Investment Plans 730 views July 29, 2020

LIC Aadhar Stambh Plan

In recent years, it has become necessary for many individuals to save some extra wealth from their monthly income to fulfill future needs. Either it can be used for the child’s education or his child’s marriage. Whatever may be the reason but it important to accumulate funds for the future. Therefore, LIC has come up with an insurance plan LIC Aadhar Stambh Plan that is only meant for the male individuals. This plan not only helps you to increase your savings but also provides you a life cover. So, you can boost your savings with a life cover so that your family will not have to face any financial crisis after you. Let’s have a look at the key features of this plan.

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Key Features of Aadhar Stambh Plan

  1. Multiple options to choose the amount of the Sum Assured.
  2. Multiple options to choose the term of the policy.
  3. Get Life Cover in this plan and your family will enjoy the death benefits.
  4. Enjoy the Maturity Benefits in this plan on a successful survival of the policy term.
  5. Add riders to this plan to cover more risks of life.
  6. The company will give you a Grace Period if you fail to pay the premium on time.
  7. Enjoy tax deductions under section 80C and 80D of the Income Tax Act 1961.

Benefits of Aadhar Stambh Plan

Here are some of the key benefits of this plan that will help you to understand the plan better. You must go through them and see how they are helpful for you.

Death Benefits

In case of unfortunate death of the insured the nominee is entitled to receive the death benefits.

If the insured dies during the first five years then the Sum Assured on death will be payable to the nominee. But 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. 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.

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

Loyalty Additions

If the insured has completed 5 policy years successfully and has paid all the premiums then the company will give loyalty additions to the insured. The value of the sum assured will keep on increasing once the loyalty additions have been made and the insured will receive the loyalty additions after the completion of the policy term.

Option to Take Death Benefits in Instalments

The LIC Aadhar Stambh Plan allows the nominee to take the death benefits in installments. You can take the death benefits for the time span of 5 years, 10 years, and 15 years. It is not mandatory to take the 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

Various Modes for Paying the Premium

LIC gives you different payment frequency modes for paying the premium and they are on a yearly, half-yearly, quarterly, and monthly basis. You can use the NACH facility to make the payment of your premium amount in which the company will deduct the premium amount automatically from your account on the due date.

Grace Period

If in case you fail to make the payment of the premium on time then the company will give you a grace period of 30 days to make the payment. A grace period of 30 days is only allowed if you have chosen premium paying frequency yearly, quarterly, and half-yearly. If you are paying the premium monthly then the company will give a grace period of 15 days.

Revival Benefit

You will get a revival benefit in this policy that 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 regularly for 2 years then you will get the paid-up value. 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 of the policy term.

Surrender Benefits

In case of an emergency, you can surrender the Aadhar Stambh Plan and take the surrender value. But the company allows you to surrender the policy only 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 this 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 and still need some funds 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 you have paid all the premiums for 2 policy years. 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 in force policies
  2. Up to 80% in the case of paid-up policies

Free-Look Period

If in case this policy is not accurate as per your requirement then LIC gives you a time of 15 days to return the policy. This is known as the free look period and your free-look period will increase to 30 days if you have purchased the plan online.

Rebates

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

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

Add-on Benefits

There are some optional benefits in this plan that you can add to this plan. These benefits will cover some extra risks that are related to your life. You can explore the riders that you can add to this plan.

  1. Accident Death Rider

LIC Aadhar Stambh 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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