LIC’s Aadhar Stambh Plan
LIC Aadhar Stambh is one of the most popular endowment plan offered by Life Insurance Corporation of India. This plan is designed to promote savings and provide financial protection to family in case of an unfortunate demise of the life assured.
The LICs Aadhar Stambh plan is exclusively for its male customers and is tailor-made to cater to their insurance needs. The basic document needed while buying the plan is UIDAI issued valid Aadhar Card. Let us understand in detail the exclusive features and benefits of the LICs Aadhar Stambh Plan.
What are features of LIC Aadhar Stambh Policy?
The LICs Aadhar Stambh Policy has the following highlight features :
- Sum Assured + Loyalty Additions would be payable on maturity of the plan or on earlier death
- The LIC Aadhar Stambh Plan is a MALE only plan
- The plan is available at a low premium amount
- The Aadhar Stambh Policy has an inbuilt Auto Cover facility
- The Aadhar Stambh Policy pays Loyalty Addition at the time of claim settlement i.e. at the time of policy maturity or at the time of death claim settlement
- Loan Facility can be availed under Aadhar Stambh Policy after completing 3 policy years provided all the premiums are duly paid
- For additional coverage, Accidental Benefit Rider can be availed under the Aadhar Stambh policy
- The revival of lapsed policy within 2 years from the time of 1st unpaid premium is possible under the Aadhar Stambh Policy
What are the benefits of LIC Aadhar Stambh Policy?
The LICs Aadhar Stambh plan offers attractive benefits to the policyholder. Following are the benefits of LICs Aadhar Stambh Plan
- Maturity Benefit
On the survival of the life assured till the end of policy term the policyholder shall be eligible to get maturity benefit provided all the premiums are paid.Maturity Benefit = Sum Assured on Maturity* + Loyalty Addition, if any
*Sum Assured on Maturity = Basic Sum Assured of the policy.
- Death Benefit
In case of any eventuality during the policy term, the death benefit is payable to the nominee of the LIC Aadhar Stambh Policy.
- Where the death of the life assured happens in the initial 5 years from the date of commencement of the policy, only the “Basic Sum Assured” shall be payable.
- However, where the death of the life assured happens after finishing the first 5 years of the policy then the nominee is eligible to receive the “Sum Assured on Death” + Loyalty Additions.
- The Sum Assured on Death is defined as higher of
- 10 X the Annualised Premium, or
- Sum Assured on Maturity*, or
- Basic Sum Assured of the policy
- Loyalty Addition
- The LICs Aadhar Stambh policyholders are eligible to receive loyalty addition provided that the Aadhar Stambh plan has completed 5 years and
- All the premiums of at least 5 years are paid in full.
- Loyalty benefit shall be paid to the policyholder either along with maturity benefit or along with death benefit after 5 years.
- Additional Cover
- The policyholder of LIC Aadhar Stambh policy can avail additional coverage by opting rider facility. LICs Accidental Benefit Rider can be availed under this plan.
- Availing a rider sum assured is beneficial as it gives additional coverage at low costs.
- Kindly note that the rider sum assured cannot be more than the sum assured opted under the basic plan.
- Risk Coverage
Under the plan, the risk cover commences from the date of commencement of the policy and it also covers for the risk of minor lives.
- Loan Facility
Loan facility is available under the plan provided the LIC Aadhar Stambh policy has gained surrender value. Loan facility on LICs Aadhar Stambh plan can be availed by fulfilling certain terms and conditions as mentioned by LIC from time to time. The rate of interest on policy loan shall be determined by the corporation.The maximum loan that can be availed under the LICs Aadhar Stambh plan is :
- 90% of surrender value for in-force policies
- 80% of surrender value for paid-up policies
What are the eligibility factors of LICs Aadhar Stambh Policy?
