LIC Aadhaar Stambh Plan

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.

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.

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.

Premium Payment Option

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

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.

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.

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:

High Sum Assured Rebate:

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

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

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.

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.