LIC Aadhaar Stambh Plan

LIC Aadhaar Stambh Plan

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LIC Aadhaar Stambh Plan

LIC Aadhaar Stambh plan is a tailor-made insurance plan specially for male individuals to fulfil their financial and insurance needs. Launched by Life Insurance Corporation of India, the policy is another appealing plan in the endowment category that promotes savings and protects the family of the insured against any unforeseen event in life. The plan is cost-effective and doesn’t require any medical checkup for application.

Let’s explore the LIC Aadhaar Stambh plan benefits and features in detail and understand how the plan works.

What is the LIC Aadhaar Stambh Plan?

LIC Aadhaar Stambh is a non-linked, participating, individual, savings life insurance plan that allows the policyholder to get the dual benefit of protection and savings. In case of the unfortunate death of the life assured anytime before the policy maturity date, the beneficiaries receive financial support. Also, in case the life assured survives the entire policy term, they receive a lump sum amount at the time of policy maturity. The plan also fulfils the liquidity needs of the policyholder through auto cover and loan facilities.

Highlights of LIC Aadhaar Stambh Policy

Look at the key highlights of the LIC Aadhaar Stambh policy, making it a beneficial investment option.

  • Plan Type

    Endowment Plan

  • Plan Availability

    For male individuals

  • Policy Term

    10 - 20 years

  • Add-On Rider

    LIC Accident Benefit Rider

  • Tax Benefit

    U/s 80C and 10 (10D)

  • Special Benefit

    Auto cover

Eligibility Criteria of LIC Aadhaar Stambh Plan

The individual needs to meet the eligibility criteria and restrictions given below to buy an LIC Aadhaar Stambh policy to start saving and secure life coverage:

Particulars Specifications
Entry Age 8 years - 55 years
Policy Paying Term Same as the policy term
Maturity Age 18 years - 70 years
Basic Sum Assured Per Life Rs. 2 Lakhs - Rs. 5 Lakhs
  • Commencement of Risk :The risk under LIC Aadhaar Stambh commences immediately from the date of risk acceptance.
  • Date of Vesting :If the LIC Aadhaar Stambh policy is issued on the life of a minor, the policy automatically vests on the policy anniversary coinciding with or after the date when the life assured turns 18 years.

What are LIC Aadhaar Stambh Plan Benefits?

When the policyholder duly pays all the premiums under LIC Aadhaar Stambh without fail, they can avail of the benefits as mentioned below:

01

Death Benefit

Upon the death of the life assured during the policy term, the beneficiaries receive the ‘Sum Assured on Death’ as the death benefit. The death benefit is an amount higher of:

The sum assured on death is an amount higher of

  • 7 times of the annualized premium
  • 100% of the basic sum assured

The death benefit is payable as:

  • On the death of the life assured during the first five policy years: Sum assured on death
  • On the death of the life assured after the completion of five policy years but before the policy maturity date: Sum assured on death and loyalty additions (if any)

The death benefit payable cannot be less than 105% of the total premium paid upto the date of death.

02

Maturity Benefit

If the life assured survives the whole policy term, they receive the Sum Assured on Maturity with the loyalty additions (if any) as the maturity benefit. The sum assured on maturity payable is an amount equal to the basic sum assured.

03

Loyalty Additions

The loyalty additions under the LIC Aadhaar Stambh policy are only payable when the policy has completed five policy years, and all the premiums have been duly paid. Depending on the experience of the Life Insurance Corporation, the policy is eligible for loyalty additions, which are paid when the policy is claimed for death or maturity benefit.

In the case of a paid-up policy, the loyalty additions are only payable for the years when the policy remained in force. If the policy is surrendered during the policy term, the loyalty additions (if any) are included when the surrender value is calculated.

Optional Benefits Under LIC Aadhaar Stambh Plan

Other than the benefits mentioned, the policyholder can add and get benefits from the optional benefits available under the LIC Aadhaar Stambh plan. The optional benefits available are as follows:

01

Rider Benefit

The policyholder can add LIC Accident Benefit Rider under the Aadhaar Stambh anytime during the term, provided the outstanding policy term is at least 5 years. The rider benefit cover is available during the policy term when all the premiums are duly paid. If the policyholder opts for this rider, in case of accidental death of the life assured, the nominee receives the Accident Benefit Sum Assured in a lump sum.

