LIC’s Aadhaar Shila

 LIC Aadhar Shila (Plan No. 944, UIN No. 512N309V02) is an individual, non-linked, participating life insurance policy that is primarily designed to protect women’s lives. The plan incorporates the features of protection and savings plans. This plan was introduced by the LIC of India to provide financial support to the family members of the insured women after the demise of the policyholder any time before maturity and a lump sum amount at the time of maturity. In addition to this, the plan also takes care of liquidity needs by offering a variety of benefits.

Key Highlights Of The Plan

Policy Type	Life Assurance Savings Plan
Maximum Sum Assured Amount	Rs. 300,000
Minimum Entry Age	8 years
Rebates on premium	Yearly mode: 2% of Tabular Premium Half-yearly mode: 1% of Tabular premium

Features & Benefits Of LIC Adhaar Shila Policy

The LIC Adhaar Shila plan comes with a list of very useful features which are listed below. Let’s take a look at these features to understand this plan better.

1. Death Benefits: The LIC Adhaar Shila plan offers death benefit which is payable to the nominee or family members of the policyholder upon death of the life assured during the policy term. If the policyholder dies during the first five years of the policy term, the sum assured amount on death is payable to their beneficiary. If death of the policyholder happens after the completion of five policy years but before the date of maturity, then the sum assured on death and loyalty addition, if any, is paid.

2. Maturity Benefits: Another important feature of this plan is that it provides policyholders with a maturity benefit amount that is paid when the life assured survives to the end of the policy term, provided all due premiums have been paid and the policy is in-force. The benefit amount paid equals the sum assured amount on maturity and includes loyalty additional profits as well.

3. Add-on riders: The LIC Aadhaar Shila plan provides policyholders with an additional accident benefit rider which can be availed by paying extra premium amounts. This rider can be purchased at any point in time, while the policy is still in force and till the term of the base plan.

4. Loyalty additions: The LIC company provides its customers with loyalty additions points. In order to avail of this benefit, customers should complete at least five years and pay at least five years’ premium diligently.

5. Loan facility: With this plan, customers can also avail the benefit of the loan facility during the policy term. In order to avail of this benefit, the policy should have acquired a surrender value. The interest rate to be charged for policy loan and as applicable for the entire term of the loan shall be determined at periodic intervals. The maximum loan as a percentage of surrender value shall be as under:- For inforce policies – upto 90%
   – For paid-up policies – upto 80%

6. Maturity Benefit in installments: Another interesting feature of the LIC Aadhaar Shila plan is that it provides customers with the flexibility to receive their maturity benefit in installments over the chosen period of 5, 10 or 15 years instead of lumpsum amount.
7. The installments shall be paid in advance at intervals, as opted for, subject to minimum installment amount for different modes of payments being as under:

   Mode of Installment payment	Minimum installment amount
   Monthly	Rs. 5,000
   Quarterly	Rs. 15,000
   Half yearly	Rs. 25,000
   Yearly	Rs. 50,000

Eligibility Criteria Of LIC Adhaar Shila

In order to buy the LIC Aadhaar Shila policy, customers must fulfill the following requirements-

Eligibility Condition	Minimum Criteria	Maximum Criteria
Basic Sum Assured	Rs. 75,000	Rs. 300,000
Entry Age	8 years	55 years
Policy term	10 years	20 years
Age at Maturity	–	70 years
Mode of premium payment	Monthly, Half yearly, Quarterly and yearly

Functioning Of LIC Aadhaar Shila Plan

While buying the LIC Aadhaar Shila policy, customers have to first decide these following things-

• The basic sum assured amount of the plan
• Policy term period for which you wish to have the cover. Customers can pick any policy term between 10 to 20 years.

Once you’ve decided on these factors, the company will calculate the annual premium amount for your plan. In addition to the above-stated factors, your age and premium payment term can also affect the premium amount.

Here’s a sample illustrative representation of the premium rates of this plan. Please note that the premium rates here are calculated for a sum assured amount of Rs. 1,00,000.

Name of the policyholder	Age	Policy term	Premium amount
Sangeeta	10 years	10 year	Rs. 8,732
Rahul	20 years	15 year	Rs. 5,282
Satakshi	30 years	15 year	Rs.5,312
Lakshmi	40 years	20 year	Rs. 3,817
Rohan	50 years	20 year	Rs. 4,283

For better clarity, let’s study the case of Lakshmi. Her plan details are as follows-

• Sum Assured amount- Rs. 100,000
• Policy term- 20 years
• Premium payment term- 20 years
• Annual premium amount- Rs. 3,817.

Death Benefit

Now, if due to any unfortunate event Lakshmi dies during the first five years of the policy term, then her nominee will receive the sum assured amount as death benefit i.e. Rs 1,00,000 only. In this case, no loyalty additions will be included in the death benefit amount.

However, let’s consider Lakshmi dies after completing 12 years of the policy term. In this case, her nominee will receive the sum assured amount as death benefit along with Loyalty Addition.

The sum assured amount on death will be calculated as-

• 7 times of annualized premium; or
• 110% of Basic Sum Assured

Maturity Benefit

If Lakshmi survives till the maturity age of the plan (20 years), then she’ll receive her sum assured amount i.e. Rs 100,000 along with the loyalty addition benefit as declared by the company.

Exclusions of LIC Aadhaar Shila Plan

Like every other insurance plan, the LIC Aadhaar Shila Plan also comes with certain excluded conditions on the occurrence of which the company does not pay any claim amount. In the case of LIC Aadhaar Shila plan, the excludes the condition of death due to suicide. 

If the policyholder (whether sane or insane) commits suicide at any time within 12 months from the date of buying the policy, then the LIC company will not provide any claim amount except for 80% of the total premiums paid, provided the policy is inforce.

How To Purchase  LIC’s Aadhaar Shila Plan?

Since the plan is not available for online purchase on the GIP website, you can buy it via an offline method. You can visit to an office and the customer representative present there will assist you in buying the plan. Make sure to bring all your necessary documents to make your purchase seamless and convenient. You can also make a call to the company’s customer care number to ensure you bring the relevant documents to our office.

 

 If you have any questions on this plan, please contact our team and we would be happy to help. 

Thank You,

Team

(Growmore Insurance Point)

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