LIC Aadhaar Shila Plan

LIC Aadhaar Shila-An Overview

Exclusively designed for females, the LIC Aadhaar Shila plan is an endowment policy that offers the dual benefit of savings and life protection. The plan offers financial coverage to the family in case the policyholder dies during the policy term. Additionally, the plan also offers maturity benefits in case the policyholder survives till the end of the policy tenure. Moreover, it also takes care of liquidity needs through auto cover and loan facility options.

Eligibility Criteria of LIC Aadhaar Shila Plan

The following are the eligibility criteria of the policy.

Benefits Offered by LIC Aadhaar Shila Plan

The following are the key benefits of the LIC Aadhaar Shila Plan by the Life Insurance Corporation of India:

• Maturity Benefit
  If the life assured survives the entire tenure of the policy, then after the completion of the policy tenure, the maturity benefit is offered as the basic sum assured and loyalty additions, if any. The maximum tenure of the policy is 20 years, and upon maturity, the policyholder can reinvest the lump sum amount in a new policy.

• Death Benefit
  In the event of the unfortunate demise of the life assured, the death benefit is payable to the nominee of the policy. In case of demise of the life assured during the first five policy years, then the sum assured amount on death is payable to the nominee of the policy.
  If the life assured dies after completion of the 5 policy years but before the maturity date, then the sum assured amount and the loyalty addition, if any, is paid to the policy's beneficiary.
  The death benefit payable is defined as:

  • 7 times the annualized premium

  • 110% of the basic sum assured amount.

• Loyalty Additions
  The Corporation tracks the first five years of premium payments and entitles a policyholder to Loyalty Additions. It is also awarded to policyholders who are old or loyal customers of LIC of India.

• Surrender Benefit
  The policyholder can surrender the policy after the completion of two consecutive policy years. On surrender of the policy, the guaranteed surrender value payable during the policy tenure should equal the total premium paid (excluding taxes, extra premiums, and rider premium, if any) multiplied by the guaranteed surrender value factor applicable to the total paid premium under the plan.

• Policy Loan
  Loan benefit is available after the policy achieves surrender value, and the loan amount that can be availed is up to a maximum of 90% of surrender value in-force policies and 80% of surrender value in paid-up policies. 

• Tax Benefits
  The benefits enjoyed under this policy are subject to income tax rebates as per prevailing laws.
  * Tax benefit is subject to alterations in tax laws

• Payment of Premiums
  The premium payment tenure is equal to the policy tenure in LIC Aadhaar Shila Plan. It can be paid in yearly, monthly, quarterly, or half-yearly modes.

• Rebates Applicable

The plan offers several rebates such as:

Additional Benefits Under LIC Aadhaar Shila Plan

LIC Aadhaar Shila offers several optional benefits through which the policyholder can enhance their coverage by paying an additional premium.

1. Optional Riders

   LIC Accident Benefit Rider is available to the policyholder and can be added to the base policy after completing the first five years. The rider, once opted for, will be applicable in case the policyholder meets with an unfortunate accident or dies due to an accident. The death benefit, then payable, will be supported by the benefits of the rider.

2. Maturity Benefits in installments

   Under the policy, a policyholder can receive maturity benefits in installments over 5/10/15 years. The installment available under a different mode of installment payment are: 

   Mode of Installment Payment	Minimum installment amount
   Monthly	Rs. 5,000/-
   Quarterly	Rs. 15,000/-
   Half-Yearly	Rs. 25,000/-
   Yearly	Rs. 50,000/

3. Death Benefits in installments

   Under the policy, one can receive death benefits in installments over 5 years, 10 years, or 15 years. The installment available under different mode of installment payment are: 

   Mode of Installment Payment	Minimum installment amount
   Monthly	Rs. 5,000/-
   Quarterly	Rs. 15,000/-
   Half-Yearly	Rs. 25,000/-
   Yearly	Rs. 50,000/

Sample Illustration for LIC’s Aadhaar Shila Policy

Let’s assume a 26-year-old female who has chosen to secure a sum of Rs.3 Lakhs for a policy term of 20 years. The premium paying term thus shall be 20 years, payable yearly, half-yearly, quarterly, or monthly. The following illustration highlights the respective premiums payable (inclusive of taxes) against each mode of payment. 

To check the LIC Aadhaar Shila premium in different scenarios, you can use the LIC Premium and maturity calculator. The calculator is an online tool that can be used free of cost and will give you accurate estimates as per your input.

Documents Required to Purchase LIC Aadhaar Shila Plan

To buy an LIC Aadhaar Shila policy, one has to provide:

• Identity proof - Aadhaar card, voter's card, and passport

• Address proof- Aadhaar card, driving license, electricity bill, ration card, voter's card, and/or passport.

• Income proof - such as Income tax returns or salary slips.

• Health records of life assured.

Exclusions of LIC Aadhaar Shila Plan

Under this policy, the suicide clause is an exclusion wherein the beneficiary receives 80% of the premiums paid if the suicide happens within the first 12 months of inception of policy risk, or the surrender value, whichever is earlier.

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