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aadhar-shila

About Aadhar Shila Plan

LIC’s Aadhaar Shila Plan is a non-linked insurance program, with gains and regular premium paying endowment program. This strategy is a combination program which delivers both savings in addition to protection.

LIC’s Aadhaar Shila Plan is solely for feminine policyholders with Aadhaar cards issued by UIDAI (Particular Identification Authority of India). This really is a Loyalty Addition based program and doesn’t call for any medical evaluations.

This strategy also provides monetary support to the household in the event of unfortunate death of policyholder prior to adulthood along with a lump sum amount in the time of maturity to your living policyholder.

Benefits

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

Key Features

GenderFemale Only
Age at Entry8 Years (Completed)
Maximum Age at Entry 55 (Nearest Birthday) Calculate your Age
Minimum Term10 Years
Maximum Term20 Years
Maximum Age at Maturity70 Years (Nearest Birthday)
Sum AssuredMinimum Rs. 75,000 and Maximum Rs. 3,00,000
Premium Paying ModeYearly, Half Yearly, Quarterly & Monthly (SSS and NACH Only)
Premium Mode RebateYearly-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.

Loan Benefits

Loan can be availed under this policy provided atleast three full years’ premiums have been paid subject to the following terms and conditions, within the surrender value of the policy for such amounts and on such further terms and conditions as the Corporation may fix from time to time:

  • The Policy shall be assigned absolutely to and held by the Corporation as security for the repayment of Loan and of the interest thereon; 
  • The maximum loan as a percentage of surrender value shall be as under:
    • For inforce policies- upto 90%
    • For Paid-up policies – upto 80%
  • Interest est on Loan shall be paid on compounding half-yearly basis to the Corporation at the rate to be specified by the Corporation at the time of taking loan under this policy. For Financial Year 2016-17, the applicable interest rate is 10% p.a. payable half-yearly. The first payment of interest is to be made on the next Policy anniversary or on the date six months before the next Policy anniversary whichever immediately follows the date on which the Loan is sanctioned and every half year thereafter. Interest is charged for a minimum period of six months.
  • In the event of default in payment of loan interest on the due dates, and when the outstanding loan along with interest is to exceed the surrender value, the Corporation shall be entitled to foreclose such policies. Such policies when being foreclosed shall be entitled to payment of the difference of surrender value and the loan outstanding amount along with interest, if any.
  •  Corporation is entitled to recover or recall the amount of the Loan with all due interest by giving 3 months’ notice;
  •  In case the policy shall mature or is surrendered or become a claim by death, the Corporation shall become entitled to deduct the amount of the outstanding loan, together with all interest from the policy moneys

Other 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 two 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.

Payment of Premiums

a) The policyholder has to pay the Premium on the due dates as specified in the Schedule of this Policy Document alongwith Service tax and any other Tax as applicable from time to time.

b) Grace period: A grace period of one month but not less than 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums. If the premium is not paid before the expiry of the days of grace, the Policy lapses. If the death of the Life Assured occurs within the grace period but before the payment of the premium then due, the policy will still be valid and the benefits shall be paid after deductions of the said unpaid premium as also the balance premium(s), if any, falling due from the date of death and before the next policy anniversary.

c) In case of death of Life Assured under an inforce policy wherein all the premiums due till the date of death have been paid and where the mode of payment of premium is other than yearly, balance premium(s), if any, falling due from the date of death and before the next policy anniversary shall be deducted from the claim amount.

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