The plan number of the LIC Aadhar Shila is 944. Yes, this plan is an endowment plan specially designed for low-income female life. it provides risk cover to the customers and also contains saving components with a yield of loyalty addition on deposited money. This plan is not a with-profit plan, It means this plan does not participate in the profit of the company. This plan is not linked to the equity market.
This is a plan which provides a Risk cover equals to the Sum assured
Maturity benefit of LIC Aadhar Shila 944:
On completing the full policy term the policy is assumed as mature. then all the benefits of maturity are deposited in the account of customers. These benefits include the sum assured with a loyalty addition in the amount of maturity.
Participation in profit:
As mentioned above this plan is not a with-profit plan and it does not participate in the profit of the company. It means the above maturity benefits will be paid with loyalty addition amount, and the maturity of LIC Aadhar Shila 944 policy calculated at the time of purchase will be the same that value is shown by multiplying loyalty addition rates in calculations.
The death benefit of LIC Aadhar Shila 944:
In the case of death of Life assured, a Death claim is payable to the nominee. where this claim amount contains a basic sum assured( amount of risk cover or value of insurance amount ) of the policy along with a loyalty addition if a death claim arises after 5 years of policy and if a death claim rises before 5 years of the policy then the sum assured is payable. Death claim will be no less than 100% of all premiums paid.
7 times of the annualized premium.
In case of death claim whichever of the above condition the higher amount will be payable to the nominee.
The risk cover will start immediately on acceptance of the risk under policy.
Who is eligible to buy LIC Aadhar Shila 944:
The minimum age of entry is 08 years of age completed
The maximum age of entry is 55 years of age Nearest birthday.
The maximum maturity age is 70 years of age Nearest birthday.
The minimum sum assured amount is Rs 75,000 and the maximum sum assured is 3,00,000.
Policy term available in LIC Aadhar Shila 944:
The minimum policy term available is of 10 years and the maximum term is available for 20 years.
Riders available in LIC Aadhar Shila 944:
1: Accidental death benefit rider.
Modes of premium payment available in LIC Aadhar Shila 944:
Monthly mode (NACH)
Grace period available in LIC Aadhar Shila 944:
A grace period of 30 days for the payment of premium is available in modes of Yearly, half-yearly, and quarterly payments.
A grace period of 15 days is provided in monthly modes.
Revivals in LIC Aadhar Shila 944:
if a customer does not pay his premium even after a grace period then the policy is considered as a lapsed policy. it means there is no risk cover of that customer.
In such a case a customer can revive his policy anytime within a time period of 5 years. No policy can be revived after 5 years of lapsation.
if a customer paid for his policy at least for 2 years and now he is unable to pay the premiums then the policy will not be considered as null and void. it will be considered as paid-up policy.
it means the customer will get the deposited amount with a little growth at the maturity term of that policy. But, there will be no insurance cover for the paid-up policies.
Surrender in LIC Aadhar Shila 944:
The policy can be surrendered anytime after paying a premium for 2 years complete. The surrender value is reviewed by IRDA from time to time and updated by The Life Insurance Corporation of India.
The surrender value is always less than the premium paid by the customers. So, it is always a bad decision to surrender a policy.
Loan available in LIC Aadhar Shila 944:
The customer can get a loan against his policy after the policy attains the paid-up value after 2 years. The loan amount will depend upon the surrender value of that policy, the loan value will be the 90% of the surrender value calculated.
Freelook period in LIC Aadhar Shila 944:
A free look period of 15 days is available. This period is also called a cool off period and It is started from the day when the policy document is issued to the customer. If a customer is not agreed or not satisfied with the terms and conditions of the policy then he can cancel his policy and take the premiums back but within 15 days. the stamp charges and Taxes will not be returned.
The customer can claim for tax Redemption on the premium paid every year for this policy under the section of 80C of the Income Tax Department
The maturity amount is also exempted from income tax under section 10D
Conclusion and illustration:
For example, If a person buys any policy of sum insured 100,000 then he has to pay less than 100000 in the whole policy term.
But in this plan customer pays a less than the sum assured and get the loyalty addition on the complete sum assured.
Here we will do three calculations with all the options on 2 lakh sum assured and keeping in the mind the age of customer’s 35 years
Calculation one with a policy term of 16 years of premium payment term
Here the customer will pay a total of 1,58,073 in 16 years and will get 2,45,000 in the 16th year as maturity amount.
Calculation second with a policy term of 18 years premium payment term
here the customer will pay a total of 1,52,340 in 18 years and will get 2,55,000 in the 18th years as maturity amount.
Calculation third with a policy term of 20 years premium payment term
here the customer will pay a total of 1,47,383 In 20 years and will get 2,65,000 on the 25th year as maturity amount.
Hope you all get the basic ides of the plan and about its merit and demerits. This article will make it easy to make decisions about the purchase of this plan of LIC Aadhar Shila 944.