LIC Aadhaar Stambh Plan 843 Review

By | May 8, 2017
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Life Insurance Corporation of India has launched its new plan Aadhaar Stambh (Plan No. 843) on April 24, 2017. LIC’s Aadhaar Stambh is exclusively designed for males having aadhaar card issued by UIDAI. It is a non-linked, with-profit, regular premium endowment life insurance plan. It offers a combination of protection and savings. In case of unfortunate death of the policy holder this plan provides financial support for the family any time before maturity and a sum lump payout at the time of maturity for surviving policy holder.

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Key Features

  • This plan is exclusively designed for Males.
  • It is only available for standard healthy lives
  • Aadhaar card issued by UDAI is mandatory
  • No medical examination required.
  • Sum assured is maximum of Rs. 3 lakh.

Benefit Structure of LIC’s Aadhaar Stambh

Maturity Benefit

If the policy holder survive to the end of the policy term “ Sum Assured on Maturity “ along with Loyalty Addition , if any, shall be payable.

Where “Sum Assured on Maturity” is equal to Basic sum Assured.

Death Benefit

  • On Death: Within 5 years “Sum Assured on Death “shall be payable.
  • Sum Assured on Death & Loyalty Addition if any is payable after completion of five years of policy but before the maturity date.
  • Where “Sum Assured on Death” is defined as the highest of 10 times of annualized premium or absolute amount assured to be paid on death, i.e. Basic Sum Assured.
  • The death benefit payout to the policy holder shall not be less than 105% of all the premiums paid as on date of death.

Loyalty Addition

If the policy has completed five years and at least 5 full years’ premium have been paid, then depending upon the Corporation’s experience .At the time of exit from the policy in the term of Death during the policy term or on maturity the policies under this plan will be eligible for loyalty addition. Under a paid-up policy, Loyalty Addition is applicable after completion of 5 policy years.

Rider Benefit

LIC’s Accident Benefit Rider:

Accidental Benefit Rider is available as an optional rider on payment of additional premium.  This rider will not be available under the policy on the life of minors, during minority of the Life Assured.

If you opt for this benefit   at any time within policy term and if the  policy holder is involved in an accident , leading to death and such incident shall occur within 180 days from the date of accident then an additional amount equal to the Accident Benefit Sum Assured is payable.  Wherever this rider has been opted for under the policy, the benefit covered under this rider will be available during the policy term after exercise of this rider, provided the policy is enforce for the full Sum assured as on date of accident.

Auto Cover Period

It is the period from due date of first unpaid premium, which includes the Grace Period.

The duration of Auto Cover Period shall be available as follows:

  1. a) If the premiums have been paid for at least complete three years but less than five full years and any subsequent premium is unpaid: Auto Cover Period of six months from the due date of first unpaid premium shall be available.
  2. b) If the premiums have been paid for at least five complete years and if any subsequent premium is unpaid: Auto Cover Period of two years from the due date of first unpaid premium shall be available.

Eligibility Conditions in LIC’s Aadhaar Stambh

Minimum Basic Sum Assured per life*: Rs. 75,000

Maximum Basic Sum Assured per life*: Rs. 300,000

Minimum Age at entry : 8 years (completed)

Maximum Age at entry : 55 years (nearest birthday)

Policy Term: 10 to 20 years

Premium Paying Term: Same as Policy Term

Maximum Age at Maturity: 70 years (nearest birthday)

Payment of Premiums:

Premiums can be paid regularly at:

  • Yearly,
  • Half-yearly,
  • Quarterly or
  • Monthly intervals (monthly premiums through NACH only).

However, a grace period of one month but not less than 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums.

Loan

Loan can be availed during the policy term provided the policy has acquired a surrender value and subject to the terms and conditions as the Corporation may specify from time to time.

The interest rate to be charged for policy loan shall be determined at periodic intervals. For Financial Year 2016-17, the applicable interest rate is 10% p.a. payable half-yearly.

The maximum loan as a percentage of surrender value shall be as under:

For inforce policies – upto 90%

For paid-up policies – upto 80%

Any loan outstanding along with interest shall be recovered from the claim proceeds at the time of exit.

Surrender Value

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Surrender: The policy can be surrendered at any time provided premiums have been paid for at least three full years.

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