Policy exclusive for males; LIC Jeevan Stambh Policy

 Exclusively for males, LIC's Aadhaar Stambh is a Non-Linked, Participating, Individual, Savings Life Insurance plan that combines protection with savings. In the terrible event that the policyholder passes away before maturity, this plan offers financial help to the family and, and a lumpsum amount will be paid to the policyholder on survival of policyholder till maturity of policy. Additionally, this plan addresses liquidity requirements through its Auto Cover and lending facility.

There are following benefits of this policy

1.       Benefits: Death Payout:

Payable death benefit If the policy is active (all due premiums have been paid) and the life assured dies within the five years policy term, the "Sum Assured on Death" will be paid.

The "Sum Assured on Death" and Loyalty Addition, if any, shall be payable in the event of death following the expiration of five policy years but prior to the date of maturity.

Where the "Sum Assured on Death" is the greater of

• Seven times the annual premium; or

• A basic sum guarantee of 100%.

A minimum of 105% of all premiums paid up to the date of death must be included in the death benefit. The aforementioned premiums do not include any applicable taxes, additional premiums, or rider premiums.

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c) Maturity Advantage:

"Sum Assured on Maturity" and Loyalty Addition, if any, shall be payable on Life Assured living to the end of the policy term, provided all due premiums have been paid (i.e., the policy is in-force). Where "Basic Sum Assured" equals "Sum Assured on Maturity."

b) Loyalty Enhancement:

The policies under this plan will be eligible for Loyalty Addition at the time of exit in the form of Death during the policy term or Maturity, at such rate and on such terms as may be declared by the Corporation, provided the policy has completed five policy years and at least five full years' premium have been paid. A paid-up insurance will pay Loyalty Addition for the years that have passed since the policy went into effect. When a policy is surrendered during the policy term, the Loyalty Addition, if any, is also taken into account, provided that the policy has been in effect for five policy years and at least five full years' worth of premiums have been paid.

 

2. Requirements for Eligibility and Additional Restrictions:

a) 2,00,000 is the minimum basic sum assured per life.

b) 5,00,000 is the maximum basic sum assured per life.

The Basic Sum Assured must be in multiples of 5,000 for amounts between $2,000 and $3,000 and 25,000 for amounts beyond $3,000.

b) Minimum Entry Age: 8 Years (completed)

d) 55-year-old maximum entry age (nearest birthday)

 

e) Ten to twenty-year policy term

f) Same Policy Term as Premium Paying Term

g) 18 years is the minimum age of maturity (completed)

h) 70 years is the maximum age of maturity (nearest birthday)

Risk first becoming a concern on:

According to this LIC plan, the risk will start as soon as the risk is accepted.

Date of plan vested status:

If a policy is issued on the life of a minor, the policy will automatically vest in the Life Assured on the anniversary of the policy that falls on or immediately after the completion of 18 years of age and will then be deemed to be a contract between the Corporation and the Life Assured. * The total Basic Sum Assured under all policies issued to a single individual under this plan and under all policies issued in the earlier version of this plan shall not exceed the sum of the Basic Sums Assured under all policies

3. Potential Solutions:

I. Rider Advantages:

The policyholder may choose to use the Accident Benefit Rider offered by LIC (UIN: 512B203V03) under this plan at any time throughout the policy term of an active policy as long as the base plan's outstanding policy term is at least five years. During the period of the policy, the benefit coverage provided by this rider will be accessible. If this rider is selected, the Accident Benefit Sum Assured will be paid out in a lump sum in the event of an accidental death.

This rider's premium cannot be greater than 100% of the Base plan's premium. Under the Base plan, the Rider Sum Assured cannot be more than the Basic Sum Assured.

Consult the rider booklet or get in touch with the closest Branch Office of LIC for further information on the aforementioned riders.

II. Option for Maturity Benefit Settlement:

Under an active and paid-up policy, the Settlement Option allows the Maturity Benefit to be received in five equal payments rather than a single sum. The Policyholder may take this option for all or a portion of the Maturity profits due under the policy while the Life Assured is still a minor or until the Life Assured is 18 years of age or older. The Policyholder/Life Assured may select a sum in either absolute dollars or as a percentage of the entire claim proceeds payable (i.e., Net Claim Amount).

