LIC Dhan Rekha
Dhan Rekha (Plan No. 863, UIN No. 512N343V01) life insurance plan from LIC is a non-linked, non-participating, individual savings money back plan that offers an appealing culmination of protection and savings. In the case of the policyholder’s untimely death during the policy term, this plan provides financial support to the policyholder’s family.
LIC Dhan Rekha also provides liquidity by way of a loan facility. According to LIC’s press release dated December 13, “The product has various benefits and unique features. There are special premium rates for female lives. The plan is allowed to Third Gender. All Benefits under the plan are fully guaranteed.”
What Are The Features Of LIC’s Dhan Rekha?
LIC Dhan Rekha offers a multitude of features to the policyholders. Here’s a list of some of the prominent features:
- Non-Linked & Non-Participating: It is an individual, non-linked, non-participating, savings, and money-back plan.
- Limited Premium Payment: This plan comes with a single premium option and a limited premium payment plan (to be paid for half of the policy term, either yearly, half-yearly, quarterly, or monthly).
- Loan Facility: This plan provides a loan facility to meet liquidity needs.
- Various Riders: The plan comes with riders, however, an additional charge is required.
- Payment Of Premiums: Premiums can be paid on a yearly, half-yearly, quarterly, or monthly basis, or through salary deductions.
- Grace Period: From the date of the first unpaid premium, a grace period of 30 days for yearly, half-yearly, or quarterly premiums and 15 days for monthly payments will be permitted.
- Surrender: The policy can be surrendered by the policyholder at any moment throughout the policy term if it is paid with a single premium. The policyholder can surrender the policy at any point throughout the policy term if two full years’ premiums have been paid under limited premium payment.
- Free Look Up Period: If the policyholder is dissatisfied with the policy’s “Terms and Conditions,” the policy may be returned to the company within 15 days (30 days in the event of an online transaction) of receiving the policy bond, citing the reasons for the return.
Eligibility Of LIC’s Dhan Rekha
|Minimum Basic Sum Assured||Rs. 2,00,000|
|Maximum Basic Sum Assured||No Limit|
|Policy Term||20, 30, & 40 Years|
|Minimum Entry Age||For Policy Term 20 Years: 8 Years For Policy Term 30 Years: 3 Years For Policy Term 40 Years: 90 Days|
|Maximum Entry Age||For Single Premium: 40 To 60 Years For Limited Premium: 35 To 55 Years|
|Minimum Age At Maturity||28 To 40 Years|
|Maximum Age At Maturity||For Single Premium: 80 Years For Limited Premium: 65 & 75 Years|
What Are The Benefits Payable Under LIC’s Dhan Rekha?
The benefits provided by LIC Dhan Rekha plan are as follows:
- Death Benefit
The “Sum Assured on Death” plus Accrued Guaranteed Additions shall be paid on death during the policy period following the date of commencement of risk. For a single premium payment, the policyholder will receive 125% of the basic sum assured as the “Sum Assured on Death”. Whereas, for limited premium payment, the policyholder will receive 125% of the basic sum assured or 7 times the yearly premium as the “Sum Assured on Death”.
- Survival Benefit
A specific percentage of the basic sum assured will be paid if the life assured survives for each of the stated durations during the policy period, providing the policy is in force. The following is the fixed percentage for several 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
If the life assured survives the given date of maturity while the policy is in force, the “Sum Assured on Maturity” will be paid, along with any Accrued Guaranteed Additions.
- Guaranteed Additions
Guaranteed Additions will be paid if the insurance remains in force and the premiums are paid on time. From the 6th policy year to the conclusion of the policy term, the Guaranteed Additions will accumulate at the end of each policy year. The rate of Guaranteed Additions will rise in lockstep with the policy’s duration, as shown below:
|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|
How Does LIC’s Dhan Rekha Plan Function?
In order to understand how LIC’s Dhan Rekha plan functions, we need to go through an example!
Suppose you take Rs. 10 lakhs policy for 30 years policy tenure.