For availing the LICs Aadhar Stambh Policy the following eligibility factors are to be considered :
|Plan available for||Male|
|Minimum Entry Age||8 years|
|Maximum Entry Age||55 years|
|Minimum Policy Term||10 years|
|Maximum Policy Term||20 years|
|Max age at the time of policy maturity||70 years|
|Sum Assured||Min. Rs 75,000 & Max. Rs 3,00,000|
|Mode of Premium Payment||Yearly, Half-Yearly, Quarterly and Monthly|
What are premium rates of LIC Aadhar Stambh Policy?
The policyholder can avail LICs Aadhar Stambh Policy at a comparatively low and attractive premium. The annualized premium rates of the LIC Aadhar Stambh policy is low as compared to other endowment plans offered by Life Insurance Corporation of India. The premium rate of the LIC Aadhar Stambh Policy is as under :
|Policyholder’s Age||Policy Term|
|10 yrs||15 yrs||20 yrs|
Above is the sample tabular representation of annualized premium rates of LICs Aadhar Stambh Plan. Kindly note that these premium rates are exclusive of service tax and are charged per Rs 1,000 of sum assured of the basic policy.
How to calculate the premium of LIC Aadhar Stambh Policy?
Let us understand with an example of how the tabular premium rate chart can be used to derive the premium amount of the LIC Aadhar Stambh Plan.
- Mr X = Age 40
- Basic Sum Assured = Rs 3,00,000
- Policy Tenure = 15 years
- Premium factor : 55.65
Annual Premium :
= 55.65/1000 * Rs 3,00,000
= Rs 16,695+ Tax
(Since premium rates are of Rs 1,000 per basic sum assured)
Does LICs Aadhar Stambh policy plan allow a discount on Policy premium?
LICs Aadhar Stambh policy is a very popular endowment plan as the plan can be availed at a low premium amount. Apart from low premiums the policy allows attractive discounts and rebates on premium payment modes and on opting high basic sum assured. The discounts and rebates offered under the LICs Aadhar Stambh Policy are as under
Rebate on Premium Payment Mode: policyholders are eligible for receiving rebates on premium paying mode as under
- For the yearly mode of premium payment then 2% of the tabular premium rebate is offered
- For the half-yearly mode of premium payment, 1% of the tabular premium rebate is offered
- For Monthly or Quarterly or salary deduction mode of premium payment, NIL rebate is offered
Rebate on High Sum Assured: policyholders are eligible for receiving rebates on choosing sum assured as under
- For Sum Assured between Rs 75,000 to Rs 1,90,000 – NIL rebate
- For Sum Assured between Rs 2,00,000.00 to Rs 2,90,000.00 – 1.50% rebate on basic sum assured
- For Sum Assured more than Rs 2,90,000.00 to Rs 3,00,000.00 – 2% rebate on basic sum assured
Thus above are the attractive discounts and rebates offered under LICs Aadhar Stambh policy.
How to surrender LIC Aadhar Stambh Policy?
Policyholders at any given time choose to surrender the policy provided at least 3 consecutive premiums are paid by them. The surrender value shall be paid upon receiving the request for surrendering of the policy. The surrender value shall be the higher value between guaranteed surrender value and special surrender value.
The special surrender value is the value that is determined by the Life Insurance Corporation of India at regular intervals and the guaranteed surrender value is the total of the premiums paid till the date of surrender of Aadhar Stambh Policy. The guaranteed surrender value is the percentage factor determined as per policy term and the year of the surrender of the policy. Following is a sample tabular representation of the guaranteed surrender value factor :
|Surrender year of Policy||Guaranteed surrender value factor for a Policy term of 10 years||Guaranteed surrender value factor for a Policy term of 15 years||Guaranteed surrender value factor for a Policy term of 20 years|
What are the steps to purchase LIC Aadhar Stambh Policy?
