Insurance Plans 193 views July 29, 2020

LIC is a government organization that sells various life insurance products giving you a life cover and maturity benefits. Recently, LIC has launched a new life insurance plan for females that gives you a life cover with savings. The name of the plan is LIC Aadhar Shila plan in which you will get death benefits and maturity benefits. You are free to choose the amount of the sum assured and the policy term as per your requirement. It is the right time to save some extra bucks for your child’s future and for yourself. On the other hand, the company also gives Loyalty Additions to the insured that they will get after the expiry of the policy term. So, let’s take a look at the key features and benefits of this plan.

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Key Features of Aadhar Shila Plan

  1. This plan gives you the flexibility to choose the amount of Sum Assured.
  2. You are free to choose the term of the policy.
  3. You will get a life cover in this plan that will take care of your loved ones after you.
  4. On a successful survival of the policy term, you will get the maturity benefits as well.
  5. The company will give loyalty additions at the time of maturity.
  6. You can cover more risks in this plan by adding riders.
  7. If you fail to pay the premium on time then the company will give you a grace period.
  8. Get Tax Benefits in this plan.

Benefits of Aadhar Shila Plan

There are some key benefits of this plan that you might find interesting. So, before taking this plan, you must explore all the benefits of this plan in detail.

Rebates on Premium

You will get rebates in this plan if you choose a high sum assured or change the premium frequency modes. So, you can check the rebates of the premiums in the table given below.

Sum Assured and Payment FrequencyRebates
Yearly Payment of Premium2% of Tabular Premium
Half-Yearly Payment of Premium1% of Tabular Premium
Sum Assured is Between INR 200000 to INR 2900001.50% of the Basic Sum Assured
Sum Assured for Life is INR 3 Lacs2% of the Basic Sum Assured

Loyalty Additions

If the insured has paid all the premiums for 5 policy years successfully then the company will give loyalty additions to the insured. Once the loyalty additions have been made the benefits will increase and the insured will receive the loyalty additions after the completion of the policy term.

Death Benefits

If the insured dies an unfortunate death then the nominee is entitled to receive the death benefits and they depend on the following conditions.

  1. If the insured dies during the first five years then only the Sum Assured on death will be payable to the nominee.
  2. If the insured dies after 5 years then the company will pay the Sum Assured and Loyalty benefits as well to the nominee.

The value of the Death Benefit will be the highest of the following:-

  1. 110% of the Basic Sum Assured
  2. 7 times of the annualized premium

The death benefit will never be less than 105% of the total premiums paid up to the time of death.

Option to Take Death Benefits in Instalments

The nominee can take the death benefits in instalments in the LIC Aadhar Shila Plan. You are free to choose the time span of 5 years, 10 years, and 15 years. It is not necessary to take the death benefits as a lump sum. Here are the different minimum amounts for different payment modes.

  1. Monthly Rs.5000
  2. Quarterly Rs.15000
  3. Half-Yearly Rs.25000
  4. Yearly Rs.50000

Maturity Benefits

If the insured successfully survives the policy term then he is entitled to receive the following:-

  1. Sum Assured on Maturity
  2. Loyalty Additions

Various Modes for Paying the Premium

You will get different payment frequency modes for paying the premium and they are on a yearly, half-yearly, quarterly, and monthly basis. The company allows you to pay the amount of premium through NACH Facility in which it will deduct the premium amount automatically from your account on the due date.

Grace Period

You will get a grace period of 30 days to make the payment of your premium if in case you fail to make the payment of the premium on time. If you have chosen premium paying frequency yearly, quarterly, and half-yearly then you will get a grace period of 30 days otherwise you will get a grace period of 15 days in monthly payment of premiums.

Revival Benefit

You will get a revival benefit in this policy. It means if the policy is lapsed due to the non-payment of the premium within the grace period then the company gives you a time of 5 consecutive years to make the payment of all the arrears including the interest and revive the lapsed plan.

If you discontinue making the payment of the premium after paying it for 2 years regularly then you will get the paid-up benefits. On the other hand, your death benefits and the maturity benefits will be reduced if you discontinue the payment of the premiums after 2 years.

Surrender Benefits

In case of an emergency, you can surrender this policy and take the surrender value. But you’ll only get the surrender benefits if you have paid all the premiums for 2 years without missing any premium. So, surrendering the policy during the policy term is allowed in Aadhar Shila Plan but on the condition that you have paid all the premiums for 2 policy years.

Loan Against Policy

If you don’t want to surrender the policy then you can take a loan against the policy from the company. But you are allowed to take a loan against the policy only if your policy has a surrender value. The company will charge the applicable interest on the loan borrowed against the policy.
The maximum loan amount will be:-

  1. Up to 90% in the case of inforce policies
  2. Up to 80% in the case of paid-up policies

Free-Look Period

You will get a free-look period of 15 days and it means that you can return the policy within 15 days if you don’t find it interesting. If you have purchased the policy online then the company gives you a grace period of 30 days.

Add-on Benefits

You can cover some extra risks related to your life by adding riders to this plan. The only rider that can be added to this plan is given below.

  1. Accident Death Rider

LIC Aadhar Shila Eligibility Criteria

ParticularsDetails
Minimum Age of Entry8 Years
Maximum Age of Entry55 Years
Maximum Age of Maturity70 Years
Minimum Policy Term10 Years
Maximum Policy Term20 Years
Minimum Amount of the Sum AssuredRs.75000
Maximum Amount of the Sum AssuredRs.300000
Premium Paying TermSame as the Policy Term

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