LIC New Aadhaar Shila Insurance Plan – Who can invest?

LIC New Aadhaar Shila Insurance Plan – Who can investLIC New Aadhaar Shila Insurance Plan – Who can invest?


Two days back, LIC has launched its new plan Aadhaar Shila (Plan no. 844). LIC Aadhaar Shila Insurance plan is non linked, with profits endowment plan. Since LIC has launched 2 new plans, Aadhaar Stambh and Aadhaar Shila after long time, it is catching attention of several investors. This plan is only for females. How good is LIC New Aadhaar Shila Plan? What are the positive features of LIC’s new Aadhaar Shila Insurance Policy? Are there any negative points in this plan? Who can invest in LIC new plan of Aadhaar Shila?

Also Read: LIC Aadhaar Stambh Insurance Plan – Who can invest?

Features of LIC’s new Aadhaar Shila Insurance Plan


  • It is non-linked, with profits, endowment plan.
  • It is special plan for Females only who has Aadhaar Card. Means it is Aadhaar card linked insurance plan.
  • No medical examination required for female healthy lives.
  • Minimum age of entry of 8 years and maximum age of entry is 55 years.
  • Maximum age of maturity is 70 years.
  • Minimum sum assured is Rs 75,000
  • Maximum sum assured is Rs 300,000
  • Minimum tenure of the policy is 10 years
  • Maximum tenure of the policy is 20 years.

What are the benefits of LIC New Aadhaar Shila Plan?


a) Death Benefits


1) Death occurred before 5 years from the date of policy

If the death of the sum insured has occurred before 5 years from the date of policy, 110% of the Basic Sum Assured would be paid.

2) Death occurred after 5 years from the date of policy

If the death of the sum insured has occurred after 5 years from the date of policy, Death benefit which is equal to 110% of basic sum assured + Loyalty additions (if any) would be paid.

b) Maturity Benefits


If insured is survived till the maturity period, she would get Basic Sum Assured on Maturity + Loyalty Additions (if any) would be paid.

What the Riders and Benefits available in this plan?


a) Accident Death Benefit Rider available in this plan. If the insured is more than 18 years of age, such person can opt for accident death benefit rider which is optional. Under this benefit, an additional amount equal to basic sum assured would be paid to the nominee in case the death is caused due to accident.

b) This plan comes with Auto Cover Benefit. In case, policy holder does not pay the life insurance premium, such policy would be converted as ‘Paid-up Policy.’ But, under LIC Aadhaar Shila plan, full risk cover is available to the policy holder even if the regular premium is not paid. This is called ‘Auto Cover Period‘.

  • If 3 policy year premiums have been paid (but less than 5 full years premium paid) and any subsequent premium is not paid then “Auto Cover period” of six months from the due date of the first unpaid premium will be available to the policyholder.
  • If 5 policy year premiums have been paid and any subsequent premium is not paid, “Auto Cover period” of 2 years from the due date of the first unpaid premium will be available.

Also Read: ICICI iProtect Smart Term Insurance Plan Review

LIC Aadhaar Shila Insurance Plan is explained with an example


  • Let me explain this with an example. Mrs.Ramya (age 25 years) has taken LIC Aadhaar Shila for 20 years period in 2017 with Basic Sum Assured of Rs 3 Lakhs. The premium works out to be approx. Rs   per annum.
  • 1) Mrs.Ramya dies after 5 years from the date of commencement of policy. His family would get Rs 3.3 Lakhs + Loyalty additions.
  • 2) Mrs.Ramya dies due to accident after 5 years from the date of commencement of policy. Her family would get Rs 3.3 Lakhs + Loyalty additions + additional Rs 3 Lakhs as accident death benefit rider.
  • 3) Mrs.Ramya is healthy and on maturity at 2037 year she would get Rs 3 Lakhs + Loyalty additions.

Positives in LIC New Aadhaar Shila Plan


  • One of the good endowment / money back plan from LIC.
  • This insurance plan comes with low premiums.
  • Accident death benefit rider helps to get additional benefit in case of death due to accident.
  • Premiums paid can be claimed as tax benefits u/s 80C.
  • Maturity is tax free u/s 10 (10D).

Negatives in LIC’s new Aadhaar Shila Insurance Plan

  • Like LIC Aadhaar Stambh, even this plan has Low sum assured of maximum of Rs 3 Lakhs which is very low and would not be sufficient now.
  • Loyalty additions + returns are expected to be very low in the range of 4% to 6.5%. Even bank FD’s can fetch you higher returns compared to this.

Also Read: Best Insurance Plans from LIC

Who should opt for LIC’s New Aadhaar Shila Plan?


Like I indicated in LIC Aadhaar Stambh Insurance article, LIC is a good trusted insurance brand. This plan contains several good features. However it is unattractive due to low sum assured and other limitations. The returns from such insurance products can be ranging from 4% to 6.5%. If you are low risk taker and believe in LIC Insurance brand, you can opt for it. Alternatively you can consider taking a good term insurance plan and invest your hard earned money in some of the good Mutual Fund Schemes which can provide good returns in long run of 10-20 years. If you do not like to invest in stock markets, you can atleast invest in bank FD’s which can fetch you higher returns compared to such policies.

Readers, what is your opinion about this new insurance plan from LIC?

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Suresh

LIC New Aadhaar Shila Insurance Plan – Who can invest

Suresh KP

9 comments

  1. I read your article s and find them interesting. They read between the lines and compare it with other products. Many times I am unaware of the options available in the market and your articles provide an insight to them. Thanks and keep up the good work.

  2. It has been indicated that we can atleast invest in FDs of banks.
    In a bank FD, the capital lumpsum amount has to be invested, whereas in a LIC
    plan, ‘capital’ (sum insured) target is chosen and then funded by way of premiums.
    I thank we should compare such investments with a RD of bank. Even if one
    invests in RD and unforeseen risk happens in early years of investing in RD,
    then the nominee will receive only the RD invested amount with relevant interest till
    the time of death.
    The above suggestions is purely based on my experience and not to be taken for granted.

    1. Anish, What I meant here is the returns from such deposits. Yes, i should have mentioned as RD in this case. However, if one can take term plan and invest balance in mutual funds or other invesmtent option like bank FD, one would still get higher returns. Individual would still have sum assured which would help to protect his family along with higher returns from such FD or MFs.

  3. Hi example given for Mr. Ramya.As this plan is only for female with Aadhar card.I think it should have Mrs.
    Ramya.

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