Following are various steps to purchase the LICs Aadhar Stambh Policy
- Mode of purchase: customers who wish to purchase the policy can buy the policy either from the offline channel (from LIC offices or Branches, from agents and brokers etc) or using online channel (official website of LIC India or from various online insurance brokers and aggregators)
- Filling up Proposal Form: whether purchasing the policy online or through offline mode the first step is to fill the proposal form completely and correctly. Customers are required to fill in all the necessary information asked in the proposal form and submit the same
- Submission of Documents: While purchasing the policy online or via offline mode customers need to submit the required relevant documents. Following is a detailed list of required documents needed for purchasing LICs Aadhar Stambh Plan
- Copy of government issued Aadhar Card
- Latest coloured photo
- Attested copy of Identity Proof
- Attested copy of Age Proof
- Attested copy of Address Proof
- Premium Payment: the customer is required to pay the first premium amount for purchasing the policy. The premium payment can be done by cash, cheque or with various online modes of payments like net banking, credit card, debit card etc.
How to register a claim under LIC Aadhar Stambh Policy?
Claim settlement under LICs Aadhar Stambh Policy is as under
- Maturity Claim
- Death Claim
There is a difference in both claims mentioned above.
- Maturity Claim is the amount paid to the policyholder at the end of the term of policy i.e. on the date of maturity of the LICs Aadhar Stambh Policy. Upon payment of maturity benefit, the insurance policy terminates.
- While the death benefit refers to the amount paid to the nominee (appointed by the policyholder) upon the death of the life assured.
The documents required for registering a claim under LIC Aadhar Stambh Policy is as under
- For Maturity Claim
- Original policy document
- Duly filled discharge form
- Cancelled cheque so that the amount is credited directly in the bank account
- Attested copy of Identity Proof
- For Death Claim
- Original Policy Document
- Duly filled Death Claim Form
- Copy of Proof of Death
- Proof of title
- Accidental Claim
While in case of accidental death following additional documents are required to be submitted
- Copy of FIR
- Hospital admission and treatment details including reports
- Post mortem report
- Any additional documents as requested by LIC
Upon submitting the above required relevant documents LIC shall register the claim and credit the claim amount in the policyholder’s/ nominee’s bank account.
LIC offers 15 days of free-look or cooling period for cancelling the Aadhar Stambh policy. In this period the policyholder can cancel their Aadhar Stambh policy by returning the original policy document to LIC along with a letter mentioning the reason for cancellation and cancelled cheque. Upon receipt of such request, LIC will cancel the Aadhar Stambh policy and credit the premium amount (after deducting certain requisite charges) to the policyholder’s account.
LIC offers a revival of Aadhar Stambh policy. The policyholders can revive their lapsed policy within 2 years from the date of first unpaid premium.
The LICs Aadhar Stambh Plan offers various premium paying modes. Policyholders can choose any one from the following premium paying modes for payment of premium as per their convenience. The premium paying modes under LICs Aadhar Stambh plan are Yearly, Half-Yearly, Quarterly, and Monthly.
Yes, under LICs Aadhar Stambh policy the policyholder can choose sum assured between Rs 75,000 to Rs 3,00,000. The basic sum assured from Rs 75,000 to Rs 1,50,000 can opt in multiples of Rs 5000 while for a basic sum assured more than Rs 1,50,000 shall be in multiples of Rs 10,000 subject to maximum basic sum assured limit to Rs 3,00,000.00
In case the policyholder of the LIC Aadhar Stambh policy fails to pay the policy premium in time or before the end of grace period then the policy shall lapse and cease to enjoy the benefits offered by the plan.
Under the LICs Aadhar Stambh Policy, the date of commencement of risk starts immediately from the date of issuance of the policy. This risk coverage is extended to cover the minor policyholders.
Yes, the LIC’s Aadhar Stambh policy can be surrendered incase you are unable to continue the plan. However, you also have the option of opting for a loan under LIC Aadhar Stambh policy as well instead of opting for a complete closure by way of surrender.
Yes, the LICs Aadhar Stambh policy does not cover for suicide claims. In suicide cases, the policy benefits shall stand void and no claim shall be entertained except :
- If the death due to the suicide of the life assured is within the first year of commencement of the policy (within 12 months) then LIC shall pay 80% of the premium paid and the contract shall end
- If the death due to the suicide of the life assured is within 12 months of the revival of the policy then corporation shall pay either 80% of the premiums paid up to the date of death or surrender value, whichever is higher.