LIC’s Aadhaar Shila Plan is a participating endowment plan which is available only for Females. As the name suggests, this plan can only be purchased by those who have an Aadhaar Card. This plan offers a combination of protection and savings. In case of death of the policyholder, the plan will offer a cover amount to the nominee. The policyholder will get a lumpsum as Maturity Benefit. We will understand the plan better with the help of a few examples.
Launch Date
6th April, 2017
Plan Details
Table No. 843
Policy Type
Endowment
UIN
512N309V01
How does LIC Aadhaar Shila Policy work?
When buying the LIC Aadhaar Shila Plan, the customer has to decide on the following:
Basic Sum Assured - this is the amount of cover that you want. You can choose a minimum amount between Rs. 75,000 and Rs. 3,00,000
Policy Term - this is the period for which you wish to have the cover. The term can be anywhere between 10 to 20 years.
Premium Payment Term - Same as policy term.
Based on the basic sum assured, your age and the policy term selected. your annual premium will be decided.
Benefits in the LIC Aadhaar Shila Plan
Death Benefit in LIC Aadhaar Shila Plan
In case of the death of the policyholder before the end of the policy term, the nominee will receive the highest of the following:
Basic Sum Assured
10 times the Annualised Premium
105% of all premiums paid till date of death
The premiums mentioned above refer to premiums without the tax component and also does not consider any rider premiums.
Loyalty Additions, if declared will be payable as part of the Death Benefit in case the death occurs after 5 policy years.
Maturity Benefit in LIC Aadhaar Shila Plan
At the end of the policy term, the policyholder will receive the following:
Basic Sum Assured
Loyalty Additions, if declared
COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS
LIC Aadhaar Shila Plan with an Example
We have Priya Dixit, age 30 who wishes to buy this plan. He goes in for the plan with the following:
Sum Assured - Rs. 1,00,000 Term - 20 years Premium Payment Term = 20 years
Based on these parameters, his annual premium is Rs. 3,641 + Taxes = Rs. 3,805. Here we have assumed the current tax rate of 4.5%.
Death Benefit
Scenario 1 : If Priya dies after 4 policy years.
Her nominee gets the highest of the following:
Basic Sum Assured - Rs. 1,00,000
10 times the Annualised Premium = 10 x 3,641 = Rs. 36,410
105% of all premiums paid till date of death = 105% x 4 x 3,641 = Rs. 15,292
The highest of the above is Rs. 1,00,000 - which is what the nominee will receive. Since the policy has not completed 5 years, no Loyalty Additions will be payable.
Scenario 2 : If Priya dies after 15 policy years
Her nominee gets the highest of the following:
Basic Sum Assured - Rs. 1,00,000
10 times the Annualised Premium = 10 x 3,641 = Rs. 36,410
105% of all premiums paid till date of death = 105% x 15 x 3,641 = Rs. 57,346
The highest of the above is Rs. 1,00,000. Since the plan has completed 5 policy years, it is eligible to receive Loyalty Additions. So nominee will receive Rs. 1,00,000 + Loyalty Additions. The value of Loyalty Additions can only be known when it is declared.
Maturity Benefit
Scenario 3 : If Priya survives till the end of the policy term of 20 years - Anurag will get the Basic Sum Assured + Loyalty Addition as declared.
Total Premiums Paid = Rs. 76,097 (including taxes)
Basic Sum Assured = Rs. 1,00,000
Loyalty Additions - As declared.
Sample Premium Illustration of LIC Aadhaar Shila Policy
Here are the sample tabular premium rates (inclusive of taxes) payable by a healthy, non-tobacco user male for different combinations of age, Sum Assured and policy term. We have gone with the current applicable tax rate of 4.5% for such policies.
<< Use standard premium graph. Get values from LIC site>>
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Eligibility Criteria for buying LIC Aadhaar Shila Policy
Minimum
Maximum
Basic Sum Assured*
Rs. 75,000
Rs. 3,00,000
Policy Term
10 years
20 years
Premium Payment Term
Same as policy term
Entry Age
8 years (completed)
55 years (nearest birthday)
Maximum Maturity Age
70 years (nearest birthday)
Premium paying frequency
Annually, Half-yearly, Quarterly, Monthly
* The total Basic Sum Assured for multiple Aadhaar Shila policies issued to an individual cannot exceed Rs. 3,00,000.
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Tax Implications in LIC Aadhaar Shila Plan
Premiums – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act.
Maturity Claim – Maturity amount is exempted from tax under Sec 10(10D) of the Income Tax Act
Death Claim – Death claims received under the plan are free from taxation under Section 10(10D) of the Income Tax Act
Other Benefits in the LIC Aadhaar Shila Policy
Free-look Period – If the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the premium paid net of any applicable expenses would be returned.
Grace Period - In case of Yearly, Half-yearly and Quarterly premium payment mode you have a grace period of 30 days from the premium due date. In case of monthly premium payment mode, the grace period is of 15 days.
Loan - You can avail a long against this policy after you have paid 3 years of premium.
Riders - You have the choice of taking the following rider by paying an extra premium amount:
LIC’s Accident Benefit Rider
Surrender Value - If you surrender the plan anytime before paying 3 years of premiums, you will not be paid anything back. In case you have paid at least 3 years premiums, the policy will acquire a Surrender Value. Check the Surrender Value of LIC Aadhaar Shila Plan.
If you have any questions on the LIC Aadhaar Shila Policy, drop in a line in the comments and we will be happy to help out.
