the Death Benefit in case the death occurs after 5 policy years.
Maturity Benefit
At the end of the policy term, the policyholder will receive the following:
- Basic Sum Assured
- Loyalty Additions, if declared
Loyalty Addition
Provided the policy has completed five policy years and atleast 5 full years’ premium have been paid, then depending upon the Corporation’s experience the policies under this plan shall be eligible for Loyalty Addition at the time of exit in the form of Death during the policy term or Maturity, at such rate and on such terms as may be declared by the Corporation. Under a paid-up policy, Loyalty Addition shall be payable for the completed policy years for which the policy was inforce.
In addition, Loyalty Addition, if any, shall also be considered in Special Surrender Value calculation on surrender of policy during the policy term, provided the policy has completed five policy years and atleast 5 full years’ premium have been paid.
Date of commencement of risk
Under this plan the risk will commence immediately from the date of inception of policy. It also includes minor lives.
Rebate
Yearly-2%
Halfyearly-1%
Quarterly and monthly- Nil
Profit Participation
Loyalty additions by LIC are offered to policyholders under LIC Aadhaar Stumbh. 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 the special plan for males who have Aadhaar Card. There will not be any medical examination in this plan.
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
Loan can be availed during the policy term provided the policy has acquired a surrender value and subject to the terms and conditions as the Corporation may specify from time to time.
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
Policy holders above 18 years of age have option to opt for Accidental Benefit Rider with this plan, which will provide additional amount equal to basic sum assured in case of death caused due to accident.
Disability Benefit Rider
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LIC’s New Term Assurance Rider
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Surrender Value
If you surrender the plan anytime before paying 3 years of premiums, you will not be paid anything back. In case you have paid at least 3 years premiums, the policy will acquire a Surrender Value.
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
All the benefits under the policy will cease after the expiry of grace period and nothing will be paid, if the premiums have been paid for less than 3 years. In case of premium fully paid for three years and any subsequent premium is not duly paid, then the policy won’t be ceased but continued as a paid-up policy.
Rebates
Rebate on Premium Payment Mode
- Yearly mode – 2% of Tabular Premium
- Half-yearly mode – 1% of Tabular
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%o BSA
- 3,00,000 – 2.00%o BSA
Other Details
Revival Period
If the policy get lapsed then it can be revived within the 2 years from the last premium paying date. If the policy will not revived within 2 years then the policy will get terminated.
Free Look Period
If the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the premium paid net of any
Grace Period
In case of Yearly, Half-yearly and Quarterly premium payment mode you have a grace period of 30 days from the premium due date. In case of monthly premium payment mode, the grace period is of 15 days.
Nomination
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Assignment
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Exclusions
Suicide
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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
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