LIC Aadhaar Shila

A Brief History of LIC Aadhaar Shila

LIC Aadhar Shila Plan
LIC Aadhar Shila Plan Details

The LIC Aadhaar Shila plan is an endowment plan that pays out a lump sum at maturity. Its primary goal is to invest in low-risk investments. This scheme is only applicable to women who have an Aadhar Pass. This package involves the charging of a nominal premium. Under this scheme, no medical tests are needed. It has a policy term that ranges from 10 to 20 years.

Launch Date Table No. UIN Status
6/4/2017 844 512N309V01 Active

How does it work?

The customer must decide on the following while purchasing the LIC Aadhaar Shila Plan:

  1. Basic Sum Assured – This is the level of security you desire. You can choose between Rs. 75,000 and Rs. 3,00,000 as a minimum volume.
  2. Policy Term – This is the time frame for which you want to be protected. The term will last anywhere from ten to twenty years.
  3. Premium Payment Term – The definition is the same as the policy term.

Based on your age, the basic Sum assured, and the policy term you want. Then, the amount of your annual Premium will be determined.

The LIC Aadhaar Shila Plan has many advantages.

Death benefit

If the Life Assured dies during the policy period and all due premiums have been charged, the following will happen:

“Sum Assured on Death” is due if you die within the first five years.

If a policyholder dies after five years but before the policy’s maturity date, the “Sum Assured on Death” and any Loyalty Addition, if any, are payable.

Where “Sum Assured on Death” is the greater of 10 times annualised premium, Sum Assured on Maturity as described in 1. b) below, or the absolute amount guaranteed to be paid on death, which is 110 per cent of the Basic Sum Assured.

105 Per cent of annualised Premium paid to the nominee of the insured person in case of death.

If declared, Loyalty Addition will be paid out as part of the Death Benefit if you die within the first five years of the policy.

LIC Aadhaar Shila Plan Maturity Benefit

The policyholder will receive the following at the end of the policy term:

If announced, Basic Sum Assured Loyalty Additions

An Example of the LIC Aadhaar Shila Plan

Priya Dixit, 30, is considering buying this plan. However, he continues with the following strategy:

The Sum assured is Rs. 1,00,000, and the term is 20 years.

Term of Premium Payment = 20 years

His annual premium is Rs. 3,641 + taxes = Rs. 3,805 based on these criteria. In this case, we’ve used a current tax rate of 4.5 per cent.

Death Benefit

Scenario 1: What If Priya dies after four years of the policy?

Her nominee receives the highest score in each of the following categories:

  • Basic Sum Assured – Rs. 1,00,000
  • The Annualized Premium multiplied by ten equals Rs. 36,410.
  • 105 percent of all premiums charged up to the death date = 105 percent x 4 x 3,641 = Rs. 15,292

The largest of the above is Rs. 1,00,000, which will be awarded to the nominee. No Loyalty Additions will be charged because the scheme hasn’t been in force for five years.

Scenario 2:If Priya dies after 15 years of the policy,

Her nominee receives the highest score in each of the following categories:

  • Basic Sum Assured – Rs. 1,00,000
  • The Annualized Premium multiplied by ten equals Rs. 36,410.
  • 105 percent of all premiums charged up to and including the date of death = 105 percent x 15 x 3,641 = Rs. 57,346

The most expensive is Rs. 1,000,000. The package is eligible for Loyalty Additions since it has completed five program years. As a result, the nominee will be awarded Rs. 1,00,000 plus Loyalty Additions. Only when the worth of Loyalty Additions is declared can it be determined.

Maturity Benefit

Scenario 3:- Anurag will receive the Basic Sum Assured + Loyalty Addition as announced if Priya lives to the end of the 20-year policy term.

Total Premiums Paid = Rs. 76,097 (including taxes)

Basic Sum Assured = Rs. 1,00,000

Loyalty Additions – As declared.

LIC Aadhaar Shila Policy Premium Illustration Sample

For various combinations of age, Sum Assured, and policy word, here are the sample tabular premium rates (inclusive of taxes) payable by a safe, non-tobacco consumer male. For such measures, we have selected the current applicable tax rate of 4.5 per cent.

Criteria for Purchasing a LIC Aadhaar Shila Policy

  Minimum Maximum
Basic Sum Assured* Rs. 75,000 Rs. 3,00,000
Policy Term 10 years 20 years
Premium Payment Term Same as policy term
Entry Age 8 years (completed) 55 years (nearest birthday)
Maximum Maturity Age 70 years (nearest birthday)
Premium Mode Rebate      2% on yearly,1% on half-yearly, Nil on Quarterly & Monthly.
Premium paying frequency Annually, Half-yearly, Quarterly, Monthly

Characteristics

  • Plan for Women Only
  • Ideal with a Low Premium
  • Facility for Auto Coverage
  • Under the age of ten, the maturity amount is tax-free (10D)
  • Under Section 80 C, charged premiums are tax-free.

 Tax Implications of the LIC Aadhaar Shila Programme

  • Premiums – The premiums charged for the plan are tax-free under Section 80C of the Income Tax Act.
  • Maturity Claim – Section 10(10D) of the Income Tax Act exempts the maturity number from taxation.
  • Death Claim – Section 10(10D) of the Income Tax Act exempts death claims received under the scheme from being taxed.

Additional LIC Aadhaar Shila Policy Benefits

  • Free-look Period –If the policyholder is unhappy with the plan, he has 15 days from the date of issuance to cancel it. The free-look era is the name given to this period. The Premium charged, less any applicable expenditures, will be returned upon cancellation.
  • Grace Period – You have a grace period of 30 days from the Premium due date whether you pay the premiums annually, half-yearly, or quarterly. The grace period is 15 days if you pay your premiums monthly.
  • Loan – Once you’ve charged three years’ worth of premiums, you’ll be eligible to use this scheme.
  • The following riders are included in this plan.
  • LIC’s Accidental Death Benefit Rider: If the insured dies in an accident, his nominee will receive an extra lump sum benefit. Policyholders over the age of 18 may buy the Accidental Benefit Rider, which includes an additional amount equal to the Basic Sum assured in the event of death caused by accident.
  • Surrender Value – You will not be paid if you cancel the contract before paying three years’ worth of premiums. The policy will have a Surrender Benefit if you have charged premiums for at least three years. Check the LIC Aadhaar Shila Plan’s Surrender Value.

LIC Aadhaar Shila plan

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