Introducing the LIC Aadhaar Stambh Plan a unique insurance solution that seamlessly blends savings and protection. This plan is designed as a non-linked, with-profit endowment assurance life insurance. Aadhar Stambh policy caters exclusively to male applicants who possess an Aadhaar Card. By opting for the Aadhar Stambh policy, individuals can secure their financial future while enjoying savings and protection benefits.
In the unfortunate event of the policyholder’s sudden demise before completing the Aadhar Stambh policy term, their nominated beneficiaries become eligible for the death benefit. This substantial sum provides vital support to the family. This ensures their future needs are taken care of during challenging times.
However, if the policyholder completes the LIC Aadhaar Stambh plan term, they are entitled to a maturity benefit. This benefit is paid out as a lump sum, serving as a rewarding outcome for the policyholder’s commitment and perseverance. It is a valuable asset that can be utilized according to their financial goals and aspirations.
The LIC Aadhaar Stambh plan is a reliable companion, offering comprehensive financial security and an opportunity for steady savings. With its combined savings and protection benefits, it strives to empower individuals to safeguard their loved one’s well-being while securing their financial stability.
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LIC Aadhaar Stambh Plan Eligibility
|Age at entry
|Tenure of Policy
|Age of Maturity
|Terms of premium payment
|Same as the policy term
|Same as the policy term
LIC Aadhaar Stambh Plan Benefits
1. Death Benefit
If the insured policyholder passes away during the policy term, the death benefit is provided to the policy’s beneficiary under the LIC Aadhaar Stambh plan. Here are the key aspects of the death benefit:
- Within the first five years, the nominee receives the sum assured on death.
- After completing five policy years but before the maturity date, the death benefit consists of the total sum assured amount and any loyalty addition.
- The sum assured on death is either 7 times the annualized premium or 100% of the basic sum assured amount.
- The death benefit is guaranteed at least 105% of the total premium paid until death.
2. Maturity Benefit
The maturity benefit is provided if the policyholder completes the entire policy tenure and diligently pays all the premiums. The maturity benefit comprises the sum assured on maturity and any applicable loyalty addition, if available. This benefit is paid directly to the policyholder registered under the LIC Aadhaar Stambh plan.
3. Additions of Loyalty
Upon timely premium payments of LIC Aadhaar Stambh plan for the initial five years. The policyholder becomes eligible for Loyalty Additions at maturity based on the Corporation’s experience.
4. Surrender Benefit
After completing two consecutive LIC Aadhaar Stambh plan years and paying all the premiums, the policyholder can surrender the policy. The surrender benefit is calculated by multiplying the total premium paid by the applicable guaranteed surrender value factor. This ensures that the surrender value is equivalent to the premiums paid.
5. Loan Benefit
Once the policyholder has completed the first two years and paid the premiums on time, they can avail of policy loans. With an active Aadhar Stambh policy status, the policyholder can obtain a loan of 90% of the surrender value. For policies with a paid-up status, the policyholder can avail 80% of the surrender value as a loan.
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LIC Aadhaar Stambh Plan Features
The LIC Aadhaar Stambh plan details concerning features include:
- The auto cover facility is provided for cash flow needs and a loan facility.
- Exclusive availability for males.
- Low premium plan.
- Endowment policy with a lump sum payout at maturity.
- Loyalty Addition paid if death occurs after 5 years, with the Basic Sum Assured as the normal insurance coverage.
- Maturity benefit consists of Basic Sum Assured + Loyalty Addition.
- No critical illness benefits are available.
- Loan facility available after three years.
- Optional benefits like LIC’s Accidental Rider and permanent disability rider.
- Lapsed policy revival is available within two years of the first unpaid premium.
- Premiums paid are exempted from income tax under Section 80C of the Income Tax Act, 1961.
- The maturity amount is tax-free under Section 10(10D) of the Income Tax Act, 1961.
