NAGPUR: Aiming at accessibility of insurance for the rural population, Life Insurance Corporation of India (LIC) will be launching 'AADHAR Stambh' and 'AADHAR Shila' endowment policies on Monday. The Aadhaar number linked plans will start at a minimum assured sum of Rs75,000 and a maximum of Rs3 lakhs with terms ranging from 10 to 20 years, informed senior divisional manager of LIC Nagpur Ashwini Kumar Jha in a press conference held at the company's division office on Kingsway Road, on Saturday.
The Stambh and Shila policies are designed for individual males and females respectively, between ages 8 to 55 years with no medical tests required prior to availing the policy. The premiums on the new policies are cheaper than existing focusing largely on the rural demographic, according to marketing manager Devojit Sanyal
The new plans are cheaper by 30 to 35% compared to our existing best-sellers. Moreover, our competitors cater largely to the urban population and miss out on the revenue generating prospects in the rural areas. Our target is to sell 70,000 new policies in the current fiscal year within our division," he said.
Premiums for the plan are marginally cheaper for females as compared to males. The reason, according to Sanyal, is the difference in average life expectancy between the two.
Sanyal said, "We studied the all India mortality rate between men and women and found that life expectancy is more in women as compared to men. For example if a 30-year-old male takes an endowment plan for a sum assured of Rs2 lakhs for a term of 20 years his annual premium will be Rs7,461. For a female of the same age opting for the same sum assured and term the premium will be Rs7,451, a difference of Rs10."
In keeping with the trend, the new policies will be linked to individual's Aadhaar number, said Jha. He also believes that this will make it easier to confirm a person's date of birth before selling a plan, something which could be a challenge in absence of other government documents. According to Jha, the new plans are projected to attract at least 50% of the rural population within the division.
