LIC Aadhaar Stambh (Life insurance plan for Males) – Features, Benefits and Review

LIC has launched two new life insurance plans called LIC Aadhaar Stambh & Aadhar Shila. These plans are available for purchase from 24th April, 2017 onwards. LIC claims that Aadhaar Stambh life insurance policy has been exclusively designed for Male lives who are having Aadhaar card.

One of the most popular ‘news topic’ that has been doing the rounds now is Aadhaar. Almost every adult Indian knows what is Aadhaar number and its importance. I believe that LIC has launched this new plan keeping in view of the popularity of the word ‘Aadhaar’ 🙂

I believe that there are no ‘exclusive’ features in this insurance policy for Male lives and can be ignored in case your requirement is to get adequate life insurance cover.

LIC Aadhaar Stambh plan (Table 844) is a typical with profit, non-linked regular premium paying Endowment assurance plan. (Read : ‘Traditional Life insurance policy : a terrible Investment option?‘)

Anyways, let’s discuss more about this LIC’s new plan..

Key features of  LIC Aadhaar Stambh Life Insurance PlanLIC New Plan LIC Aadhaar Shila LIC Women Ladies plan Features Benefits Return calculation LIC Aadhaar Stambh

Below are the main features of LIC’s new plan for males ;

  • Minimum Sum Assured : Rs 75,000
  • Maximum Sum Assured : Rs 3,00,000
  • Minimum Policy Term : 10 years
  • Maximum Policy Term : 20 years
  • Available for : Male Lives only
  • Age at entry : 8 years
  • Maximum age at maturity : 70 years
  • Type of Plan : Endowment
  • Rider (Optional) : Accident Benefit Rider is available

Benefits under LIC Aadhaar Stambh Life Insurance Policy

  • Death Benefit under Aadhaar Stambh LIC Plan ;
    • On death during first Five Years of the policy ;
      • Death claim amount  equal Basic Sum Assured is payable to the Nominee.
    • On death after 5 years of the policy and before maturity:
      • Death claim amount will be equal to 105% Basic Sum Assured + Loyalty Addition (LA). (So, Loyalty addition is applicable after 5 policy years only)
  • Maturity Benefit under LIC Aadhaar Stambh Policy : If the Life Assured survives till the end of the policy term, Sum Assured on Maturity along with Loyalty Addition, if any will be payable to the Life Assured.
  • Auto Cover Benefit : In case, policy holder does not pay the life insurance premium, the policy will be converted as ‘Paid-up Policy.’ But, under LIC Aadhaar Stambh plan, full risk cover is available (for certain extended period) to the policy holder even if the regular premium is not paid. This duration is termed as ‘Auto Cover Period‘.
    • If  three policy year premiums have been paid (but less than five full years’ premium have been paid) and any subsequent premium is not paid then “Auto Cover period” of six months from the due date of the first unpaid premium (FUP) will be available to the policyholder.
    • If five policy year premiums have been paid and any subsequent premium is not duly paid: “Auto Cover period” of 2 years from the due date of the first unpaid premium will be available.

My Opinion on LIC’s New Plan Aadhaar Stambh

This new LIC policy is a typical Endowment Plan with an extended Auto cover feature, that’s it. There are no major benefits from this plan as being highlighted in the marketing materials of the company. Kindly ponder upon below points before you buy LIC’s male specific new life insurance plan – Aadhar Stambh ;

  • Ceiling on Sum Assured : The maximum sum assured that can be taken under this plan is Rs 3 Lakh only. So, this is surely not enough if you are looking for life cover alone. You may consider buying a Term insurance plan so that you can get decent life cover. The value of Rs 3 Lakh after say 10 or 20 years would be very negligible. (Read: ‘If Life is unpredictable, Insurance can’t be optional‘)
  • Investment Returns: So, if this is not suitable for your life cover requirements then most of you might want to get good maturity returns, am I right? But, these kind of traditional plans can at best give you 5-6% returns. If your investment objective is better returns then there are plenty of other investment options available in the market. (Read : ‘List of best investment options‘)
  • No Simple Reversionary Bonuses: There are no simple and annual bonuses under Aadhar Stambh Plan. Loyalty Additions (if any) alone are paid. (Read : ‘LIC’s latest Bonus rates 2016-17‘)
  • Tax Savings : If your objective is tax saving cum better returns, you may consider investing in an ELSS mutual fund scheme. Even PPF (Public Provident Fund) can give your better returns than this policy and it is tax-efficient too. (Read: ‘Term insurance + PPF Vs Endowment Life insurance plan‘ & ‘Best ELSS Tax saving Mutual Fund Schemes‘)
  • Govt’s life insurance scheme like ‘Pradhan Mantri Jeevan Jyothi Bhima‘ is available at much lower premium rate than this plan. Based on the available information, a 30 year old male has to pay around Rs 6,900 to get Rs 2 Lakh Sum assured under Aadhar Stambh plan and the same sum assured (term life cover without any additional benefits) is available at a premium rate of Rs 330 per year under PMJJBY.

Continue reading : ‘LIC’s all Plans List | Snapshot & Review of old LIC plans

(Post first published on : 24-April-2017) (The above article is based on limited available information, if required, the above details will be updated at the earliest)

  • Kshatri kanth says:

    Hi Sreekanth,

    Kindly give some good suggestion on investments schemes for period of 8 years and the premiums.

    Thank you

  • usha goyal says:

    yes i have a best planning for your child in comparison to samridhi sukanya scheme

  • Manoj says:

    Please dont give such demotivating ideas. From last so many years I am watching that peoples like u always criticizing LIC and wanting people to invest their hard earned monies in share markets and MFs. Anyway how much u people demotivates LIC is still no 1 in financial industry.

    • Dear Manoj,
      1 – May I know that is ‘demotivating’ in this article and for whom is it demotivating?
      2 – Kindly note that we are not criticizing the Company, we are talking about the Products and its features.
      3 – May I know if you are aware of the fact that how much LIC invests in Share market / Mutual funds? Is n’t it that LIC invests the hard-earned money in share market directly or indirectly?
      Kindly share your views!

      • Naresh kumar says:

        I think that is the average plan main object is aadhar card

      • RAJ says:

        Dear Sreekanth,

        I think its a waste of time in answering LIC agents like Manoj, who just believe LIC is the best, rest all are worst. We all know, this policy is nothing but NONSENSE.


      • Saravanakumar Nagaraj says:

        Correctly said. We should understand the basic concept of Investing and Insurance. Even, they are not using the basic mathematics and don’t know how the LIC earns money from stock market and gives a little to the insured. LIC will be always great, but you should think about your money and spend wisely. No one is looking to be a farmer, but they simply blaming others not giving a good food. Here, Sreekanth farming a good financial ideas for others in

  • raju Das says:

    How is my premium100000/15yr

  • Thomas says:

    Hi Sreekanth ,

    I am looking for an investment specially for my 3 year old male child , in the same way of sukanya investment which I had taken for my Girl child ..

    (btw I have enough long term and short term mutual fund investments for various needs )

    is PPF is a better option / comparable for male child with something like sukanya samridhi for girl child ?

    Reason for this investment is the safety of investment , and for a duration of about 15 years for his education ..


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