The instalments must be paid in advance at chosen intervals of annually, half-yearly, quarterly, or monthly, with the following minimum instalment amounts for each manner of payment:

a.        Minimum Instalment of 5,000 per month

b.       Minimum Instalment amount: 15,000 every quarter.

c.       Minimum Instalment amount: 25,000.00 each half-year.

d.      Minimum Instalment amount: 50,000 per year.

The claim proceeds must only be paid in one lump sum if the Net Claim Amount is less than what is necessary to cover the required minimum instalment amount under the option chosen by the Policyholder/Life Assured.

The interest rate used to determine the amount of each instalment for all instalment payment options that begin during the 12-month period from May 1 to April 30 shall be an annual effective rate not less than the 5 year semi-annual G-Sec rate minus 2%; where the 5 year semi-annual G-Sec rate shall be as of the last trading day of the prior financial year.

As a result, the effective interest rate for calculating the instalment amount for the 12-month period starting on May 1 and ending on April 30, 2023, should be 4.84% per year. The Policyholder/Life Assured must exercise the option to pay the net claim amount in instalments at least three months prior to the maturity date in order to utilise the Settlement Option against Maturity Benefit.

The first payment will be made on the day of maturity, and subsequent payments will be made monthly, quarterly, semiannually, or annually from the date of maturity, depending on the form of instalment payment selected by the policyholder.

Following the start of the settlement option's instalment payments:

a.       Upon receipt of a written request from the Life Assured, the request to revoke the Settlement Option executed against the Maturity Benefit and commute the outstanding instalments will be granted. In such a circumstance, the higher of the following lump sum amounts shall be paid, and the insurance shall expire.

•The discounted value of all upcoming payments that are due; or

• (The initial amount for which settlement option was exercised) less (sum of the instalments previously paid) (sum of total instalments already paid).

b.      The 5 year Semi-annual G-Sec rate shall be as of the last trading day of the previous financial year during which the Settlement Option was initiated. b. The applicable interest rate that will be used to discount the future instalment payments shall be an annual effective rate not exceeding 5 year Semi-annual G-Sec rate p.a.

As a result, the maximum applicable interest rate utilised to discount the future payments for the 12-month period starting on May 1 and ending on April 30, 2023, shall be 6.33% p.a.

c.        After the Date of Maturity, if the Life Assured who has exercised the Settlement Option dies, the remaining instalments will continue to be paid to the nominee in accordance with the option exercised by the Life Assured, and the nominee shall not be permitted to make any changes of any kind.

 

3. The choice to receive death benefits in instalments:

Under an active and paid-up policy, there is an option to receive the death benefit in five equal payments rather than a single lump sum. The Policyholder may use this option while the Life Assured is a minor or, if the Life Assured is 18 years of age or older, throughout the Life Assured's lifetime, for all or a portion of the Death Benefits payable under the Policy. The Policyholder/Life Assured may select a sum in either absolute dollars or as a percentage of the entire claim proceeds payable (i.e., Net Claim Amount).

 

The instalments must be paid in advance at chosen intervals of annually, half-yearly, quarterly, or monthly, with the following minimum instalment amounts for each manner of payment:

a. Monthly minimum instalment of 5,000/-

b. Minimum monthly payment amount Quarterly payment amount 15,000/-

c. Monthly Half-Yearly 25,000/- Minimum instalment amount

d. Monthly Annual Minimum Instalment Amount 50,000/-

Only lump sum payments will be made for claims where the Net Claim Amount is less than what is needed to cover the minimum amount due in instalments under the option that the Policyholder/Life Assured chose to exercise.

The interest rate used to determine the amount of each instalment for all instalment payment options that begin during the 12-month period from May 1 to April 30 shall be an annual effective rate not less than the 5 year semi-annual G-Sec rate minus 2%; where the 5 year semi-annual G-Sec rate shall be as of the last trading day of the prior financial year.

As a result, the effective interest rate for calculating the instalment amount for the 12-month period starting on May 1 and ending on April 30, 2023, should be 4.84% per year. When the policy is still in effect, the Policyholder may exercise the option to receive the Death Benefit in instalments at any point throughout his or her lifetime by designating the term of Instalment Payment and the Net Claim Amount for which the option is to be exercised. No changes of any kind may be made by the nominee until the death claim amount is paid to the nominee in accordance with the choice chosen by the Policyholder/Life Assured.

4. Premium Payment:

Over the course of the policy's term, premiums may be paid on a recurring basis at annual, half-yearly, quarterly, or monthly intervals (monthly premiums may only be paid through NACH).