LIC Aadhaar Stambh
LIC Aadhaar Stambh (Plan No. 943, UIN No. 512N310V02) is one of those unique policies offered by the Life Insurance Corporation of India that is specially designed for males at an affordable premium rate. It is a Non-Linked, Participating, Individual, Life Assurance plan that has come up with both the facilities of protection and savings. It not only offers financial support to the nominee or the beneficiary in case of the unfortunate and untimely demise of the insured person, but it has also come up with the Auto Cover and loan facility to look after the liquidity needs of the policyholders.
Have a look at the below table to know more about the policy.
|Type of plan||Endowment plan|
|Launch date||1st February 2020|
Features and Benefits of LIC Aadhaar Stambh Plan
LIC Aadhaar Stambh has presented a sack full of different benefits and facilities. To know more about its advantages and key features, have a look at the below mentions.
- On death during the first five years – In case of the unfortunate and untimely demise of the life assured before the date of maturity, during the first five years of the policy, Sum Assured on Death will be paid to the beneficiary of the policyholder. In this case, the policy should be an active one,
- On death after the completion of five policy years – In that case, on the demise of the life assured, the Sum Assured on Death along with loyalty addition have to be paid by the Corporation. Remember, in this case too, the policy should be in force which means all the due premiums should be paid.
The death benefit should not be less than 105% of total premiums paid up to the date of death. And this premium does not include any taxes, extra premium, and rider premium.
This is an endowment plan, so certainly this plan comes with maturity benefits. But, it has conditions like, the life assured has to survive the entire policy tenure and the policy should be active which means all the due premiums should be paid clearly. Only after fulfilling these conditions, one is eligible to receive the maturity benefit that is the compilation of Sum Assured on Maturity and loyalty additions. This Sum Assured on Maturity is equal to the basic sum insured.
The life assured is only eligible for the loyalty addition when he/she fulfills the following criteria.
- The policy has to complete 5 years.
- During these five years, all the premiums have to be paid without any delay.
- The Corporation’s experience with the policies is a driving factor to receive the loyalty additions.
Only after fulfilling the aforesaid criteria, the life assured become eligible to get loyal addition at the time of exit that means either in case of demise of the insured person or at the time of the maturity of the policy. The rate of loyalty addition and the conditions to receive it are totally decided by the Corporation alone. One is also eligible to receive the same under the Special Surrender Value calculation if he/she surrenders the policy following the same eligibility criteria.
This policy is so flexible that it gives you the opportunity to surrender the policy at any time of your convenience only if you have paid the premiums for this plan for two consecutive years. Upon surrendering this policy, you are eligible to avail of any of the following benefits, whichever is higher.
Guaranteed Surrender Value – It is payable during the policy term, which is equal to the total premiums paid to the policy multiplied by the Guaranteed Surrender Value factor. This premium excludes extra premiums, taxes, and premiums paid for the rider(s) if any. This surrender value totally depends on the policy term and the policy year in which the policy is surrendered.
Special Surrender Value – This surrender value is reviewed and determined by the Corporation itself and it is subject to time to time prior to the approval of IRDAI.
Once you have paid at least 2 consecutive years’ premiums, you are eligible to avail of the loan facility against the LIC Aadhaar Stambh plan. But it is subject to the terms and conditions of the Corporation and it can be reviewed from time to time by the same.
The maximum loan as a percentage of surrender value will be as under:
For in-force policies – up to 90%
For paid-up policies – up to 80%
If statutory taxes are imposed on this plan by the government of India or any other constitutional Tax Authority of India, then you need to pay the applicable taxes as determined by the tax laws. Remember, you need to pay the applicable taxes for base policy and rider, if any including extra premiums, separately.
Eligibility Criteria of LIC Aadhaar Stambh
To avail of this policy, have a look at the eligibility criteria of the LIC Aadhaar Stambh policy.
|Basic sum assured per life|
Minimum – Rs. 75 thousand
Maximum – Rs. 3 lakhs
The Basic Sum Assured shall be in multiples of Rs. 5,000 from Basic Sum Assured Rs. 75,000
to Rs. 1,50,000 and Rs. 10,000 for Basic Sum Assured above Rs.1,50,000)
|Age at entry|
Minimum – 8 years (completed)
Maximum – 55 years (nearest birthday)
|Policy term||10 years to 20 years|
|Premium paying term||Same as policy term|
|Maximum age at maturity||70 years (nearest birthday)|
It has to be remembered that the total Basic Sum Assured under all policies issued to an individual under this plan should not exceed Rs. 3 lakhs.
Optional Benefits Available Under LIC Aadhaar Stambh
Apart from the basic benefits and facilities, the LIC Aadhaar Stambh policy has also come up with different optional benefits to provide more power to it. To know the details, have a look at the below mentions.
To strengthen your existing LIC Aadhaar Stambh policy, you can also opt for LIC’s Accident Benefit Rider at any time at your convenience during the policy term. The rider benefits can be enjoyed in case of accidental death, and the Accident Benefit Sum Assured will be payable in a lump sum amount. But for this, you need to fulfill the following conditions.
- For availing of this rider benefit, the policy should be an active one.
