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Amit Chandra is a middle class salaried employee in a private sector company in Kolkata. He is the sole breadwinner in a family of three that comprises his homemaker wife and five-year old son. During the lockdown Amit’s salary was slashed 30% that caught him completely unawares. Before his salary could be restored, and another lockdown looming in the horizon, worried Chandra purchased an insurance policy that was low on premium, gave life cover as well as a decent return.
Every month, Amit Chandra pays Rs 901 as premium that he can manages from the shrinking disposable income.
At the cost of addiction
It works out to Rs 30 a day which he is saving by giving up on a couple of cigarettes he used to smoke every day, one after lunch and another after dinner.
LIC’s Aadhaar Stambh is one of the popular life assurance plans in the country. This plan is designed exclusively for men.
It is not linked to the stock market.
Amit bought the policy for a 20-year term. He selected Rs 3 lakh as the basic assured sum.
He has to pay an yearly premium of Rs 10,821 which is around Rs 901 per month. By the time the policy is ready for payment, he would get around Rs 4 lakh, of which Rs lakh is the assured sum and the rest is loyalty bonus.
Minors eligible too
Minors can buy this policy too. Any individual between 8 years and 55 years is eligible to buy it.
The policy can also be bought for a 10-year term. The maximum term is 20 years.
Maximum age at maturity is restricted at 70 years.
The minimum sum assured for this policy is Rs 75,000 and the maximum limit is 3,000,000.
Aadhaar needed
You have also need to have an Aadhaar card for this policy.
The premium for Aadhaar Stambh can be paid on a monthly, quarterly, half-yearly or yearly basis.
If you forget to pay the premium a grace period of 30 days will be allowed for payment of yearly, half-yearly or quarterly premiums from the date of first unpaid premium.
If you pay monthly like Amit, the grace period is 15 days.
Death benefit
In the event of the death of the person insured within five years of the commencement of the policy, the sum assured will be paid. In case the death is after five years, sum assured and loyalty bonus both will be paid to the survivor(s).