LIC Aadhaar Stambh Yojna
(A Non-Linked, Participating, Individual, Life Assurance Savings Plan)
LIC’s Aadhaar Stambh is a Non-Linked, Participating, Individual, Life Assurance plan designed exclusively for male lives, which offers a combination of protection and savings. This plan provides financial support for the family in case of unfortunate death of the policyholder any time before maturity and a lump sum amount at the time of maturity for the surviving policyholder.
In addition, this plan also takes care of liquidity needs through its Auto Cover as well as loan facility.
Death Benefit-
Death benefit payable On death of the Life Assured during the policy term provided policy is in-force (i.e. all due premiums have been paid) then-
On death during first five years: “Sum Assured on Death” shall be payable.
On death after completion of five policy years but before the date of maturity: “Sum Assured on Death” and Loyalty Addition, if any, shall be payable.
Where “Sum Assured on Death” is defined as the higher of
- 7 times of annualized premium; or
- 100% of Basic Sum Assured
The death benefit shall not be less than 105% of total premiums paid up to the date of death.
Premiums referred above shall not include any taxes, extra premium and rider premium, if any.
Maturity Benefit-
On Life assured surviving to the end of the policy term, provided all due premiums have been paid (i.e. the policy is in–force), “Sum Assured on Maturity” along with Loyalty Addition, if any, shall be payable.
Where “Sum Assured on Maturity” is equal to Basic Sum Assured.
Loyalty Addition-
Provided the policy has completed five policy years and atleast 5 full years’ premium have been paid, then depending upon the Corporation’s experience the policies under this plan shall be eligible for Loyalty Addition at the time of exit in the form of Death during the policy term or Maturity, at such rate and on such terms as may be declared by the Corporation. Under a paid-up policy, Loyalty Addition shall be payable for the completed policy years for which the policy was in-force.
In addition, Loyalty Addition, if any, shall also be considered in Special Surrender Value calculation on surrender of policy during the policy term, provided the policy has completed five policy years and at least 5 full years’ premium have been paid.
Eligibility Conditions and Other Restrictions-
(This plan is only available for standard healthy lives without undergoing any medical examination)
Date of commencement of Risk-
Under this plan the risk will commence immediately from the date of acceptance of the risk.
Date of Vesting under the Plan-
If the policy is issued on the life of a minor, the policy shall automatically vest in the Life Assured on the policy anniversary coinciding with or immediately following the completion of 18 years of age and shall on such vesting be deemed to be a contract between the Corporation and the Life Assured.
The total Basic Sum Assured under all policies issued to an individual under this plan shall not exceed ₹ 3 lakh.
Rider Benefits-
The policyholder has an option of availing LIC’s Accident Benefit Rider under this plan at any time under an in-force policy within the policy term of the Base plan provided the outstanding policy term of the base plan is at least 5 years. The benefit cover under this rider shall be available during the policy term. If this rider is opted for, in case of accidental death, the Accident Benefit Sum Assured will be payable in lumpsum.
The Rider Sum Assured cannot exceed the Basic Sum Assured under the Base plan.
Payment of Premiums-
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals (monthly premiums through NACH only) or through salary deductions over the term of policy.
Grace Period-
A grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums from the date of first unpaid premium. During this period, the policy shall be considered in-force with the risk cover without any interruption as per the terms of the policy.If the premium is not paid before the expiry of the days of grace, the Policy lapses.
The above grace period will also apply to rider premium which is payable along with premium for base policy.
Rebates-
Revival-
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium but before the date of Maturity, as the case may be. The revival shall be effected on payment of all the arrears of premium(s) together with interest (compounding half yearly) at such rate as may be fixed by the Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured on the basis of information, documents and reports that are already available and any additional information in this regard if and as may be required in accordance with the Underwriting Policy of the Corporation at the time of revival, being furnished by the Policyholder/Life Assured.
The Corporation reserves the right to accept at original terms, accept with modified terms or decline the revival of a discontinued policy. The revival of discontinued policy shall take effect only after the same is approved accepted and revival receipt is issued by the Corporation.
Revival of rider, if opted for, will be considered along with revival of the Base Policy, and not in isolation.
The Revival Period and Auto Cover Period (as mentioned in para 8 below) shall run concurrently i.e. Auto Cover period does not extend period of revival.
Paid-up Policy-
If less than two years’ premiums have been paid and any subsequent premium be not duly paid, all the benefits under the policy shall cease after the expiry of grace period from the date of first unpaid premium and nothing shall be payable.
If, after at least two full years’ premiums have been paid and any subsequent premiums be
not duly paid, the policy shall not be void but shall continue as a paid-up policy till the end of the policy term. However, if at least three full year’s premiums have been and any subsequent premiums be not duly paid, under such policies Auto Cover Period as mentioned below shall be applicable.
Auto Cover Period-
“Auto Cover Period” under a paid-up policy shall be the period from due date of first unpaid premium (FUP). The duration of Auto Cover Period shall be as under-
- If at least three full years’ but less than five full years’ premiums have been paid under a policy and any subsequent premium is not duly paid: Auto Cover Period of six months shall be available.
- If at least five full years’ premiums have been paid under a policy and any subsequent premium is not duly paid- Auto Cover Period of two years shall be available.
The benefits payable under a paid-up policy during Auto Cover Period shall be as follows-
On death-
Death benefit, as payable under an in-force policy, shall be paid after deduction of (a) the unpaid premium(s) in respect of the base policy with interest thereon up to the date of death, and (b) the balance premium(s) for the base policy falling due from the date of death and before the next policy anniversary, if any.
On maturity-
The Sum Assured on Maturity under paid-up policy shall be reduced to such a sum called “Maturity Paid-up Sum Assured” and shall be equal to Sum Assured on Maturity multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable i.e. [(Number of premiums paid / Total Number of premiums payable) x (Sum Assured on Maturity)]. In addition to the Maturity Paid-up Sum Assured, Loyalty Addition, if any, shall also be payable on maturity.
The benefits payable under a paid-up policy before the start of Auto Cover Period and after the expiry of Auto Cover Period shall be as follows.
On death-
Sum Assured on Death under a paid-up policy shall be reduced to such a sum, called “Death Paid-up Sum Assured” and shall be equal to Sum Assured on Death multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable i.e. [Sum Assured on Death* (Number of premiums paid / Total number of premiums payable)]. In addition to the Death Paid-up Sum Assured, Loyalty Addition, if any, shall also be payable on death after the expiry of Auto Cover Period.
On maturity-
The Sum Assured on Maturity under paid-up policy shall be reduced to such a sum called “Maturity Paid-up Sum Assured” and shall be equal to Sum Assured on Maturity multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable i.e. [(Number of premiums paid / Total Number of premiums payable) x (Sum Assured on Maturity)].In addition to the Maturity Paid-up Sum Assured, Loyalty Addition, if any, shall also be payable on maturity.
Under a Paid-up policy, Loyalty Addition , if any, shall be payable for the completed policy years for which the policy was in-force, provided the premium have been paid for at least 5 full years and after completion of 5 policy years.
Policy Loan-
Loan can be availed during the policy term provided at least two full years’ premiums have been paid 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 and as applicable for entire term of the loan shall be determined at periodic intervals. The applicable interest rate shall be as declared by the Corporation based on the method approved by the IRDAI.
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.
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