LIC Dhan Vriddhi (Plan 869): The Life Insurance Corporation (LIC) of India has launched a new close-ended plan – LIC’s Dhan Vriddhi (Plan 869). The new plan is available for sale from Friday (June 23) till September 30, 2023. This article looks at key details of the Dhan Vriddhi plan shared by LIC in a statement and information available on the LIC website.
What
is LIC Dhan Vriddhi (Plan No. 869)
LIC Dhan Vriddhi is a non-linked, non-participating, individual, savings,
single premium Life Insurance plan offering a combination of protection and
savings. LIC says this plan will provide support to he family in case of unfortunate
death of the life assured during the policy term. It will also provide a
guaranteed lump sum amount on the date of maturity.
“Being a single premium plan there is no future premium obligation and no
lapsation,” LIC says.
Two options
There are two options that a proposer can choose under the LIC Dhan Vriddhi
plan.
Option 1: Sum Assured on Death can either be 1.25 times the Tabular
Premium for the chosen Basic Sum Assured subject to certain eligibility
conditions.
Option 2: Sum Assured on Death can be 10 times the Tabular
Premium for the chosen Basic Sum Assured subject to certain eligibility
conditions.
Policy Terms
LIC Dhan Vriddhi is available for 10,15 or 18 years of term.
Minimum and Maximum Age
Minimum
entry age varies from 90 days to 8 years depending upon the term selected. The
maximum age at entry varies from 32 years to 60 years depending upon the tem
and option selected. Minimum and Maximum Basic Sum Assured
The minimum basic Sum Assured is Rs 1,25,000 and can be opted for more in
multiples of Rs 5000.
Death and Survival benefits under LIC Dhan Vriddhi
On death of the Life Assured, during the policy term after the date of commencement of risk but before the stipulated date of maturity, the amount payable will be ‘Sum Assured on Death’ along with accrued Guaranteed Additions.
If the Life Assured survives till the stipulated Date of
maturity, the amount payable will be ‘Basic Sum Assured’ along with accrued
guaranteed additions
Guaranteed Additions under LIC Dhan Vriddhi
As per LIC, the Guaranteed Additions will accrue at the end
of each policy year, throughout the policy term. The Guaranteed Additions
ranges from Rs 60 to Rs 75 (Option 1) and Rs 25 to Rs 40 (Option 2) per Rs 1000
Basic Sum Assured depending on the option chosen, Basic Sum Assured and the
Policy Term,” the insurer says.
Further, the Guaranteed Additions will be higher for higher Sum Assured.
LIC Dhan Vriddhi: Premium Calculation (examples)
The LIC website provides a calculator that you can use to calculate the premium
to be paid for any Sum Assured. Here are some examples-
As per the policy calculator available on the LIC website, the total single
premium to be paid by a policyholder aged 36 and for 10 years term for Rs 10
lakh Sum Assured will be approx. Rs 8,16,720 (including tax). This is for
Option 1. The Sum Assured on Death, in this case, will be approx Rs 11.6 lakh.
For Option 2, the total single premium to be paid by a policyholder aged 36
years and for 10 years term for Rs 10 lakh Sum Assured is Rs 9,00,184
(including tax). This is for Option 2. The Sum Assured on Death, in this case,
will be approx Rs 87.9 lakh.
Riders available under LIC Dhan Vriddhi
Policyholders can opt for riders such as LIC’s Accidental Death and Disability
Benefit Rider and LIC’s New Term Insurance Rider. “Settlement Option is
available on Maturity/Death to avail the claim in
monthly/quarterly/half-yearly/yearly intervals for 5 years. “The plan offers
liquidity through Loan Facility which is available any time after 3 months from
the completion of the policy.
The plan can be purchased both offline and online from the LIC website.
