Life insurance Corporation's (LIC) Dhan Rekha is a non-linked, non-participating, individual, savings life insurance plan. It offers an attractive combination of protection and savings. This plan provides financial support for the family in case of unfortunate death of the policyholder during the policy term.
Introduced in December 2021, the IPO-bound LIC's plan promises periodic payments to be made on survival of the policyholder at specified durations during the plan term as well as guaranteed lumpsum payments to the surviving policyholder upon the plan’s maturity. Through loan facility, the plan takes care of liquidity needs.
In other words, this LIC policy offers full pay out along maturity plus guaranteed addition to help achieve life goals with security.
Let’s take a look at some of its salient features:
A. The age eligibility for LIC's Dhan Rekha is between 90 days to 60 years.
B. A policy holder can pay single premium or regular premium payment mode with limited premium paying term.
C. Death benefit: The policy offers death benefit payable on death during the policy term which shall be ‘sum assured’ along with accrued guaranteed additions. For single premium payment, ‘sum assured’ is defined as 125 percent of basic sum assured. For limited premium payment, ‘sum assured’ is defined as the higher of 125 percent of basic sum assured or seven times of annualised premium.
The death benefit under limited premium payment will not be lower than 105 percent of total premiums paid.
D. Surrender value: Under single premium payment, the policy can be surrendered any time during the policy term.
E. Survival benefit: A fixed percentage of basic sum assured will be paid on the life assured surviving at each of the time periods during the policy term. The fixed percentage for various policy terms is as below:
|Policy term (years)||Payment of survival benefit|
|20||10% of the basic sum assured at the end of tenth & fifteenth year|
|30||15% of the basic sum assured at the end of 15th, 20 & 25th year.|
|40||20% of the basic sum assured at the end of 20th, 25th, 30th & 35th year|
The insured can also add some of the riders to the Dhan Rekha plan. The riders include the following:
1. LIC’s accidental death and disability benefit rider
2. LIC’s Accident Benefit Rider
3. LIC’s New Term Assurance Rider
4. LIC’s New Critical Illness Benefit Rider
5. LIC’s Premium Waiver Benefit Rider
The policy can be surrendered provided the insured has paid two full years of premiums.