LIC Aadhaar Shila Policy

LIC Aadhaar Shila Policy is a life insurance policy offered by the Life Insurance Corporation of India (LIC). This policy is designed specifically for women and provides financial security to the policyholder and her family. The policy is linked to the Aadhaar card, which is a unique identification number issued by the Indian government. This essay will explore the features, benefits, and eligibility criteria of the LIC Aadhaar Shila Policy.

Features of the LIC Aadhaar Shila Policy

The LIC Aadhaar Shila Policy is a non-linked, non-participating, individual, savings-cum-protection plan. The policy provides life insurance coverage to the policyholder for a fixed term. The following are the key features of the LIC Aadhaar Shila Policy:

1. Premiums: The policy requires the policyholder to pay regular premiums throughout the policy term. The premium can be paid monthly, quarterly, half-yearly, or annually.
2. Sum assured: The sum assured under the LIC Aadhaar Shila Policy is between Rs. 75,000 and Rs. 3 lakhs. The sum assured is paid to the nominee in case of the policyholder’s death during the policy term.
3. Policy term: The policy term for the LIC Aadhaar Shila Policy is between 10 and 20 years. The policyholder can choose the policy term based on their financial goals and requirements.
4. Maturity benefit: If the policyholder survives the policy term, they will receive a maturity benefit equal to the sum assured plus loyalty additions (if any). The loyalty additions are declared by LIC at the end of each financial year.
5. Death benefit: If the policyholder dies during the policy term, the nominee will receive the sum assured. The death benefit is payable even if the policyholder has paid only a few premiums.
6. Surrender value: If the policyholder surrenders the policy before the completion of the policy term, they will receive a surrender value. The surrender value is calculated based on the number of premiums paid and the policy term.
7. Loan facility: The policyholder can avail of a loan against the policy after the completion of the policy term. The loan amount is calculated based on the surrender value of the policy.

Benefits of the LIC Aadhaar Shila Policy

The LIC Aadhaar Shila Policy offers several benefits to the policyholder. Some of the key benefits are as follows:

1. Financial security: The policy provides financial security to the policyholder and their family in case of the policyholder’s death during the policy term.
2. Maturity benefit: If the policyholder survives the policy term, they will receive a maturity benefit equal to the sum assured plus loyalty additions (if any).
3. Tax benefits: The premiums paid towards the LIC Aadhaar Shila Policy are eligible for tax benefits under Section 80C of the Income Tax Act. The maturity benefits and death benefits received under the policy are also tax-free under Section 10(10D) of the Income Tax Act.
4. Loan facility: The policyholder can avail of a loan against the policy after the completion of the policy term. The loan amount is calculated based on the surrender value of the policy.
5. Guaranteed additions: The policy offers guaranteed additions at the rate of Rs. 50 per thousand sum assured for each completed policy year.
6. Loyalty additions: The policy also offers loyalty additions at the end of each financial year. The loyalty additions are declared by LIC and are based on the performance of the company.

Eligibility criteria for the LIC Aadhaar Shila Policy

The LIC Aadhaar Shila Policy has certain eligibility criteria that the policyholder must meet. The following are the eligibility criteria for the LIC Aadhaar Shila Policy:

1. Gender: The LIC Aadhaar Shila Policy is exclusively designed for women. Only female residents of India are eligible for this policy.

2. Age: The policyholder must be between 8 and 55 years of age to apply for the LIC Aadhaar Shila Policy. The policy can be taken for a minor child by the parent or grandparent, subject to certain conditions.
3. Aadhaar card: The policyholder must have an Aadhaar card issued by the Indian government to apply for the LIC Aadhaar Shila Policy.
4. Sum assured: The sum assured under the LIC Aadhaar Shila Policy is between Rs. 75,000 and Rs. 3 lakhs. The policyholder must choose the sum assured at the time of application.
5. Premium payment: The policyholder must pay regular premiums throughout the policy term. The premium can be paid monthly, quarterly, half-yearly, or annually.

Conclusion

The LIC Aadhaar Shila Policy is a unique life insurance policy designed specifically for women. The policy provides financial security to the policyholder and their family in case of the policyholder’s death during the policy term. The policy also offers tax benefits, loan facilities, guaranteed additions, and loyalty additions. The policy has certain eligibility criteria that the policyholder must meet, including being a female resident of India, having an Aadhaar card, and being between 8 and 55 years of age. The LIC Aadhaar Shila Policy is an excellent option for women who want to secure their future and provide financial security to their family.