From the first to the fifteenth year, you start paying the premium. LIC will pay you 15% of your sum assured at the end of the 15th year (beginning of the 16th), the 20th year, and the 25th year. LIC will pay you the full sum assured, i.e., Rs.10 lakhs, after the completion of the 30th year (beginning of the 31st year), and Guaranteed Addition as Rs.50 from the 6th to the 20th year (Rs.7,50,000=Rs.50,000X15) and Rs.55 from the 21st to the 30th year (Rs.5,50,000=Rs.55,000X10). As a result, after 30 years, you will receive Rs.23,00,000 in total.
If you’re happy to invest for 30 years, then go ahead and take advantage of this policy.
|Policy Term||Cash Flow|
|1st To 15th Year||-73342|
What Are The Optional Benefits Available Under LIC’s Dhan Rekha?
The plan provides the policyholder with the following options:
Under Single Premium Payment, the plan provides Accidental Death & Disability Benefit Rider and New Term Assurance Rider. The policyholders can choose these riders at the inception only. Whereas, under the Limited Premium Payment, the following riders are available:
- Accidental Death & Disability Benefit Rider
- Accident Benefit Rider
- New Term Insurance Rider
- New Critical Illness Benefit Rider
- Premium Waiver Benefit Rider
Under an in-force as well as paid-up insurance, the Settlement Option allows you to receive the maturity benefit in installments over a 5-year period rather than a single sum payment. This option is available to the policyholder whether the life assured is under the age of 18 or above.
Option To Take Death Benefits In Installment
Under an in-force and paid-up policy, this is an option to receive the death benefit in installments over a 5-year period rather than a lump sum amount. This option is available to the policyholder throughout the life assured’s minor years or to the life assured’s aged 18 and over. Installments will be paid in advance at yearly, half-yearly, quarterly, or monthly intervals, depending on the option selected.
How To Purchase LIC’s Dhan Rekha Plan?
In order to purchase LIC’s Dhan Rekha Plan, you need to follow the below-mentioned steps:
- Visit the official website of the company.
- Click on “LIC’s Dhan Rekha” under the yellow banner of “Buy Policy Online”.
- Enter your contact details, such as name, date of birth, email ID, and phone number.
- Fill out the captcha and submit. On your phone number and email, you will receive a 9-digit access code and an OTP.
- Enter OTP and then proceed further.
- To calculate premiums, enter the sum assured and the term, select yes from the radio button, and complete the form.
- Confirm the details and proceed with payment after the proposal has been successfully submitted.
- Premiums can be paid using net banking, credit card, or other methods.
- Following payment, you will receive an introduction email.
- Non-medical cases will be completed based on the documents presented.
- You will be contacted by a medical service provider (MSP). LIC will underwrite the case after the medical.
- After you’ve made your selection, The policy number will be assigned by LIC, and details will be sent to your registered email address.
- You will receive a copy of the policy via mail as well as by post.
- Your policy will be serviced in the servicing branch in the city that you have chosen.
This plan is available for purchase offline through a LIC agent or other third-party intermediary. In case you are dissatisfied with the services of the company, you can reach Probus Insurance.
Frequently Asked Questions
This plan has some favorable aspects.
- After half of the policy term, policyholders would receive regular payments. The plan is suitable for those who require consistent financial flow.
- On maturity, LIC offers guaranteed increases of Rs. 50, Rs. 55, or Rs. 60 per thousand total promised. These are risk-free investments with a 100% guarantee of profit.
- LIC is a well-known brand. Investing in their products is risk-free.
If the life assured’s age at entry is less than 8, the risk under this plan will begin 2 years from the date of commencement or 2 years from the policy anniversary coinciding with or immediately following the achievement of 8 years of age, whichever comes first. Risk will begin immediately for individuals who are 8 years old or older.
Although there is a specific percentage of premium amount that is paid to the nominee if the policyholder commits suicide, there are certain exclusions. This clause will not apply if the life assured is under the age of eight years at the time of revival; or if the policy has lapsed without accumulating paid-up value, in which case nothing will be paid out.
Under the New Critical Illness Benefit Rider of the plan, 15 critical illnesses are covered.
A lapsed policy can be revived if it is purchased within 5 years after the date of the first unpaid premium but before the policy’s maturity date.