LIC’s AADHAAR STAMBH – THERE IS NO STAMB ITSELF

Life insurance Corporation of India has launched first kind of its plan for male lives having Aadhaar Card issued by UIDAI (Unique Identification Authority of India). The main objective of this plan to ensure reaches of life insurance in entry level segments. You may say that, this plan is designed for the people who do not have life insurance policy and they can get life insurance cover up to Rs. 3 lacs. People who do not have Aadhar Card may not able to get this plan. This is a Non-Linked, With Profit, endowment Plan. No medical examination required under this plan. LIC objective by this plan is also to increase insurance penetration in the Country.

Who can take this plan: Male gender who have Aadhar card having age between 8 years to 55 years may take this plan.

Sum Assured & Policy Term: Under this plan you may choose sum assured in between Rs. 75000 to 3,00,000. Policy term is fixed 10 and 20 years. The total Basic Sum Assured under all policies issued to an individual under this plan shall not exceed Rs. 3 lakh.

Benefits – Death Benefits: On death during first five years: “Sum Assured on Death” shall be payable and on death after completion of five policy years but before the date of maturity: “Sum Assured on Death” and Loyalty Addition, if any, shall be payable.

Benefits – Maturity: Sum Assured along with Loyalty Addition will be payable.

Benefits - Optional Benefit: The policyholder has an option of availing LIC’s Accident Benefit Rider. Rider sum assured cannot exceed the Basic Sum Assured.

Premium Payment mode : Yearly, half-yearly, quarterly, monthly and through salary deductions modes are available.

Rebate : You may able to get high sum assured rebate for Rs. 2,00,000 to 2,90,000 - 1.50% (Basic sum assured rebate) and for Rs. 3,00,000 - 2.00%o ((Basic sum assured rebate)

Auto Cover Period: If at least three full years’ but less than five full years’ premiums have been paid under a policy and any subsequent premium is not duly paid: Auto Cover Period of six months shall be available and If at least five full years’ premiums have been paid under a policy and any subsequent premium is not duly paid: Auto Cover Period of two years shall be available.

Surrender Value: 30% to 80% are available depends upon policy term and premium paid term.

Loan: Loan is available in this plan.
Conclusion : Before reaching on conclusion, it easily writes that LIC is trying to in cash Aadhar card for life insurance sale. If you are reading this article then its confirm that you are not going to take this policy and those who are not reading this article or do not have proper education about life insurance they will definitely take this policy. Basic reasons of do not take this policy is the return under the plan. In all life insurance traditional plan you will get only 2 to 6 % return that is not sufficient for any one for their future aspects. However, some other points are below that shows decreasing interest of any one to take this plan.
  • Ceiling on Sum Assured : Under this plan maximum sumassured is 3 lacs that are not sufficient for any lives in current circumstances. Anyone needs to review and take pure term insurance plan instead of this plan.
  • Investment Returns: Life insurance traditional policy is providing only 2 to 6 % returns that is not sufficient for anyone.
  • Bonuses: LIC is not giving bonuses in this plan which is very attractive for any individual rather than loyalty addition. The performances of loyalty addition not well know.
  • Tax Savings : Many other tax saving options available i.e. ELSS mutual fund scheme and PPF (Public Provident Fund) . These are the not only very attractive but also their returns are for good in compare to life insurance. There is no service tax in this instrument while life insurance policy has service tax.
It is highly advisable to everyone before taking this policy; you must try to know other available instruments. Compare them in all aspect like return, liquidity and facilities. Then decide to take this plan or not to take this plan. You will easily get the answer. If you do not wish to do this exercise, the answer is - you must not invest in this kind of policy that only sucks your hard earned money and will deliver the value at the time of maturity which is far away of returns of other investment options.

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