LIC's Dhan Sanchay

There are a plethora of features and benefits provided by LIC’s Dhan Sanchay Plan. Some of them are as discussed below:

• Benefit Options At Inception: The plan provides four benefit options at the time of inception. In the case of regular or limited premium payment, Option A (Level Income Benefit) and Option B (Increasing Income Benefit) are available to the policyholder. Whereas, in the case of single premium payment, the choice is given between Option C (Single Premium Level Income Benefit) and Option D (Single Premium Enhanced Cover with Level Income Benefit).

• Death Benefit: A lump-sum death benefit will be paid by the insurer. Alternatively, the policyholder may choose to collect the death benefit in equal payments over a maximum of five years. The “Sum Assured on Death”—which can differ for different options—will be the death benefit under the plan. The “Sum Assured on Death” for Options A and B will be higher of 11 times the “Annualized Premium,” or “Sum Assured on Maturity,” or 105% of all premiums paid up until the date of death.

The “Sum Assured on Death” for option C will be 1.25 times greater than the “Single Premium” or the “Sum Assured on Maturity.” The “Sum Assured on Death” for choice D will be 11 times the “Single Premium.”

• Maturity Benefit: The “Annualized Premium” or “Single-Premium” multiplied by the “Maturity Benefit Multiplier” will determine the “Sum Assured at Maturity”. “Guaranteed Income Benefit” and “Guaranteed Terminal Benefit” will be paid as maturity benefits following the policy’s maturity. According to LIC, there will be an option to get the maturity benefits in a lump amount while the life assured is still a minor or by the life assured who is at least 18 years old at least three months prior to the maturity date for a paid-up policy.

• Rider Benefits: The plan also offers various rider options to the policyholder. “Accidental Death and Disability Benefit Rider” and “New Term Assurance Rider” from LIC are both available under “Single Premium Payment” (Option C & Option D), and the policyholder may only choose to add them at the time of purchase.

In addition, the following five optional riders are available for “Regular/Limited Premium Payment” (Option A & Option B). However, according to the eligibility requirements, the policyholder may select either the “Accidental Death and Disability Benefit Rider” or the “Accident Benefit Rider” of the LIC, or any one of the remaining three riders.

• • LIC’s Accidental Death and Disability Benefit Rider
  • LIC’s Accident Benefit Rider
  • LIC’s New Term Assurance Rider
  • LIC’s New Critical Illness Benefit Rider
  • LIC’s Premium Waiver Benefit Rider

• Payment Of Premiums: Regular premium payments can be made through salary deductions or on a yearly, half-yearly, quarterly, or monthly basis. The monthly premiums can only be paid through NACH.

• Grace Period: For the payment of yearly, half-yearly, or quarterly premiums, a grace period of 30 days is given, and for monthly payments, a grace period of 15 days is provided to the policyholder. The policy will be regarded as continuing to provide risk coverage throughout this period, in accordance with the provisions of the policy, without interruption. The policy expires if the premium is not paid before the grace period has passed.

• Policy Surrender: The policyholder may surrender the regular or limited premium payment (i.e., Options A & B) at any time throughout the insurance term as long as at least two full years’ premiums have been paid. Moreover, the policyholder may surrender a single-premium payment (i.e., Options C & D) at any time throughout the policy term.