LIC’s Dhan Rekha

Description

 

Features of LIC’s Dhan Rekha Plan

Policyholders can choose from a variety of benefits with LIC’s Dhan Rekha Plan. Here are a few of the salient attributes:

1. Non-connected & Non-Participating: This savings and money-back plan is for individuals and is not connected or participatory.
2. Restricted Premium Payment: Policyholders have the choice of paying their premiums on a restricted premium payment plan or all at once. The restricted payment plan requires premiums to be paid annually, half-yearly, quarterly, or monthly for the duration of the coverage.
3. LOAN Facility: In order to satisfy their liquidity demands, policyholders can borrow against their policy using the plan’s lending facility.
4. Different Riders: The plan allows for extra riders, however there can be a fee for them.
5. Payment of Premiums: There are four different ways to pay for premiums annually, half-yearly, quarterly, or monthly. As an alternative, they may be taken out of the policyholder’s pay.
6. Grace time: There is a grace time for paying premiums. Starting from the date of the first unpaid premium, you have thirty days to make up for missed premium payments for annual, half-yearly, or quarterly premiums, and fifteen days to make monthly payments.
7. Surrender: If the insurance was bought with a single premium, the policyholder may give it up at any time throughout the policy’s term. The policy may be relinquished under the restricted premium payment option once the premiums for two complete years have been paid.
8. Free Look-Up Period: Within 15 days (30 days for online purchases) of receiving the insurance bond, the policyholder may return the policy to the firm, giving grounds for the return, if they are unhappy with the terms and conditions of the policy.

 

Benefits Payable Under LIC’s Dhan Rekha Plan

The LIC Dhan Rekha Plan offers the following benefits:

1. Death Benefit:
   • Should the policyholder pass away within the policy term following the initiation of risk:
     • Accrued Guaranteed Additions and 125% of the base sum promised, known as the “Sum Assured on Death,” are given to the nominee in exchange for a single premium payment.
     • The “Sum Assured on Death” for a restricted premium payment is 125% of the basic sum insured or seven times the annual premium, whichever is greater.
2. Survival Benefit:
   • If the life assured survives for each of the designated durations during the policy period, and the policy is in force, a certain proportion of the basic sum promised is paid.
   • The terms and conditions of the insurance specify the fixed percentage for different policy terms.

Policy Term (In Years)	Survival Benefits
20	10% of the Basic Sum Assured at the end of each 10th and 15th policy year.
30	15% of the Basic Sum Assured at the end of each of 15th, 20th, and 25th policy year.
40	20% of the Basic Sum Assured at the end of each of 20th, 25th, 30th, and 35th policy year.

 

• Maturity Benefit: The “Sum Assured on Maturity” and any Accrued Guaranteed Additions will be paid out if the life guaranteed survives until the maturity date, as long as the policy is in effect.
• Guaranteed Additions: If the insurance policy is kept in effect and the premiums are paid on schedule, Guaranteed Additions will be paid. From the sixth policy year until the end of the policy term, these increments accrue. As stated in the policy terms, the rate of Guaranteed Additions rises in accordance with the policy’s tenure.

Policy Duration (In Years)	Guaranteed Additions (Per Rs. 1000 Basic Sum Assured)
6th To 20th	Rs. 50
21st To 30th	Rs. 55
31st To 40th	Rs. 60