02

Settlement Option for Maturity Benefit

Instead of receiving a lump sum amount at the time of maturity, the policyholder can receive the maturity benefit in instalments spread over a period of 5 years. The policyholder can opt for this option for the full or part of the maturity benefit. The minimum instalment payable as per the instalment mode selected is as follows:

Mode of Instalment Payment Minimum Instalment Amount
Monthly Rs. 5,000
Quarterly Rs. 15,000
Half-yearly Rs. 25,000
Yearly Rs. 50,000
03

Option to Take Death Benefit in Instalments

Instead of a one-time lump sum amount, the policyholder can opt to receive the death benefit in instalments spread over a chosen period of 5 years. They can select this option for full or part of the death benefit payable to the nominee. The instalments are paid in advance as per the selected instalment mode, and the minimum amount will be as follows:

Mode of Instalment Payment Minimum Instalment Amount
Monthly Rs. 5,000
Quarterly Rs. 15,000
Half-yearly Rs. 25,000
Yearly Rs. 50,000

How Does LIC Aadhaar Stambh Policy Work?

To understand the workings of the LIC Aadhaar Stambh policy, have a look at the example below:

Say, Ritesh, a 35-year-old working individual, purchased a LIC Aadhaar Stambh policy to gain the benefits. He chooses the basic sum assured of Rs. 2 Lakhs, a policy term of 20 years, and pays Rs. 7,869 yearly premium. The following benefits are available under different scenarios:

End of the Policy Year Total Premiums Paid Till the End of the Policy Year (Yearly) Guaranteed Benefits Non-Guaranteed Benefits (Loyalty Addition) Total Maturity Benefit (Including Loyalty Additions, if any) Total Death Benefit (Including Loyalty Additions, if any)
Sum Assured on Maturity Sum Assured on Death Scenario 1 Scenario 2 Scenario 1 Scenario 2 Scenario 1 Scenario 2
5 Rs. 39,385 0 Rs. 2,00,000 0 0 0 0 Rs. 2,00,000 Rs. 2,00,000
10 Rs. 78,690 0 Rs. 2,00,000 0 Rs. 13,000 0 0 Rs. 2,00,000 Rs. 2,13,000
15 Rs. 1,18,035 0 Rs. 2,00,000 0 Rs. 23,000 0 0 Rs. 2,00,000 Rs. 2,23,000
20 Rs. 1,57,380 Rs. 2,00,000 Rs. 2,00,000 0 Rs. 33,000 Rs. 2,00,000 Rs. 2,33,000 Rs. 2,00,000 Rs. 2,33,000

* The premiums mentioned above are exclusive of taxes and don't include any rider premium.

** The premiums illustrated above are taken from the sources available on the official website of LIC of India.

Additional Features of LIC Aadhaar Stambh Policy

The following additional features are provided by LIC Aadhaar Stambh plan to provide the policyholder with flexibility and extended benefits:

01

Premium Payment Option

Depending on the financial suitability, the policyholder can pay the premium regularly yearly, half-yearly, quarterly, or monthly.

02

Grace Period

If the policyholder fails to pay the premium within the premium due date, they can pay it during the grace period provided. A 30-day grace period is allowed for yearly, half-yearly, and quarterly payment frequency, and 15 days is allowed for monthly premium payment options. The policy is considered in force during the grace period, and the benefits remain uninterrupted.

If the policyholder fails to pay the premium before the grace period expires, the LIC Aadhaar Stambh policy lapses.

03

Policy Revival

The policyholder can revive a lapsed LIC policy within 5 consecutive years from the date of the first unpaid premium but before the policy completes the maturity date. To revive LIC Aadhaar Stambh, the policyholder needs to make premium payments for all outstanding premiums with the applicable interest. The Life Insurance Corporation reserves all the rights to accept or decline the request to revive a discontinued policy.

04

Rebates and Discount

LIC Aadhaar Stambh policy provides two types of relaxation on the payable premium, allowing the policyholder to remain free from strain on their pockets. The following rebates are available:

Mode Rebate:

Mode of Premium Payment Rebate Available
Yearly 2% of the tabular premium
Half-yearly 1% of the tabular premium
Quarterly/ Monthly Nil

High Sum Assured Rebate:

Basic Sum Assured (BSA) Rebate Available
Rs. 2 Lakhs - Rs. 2.95 Lakhs Nil
Rs. 3 Lakhs - Rs. 3.75 Lakhs 0.50% of the BSA
Rs. 4 Lakhs - Rs. 4.75 Lakhs 1.50% of the BSA
Rs. 5 Lakhs 2.50% of the BSA
05

Policy Surrender

The policyholders can surrender the policy anytime during the policy term if they have paid the premiums for at least two full policy years. Life Insurance Corporation (LIC of India) pays the surrender value equal to an amount, higher of:

  • Guaranteed surrender value
  • Special surrender value
06

Policy Loan

The policyholders can avail of the loan under the LIC Aadhaar Stambh policy, provided they have paid the premiums for at least two full policy years. The maximum loan allowed is as follows:

  • For in-force policies: Up to 90% of the surrender value
  • For paid-up policies: Up to 80% of the surrender value
07

Tax Benefit

As per the prevailing tax laws, the LIC Aadhaar Stambh policy is eligible to gain tax benefits. The premiums paid gain tax benefits under Section 80C of the Income Tax Act, 1961. Also, the benefits are tax exempted under Section 10 (10D) of the IT Act.

