LIC Aadhaar Shila policy is primarily a women-oriented plan that incorporates the components of protection and savings. The plan has been formulated specifically for female lives who have their Aadhaar cards from Unique Identification Authority of India (UIDAI).
Under LIC Aadhaar Shila policy, the family of the policyholder receives financial support from LIC in case of his/her (the policyholder’s) sudden death before the policy matures. Moreover, the surviving policyholder receives a lump sum amount of money when the policy matures. Additionally, with the plan’s loan facility feature and auto cover, one can effortlessly take care of his/her liquidity requirements when required.
Benefits Offered Under LIC Aadhaar Shila Plan:
- Death Benefit: If the policyholder passes away during the initial five years of the policy, the ‘Sum Assured on Death’ is paid to his/her family members. In case of death after completion of five years of the policy, but prior to the maturity date, the ‘Sum Assured on Death’ is provided to the family members along with loyalty additions (if applicable). The ‘Sum Assured on Death’ component in this case is interpreted as the highest figure of ten times of the annualised premiums.
- Maturity Benefit: ‘Sum Assured on Maturity’ is paid to the surviving policyholder at the end of the term of the policy, provided he/she has diligently paid all the premiums throughout the policy. The ‘Sum Assured on Maturity’ element will be equivalent to the Basic Sum Assured in this case.
- Rider Benefit: Under the LIC Aadhaar Shila plan, one can opt for an Accident Benefit Rider as well, however, this benefit will not be extended to minors. The policyholder will be required to pay extra premiums in order to leverage the rider benefits. The Accident Benefit Rider can be purchased at any point of time, while the policy is still in force and till the term of the base plan.
- Participation in LIC Profits: Loyalty additions by LIC are offered to policyholders under LIC Aadhaar Shila. However, in order to be eligible for these profits, the existing policy has to have completed at least five years and the policyholder has to have paid at least five years’ premium diligently. Loyalty additions/profits from LIC are typically made available with maturity and death benefits, and at the time of exit. The terms and conditions and rates surrounding this feature are declared by LIC.
Premium Payment Under LIC Aadhaar Shila Plan
All premiums under the issued policy will have to be paid according to the Schedule mentioned in the policy documents. The premium amount will include Goods and Services Tax (GST) as well.
Grace Period: In case the policyholder has not been able to pay the premium on the stipulated date, he/she will be provided with a grace period of one month (although nothing short of 30 days) to make the payment. This is applicable for quarterly, half-yearly, and yearly modes only. The grace period for monthly premium payment is reduced to 15 days. The policy will automatically lapse in case the policyholder fails to make the payment within the specified grace period. In case the Life Assured passes away during the grace period but prior to the premium payment, then the policy benefits will be extended to the family members, however, a small deduction of the unpaid premium amount will be made.
What are the Eligibility Conditions Under LIC Aadhaar Shila?
- Minimum entry age: 8 years
- Maximum entry age: 55 years
- Term of the policy: 10 to 20 years
- Term for paying premiums: 10 to 20 years
- Minimum sum assured amount: Rs.75,000
- Maximum sum assured amount: Rs.3 lakh
According to the free-look feature of the policy, an individual may return the same to LIC if he/she is not satisfied with the existing terms and conditions.