LIC Aadhaar Stambh and Shila: Micro Insurance Without Medical Tests

LIC Aadhaar Stambh and Aadhaar Shila are two micro-insurance endowment plans that LIC designed for people who do not have access to formal banking and want simple, affordable life insurance linked to their Aadhaar identity.

**What are these plans**

Aadhaar Stambh (Plan 843) is for male lives. Aadhaar Shila (Plan 844) is for female lives. Both are non-medical plans — you do not need to undergo a medical examination to buy them, provided you are within the eligible age range.

The design is simple: pay premiums for the policy term, receive Sum Assured plus bonuses at maturity, and your nominee receives the death benefit if you die during the term.

**Key features**

Minimum Sum Assured: Rs 75,000. Maximum Sum Assured: Rs 3 lakh. Minimum entry age: 8 years. Maximum: 55 years. Policy term: 10 to 20 years.

The plans participate in LIC's bonus program, so accumulated bonuses add to the maturity payout.

**No medical examination required**

This is the most significant feature. The Aadhaar card is used for identity and KYC. A person who might have difficulty getting insurance through a regular medical underwriting route — due to minor health conditions or lack of access to diagnostic labs — can get covered under these plans.

**Death benefit enhancement in Aadhaar Stambh**

LIC has added a special provision to Aadhaar Stambh: if the insured person dies due to an accident, the nominee receives an additional amount equal to the Sum Assured. So instead of one Sum Assured, they receive two. This effectively doubles the benefit in accidental death cases.

Aadhaar Shila does not have this provision — it pays the standard Sum Assured plus bonuses in all death cases.

**Who are these plans for**

I recommend Aadhaar Stambh and Shila to small business owners, daily wage workers, agricultural labourers, and household workers — anyone who wants basic life insurance without the complexity of documentation or medical tests.

The Rs 3 lakh maximum means these plans are not designed for significant wealth creation. But for the segment they target — people insuring themselves for the first time — they provide a real safety net.

**The premium amounts**

For a 30-year-old male taking Aadhaar Stambh with Rs 3 lakh Sum Assured for 20 years, the annual premium is approximately Rs 10,500 to Rs 11,000. This is affordable for most wage earners.

For a 30-year-old female taking Aadhaar Shila with the same Sum Assured and term, premiums are slightly lower because female lives have better mortality rates statistically.

**Tax benefits**

Both plans qualify for Section 80C deduction on premiums and Section 10(10D) exemption on maturity benefits.

If you know someone who has never had insurance and needs a simple, documentation-light way to start, I would be happy to help them set up one of these plans. Call 9415313434.