LIC Aadhaar Stambh Endowment Policy Details: For Citizens Having Aadhaar Card

LIC is the public life insurer of India, which is offering several endowment plans, Whole-Life plans, Money-Back plans, and Term Assurance plans. In this article, the LIC Aadhaar Stambh plan has been discussed along with its death benefits, maturity benefits, and benefit-calculations with different amounts.

LIC Aadhaar Stambh - Non-Linked assured plan

As the name suggests, the LIC Aadhaar Stambh plan is offered by the corporation for Indian males who are having Aadhaar cards. It is a Non-Linked, Participating, Individual plan, which means, the policy can receive assured high returns, which will not be linked with the equity markets. So, the investors' money will be secured under this plan. The LIC Aadhaar Stambh plan will provide financial support for the policyholder's family in case of his unfortunate death any time before the policy's maturity time, while a lump sum amount will be paid at the time of maturity if the policyholder survives till the maturity period.

Eligibility, policy term, and basic sum assured

The most important eligibility of this plan is the investor should have an Aadhaar card. The minimum age at entry is 8 years, and the maximum age at entry is 55 years. The maximum age at maturity is 70 years.

The minimum basic sum assured per life under this plan will be Rs. 75,000, while the maximum basic sum assured per life will be Rs. 300,000. On the other hand, the basic sum assured will be in multiples of Rs. 5,000, from the basic sum, assured of Rs. 75,000 to Rs. 1,50,000, and Rs. 10,000 for the basic sum assured above Rs. 1,50,000.

The LIC Aadhaar Stambh's Policy Term and the Premium Paying Term will be 10 to 20 years.

Death Benefits

The death benefit under the plan is quite lucrative as the plan aims to protect the policyholder's family in the case of any unfortunate death. The death benefits will be paid on the death of the policyholder, during the policy term provided the policy is in force. However, he needs to pay all due premiums, till date. Additionally, if the investor dies during the first 5 years, the Sum Assured on Death will be paid. If the investor dies after completion of 5 policy years but before the date of maturity, the Sum Assured on Death and the Loyalty Addition (if any) will be paid. According to LIC, "The 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."

The policyholder's family can also get the death benefit in installments over the chosen period of 5 or 10 or 15 years if they do not want to get it in lump sum amount. LIC mentioned, "This option can be exercised by the Policyholder during the minority of the Life Assured or by Life Assured aged 18 years and above, during his/her lifetime; for full or part of Death benefits payable under the policy."

Mode of installment payment	Minimum installment amount
Monthly	Rs. 5,000
Quarterly	Rs. 15,000
Half-Yearly	Rs. 25,000
Yearly	Rs. 50,000

Maturity Benefits

In case the policyholder survives, till the policy term, the maturity benefits will be paid by LIC, provided all due premiums have been paid. The investor will receive the Sum Assured on Maturity along with the Loyalty Addition (if any). The Sum Assured on Maturity will be the same as the Basic Sum Assured amount invested.

Benefits calculation under the LIC Aadhaar Stambh Policy

Under this calculation, the policyholder's age has been taken as 30 years completed, and the policy term is 15 years. In the first year's premium, the investor will have to pay 4.5% tax, while from the next year's premium, the tax will be reduced to 2.25%.

Basic sum assured	1st year's premium (yearly)	Premium from 2nd year (yearly)	Total approximate return at maturity
Rs. 1,50,000	Rs. 8412	Rs. 8231	Rs. 1,80,000
Rs. 3,00,000	Rs. 16,198	Rs. 15,849	Rs. 3,60,000

*Calculation is done via official LIC app (All in one Calc)

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Surrender value and free-look period

The policyholder can surrender the plan at any time provided premiums have been paid for at least 2 consecutive years. In that case, the investor will get the Surrender Value, which is equal to the higher of Guaranteed Surrender Value and Special Surrender Value. According to the LIC, "The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid (excluding extra premiums, taxes and premium for the rider, if opted for) multiplied by the Guaranteed Surrender Value factor applicable to total premiums paid under the policy."

Additionally, LIC is offering a free-look period for the plan. So that, if the policyholder is not satisfied with the Terms and Conditions of the said endowment plan, the investor can withdraw the LIC Aadhaar Stambh policy within 15 days, from the date of receipt of the policy bond. The investor will be required to state the reasons for objections.

(Also read: LIC Jeevan Lakshya For A Promising Future Of Your Child)