- The policy period of the base plan should be at least 5 years.
- The Rider Sum Assured cannot exceed the Basic Sum Assured under the Base plan.
Settlement Option For Maturity Benefit
In order to generate a regular flow of income, you can receive the maturity benefit in installments instead of a lump sum amount for a chosen period of 5 or 10, or 15 years. This facility is available for paid-up policy and in-force policy as well. These installments are subject to minimum installment amounts for different modes of payments as mentioned below.
|Mode of Instalment payment||Minimum installment amount|
Option To Take Death Benefit in Installment
Similar to the maturity benefit, you can also receive the death benefit in installments instead of a lump sum amount to generate a regular flow of income. For this, you need to choose a policy period of either 5 years or 10 years, or 15 years. This facility is available for both the paid-up policy and an active policy. For availing of this facility, the life assured or the policyholder has to be 0f 18 years or above. For this, the mode of installment will be either monthly, quarterly, half-yearly, or yearly. These installments are subject to minimum installment amounts for different modes of payments, which is similar to the maturity benefit.
Sample Illustrative Premium of LIC Aadhaar Stambh
The sample illustrative annual premiums for Basic Sum Assured of Rs. 1 Lakh for Standard lives are as below (the premiums do not include taxes):
|Age of policy term||10||15||20|
|10||Rs. 8732||Rs. 5253||Rs. 3567|
|20||Rs. 8766||Rs. 5287||Rs. 3601|
|30||Rs. 8786||Rs. 5316||Rs. 3646|
|40||Rs. 8879||Rs. 5454||Rs. 3832|
|50||Rs. 9222||Rs. 5880||Rs. 4332|
LIC Aadhaar Stambh With An Example
For your better understanding, here is an example. Suppose, Mr. Sharma, a 37 years-old businessman has bought the LIC Aadhaar Stambh plan for himself. Let us find out how much premiums he has to pay for different policy term options.
|Age||Gender||Sum assured||Policy term||Additional coverage (accidental benefit)||Number of lives||Total yearly premium (including tax)|
|37||Male||Rs. 3 lakhs||15 years||Yes||Single life|
(Basic premium – Rs. 15570
Rider premium – Rs. 150
Taxes – Rs. 707)
(Basic premium – Rs. 12233
Rider premium – Rs. 150
Taxes – Rs. 557)
(Basic premium – Rs. 10646
Rider premium – Rs. 150
Taxes – Rs. 486)
Exclusions of LIC Aadhaar Stambh
While buying an insurance policy, it is very important to know about the exclusion of the plan to avoid future problems. Though LIC Aadhaar Stambh has come up with a bundle of benefits, it has also certain exclusions. Here are the details of those.
- If the Life Assured commits suicide at any time within 12 months from the date of commencement of risk, then the Corporation will not liable to provide any claim except for 80% of the total premiums paid, while the policy is active.
- If the Life Assured commits suicide within 12 months from the date of revival, an amount of 80% of the premiums paid till the date of death or the Surrender Value available as on the date of death, whichever is higher, will be compensated by the Corporation.
Frequently Asked Questions
As per the LIC guidelines, the Sum Assured on Death is defined as either seven times the annualized premium or 100% of the Basic Sum Assured.
Yes, under a paid-up policy, Loyalty Addition will be payable for the completed policy years for which the policy was in force.
No, without having any pre-policy medical check-up, you can avail of this policy if you have a standard healthy life.
Under this plan, the risk will commence immediately from the date of acceptance of the risk.
To know about the rebates under this policy, follow the below mentions.
Yearly mode – 2% of Tabular Premium
Half-yearly mode – 1% of Tabular premium
Quarterly and Monthly (through NACH) & Salary deduction – NIL
High Basic Sum Assured Rebate (on Premium):
|Basic Sum Assured (Rupees)||Rebate (Rupees)|
|Rs. 75,000 to Rs. 1,90,000||Nil|
|Rs. 2,00,000 to Rs. 2,90,000||1.50% of Basic Sum Assured|
|Rs. 3,00,000||2.00% of Basic Sum Assured|
Under this policy, the premiums can be paid regularly at yearly, half-yearly, quarterly, or monthly intervals (monthly premiums through NACH only) or through salary deductions over the term of the policy.
The interest rate charged for the policy loan is applicable for the entire term of the loan and will be determined at periodic intervals. The applicable interest rate will be as declared by the Corporation based on the method approved by the IRDAI.
For availing of this facility, the policyholder or the life assured needs to exercise the option for payment of net claim amount in installments at least 3 months before the due date of maturity.
Auto Cover Period under a paid-up policy will be the period from the due date of the first unpaid premium (FUP). The duration of it is mentioned as below:
Condition 1: If at least three full years’ but less than five full years’ premiums have been paid under a policy and any subsequent premium is not duly paid – an Auto Cover Period of six months will be available.
condition 2: If at least five full years’ premiums have been paid under a policy and any subsequent premium is not duly paid – an Auto Cover Period of two years shall be available.
As per the rules of the Corporation, the Revival Period and Auto Cover Period will run concurrently, which means that the Auto Cover period does not extend the period of revival.