Aadhaar Shila policy from LIC India is primarily a women-oriented plan that comes with dual benefit of protection and savings. The plan has been introduced specifically for female lives with Aadhaar card issued by Unique Identification Authority of India.
Under the Aadhaar Shila plan, the family of the policyholder receives financial support in case of her sudden death before the end of the policy term. Moreover, the surviving policyholder receives maturity benefits in a lump sum. The policy also offers a loan facility and an auto cover facility to meet the liquidity requirements. The plan is available for standard healthy females without having to undergo any medical test requirement.
Death benefit: If the death of the policyholder occurs during the first five years of the policy, the death benefit will be equal to sum assured on death.
If the death of the policyholder occurs after five policy years, but before maturity, then the death claim under the policy amount will be equal to sum assured on death + Loyalty Additions.
If the death of the policyholder occurs during the auto cover period under a paid-up policy, the death benefit will be paid after deducting:
After the expiry of the auto cover period under a paid-up policy:
The sum assured under a paid-up policy will be equal to the amount called “Death paid-up sum assured” which is paid to the life assured surviving till policy maturity.
In addition to the death paid-up sum assured, the insurance company pays loyalty additions, if any, on maturity.
Death paid-up sum assured = {(Number of premiums paid / total number of premiums payable) x (sum assured on death)}
Maturity benefit: On survival of the policyholder, the maturity amount paid is the sum assured on maturity plus loyalty additions. Maturity benefit payable during and after the expiry of auto cover under a paid-up policy:
The sum assured at maturity will be equal to "Maturity paid-up sum assured" which will be payable to the policyholder on surviving till the end of the policy term.
In addition to the sum assured, the company pays loyalty additions, if any.
Maturity paid-up sum assured = {(number of premiums paid / total number of premiums payable) x (sum assured on maturity)}
Loyalty additions: If all the premiums have been paid for at least five policy years, and the policy has completed five years, then the policy is eligible to receive loyalty additions. Loyalty additions are paid at the time of exit in the form of death benefit during the policy term or on maturity. Loyalty additions are also considered while calculating the special surrender value of the policy.
| Particular | Criteria |
|---|---|
| Gender | Female only |
| Entry age | 8 years |
| Maximum entry age | 55 years |
| Minimum policy term | 10 years |
| Maximum policy term | 20 years |
| Maximum age at maturity | 70 years |
| Sum assured | Minimum Rs. 75000 Maximum Rs. 3,00,000 |
| Premium payment mode | Yearly, half-yearly, quarterly, monthly |
| Premium mode rebate | 2% on the yearly mode 1% on the half-yearly mode |
| Date of commencement of risk | The risk cover under the plan will commence immediately from the date of policy acceptance. |
Following are the sample annual premium rates per 1000 rupees basic sum assured.
| Age/policy term | 10 years | 15 years | 20 years |
|---|---|---|---|
| 10 years | Rs. 89.10 | Rs. 53.55 | Rs. 36.35 |
| 20 years | Rs. 89.40 | Rs. 53.90 | Rs. 36.70 |
| 30 years | Rs. 89.60 | Rs. 54.20 | Rs. 37.15 |
| 30 years | Rs. 90.55 | Rs. 55.55 | Rs. 38.95 |
| 30 years | Rs. 93.85 | Rs. 59.60 | Rs. 43.70 |
Accidental benefit rider: Policyholders above 18 years of age have an option of availing Accidental benefit rider from LIC. This rider will provide an additional amount equal to the basic sum assured, in case the policyholder dies due to an accident. The sum assured under this rider should not exceed the basic sum assured.
Paid-up value: All the benefits under LIC Aadhaar Shila policy will cease after the expiry of the grace period, and the policyholder will receive no benefits if premiums have not been paid for at least three full years. In case the policyholder has paid premiums only for three years, and nothing has been paid for the subsequent years, then the policy will not be terminated but continue as a paid-up policy.
Grace period: Policyholders can pay the premiums regularly at yearly, half-yearly, quarterly, and monthly intervals over the term of the policy. However, policyholders are given additional time to pay the premiums. The policy remains active in this grace period, and the insurance company pays the claim, if it arises. A grace period of not less than 30 days is given in case of yearly, half-yearly, and quarterly premium payment modes and 15 days for monthly payment.