08

Free Look Period

If the policyholder is not satisfied with the terms and conditions of the LIC Aadhaar Stambh policy, they can return it to the corporation within 30 days from the date of policy issuance receipt date. Provided they need to state the reasons for the objections. Upon receiving the request, the Life Insurance Corporation shall cancel the policy and return the deposited premium after deducting the applicable charges.

What is Paid-Up Value Under LIC Aadhaar Stambh Policy?

If the policyholder has duly paid the premiums for at least two full policy years and no subsequent premiums have been paid, the LIC Aadhar Stambh policy continues as a paid-up policy until the completion of the policy tenure.

Additionally, if the policyholder pays the premiums for at least 3 full policy years, and any further premium payments are not made, the Auto Cover Period is applicable under the policy. Under such cases, the benefits are payable in the following manner:

Auto Cover Period

The auto cover period under a paid-up policy is applicable from the due date of the first unpaid premium until the below time period:

Payment of the Premiums Auto Cover Period
At least 3 policy years but less than 5 policy years and no subsequent premiums Six month
At least 5 policy years and no subsequent premiums 2 years

The policyholder is eligible for the below benefits in different scenarios:

Case 1: Under a Paid-Up Policy During Auto Cover Period:

Premium rates vary depending on an individual's financial preferences and lifestyle choices. The LIC New Jeevan Anand plan premium calculator, available on the official website, can help you calculate the premium for your personalized needs.

  • On the death of the life assured during this time period, the nominee receives the death benefit after the deduction of:
    • The unpaid premium amount with the applicable interest up to the date of death
    • The balance premium is due from the date of the death and before the next policy anniversary
  • When the policy completes its term and is eligible for maturity benefits, the life assured receives an amount equal to the maturity paid-up sum assured. The loyalty additions (if any) are also payable.

Case 2: Under a Paid-Up Policy Before Starting Auto Cover Period and After the Completion of Auto Cover Period:

  • On the death of the life assured during this time period, the nominee receives an amount equal to death paid-up sum assured (reduced sum assured on death). If the unfortunate incident (death of the life assured) occurs after the expiry of the auto cover period, a loyalty addition is also paid along with the death paid-up sum assured.
  • On the policy completing the policy maturity date, the life assured receives an amount equal to the maturity paid-up sum assured (reduced sum assured on maturity). The loyalty additions are also payable (if any). Additionally, loyalty additions (if any) are payable.

Exclusions Under LIC Aadhaar Stambh Plan

The benefits payable under the LIC Aadhaar Stambh plan are restricted to receive the predetermined benefits under the following circumstances:

Suicide

  • If the life assured commits suicide at any time within the 12 months from the date of commencement of the risk, the nominee or beneficiary receives 80% of the total premiums paid.
  • If the life assured commits suicide within 12 months from the date of policy revival, the beneficiary receives an amount higher of the below:
    • 80% of the premium paid till the date of the death
    • Surrender value available on the date of the death

The beneficiaries can claim no further benefits other than the above.

LIC Aadhaar Stambh Policy Premium Chart

Below is the LIC Aadhaar Stambh premium chart to give you an idea about the premium rates for a basic sum assured of Rs. 2 Lakhs:

Age/ Policy Term 10 15 20
10 Rs. 17,787 Rs. 10,878 Rs. 7,605
20 Rs. 17,865 Rs. 10,947 Rs. 7,673
30 Rs. 17,895 Rs. 10,996 Rs. 7,752
40 Rs. 18,081 Rs. 11,260 Rs. 8,105
50 Rs. 18,777 Rs. 12,152 Rs. 9,153

* The premiums mentioned above are exclusive of taxes and are taken from the official sources available on the official website of LIC of India.

You can use the LIC Aadhaar Stambh policy calculator to calculate the premium amount as per your financial requirements and personal lifestyle choices. To estimate the maturity benefit, use the LIC Aadhaar Stambh maturity calculator.

Documents Required to Buy LIC Aadhaar Stambh Policy

You need to provide the below documents to buy LIC Aadhaar Stambh:

  • Duly filled plan proposal form
  • Proof of identity
  • Proof of address
  • Proof of income
  • Health history
  • Latest photograph

Final Words

LIC Aadhaar Stambh policy is another affordable plan if you seek savings and protection under a single plan. You can buy the LIC plan by reaching the nearest LIC branch or connecting with an LIC agent. Once you purchase the plan, you can log in to the LIC customer portal and list your policy. Get benefits from the LIC e-services facility, track policy status, make premium payments, and check claim status, surrender value, and other key details.

If you find yourself stuck in the middle of the way, connect with 24/7 available LIC customer support for assistance.