792269 SIP myths you must know!

Life Insurance Corporation of India (LIC), the country’s largest insurer, offers a number of policies. Aadhaar Shila is a life assurance plan which is exclusively designed for females. Only those who have an Aadhaar card can buy this LIC insurance policy. Aadhaar Shila was launched on February 1, 2020 and is fast gaining popularity. It is a non-linked, participating, individual, life assurance plan. In addition to life cover, this plan also provides a savings option to the policyholder. If one invests, on an average, just Rs 29 per day she can get up to Rs 4 lakh after maturity. Loan also can be availed during the policy term as a collateral.

Eligibility and term

Minors, too, can purchase this policy. Any female between 8 years and 55 years is eligible to buy it. It can also be bought for a 10-year term. The maximum term is 20 years. The maximum age at maturity is restricted at 70 years.

Sum assured

The minimum sum assured for this policy is Rs 75,000 and the maximum limit is Rs 3,000,000. The policyholder has an option of availing accident benefit rider.

Premium

If a woman at the age of 20 buys this policy for a 20-year term and chooses Rs 3 lakh as the basic assured sum, in the first year she has to pay Rs 10,649 as yearly premium (with tax), which is around Rs 887 per month and only Rs 29.58 per day. But from the second year of the policy, the yearly premium will come down to Rs 10,419 (with tax), which is around Rs 868 per month and only Rs 28.94 per day.

Maturity benefit

By the time the policy is ready for payment, she would get around Rs 4 lakh, of which Rs 3 lakh is the assured sum and the rest is a loyalty bonus.

Premium payment

The premium for Aadhaar Shila 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 the first unpaid premium. If you pay monthly, the grace period is 15 days.

Death benefit

In the event of 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).

Settlement option for maturity benefit

Settlement option is an option to receive maturity benefit in instalments over the chosen period of 5 or 10 or 15 years instead of lumpsum amount under an in-force as well as paid-up policy.

Surrender

The policy can be surrendered at any time provided premiums have been paid for at least two consecutive years.