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LIC Aadhaar Shila
  • Female Only Plan
  • Low Premium Plan
  • No Medical Test
  • Accidental Benefit Rider
  • Tax Benefit Under 80C & 10D

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LIC Aadhaar Shila Plan

LIC’s Aadhaar Shila Plan is a non-linked insurance plan, with profits and regular premium paying endowment plan. This plan is a combination plan which offers both savings as well as protection.

LIC’s Aadhaar Shila Plan is primarily for female policyholders having Aadhaar cards provided by UIDAI (Unique Identification Authority of India). This is a Loyalty Addition based plan and does not require any medical tests.

This plan also provides financial assistance to the policyholder’s family in the event of his/her miserable death even during maturity period and if the policyholder survives the policy term a fixed sum assured is paid at the time of maturity.

Features of Aadhaar Shila Plan

  • Auto cover facility.
  • Female Only Plan.
  • Low premium plan.
  • Loyalty Addition will be paid additionally if the death occurs after 5 years, whereas normal insurance coverage will equal to Basic Sum Assured.
  • Critical illness benefits are not available under this plan.
  • Loan facility but only after completion of 3 years.
  • LIC’s Accidental Rider and Permanent Disability Rider are available.
  • Revival of lapsed policy within 2 years of first unpaid premium.
  • Paid premiums are exempted from income tax under Section 80C.
  • Maturity amount is tax-free under Section 10 (10D).
Features of Aadhaar Shila Plan

Plan Parameters

Gender Female Only
Age at Entry 8 Years (Completed)
Maximum Age at Entry 55 (Nearest Birthday) Calculate your Age
Minimum Term 10 Years
Maximum Term 20 Years
Maximum Age at Maturity 70 Years (Nearest Birthday)
Sum Assured Minimum Rs. 75,000 and Maximum Rs. 3,00,000
Premium Paying Mode Yearly, Half Yearly, Quarterly & Monthly (SSS and NACH Only)
Premium Mode Rebate Yearly-2%
Premium Mode Rebate Yearly-2%
Halfyearly-1%
Quarterly and monthly-Nil

Maturity Benefit

On survival of year term, Maturity Amount=Basic Sum Assured+Loyalty Addition.

During and after the expiry of Auto Cover Period under a paid-up policy:

The Sum Assured on Maturity under a paid-up policy will be equated to such an amount called “Maturity Paid-up Sum Assured” which will be payable to Life Assured surviving till the end of the policy term.

In addition to the Maturity Paid-up Sum Assured, Loyalty Addition, if any, will also be payable on maturity.

Maturity Paid-Up Sum Assured=[(Number of Premiums Paid/Total Number of Premiums Payable)x(Sum Assured on Maturity)]

Death Benefit

  • On death during the first five years of the policy:

    Death claim amount will be equal to 110% of Basic Sum Assured.

  • On death after 5 years of the policy and before maturity:

    Death claim amount will be equal to 110% Basic Sum Assured+Loyalty Addition (LA).

During Auto Cover Period under a paid-up policy:

Death benefit will be paid after deduction of

  1. the unpaid premium(s) in respect of the base policy with interest thereon upto the date of death, and
  2. the balance premium(s) for the base policy falling due from the date of death and before the next policy year, if any.

After the expiry of Auto Cover Period under a paid-up policy:

The Sum Assured on Death under a paid-up policy will be equated to such an amount called “ Death Paid-up Sum Assured” which will be payable to Life Assured surviving till the end of the policy term.

In addition to the Death Paid-up Sum Assured, Loyalty Addition, if any, will also be payable on maturity.

Death Paid-Up Sum Assured=[(Number of Premiums Paid/Total Number of Premiums Payable)x(Sum Assured on Death)]

*Note: It is understandable that Loyalty Addition is applicable after successful completion of 5 policy years.

Additional Benefits of LIC Aadhaar Shila

Loyalty Addition

If the policy has completed five years and the full premium has been paid for at least five years, then the plan is eligible for Loyalty Addition at the time of exit in the form of death during the policy term or maturity. Under a paid-up policy, Loyalty Addition shall be payable for the completed policy years for which the policy was in force. Loyalty addition is also considered during Special Surrender Value Calculation on surrender of the policy during the term, only if the policy has completed five years, and at least for five years full premium has been paid.

Optional Accidental Benefit Rider

Policyholders above 18 years of age have the option of availing LIC’s Accidental Benefit Rider with this plan, which will provide an additional amount equal to the basic sum assured in case of death caused due to an accident.

Date of Commencement of Risk

Under this plan, the risk will commence immediately from the date of inception of the policy. It also includes minor lives.

