LIC Aadhaar Stambh

About LIC Aadhaar Stambh

• LIC Aadhaar Stambh is an endowment plan that offers a lumpsum on maturity
• Primary objective of this plan is investments with low risk returns
• This plan is exclusively for males who own Aadhar Card
•  A nominal premium amount is to be paid
• There are no medical tests involved under this plan
• Has a flexible policy term between 10 and 20 years

How Does This Plan Work?

Under this LIC Aadhaar Stambh, plan an individual especially a male chooses a policy term between 10 and 20 years. he pays regular annual premium for the entire policy term. On maturity, he receives Sum Assured on Maturity along with Loyalty Additions (if payable). Sum Assured on Maturity is Basic Sum Assured.

During the first five years of the policy term, if an unfortunate death occurs of the individual then his nominee would only get Sum Assured on Death. But if he dies anytime after the fifth year during the policy term then the nominee would get Loyalty additions( if payable) along with Sum Assured on death.

The Sum Assured on Death is a higher value chosen from:

• 10 times of annualised premium
• Basic Sum Assured

Note that the sum assured on death paid is > 105% of all the premiums paid till death

Now let us understand this plan with the help of an example.

Consider,

Woman’s age: 35 years
Sum assured: Rs 3 lakh
Policy term: 20 years
Premium paying term: 20 years

 A 35 years old woman agrees to pay Rs10,528 as an annual premium for a sum assured of 3 lakhs under LIC Aadhaar Stambh plan for a term of 20 years. After the policy term ends, at maturity he will receive Basic Sum assured (Rs 3 lakhs) + Loyalty additions payable at 8% (Rs 49,500) as Maturity Benefit.

In-case of an unfortunate death of the woman occurs in the 6^th year of the policy; her nominee will receive Sum assured on Death and loyalty additions (Rs7500).

The sum assured on death paid is a higher value from:

• 10 times of annualised premium (Rs 1,05,280)
• Basic Sum Assured (Rs 3 lakh)

So, the total death benefit received is of Rs 3,07,500.

Why should you buy LIC Aadhaar Stambh plan?

• LIC Aadhaar Stambh is a low savings investment plan that offers high returns
• This plan takes care of liquidity needs through auto cover and provides loan facility
• Offers tax exemptions under Section 80C on premiums paid
• Maturity amount is tax free 
• If higher sum assured opted for then LIC Aadhar Stambh plan offers tax rebates

Who should buy LIC Aadhaar Stambh plan?

• Minimum and maximum entry ages are 8 years and 55 years
• Minimum sum assured is Rs 75,000
• Maximum age at maturity is 70 years
• Women who are sole earning members that for an additional source of income that would be helpful for their child’s marriage
• Individuals who want income tax benefits

Understand the Bonus Declared

A percentage of surpluses (profit) are declared by the insurer in the form of Loyalty Additions depending upon the number of years the insured has been with the company.
It is accrued at the end of every fifth year and paid to the nominee on death during policy term or to the insured on maturity.
For this plan Loyalty rate is assumed to be calculated at Rs 11 per thousand of Sum Assured.
For a sum assured of Rs 1,00,000  it would be 1.1%, then the amount of Rs 11,000 gets accumulated into the policy for that year.

Riders and Add-ons

Rider available with this plan is as follows:

LIC’s Accidental Death Benefit Rider: If the insured dies due to an accident, an additional lumpsum benefit will be paid to his nominee.

Claim Process

Know Claim Process of LIC Aadhaar Stambh

Claim Process