Paid-up value: All the benefits under LIC Aadhaar Shila policy will cease after the expiry of the grace period, and the policyholder will receive no benefits if premiums have not been paid for at least three full years. In case the policyholder has paid premiums only for three years, and nothing has been paid for the subsequent years, then the policy will not be ceased but continue as a paid-up policy.
Free-look period: Policyholders can return the LIC Aadhaar Shila policy to the company if they are not satisfied with the terms of the insurance policy. This period is called the free-look period. Policyholders can return the original policy document within 15 days from the date of receipt of the policy documents.
Policy revival: If policyholders do not pay the due premiums by the end of the grace period, the policy will lapse. However, a lapsed policy can be restored within a period of two consecutive years from the date of first unpaid premium. The policyholder can restore the plan by paying all the arrears of the premiums along with interest compounding half-yearly at the rate fixed by the insurance company.
Auto cover period: The plan offers an auto cover period for a paid-up policy and is the period from the date of first unpaid premium. The duration of auto cover shall be as follows:
Policy loan: Policyholder can avail loan during the policy term, provided the policy has acquired a surrender value. The interest rate charged for such loan is determined at periodic intervals. The maximum of 80% of the surrender value can be availed as a loan amount.
Tax benefits: The premiums paid towards the policy are eligible to receive tax benefits under Section 80C of the Income Tax Act, 1961. Moreover, death benefits and maturity benefits received under the policy enjoys tax benefits under Section 10(10D) of the Income Tax Act, 1961. Income tax imposed on such insurance policies are as per the prevailing tax rate and laws and subject to change from time to time.
LIC Aadhaar Shila policy is specially designed for women citizens holding an Aadhaar card. This plan provides financial support to women and allows them to ensure that the future of their loved ones is safe, even if she is not around. In case of death of the policyholder, the nominee will receive a lump sum amount as a death benefit, and in case the policyholder survives the policy term, the insurance company provides maturity benefits. The plan is offered by Life Insurance Corporation of India, one of the most reputed and the most preferred insurance companies in the country. LIC has served Indians for more than six decades, and hence, LIC Aadhaar Shila is a popular choice among women citizens who wish to purchase an insurance policy for themselves.
Applying LIC Aadhaar Shila plan is simple without having a lengthy procedure to buy the policy. To begin with, the customer needs to submit the following documents to the insurance company. These documents include:
Age proof: Birth certificate, driving license, passport, school or college certificate, and PAN card can be submitted as a valid age proof.
Identity proof: Passport, Aadhaar card, PAN card, Voter ID, or driving license can be submitted as a valid identity proof.
Address proof: Utility bill, Aadhaar card, or bank account statement, bank passbook can be submitted as an address proof.
Along with the photocopies of the documents listed above, the customer has to fill up an application form and also provide self-attested photocopies of the mentioned KYC documents.
The policy will cease to exist during the following situations:
Aadhaar Shila Policy from Life Corporation of India is with profit, non-linked policy. It is a regular premium paying endowment insurance plan, exclusively designed for female citizens of India having an Aadhaar card. The policy is available for standard healthy female citizens without having to undergo any medical test requirement.
LIC Aadhaar Shila is a low premium policy with the maximum available coverage limited to Rs. 3 lakhs. Premiums towards the policy can be paid annually, semi-annually, quarterly, and on a monthly basis. Premium paying term is the same as the policy term. If the policyholder dies before the end of the policy, the beneficiary is entitled to receive the death benefit. Upon survival, the life insured is entitled to receive maturity benefits along with loyalty additions. The policy offers an optional rider for accidental death and permanent disability benefit, which helps the policyholder to enhance the basic coverage.
LIC Aadhaar Shila policy comes with a free-look period of 15 days within which the policyholders can return the original policy document to the insurance company if not satisfied with the terms of the policy. In case the policyholder dies followed by suicide within 12 months from the date of policy commencement or policy revival, all benefits cease to exist, and the policy will come to an end. The nominee is eligible to receive 80% of the total premiums paid till the date of death. Premiums paid towards the policy and benefits received against the policy are eligible to receive tax benefits under Section 80C and 10(10D) of the Income Tax Act, 1961.
