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LIC announces the launch of Dhan Vriddhi scheme. Details here
LIC's latest offering is a non-participating, guaranteed policy that operates as a closed-end product, meaning it ceases to accept purchase applications after September 30, 2023.
The Life Insurance Corporation of India (LIC) has recently introduced Dhan Vriddhi, a non-participating endowment plan that requires a single premium payment. This plan guarantees returns and operates as a closed-end policy, available for purchase until September 30, 2023.
LIC policyholders can opt for two sum assured options: 1.25 times (Option 1) or 10 times (Option 2) the premium amount, with the minimum sum assured set at Rs 1.25 lakh. The minimum entry age ranges from 90 days to eight years, while the maximum age varies from 32 to 60 years.
The single premium policy offers flexible tenures of 10, 15, or 18 years. You have the option to choose a minimum basic sum assured of Rs 1,25,000, and you can opt for higher amounts in multiples of Rs 5000.
In the event of the death of the “Life Assured” during the policy term after the commencement of risk but before the stipulated maturity date, the payable amount will be the “Sum Assured on Death” along with accrued guaranteed additions. However, if the life assured survives until the stipulated maturity date, the payable amount will be the "Basic Sum Assured" along with accrued guaranteed additions.
Upon maturity, the policyholder will receive the basic sum assured along with the accumulated guaranteed additions, representing the returns earned over the years to enhance the corpus. In the unfortunate event of the Life Assured's death during the policy term, the nominees will receive the sum assured amount along with the guaranteed additions.
Guaranteed additions will accrue at the end of each policy year throughout the tenure. The number of guaranteed additions will vary based on the chosen option, the basic sum assured, and policy tenure. Larger covers will result in higher guaranteed additions.
At the time of maturity or death, the beneficiary can choose to receive the claim amount disbursed in monthly, quarterly, half-yearly, or annual intervals over a period of five years. The plan also offers liquidity through a loan facility, which becomes available after three months from the completion of the policy.
Policyholders have the option to enhance their base life insurance policy by adding riders such as accidental death and disability benefit riders, as well as new term assurance riders. The policy can be purchased both online and offline, through agents, intermediaries, Point of Sales Persons-Life Insurance (POSP-LI), and Common Public Service Centers (CPSC-SPV) as well as directly online through the insurance company’s website.
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First Published:26 Jun 2023, 11:21 AM IST
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