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Life Insurance Corporation of India (LIC) on Friday launched the ‘Dhan Vridhhi’ plan that offers a combination of protection and savings.
India’s largest life insurer said the close-ended plan, which is a non-linked, non-participating, individual, savings, single-premium life insurance plan, will be available for sale from June 23 to September-end 2023.
“This plan provides financial support for the family in case of the unfortunate death of the life assured during the policy term. It also provides a guaranteed lumpsum amount on the date of maturity to the life assured.
“Being a single premium plan, there is no future premium obligation and no lapsation,” an LIC statement said.
The proposer will have two options to choose, whereby ‘Sum Assured on Death’ can either be 1.25 times (Option 1) or 10 times (Option 2) the Tabular Premium for the chosen Basic Sum Assured, subject to certain eligibility conditions, the insurer said.
The plan is available for 10, 15 or 18 years of term. The minimum age at entry varies from 90 days to 8 years, depending upon the term selected. The maximum age at entry varies from 32 to 60 years, depending upon the term and option selected.
The Minimum Basic Sum Assured is Rs 1,25,000; one can opt for higher basic sum assured in multiples of Rs 5,000, according to the statement.
On the 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 shall be ‘Sum Assured on Death,’ along with accrued guaranteed additions.
On the life assured surviving the stipulated Date of Maturity, the ‘Basic Sum Assured’ along with accrued Guaranteed Additions would be payable.
“The Guaranteed Additions will accrue at the end of each policy year, throughout the policy term. The Guaranteed Additions range from Rs 60 to Rs 75 (Option 1) and Rs 25 to Rs 40 (Option 2) per Rs 1,000,” LIC said.
The insurer said its Accidental Death and Disability Benefit Rider and New Term Assurance Rider are available if opted.
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