LIC Aadhaar Stambh (Table 843) – Review, Features and Benefits

LIC’s Aadhaar Stambh Plan offers dual benefit of protection and savings. This policy is exclusively designed for male lives having Aadhaar Card issued by UIDAI (Unique Identification Authority of India). This policy 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.

Features of this policy – (Table 843)

1. This plan is only for males who have Aadhaar Card.
2. It is a low premium policy.
3. Premium Paid is exempted from tax u/s 80C of Income Tax Act, 1961.
4. Maturity Amount is Tax-free u/s 10(10D) of Income Tax Act, 1961.
5. Rider Benefits are also available in this policy.
6. Lapsed Policy can also be revived within 2 yrs of the first unpaid premium.
7. Loan facility against this policy is available.

Benefits of this policy –

• Maturity Benefit – If the policyholder survives till the end of the policy term then the policyholder will be paid, “Sum Assured on Maturity” + Loyalty Addition, provided all the premiums have been paid.
  
• Death Benefit – Death benefit will be payable in case of death of the policyholder is before the maturity period provided the policy is in force –
  a) On death during the first five years – “Sum Assured on Death”.
  b) On death after completion of five policy years but before the maturity period – “Sum assured on Death” + Loyalty Addition, if any.

Where “Sum Assured on Death” is defined as the highest of
• 10 times of annualized premium; or
• Sum Assured on Maturity as defined in Condition 2. below; or
• Absolute amount assured to be paid on death, i.e. Basic Sum Assured.

This death benefit shall not be less than 105% of the total premiums paid excluding extra amount if charged under the policy due to underwriting decision and Rider(s) premium, if any, as on date of death.

• Rider benefit – LIC’s Aadhaar Stambh policy offers Accidental Rider Benefit on payment of additional payment. This rider will not be available under the policy on the life of minors, during the minority of the policyholder.

Eligibility Condition of this policy –

Like every LIC Policy, this policy also has some eligibility conditions. Here are they in the below table:

Can the policy be revived if it has lapsed?

The revival of the lapsed policy is possible only within a period of 2 consecutive years from the date of the first unpaid premium and before the date of maturity.
Revival of Rider(s), if opted for, will only be considered along with the revival of the Base Policy and not in isolation.

Can I get the surrender value of my 1 yr old active policy?

One cannot get the surrender value of 1 yr old active policy. To get the surrender value the policy has to be active with 3 yr of full premium paid. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value and Special Surrender Value.

Can I get a loan against this policy?

The loan can be availed against this policy only if 3 full years’ premiums have been paid. The maximum loan as a percentage of surrender value shall be as under:

1. For active policies – up to 90%
2. For paid-up policies – up to 80%

Can I return the policy if possible?

Yes, the policy can be returned by the policyholder if the policyholder doesn’t like the terms and conditions of the policy. This period is called the Free Look Period. The policy can be returned to the corporation within 15 days from the date of receipt of the Policy Document.

Exclusions of this policy –

Suicide is considered invalid in this policy. Let us see 2 cases –

1. If the policyholder (whether sane or insane) commits suicide within 12 months from the date of commencement of risk, then the Corporation will not entertain any other claim under this policy except for 80% of the premiums paid excluding any extra amount if charged under the policy due to underwriting decisions and rider premium(s), if any, provided the policy is active.
2. If the policyholder (whether sane or insane) commits suicide within 12 months from date of revival, an amount which is higher of 80% of the premiums paid till the date of death excluding extra amount if charged under the policy due to underwriting decisions and rider premium(s), if any, or the surrender value, shall be payable. The Corporation will not entertain any other claim under this policy.

This clause shall not be applicable for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policy.

Video Review of the Policy –

Conclusion –

So, by now every one of you has come to know each and every detail of this policy. Now it’s up to you all to decide if this policy is what you need or something else. If you have any doubt regarding this policy, they please let us know in the comment section.