LIC of India
LIC Aadhaar Shila Policy

LIC 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 TypeLife Assurance Savings Plan
Maximum Sum Assured AmountRs. 300,000
Minimum Entry Age8 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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%
  1. 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.
    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 paymentMinimum installment amount
    MonthlyRs. 5,000
    QuarterlyRs. 15,000
    Half yearlyRs. 25,000
    YearlyRs. 50,000

Eligibility Criteria Of LIC Adhaar Shila

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

Eligibility ConditionMinimum CriteriaMaximum Criteria
Basic Sum AssuredRs. 75,000Rs. 300,000
Entry Age8 years55 years
Policy term10 years20 years
Age at Maturity70 years
Mode of premium paymentMonthly, 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
Sangeeta10 years10 yearRs. 8,732
Rahul20 years15 yearRs. 5,282
Satakshi30 years15 yearRs.5,312
Lakshmi40 years20 yearRs. 3,817
Rohan50 years20 yearRs. 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.

Frequently Asked Questions

Given below is a list of documents that are required at the time of filing a claim against this policy-

  • Original copy of the policy document,
  • NEFT details
  • Proof of title 
  • Proof of death, 
  • Medical treatment documents prior to the death
  • Age proof (only if the age is not admitted under the policy).

The online buying facility is not applicable for the LIC Aadhaar Shila policy. Customers can buy this plan by visiting their nearest branch of the LIC office.

Yes, customers are allowed to surrender their LIC Aadhaar Shila plan at any time during the policy term, given that they have paid two full years premiums. On surrender of this policy, the Company will pay the surrender value equal to higher of guaranteed surrender value and special surrender value.

For the customers who miss making the premium payment, a grace period of 30 days is given to them for paying the yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of First unpaid premium. However, if the policyholder fails to pay the premium before the expiry of the days of grace, then the policy gets lapsed and the benefits are sealed.

Yes. The company provides policyholders with a free look period of 15 days from the date of receipt of the policy document. If during this period, the policyholder does not feel satisfied with the terms and conditions of the policy, then he/she can return the policy to the Company stating the reason for objections. After receiving the request, the company will cancel the policy and return the deposited premium amount after deducting the proportionate risk premium price.

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