LIC Aadhaar Shila Plan

Life Insurance Corporation of India is the strongest insurance brand globally (according to Brand Finance Insurance 100 Report, 2024). The company offers various life insurance policies for individuals, including men, women, children, and senior citizens, to fulfil their financial requirements at different life stages. After comparing plans from different categories, endowment, whole life, micro saving, and term life, you can select the most suitable product at an affordable price.

LIC of India launched one such plan, Aadhaar Shila, specifically designed for women with dual savings and life cover benefits. Let’s look at the LIC Aadhaar Shila policy in detail.

LIC Aadhaar Shila policy is a non-linked, participating, individual, savings life insurance plan which offers a combined benefit of protection and savings. The plan is specially designed for women. In case of uncertain demise of the policyholder during the policy term, the nominee receives assured financial support. If the insured survives the policy, they receive the maturity benefit.

In addition, the policy comes up with the auto cover facility and loan availability to fulfil the liquidity needs of the policyholder.

LIC Aadhaar Shila plan is specially designed for women to help them save money and become financially secure against any uncertainty of life. To purchase the LIC Aadhaar Shila plan, women need to follow the below eligibility criteria and restrictions:

Date of Commencement of Risk: The risk commences immediately from the date of risk acceptance under LIC Aadhaar Shila plan.

Date of Vesting: Say the LIC Aadhaar Shila plan is issued on the life of a minor (age less than 18 years), then the policy automatically vests in the life assured on the policy anniversary coinciding with or immediately completion of the 18 years of age.

View the claim settlement ratio of LIC of India.

Besides the benefits mentioned above, the LIC Aadhaar Shila policy also offers optional benefits to provide the policyholders with the maximum flexibility, including the following:

Add-On Rider

The policyholder can add LIC Accident Benefit Rider to the base policy anytime during the policy term, provided the outstanding policy term is at least five years. If the policyholder opts for the rider, and upon the accidental death of the life assured, the beneficiaries receive the accidental benefit sum assured in a lump sum.

Learn more about how LIC riders work.

Settlement Option for Maturity Benefit

Under this option, the maturity benefit is paid in instalments over a period of five years instead of a one-time lump-sum amount. The policyholder or the life assured (when 18 years or above) can opt for this option for full or part of the maturity benefit. The minimum instalments for different premium payment modes shall be paid as:

Option to Take Death Benefit in Instalments

If the policyholder opts for this option, the nominees receive the death benefit in instalments over the period of 5, 10, or 15 years instead of a lump sum amount. The settlement option can be chosen for a paid-up and in-force policy for full or part of the death benefit. The instalment is paid in advance at the chosen period with a minimum instalment amount in the below manner:

Using the example below, let’s understand how the LIC Aadhaar Shila plan works.

Say Mrs. Das purchases the LIC Aadhaar Shila plan at the age of 35. She chooses a basic sum assured of Rs. 2 Lakhs for a policy term of 20 years. She pays Rs. 7,860 as the annual premium. Look at the benefits she can claim under different scenarios:

* The above benefits are applicable for the standard life where no riders are added to the base policy.

** Here, Scenario 1: Projected investment rate of return assumption of 4% per annum (assumed) and Scenario 2: Projected investment rate of return assumption of 8% per annum (assumed).

*** The benefits are just an illustration and are taken from the sources available on the official website of LIC of India.

Under certain circumstances, the LIC Aadhaar Shila policy bars the nominee from receiving stipulated benefits. Let’s look at the exceptional circumstances below:

• If the life assured commits suicide at any time within the 12 months from the date of commencement of the risk under the in-force policy, the nominee receives 80% of the total premium paid.
• If the life assured commits suicide within 12 months from the date of policy revival, the policyholder receives an amount higher of

• 80% of the premium paid till the date of the death
• Surrender value as available on the date of the death

Note that the nominee cannot make any further claim under the policy.

Look at the LIC Aadhaar Shila policy premium chart on an annual basis. The below premium rates are for standard life and the plan selected for different ages and policy terms:

* The above premium rates are exclusive of taxes.

** You can use the LIC Aadhaar Shila premium calculator to get an estimated premium amount for your personalized insurance needs and financial requirements.

Know how you can make LIC premium payments.

A woman needs to prepare the below documents to buy LIC Aadhaar Shila policy:

• Proof of identity: Aadhaar card, voter ID, etc.
• Proof of address: Aadhaar card, ration card, driving license, voter card, electricity bill, etc.
• Proof of income: income tax return slips or salary slips
• Medical records: Health history

The LIC Aadhaar Shila policy works as a savings box for women, where they can deposit money and earn a good amount at maturity. Also, they can remain financially secure against any life risk. The plan is a low premium-paying with a 10 to 20-year policy term. Once the policy matures, the insured women get good funds in hand.

Also, in case of emergency, they can avail of loans. Contact a LIC agent nearby if you want more details about the plan or to buy the policy. RenewBuy Advisor Connect can help you find a nearby LIC or life insurance agent.