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LIC Aadhaar Stambh Plan

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Disclaimer - *LIC Aadhaar Stambh is withdrawn by LIC

LIC Aadhaar Stambh – An Overview

The LIC of India introduced the Aadhaar Stambh plan specifically for the male policyholders who hold a valid Aadhaar card issued from the unique identification authority of India. The policy is a non-linked, endowment plan with a regular premium feature. The policyholder can get dual benefits if the death benefits and the maturity benefits at the end of the policy term. For the people who are looking for a plan that provides sum assured to the nominee in case of death of the insured and also provides the maturity benefits at the end of the policy term, LIC Aadhar Stambh is a plan for them.

Eligibility Criteria of Aadhaar Stambh Plan

The eligibility of LIC Aadhaar Stambh Plan is as follows:

Features of the plan

Minimum

Maximum

Basic Sum Assured

Rs. 75,000

Rs. 3,00,000

Policy Term

10 years

20 years

Premium Payment Term

Same as the policy term

Entry Age

8 years (completed at the time of buying the policy)

55 years (nearest birthday of the applicant)

Maximum Maturity Age

70 years

Premium paying frequency

Annually, Half-yearly, Quarterly, Monthly

Risk Assessment

Immediately at the start of the policy

Rebate on the premium amount

Yearly- 2%, Half-yearly- 1% and nil for monthly and quarterly payment

Death Claim Calculation in Aadhar Stambh Plan

The following table guides the policyholder about the payment of sum assured after purchasing the policy. Suppose the insured buys the plan in 2017 at the age of 28 and paid the premium of Rs. 10443, and in the year 2023, he/she dies at the age of 34. The total premium amount paid to the insurer will be Rs. 73,101, in such a case, the sum assured received by the nominee will be Rs. 3,00,000 plus loyalty benefits. In the case of accidental death, the payment will be Rs. 6,00,000 plus loyalty benefits.

Year

Age

Total Paid Premium

(Rupees)

Normal Life Cover (Approx.) in Rupees

Accidental Life Cover (Approx.) in

Rupees

Return

2017

28

10443

300000

600000

--

2018

29

20886

300000

600000

--

2019

30

31329

300000

600000

--

2020

31

41772

300000

600000

--

2021

32

52215

300000

600000

--

2022

33

62658

300000 + LA

600000 + LA

--

2023

34

73101

300000 + LA

600000 + LA

--

2024

35

83544

300000 + LA

600000 + LA

--

2025

36

93987

300000 + LA

600000 + LA

--

2026

37

104430

300000 + LA

600000 + LA

--

2027

38

114873

300000 + LA

600000 + LA

--

2028

39

125316

300000 + LA

600000 + LA

--

2029

40

135759

300000 + LA

600000 + LA

--

2030

41

146202

300000 + LA

600000 + LA

-

2031

42

156645

300000 + LA

600000 + LA

--

2032

43

167088

300000 + LA

600000 + LA

--

2033

44

177531

300000 + LA

600000 + LA

--

2034

45

187974

300000 + LA

600000 + LA

--

2035

46

198417

300000 + LA

600000 + LA

--

2036

47

208860

300000 + LA

600000 + LA

--

2037

48

Maturity

300000 + LA

Salient Features of Aadhar Stambh Plan

The key features of the LIC Aadhar Stambh Plan are as follows:

  • The plan is available only for the males with a valid Aadhar card
  • Loan facility is available on the policy
  • Upon maturity, the insured receives a basic sum assured of Rs. 3,00,000
  • The policy can be revived within two years of the non-payment of the premium amount
  • The insured can get tax benefits on the premium paid towards the plan
  • The maturity amount is tax-free as per the income tax act, 1961
  • Accidental death benefit rider and permanent disability rider is available with the plan

Core Benefits of Aadhar Stambh Plan

The core benefits of LIC Aadhar Stambh Plan are as follows:

Maturity Benefits

At the end of the policy term, if the insured survives and all the premiums have been paid, the insured is eligible to receive maturity benefits from the insurer provider, which is equal to the basic sum assured. The insurer also provides loyalty benefits with the basic sum assured.

Death Benefits

Death of the insured within the first 5 years of the policy will result in a payout of basic sum assured.

Death after 5 years of the plan start, and before maturity, the payout will be equal to the basic sum assured plus the loyalty benefits.

Rebate of High Sum Assured

The insurer provides a rebate on choosing a high sum assured.

Sum Assured (in rupees)

Rebate provided

75,000 to 1,90,000

Nil

2,00,000 to 2,90,000

1.50% of basic sum assured

3,00,000

2%

The surrender value of the plan

After the completion of three years from the date of the start of the plan, an insured can surrender the policy and can get the surrender value from the insurer. The LIC of India will provide the surrender value equal to the higher of guaranteed surrender value or special surrender value.

Policy Risk Commencement

Under the plan, from the start of the policy, the risk will commence. Even the minor will also be included in the risk of the policy. This is an advantage to the policyholder.

Loyalty Addition

Once the policy years are completed, and premiums are paid for a minimum of 5 years then loyalty additions will be paid to the policyholder if the plan is in force. The loyalty additions are also paid if the policyholder surrenders the policy during the plan tenure. The extra additions are calculated under special surrender value calculation.

Auto Cover Period

The plan also has an auto cover period, which is the time from the first unpaid premium due date under the paid-up plan. Auto cover period duration of the plan is mentioned below:

  • Duration of 6 months is available in the auto cover period if the policy has completed a span of 3 years, and the total premium paid must be less than the amount of 5 full years of premium after which the due premiums are not paid
  • The auto cover period duration of 2 years is available if the policy premium for at least 5 years is paid, and the remaining premium is not paid by the policyholder

Loan Option

The loan option is also available under this policy. If the policy acquires a surrender value, then the policyholder can avail of a loan under this plan, which is subject to the terms & conditions of LIC. The rate of interest is subject to change by the policy provider company.

The maximum loan availed under the policy is as follows:

An in-force policy can provide loans up to a maximum of 90% of the surrender value

Paid-up policy can provide loans up to a maximum of 80% of the surrender value.

Optional Accidental Benefit Rider

There is an optional benefit available for a person insured under this plan. Policyholders can choose Accidental Benefit Rider under this plan, which will provide an amount equal to the sum assured to the nominee on the death of the person insured because of an accident. The policyholder must be 18 years of age to avail of this rider.

Exclusion of the LIC Aadhaar Stambh Policy

If the insured commits suicide within 12 months of the start of the policy, the insured is not liable to pay any claim made against the policy. Only 80% of the paid premiums amounts will be paid back to the nominee.

If the insured commits suicide within the first 12 months of the date of the policy renewal, then only 80% of the paid premiums or the surrender value of the policy will be paid to the nominee. Claims won’t be accepted by the policy provider.

Claim Process for Aadhar Stambh Plan

The first step is to inform the insurer about the death of the insured and after the insurer will ask to submit the documents to process the claim. Submit the claim intimation form at the local office of the LIC of India to start the claim process.

Documents required to Claim under Aadhar Stambh Plan

To file the claim under the policy, the following documents will be required to be submitted to the insurer:

  • Death certificate of the insured
  • Proof of age of the insured (if not submitted at the time of purchasing the plan)
  • Cremation or burial certificate
  • Certificate from the medical officer stating the cause of death
  • FIR report from the police station if the death happens in an accident

FAQs

Written By: Paisawiki - Updated: 12 April 2021