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LIC Aadhaar Shila Plan

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NOTE: LIC Aadhar Shila plan has been withdrawn by LIC

LIC’s Aadhaar Shila plan is a policy from LIC. It is a policy that is mainly oriented for women. This policy comes with the dual benefit of protection and savings. This plan has been introduced specially for females who are having Aadhaar cards.  Under the plan, the family of the holder of the policy receives financial support in the event of her sudden death before the expiry of the policy term. In addition to this, in case the policyholder is surviving after the term of the policy, she receives maturity benefits in a lump sum. The policy also features a loan facility. Any standard healthy female can take this plan without the need to undergo any medical test.

What is LIC Aadhaar Shila Plan?

LIC Aadhaar Shila Plan is an insurance plan which is not linked to the market. This plan comes with profits, and it requires the payment of a regular premium. Hence it is an endowment plan. This plan offers both savings as well as security.  This plan is a Loyalty Addition based plan. The policy is a life protection tool along with the investment benefits, and the investor can get good returns from the insurer at the end of the policy term.

Features and Benefits of LIC Aadhaar Shila Plan

The key features offered under this plan are as follows:

  • It is available only to female citizens of the country
  • This plan offers the auto-cover facility
  • This plan covers death benefit as well as maturity benefits
  • Loyalty addition is offered in the event of death after five years of taking policy
  • This plan has the loan facility
  • Optional riders such as LIC Accidental benefit rider are also offered. The insurer is liable to pay a sum assured against the rider if the policyholder dies in an accident. The sum assured is other than the death benefits of the basic insurance plan. The insured has to pay a certain premium to get the coverage of the rider
  • Tax benefits under the respective section of the Income Tax Act, 1961, are available. The maximum amount allowed by the tax law to be deducted from the taxable income against the paid premiums in a financial year is Rs. 1,50,000. The tax has to be paid on the final amount after making the deductions

The core benefits covered under the plan are as follows:

  • Benefit in case of Death: In the event of the death of the policyholder during the first five years of the policy, the benefit equal to the sum assured on death is available
  • In case of the death of the policyholder after five years, but before the plan matures, then loyalty addition shall be provided apart from the death benefit, which is the sum assured on the death
  • In the case of death of the policyholder during the auto cover period under a paid-up policy, the death benefit is paid after deducting the unpaid premiums concerning the base policy with interest up to the date of death and the base premium for the policy falling due from the date of the death and before the next policy year, if applicable
  • In case the policyholder survives the term of the policy, the maturity amount is paid, which is the sum assured on the maturity plus loyalty additions
  • This plan also provides a free look period. In case the policyholder is not satisfied with any of the terms and conditions, he or she may return the policy within 15 days of the receipt of the policy document. The policyholder must state the reasons for objections and disagreement

Inclusions of the LIC Aadhaar Shila Plan

The main inclusions of LIC Aadhaar Shila Plan are as follows:

  • This plan is available to all female citizens of the country
  • The minimum age to take the policy is 8 years and the maximum age is 55 years
  • The plan provides for a free look period of 15 days in case the policyholder is not satisfied with the terms and conditions of the policy after buying the policy

Exclusions of the LIC Aadhaar Shila Plan

In the case of the following situations, the policy shall cease to exist:

  • In the event of suicide by the policyholder within 12 months of taking the policy LIC of India shall be liable to pay 80% of the total premiums paid by the insured till the date of death, provided that policy is in force
  • In case the policyholder commits suicide within 12 months of the revival of the policy, LIC shall be liable to pay surrender value or 80% of the total premiums paid, whichever is higher to the nominee.
  • Non-disclosure of the medical events and procedures undergone by the policyholder can also lead to rejection of claims. The applicant should carefully mention the medical history in the proposal form to prevent any incident to claim rejection at a later stage

Eligibility Criteria for LIC Aadhaar Shila Plan

The eligibility criteria for the plan can be explained by the table below:




Only Female

Minimum age of entry

8 years

Maximum age of entry

55 years

Minimum term of the policy

10 years

The maximum term of the policy

20 years

Minimum and Maximum Sum Assured

Minimum: Rs. 75,000

Maximum: Rs. 3,00,000

Commencement of risk

Immediately from the date of acceptance of the policy

The Claim Process for the LIC Aadhaar Shila Plan

Intimation of the death should be filed with LIC of India within 90 days of the death. The delay in filing intimation of death may be condoned by LIC on merits, and where reasons are proved to be beyond the control of the claimant.

Documents required for the Claim

The following documents are to be filed with the claim form to get the claim initiated. The final list of the documents required should be confirmed from the insurer to prevent any delay in the claim settlement.

  • The claimant shall be required to submit the claim forms
  • Original policy documents like policy renewal copy
  • Death certificate of the insured from the hospital (if admitted)
  • Proof of age of the deceased if not submitted at the time of purchasing the plan
  • Certificate from the medical attendant stating the cause of death
  • First information report or the panchnama if the death happened in a road accident
  • NEFT mandate from the claimant for direct credit of the amount to the bank
  • KYC details of the nominee like the pan card, Aadhar Card or any other identity proof

The insurer has the right to verify the details related to the death of the insured and can conduct its investigation to check the validity of the documents. If the documents are not in order or compliance, then the process might be delayed, and the nominee can reach out to the insurer to understand the cause.

Required Documents to buy LIC Aadhaar Shila Plan

The following documents are required to buy the plan

  • Duly filled application form stating the name of the applicant, date of birth, annual income, and medical conditions if any
  • Age Proof: It may be anyone document amongst Birth certificate, driving licence, passport, school or college certificate, & PAN card
  • Identity Proof: It may be anyone document amongst Passport, Aadhaar Card, PAN card, Voter ID or driving licence
  • Address proof: It may be anyone document amongst Utility bill, Aadhaar Card, bank account statement, or bank passbook


Written By: Paisawiki - Updated: 12 April 2021