Waiting for LIC new plans for 2017? Then here is the news. Finally LIC has come up with 2 new insurance policies and this time one for men and another for women specific policy. These 2 plans are LIC Aadhaar Stambh Plan Table no. 843 for men and LIC Aadhaar Shila Plan Table no. 844 for women. In this article I will be reviewing LIC Aadhaar Stambh Plan and also explaining various features, benefits and how to buy process.
The major difference between these 2 policies are the gender only. Means one policy for men and another for women. From actual policy benefit wise it’s almost same, in fact these 2 policies are almost like ols typical LIC endowment policies only.
Key Highlights of LIC Aadhaar Stambh Plan 843
As the name suggest, you must realise that this policy is exclusively for those men in India who have valid Aadhaar number. As aadhaar is getting more and more necessary and mandatory for almost anything, LIC of India has come up with this policy at the right time to attract people.
Here are the basic and core features of LIC Aadhaar Stambh policy.
- Minimum Sum Assured : Rs 75,000
- Maximum Sum Assured : Rs 3,00,000
- Minimum Policy Term : 10 years
- Maximum Policy Term : 20 years
- Available for : Male Lives only
- Min Age at entry : 8 years
- Maximum age at maturity : 70 years
- Type of Plan : Endowment
- Rider (Optional) : Accident Benefit Rider is available
- Loan: After completing 3 full years of policy
- Policy Revival: You can revive the policy within the 2 years of first unpaid premium.
MODE OF PREMIUM PAYMENT
The modes of premium payment allowable are : ✓ Yearly ✓ Half Yearly ✓Quarterly ✓Monthly ( through NACH only or through salary deductions)
REBATES : The rebates for base plan are as under :
- Yearly mode : 2% of tabular premium
- Half-yearly mode : 1% of tabular premium
- Quarterly and monthly mode : NIL
High Basic Sum Assured Rebate:
Basic Sum Assured Rebate (Rs.)
- 75,000 to 1,90,000 : Nil
- 2,00,000 to 2,90,000 : 1.50 Basic Sum Assured
- 3,00,000 : 2.00 Basic Sum Assured
So, in a nutshell if I have to summarize the features of this policy, its like you can buy a maximum up to 3 lakh of life insurance using this policy. You can go for additional accidental rider by paying additional premium amount. Let’s explore few other benefits of this policy.
Benefits of LIC Aadhaar Stambh Plan
Besides these key features, here are the other death & maturity benefit details of this policy.
Death Benefit: One can get the sum assured value as death benefit in case the death of policyholder happen within first 5 year of policy period. In case of death happen after 5 years, then your nominee will get Sum Assured on Death+Loyalty Addition will be payable to the nominee. The min sum assured value here can’t be less than 105% of all the premium paid.
Maturity Benefit: In case the policyholder survive till the end of the policy term then the person will get Sum Assured at Maturity+Loyalty Addition. Here, Sum Assured at Maturity is equal to Basic Sum Assured
Auto Cover Period Feature
Now this is something new to talk about this policy. This is a kind of little relaxation LIC of India tried to provide with this policy. Now in case policyholder didn’t pay the premium then the policy will be paid up. In general cases, your policy benefit will be ceased immediately, but with the auto cover feature one can get some extended period where the policy benefit will be intact.
- Now if you have paid premium for less than 5 years then the auto cover period can be maximum of 6 month duration under which you will get a chance to revive the policy without losing the policy benefits.
- If five policy year premiums have been paid and any subsequent premium is not duly paid: “Auto Cover period” of 2 years from the due date of the first unpaid premium will be available.
LIC Aadhaar Stambh Plan Premium Calculator
You can visit official website of LIC of India and use their online premium calculator and find out how much premium amount you have to pay for a particular sum assured value. Right now the website is not updated with the premium calculator details, I will update this article with a sample calculation later on.
Should I Buy LIC Aadhaar Stambh Plan?
Well, frankly speaking there is nothing new in this new LIC policy. It’s like LIC of India is offering a typical endowment policy with new name and features. The life insurance coverage is up to 3 lakh maximum and I am not sure whether you will be happy to have such life cover. From the policy return point of view also, there is only loyalty addition and no final additional bonus which means the ultimate return might be from 5% to 6% maximum only. You can definitely be able to save income tax under the section 80C.
Now, whether you should buy this policy or not that decision you have to take. From insurance point of view, I don’t think there is no alternative to a pure term insurance policy. Don’t compromise your family’s future and you should buy a term plan with higher life cover.
If you don’t have any insurance need, happy to get 5%-6% return on investment and look for a guaranteed return, at least better than your savings account. Then you can buy this policy. But if you are looking for better return from investment, then you have to look for other options like mutual funds, PPF account, Stock purchase etc as per your risk taking ability. From income tax saving point of view, there is no alternative to ELSS mutual funds.
So, hope you have liked this article and realised what exactly I tried to convey. I shared my personal review on this policy as per my understanding. You should take your investment calls as per your goals and investment need. Don’t invest just you have to save tax or your friend is doing the same or suggesting some investment option. Understand the product first and decide whether this is what you are expecting.
By the way, this is not an online policy, so you have to buy this policy through any LIC agent or by directly visiting your nearest LIC branch office. You can write your comments below to let me know your queries and doubts if any. I will try to answer as per my best knowledge.