Life Insurance Corporation of India (LIC) has recently introduced a new life insurance plan, Dhan Varsha. This is a close-ended plan and shall be available for sale up to the end of the current financial year which is 31 March 2023. The plan is a non-linked, non-participating, individual, savings, single-premium life insurance plan. It offers a combination of protection and savings.
10 things to know about this plan:
1. This plan provides financial support for the family in case of unfortunate death of the life assured during the policy term. It also provides a guaranteed lump sum amount on the date of maturity for the surviving life assured.
2. The proposer has two options to choose “Sum Assured on Death” (1) 1.25 times Tabular Premium and (2) 10 times Tabular Premium for the chosen Basic Sum Assured. The proposer can choose the term either for 10 years or 15 years.
3. The minimum age at entry for the 10-year term is 8 years and 3 years for a 15-year policy term. The maximum age at entry varies from 35 to 60 years depending on the term and option of Sum Assured on Death chosen.
4. The minimum basic sum assured is ₹1.25 lakh and there is no limit for the maximum basic sum assured.
5. In case of age at entry of the life assured is less than 8 years, the risk under the policy will commence either 2 years from the date of commencement of policy or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier. For those aged 8 years or more, risk will commence immediately from the date of issuance of the policy.
6. If the life assured is alive on the vesting date and if a request in writing for surrendering the policy has not been received by Corporation before such vesting date from the person entitled to the policy monies, the policy shall automatically vest in the Life Assured on the such vesting date.
7. Guaranteed Additions shall accrue at the end of each policy year, throughout the policy term. The Guaranteed Additions shall depend on the option chosen, the basic sum assured and the policy term.
The rates vary from 25 to 75 per 1000 basic sum assured.
8. Two optional riders are available under this plan i.e. one — LIC’s Accidental Death and Disability Benefit Rider and the second is LIC’s New Term Assurance Rider.
9. Loan facility is available under this plan subject to certain conditions.
10. You can buy such a plan offline through an agent or other intermediaries including point of sales persons- Life Insurance (POSP-LI)/Common Public Service Centers (CPSC-SPV), subject to certain conditions.
