LIC Aadhaar Shila (Table 844) – Review, Benefits and Eligibility

LIC’s Aadhaar Shila is a policy which offers dual benefit of protection and savings. This plan is exclusively designed for female lives having Aadhaar Card issued by UIDAI (Unique Identification Authority of India). 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.

Features of this policy – (Table 844)

1. Loan facility against this policy
2. Paid premium exempted from Income tax u/s 80C
3. Maturity Amount exempted from Income Tax u/s 10 (10D)
4. Lapsed Policy can be revived within 2 years from the first un-paid premium
5. Rider Benefit Available
6. Female only plan

Benefits of this policy –

Death Benefit –

Death benefit payable in case of death of the Life Assured before the stipulated Date of Maturity provided the policy is in force shall be as under:

• On death during first five years: “Sum Assured on Death”.
• On death after completion of five policy years but before the stipulated Date of Maturity: “Sum assured on Death” along with 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. 110% of 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.

Maturity Benefit –

On Life Assured surviving the stipulated Date of Maturity provided 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.

Optional Benefit –

LIC’s Aadhaar Shila also offers optional benefit known as Accidental Rider Benefit . One has to pay an extra premium to avail this benefit. This rider will not be available under the policy on the life of minors, during minority of the Policyholder.

Eligibility Conditions of the policy –

Let us see the eligibility conditions of the LIC Aadhaar Shila policy.

Can the policy be revived if lapsed –

Yes, the policy can be revived if lapsed within 2 years from the 1st un-paid premium.

Can I surrender my policy ?

Yes, the policy can be surrendered at any time provided premiums have been paid for atleast three full years. 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 take loan against this policy ?

Loan can be taken against this policy, provided the policy has acquired a surrender value. The maximum loan as a percentage of surrender value shall be as under:

• For in force policies – up to 90%
• For paid-up policies – up to 80%

Is there any free look period in the policy?

Yes, this policy holds a free look period of 15 days from the date of receipt of the policy document, for those policyholders who are not satisfied with the terms and condition of the policy.

Is there any exclusion in the policy?

Suicide is considered void in this policy. Let me explain you this condition with 2 scenario –

1. If the policyholder (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk then the Corporation will not entertain any claim except for 80% of the premiums paid, provided the policy is in force.
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 or the surrender value, shall be payable.

The Corporation will not entertain any other claim. 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 everyone of you have come to know each and every details of this policy. Now it’s up to you all to decide whether this policy will satisfy your requirements or not. If you have any doubt regarding this policy, they please let us know in the comment section.