943

LIC's Aadhaar Stambh Plan (Plan No: 943, UIN: 512N310V01) is a non-linked insurance plan, with profits and regular premium paying endowment plan. It is a aggregation for both savings as well as protection. LIC’s Aadhaar Stambh Plan is exclusively for male policyholders having aadhaar cards issued by UIDAI (Unique Identification Authority of India). This is a loyalty addition based plan and does not require any medical tests, available standard healthy lives.

It provides financial support to the family in case of unfortunate death of policyholder before maturity and a lump sum amount at the time of maturity for the surviving policyholder.

• This plan provides auto cover facility i.e., it provides Auto cover and cash flow requirements along with loan facility.

• Available only for males.

• It is a low premium plan.

• It is an Endowment policy wherein the amount is given as a lump sum at maturity i.e., at the end of the term.

• In 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.

• At the maturity of this plan, the policyholder receives Basic Sum Assured+Loyalty Addition.

• Critical illness benefits are not available under this plan.

• Loan facility is available under this plan but only after completion of three years.

• Benefits like LIC’s Accidental Rider and permanent disability rider are available.

• The revival of a lapsed policy is available under this policy within the two years of first unpaid premium.

• Paid premiums are exempted from income tax under Section 80c of the Income Tax Act, 1961.

• Maturity amount is tax-free under Section 10 (10D) of the Income Tax Act, 1961.

Maturity Benefit

As it is an edowment plan, on successful completion of the policy term while the assured is alive and only if all the due premiums are clear and paid,

The ‘sum assured on maturity’ will be equal to the Basic Sum Assured.

The insured will get a lumpsum amount which will be equal to;

Maturity Benefit=Basic Sum Assured+Loyalty Addition.

*Note: Loyalty Addition can be availed only after successful completion of 5 years and if it is declared by the LIC.

Death Benefit

On death during the first 5 years of the policy:

The death claim amount will be equal to Basic Sum Assured.

On death after 5 years of the policy and before maturity:

The death claim amount will be equal to Basic Sum Assured+Loyalty Addition (LA).

*Note: Loyalty Addition can be availed only after successful completion of 5 years.

Sum assured on death is the higher of 10 times of the annualized premium or basic sum assured. This benefit is not less than 105% of the premiums paid until death. Premiums paid does not include either taxes or any type of extra charges due to rider premiums.

Loyalty Addition

On completion of policy years and if the premiums have been paid for at least 5 years, Loyalty Addition will be paid covered by a paid-up policy if the policy is in force. Loyalty addition is also considered during Special Surrender Value Calculation on surrender of the policy during the term, only if the full premium has been paid for at least five years.

Optional Accidental Benefit Rider

Policyholders who are above 18 years of age have the option of taking the advantage of LIC’s Accidental Benefit Rider with this plan, which will provide an additional amount equal to basic sum assured in case of death caused due to the accident. The Sum Assured in this rider will not exceed the Basic Sum Assured.

Date of Commencement of Risk

Under this plan, the risk will commence immediately from the date of inception of the policy. The date of commencement of risk also includes minor lives of the family i.e. children. This is an add-on perk offered by the plan that makes it more efficient and beneficial for a secure future of the family.

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 2 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 a rate fixed by LIC 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 not been paid for at least 3 years. In case of premiums fully paid for 3 years and any subsequent premium is not duly paid, then the policy won’t be ceased but continued as a paid-up policy. Although, Auto Cover Period will be applicable.

At Maturity the Maximum Age is 70 years (nearest birthday)

Date of risk initiation:

In this policy, the infant/juvenile is also covered and the risk will be initiated from the acceptance date itself.

*The overall Basic Sum Assured under this plan will not excel Rs. 3 lakhs.

Rebate on Different Mode:

• Yearly mode - 2% of Tabular Premium

• Half-yearly mode - 1% of Tabular premium

• Quarterly, Monthly (through NACH) & Salary deduction - NIL

High Basic Sum Assured Rebate:

Basic Sum Assured (BSA) Rebate (Rs.)

• 775,000 to 1,90,000 - Nil

• 2,00,000 to 2,90,000 – 1.50% of BSA

• 3,00,000 - 2.00%o BSA

Auto Cover Period

The period from the due date of first unpaid premium (FUP) is “Auto Cover Period” under a paid-up policy. The duration of Auto Cover Period will be as follows:

1. Auto Cover Period for 6 months will be available, if at least 3 full years but less than 5 full years premiums are already paid and any consecutive premium is not timely paid.

2. Auto Cover Period for 2 years will be available, if at least 5 full years but less than 5 full years premiums are already paid and any consecutive premium is not timely paid.

Surrender Value

If the premiums have been paid for 3 subsequent years continuously then the policyholder can surrender the policy anytime. LIC will pay the Surrender Value equal to higher of Guaranteed Surrender Value and Special Surrender Value after the surrender of the policy.

The Special Surrender Value is fixed by LIC periodically based on the former approval of IRDAI.

The Guaranteed Surrender Value paid at the time of policy term is the total premiums paid multiplied by the Guaranteed Surrender Value factor effective to total premiums paid under the policy.

For Example: For a policy tenure of 10 years and if the policy is surrendered in 9th or 10th of the policy year, the Guaranteed Surrender Value factor expressed in percentage works out to be 80.00%. Similarly, for a policy tenure of 15 years and if the policy is surrendered in 14th or 15th of the policy year surrendered, the Guaranteed Surrender Value factor expressed in percentage works out to be 80.00%.

These Guaranteed Surrender Value factors expressed as percentages are solely depending on the policy term and policy year in which the policy is surrendered.

Policy Loan

Premiums paid does not include either taxes or any type of extra charges due to rider premiums.

If the policy has a surrender value based on the terms and conditions by LIC priodically, then the loan will be provided at the time of policy term. The interest rate is decided by the Corporation only.

For the year 2016-17, the paid avail interest rate is 10% p.a. half-yearly.

Maximum loan (% of surrender value) is as under:

• For inforce policies – upto 90%

• For paid-up policies – upto 80%

The latest loan amount along with interest will be restored during exit from the claims to be paid then.

Taxes

Legal Taxes, will be applicable as per the laws of Government of India or Tax Authority of India and will be updated regularly if there is a change by the government.

Service Tax will be charged for the premiums paid under the policy. This tax amount paid to the government will not be calculated for the future benefits of the plan.

Free look period

Within 15 days of the issuance of the policy, if the person does not agree to the clauses of the policy then he/she can cancel the policy anytime within that period. After the cancellation process, LIC will return the amount of premium deposit, deducting the risk premium and stam duty charges.

Exclusions

Suicide:

1. If the policyholder commits suicide within 12 months from the date of initiation of risk, LIC will not hold attention to any claim except for 80% of the premiums paid (if the policy is in force).

2. If the policyholder commits suicide within 12 months from the date of revival, LIC will pay 80% of the premiums paid till the date of death or the surrender value and will not hold attention to any other claim. This condition will not be availed if the policy gets lapsed.