Things to Remember while Purchasing the LIC Aadhar Stambh Plan
1. Auto Cover Period
Policyholders can opt for policy loans after completing the initial two years and ensuring timely premium payments. Under the Aadhar Stambh policy, those with an active policy status can avail of a loan of 90% of the surrender value. In the case of policies with a paid-up status, policyholders are eligible for a loan of 80% of the surrender value.
2. Surrender Value
Policyholders who have completed the first two years and paid premiums on time can avail of policy loans. Active policyholders under the LIC Aadhaar Stambh plan can obtain a loan of 90% of the surrender value, while those with a paid-up status can avail of a loan of 80%.
3. Policy Loan
The policy loan is provided at the time of the policy term based on the surrender value determined periodically for the LIC Aadhaar Stambh plan. It’s important to note that premiums paid exclude taxes and rider premiums. The Corporation sets the interest rate for the loan, such as the 10% p.a. half-yearly rate for 2016-17.
The maximum loan amount, expressed as a percentage of the surrender value, is as follows:
- For enforcing policies: Up to 90%
- For paid-up policies: Up to 80%
During the claims settlement process, the outstanding loan amount, along with interest, will be deducted from the final payout to be made.
Applicable taxes, as per the laws of the Government of India or the Tax Authority of India, will be levied and updated regularly by any government changes.
The premiums paid under the LIC Aadhaar Stambh policy are subject to Service Tax, which is charged. However, it is important to note that the tax amount paid to the government is not considered in calculating plan benefits.
5. Look Period
Policyholders have a free look period of 15 days from the policy issuance date to review and assess the policy’s terms and conditions. They can cancel the policy anytime if they disagree with the policy clauses during this period. After the cancellation process, LIC will refund the premium deposit amount, deducting the risk premium and stamp duty charges.
Exclusions under LIC Aadhaar Stambh Plan
- In the unfortunate event of the policyholder’s suicide within 12 months of risk initiation, LIC will not consider any claim except for 80% of the premiums paid (if the policy is active).
- Suppose the policyholder commits suicide within 12 months from the revival date. In that case, LIC will pay either 80% of the premiums paid until death or the surrender value without considering other claims. However, this condition is not applicable if the policy has lapsed.
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The LIC Aadhaar Stambh policy offers a valuable combination of savings and protection. Male applicants holding an Aadhaar Card can benefit from this non-linked, with-profit endowment assurance life insurance. According to LIC Aadhaar Stambh’s plan details, the plan provides a death benefit to nominees in the unfortunate event of the policyholder’s demise.
Moreover, the policyholder receives a maturity benefit upon surviving the policy term. By closely considering LIC Aadhaar Stambh plan details, some additional features are included, like policy loans, surrender benefits, and a free look period for policy assessment. It’s important to note the LIC Aadhaar Stambh plan details related to suicide claims as outlined by LIC. Overall, the LIC Aadhaar Stambh policy is a reliable solution for securing financial stability and protecting loved ones’ futures.
LIC Aadhaar Stambh Plan Details – FAQs
Can females apply for the LIC Aadhaar Stambh plan?
Ans. No, the LIC Aadhaar Stambh plan is exclusively available to male applicants.
Is it mandatory to possess an Aadhaar Card to apply for this plan?
Ans. Yes, applicants need to hold a valid Aadhaar Card issued by the Government of India.
What happens if the policyholder passes away during the policy term?
Ans. In the unfortunate event of the policyholder’s demise, the nominated beneficiaries receive the death benefit, which helps support the family’s future needs.
What is the maturity benefit under the LIC Aadhaar Stambh plan?
Ans. If the policyholder survives the policy term, they receive a lump sum maturity benefit, which includes the sum assured on maturity and any applicable loyalty addition.
Can policyholders avail of policy loans under this plan?
Ans. Yes, policyholders who have completed the first two years and paid premiums on time can avail of policy loans. The loan amount is based on the surrender value and is subject to specific terms and conditions provided by LIC.