Payment of Premiums

Premium under this policy can be paid in intervals in the form of yearly, half-yearly, quarterly and monthly, where monthly premium can only be through NACH or salary deduction during the term of the policy. A grace period of one month but not less than 30 days is allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums.

Revival

A revival period of 2 years is given to the assured from the date of first unpaid premium but before the date of maturity. This happens when the policy gets lapsed if the premium is not paid by the end of the grace period. The policy can be revived by paying all due premium along with interest at such rate as fixed by the Corporation at the time of the payment, subject to the submission of satisfactory evidence of continued insurability.

Paid-up Value

All the benefits under the policy will cease after the expiry of the grace period and nothing will be paid if the premiums have been paid for less than 3 years. In case of premium fully paid for three years and any subsequent premium is not duly paid, then the policy won’t be ceased but continued as a paid-up policy.

Example: LIC Aadhaar Shila

Maturity and Risk cover details have been explained below, with the help of following policy details:

Sum Assured (Rs.) Rs. 3,00,000
Age (Years) 30
Policy Term (Years) 20
Purchase Year 2017
Yearly Premium (Rs.) 10,472

So, as per the above example, policyholder needs to pay the premium of Rs. 10,472 per year for 20 years and maturity will happen after completion of 20 years.

If the policyholder completes 20 years and pays all premium successfully, then Maturity will be as under:

Maturity Year Age at Maturity Total Premium Paid Maturity Amount (Approx.)
2037 50 2,08,860 Rs. 3,00,000+Loyalty Addition

Things You Need to Know

Auto Cover Period

The period from the due date of first unpaid premium (FUP) is “Auto Cover Period” under a paid-up policy. The duration of Auto Cover Period will be as follows:

  • Auto Cover Period for 6 months will be available, if at least 3 full years but less than 5 full years premiums are already paid and any consecutive premium is not timely paid.
  • Auto Cover Period for 2 years will be available, if at least 5 full years but less than 5 full years premiums are already paid and any consecutive premium is not timely paid.

Surrender Value

If the premiums have been paid for 3 subsequent years continuously then the policyholder can surrender the policy anytime. LIC will pay the Surrender Value equal to higher of Guaranteed Surrender Value and Special Surrender Value after the surrender of the policy.

The Special Surrender Value is fixed by LIC periodically based on the former approval of IRDAI.

The Guaranteed Surrender Value paid at the time of policy term is the total premiums paid multiplied by the Guaranteed Surrender Value factor effective to total premiums paid under the policy.

For Example: For a policy tenure of 10 years and if the policy is surrendered in 9th or 10th of the policy year, the Guaranteed Surrender Value factor expressed in percentage works out to be 80.00%. Similarly, for a policy tenure of 15 years and if the policy is surrendered in 14th or 15th of the policy year surrendered, the Guaranteed Surrender Value factor expressed in percentage works out to be 80.00%.

These Guaranteed Surrender Value factors expressed as percentages are solely depending on the policy term and policy year in which the policy is surrendered.

Policy Loan

Premiums paid does not include either taxes or any type of extra charges due to rider premiums.

f the policy has a surrender value based on the terms and conditions by LIC priodically, then the loan will be provided at the time of policy term. The interest rate is decided by the Corporation only.

For the year 2016-17, the paid avail interest rate is 10% p.a. half-yearly.

Maximum loan (% of surrender value) is as under:

  • For inforce policies – upto 90%
  • For paid-up policies – upto 80%

The latest loan amount along with interest will be restored during exit from the claims to be paid then.

Taxes

Legal Taxes, will be applicable as per the laws of Government of India or Tax Authority of India and will be updated regularly if there is a change by the government.

Service Tax will be charged for the premiums paid under the policy. This tax amount paid to the government will not be calculated for the future benefits of the plan.

Free look period

Within 15 days of the issuance of the policy, if the person does not agree to the clauses of the policy then he/she can cancel the policy anytime within that period. After the cancellation process, LIC will return the amount of premium deposit, deducting the risk premium and stam duty charges.

Exclusions

Suicide:

  1. If the policyholder commits suicide within 12 months from the date of initiation of risk, LIC will not hold attention to any claim except for 80% of the premiums paid (if the policy is in force).
  2. If the policyholder commits suicide within 12 months from the date of revival, LIC will pay 80% of the premiums paid till the date of death or the surrender value and will not hold attention to any other claim. This condition will not be availed if the policy gets lapsed.

*Note: Premiums paid does not include either taxes or any type of extra charges due to rider premiums.

Last updated on 2-07-2019