LIC Dhan Varsha
Dhan Varsha (Plan No. 866, UIN No. 512N349V01) plan from LIC is a newly launched, non-participating, non-linked, savings, individual life insurance plan that provides an opportunity for the policyholder to combine protection with savings. The plan can be purchased by paying a single lump sum premium amount and comes in two variants: Option 1 and Option 2.
In case the life assured passes away during the period of the policy, the plan offers financial support to the family. Additionally, it offers the surviving life assured a guaranteed lump sum payment on the date of maturity.
Eligibility Conditions Of LIC Dhan Varsha Plan
|Minimum Entry Age|
For Policy Term 15 Years: 3 Years
For Policy Term 10 Years: 8 Years
|Maximum Entry Age|
For A Policy Term Of 10 Years
Option 1: 60 Years
Option 2: 40 Years
For A Policy Term Of 15 Years: 35 Years
|Minimum Age At Maturity||18 Years|
|Maximum Age At Maturity|
Option 1: 75 Years
Option 2: 50 Years
|Policy Term||10/15 Years|
|Minimum Basic Sum Assured||Rs. 1,25,000|
|Maximum Basic Sum Assured||No Limit|
Key Attributes Of LIC Dhan Varsha Plan
Some of the key features of the plan are as follows:
- Payment Of Premiums: The plan allows the premium payment in a single lump sum payment mode only.
- Rebate For Online Sale: Policies purchased through online sales without the aid of an agent or intermediary are entitled to a 2% discount on the tabular premium.
- Surrender Value: At any point throughout the policy term, the policyholder may surrender the coverage. When a policy is surrendered, the corporation will pay the higher of the guaranteed surrender value or the special surrender value as the surrender value.
- Loan Facility: After three months from the policy’s completion (i.e., three months from the date of issuance of the policy), or after the expiration of the free-look period, whichever comes later, a loan may be obtained under this plan at any time during the policy term, subject to the terms and conditions that the corporation may from time to time specify.
- Free Look Period: The policy may be returned to the company within 30 days of the date of receipt of the electronic or physical mode of the Policy Document, whichever is sooner if the policyholder is dissatisfied with the “Terms and Conditions” of the policy.
How Is LIC Dhan Varsha Plan Beneficial For The Policyholders?
The plan offers the following benefits to the policyholder:
- Death Benefit: The death benefit payable on the death of the life assured within the policy period following the date of the beginning of risk but prior to the date of maturity will be “Sum Assured on Death” along with accrued Guaranteed Additions.
Sum Assured on Death will be as follows for both options:
- Option 1: 1.25 times of Tabular Premium for the chosen Basic Sum Assured
- Option 2: 10 times of Tabular Premium for the chosen Basic Sum Assured
- Maturity Benefit: At maturity, the “Basic Sum Assured” and accrued Guaranteed Additions will be paid. The accrued guaranteed additions, which are included when a policy is surrendered, also contain the guaranteed additions in proportion to the months that have already passed for the relevant policy year.
- Guaranteed Additions: The Basic Sum Assured, the Policy Term, and the Option Chosen will all have an impact on the Guaranteed Additions, which will accrue at the conclusion of each policy year throughout the policy term. The guaranteed addition rates are as listed below.
|Basic Sum Assured||Policy Term Of 10 Years||Policy Term Of 15 Years|
|Option 1||Option 2||Option 1||Option 2|
|Rs. 1,25,000 To Rs. 2,45,000||Rs. 60||Rs. 25||Rs. 65||Rs. 30|
|Rs. 2,50,000 To Rs. 6,95,000||Rs. 65||Rs. 30||Rs. 70||Rs. 35|
|Rs. 7,00,000 & above||Rs. 70||Rs. 35||Rs. 75||Rs. 40|
- Rider Benefit: Only at the time of purchase are the following two optional riders available for purchase:
- LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
- LIC’s New Term Assurance Rider (UIN: 512B210V01)
Working On LIC Dhan Varsha Plan
Let’s understand the working of the plan with a suitable example.
Mr. Kumar, a 30 years old healthy male, purchases the Option 2 variant of the LIC Dhan Varsha plan. Other details of the plan are as follows:
- Policy Term: 15 Years
- Basic Sum Assured: Rs. 10,00,000
- Sum Assured On Death: Rs. 79,87,000
- GST Rate: 4.50%
- Single Premium (Without GST): Rs. 7,98,700
- Single Premium (With GST): Rs. 8,34,642
Now, let’s take a look at different scenarios!
If Mr. Kumar dies in the 10th policy year.
The nominee will get the following amounts:
Sum Assured On Death: Single Premium Paid X 10: Rs. 83,46,420
Guaranteed Additions: Rs. (40 X 10,00,000/1,000) X 10: Rs. 4,00,000
If Mr. Kumar survives the policy term of 15 years.
He will get the following amounts:
Basic Sum Assured: Rs. 10,00,000
Guaranteed Benefits For 15 Years: Rs. (40 X 10,00,000/1,000) X 15: Rs. 6,00,000
Therefore, the final maturity benefit will be Rs. 16,00,000.
Exclusion Under LIC Dhan Varsha Plan
If the policyholder dies by suicide during the first year after purchasing the insurance, the nominee will be entitled to receive 80% of the single premium paid. Only policyholders who are older than 8 may make this claim.
Buying Process Of LIC Dhan Varsha Plan
The company allows its customers to purchase the plan through an online method. One needs to follow the below-mentioned steps for the same:
- Visit the official website of LIC.
- On the home page, click on “Buy Online Policies”.
- A list of LIC policies that are available for online purchase will be displayed next. Now place the cursor on “LIC’s Dhan Varsha”.
- A brief introduction of the plan will be shown on the page. Select “Click To Buy Online”.
- Now upload all the necessary documents as asked on the next page and then click on “Proceed”.
- Enter the COVID-19 information and then click on “Proceed”.
- Now the name of the customer, mobile number, age, email address, and various other information will be asked on the subsequent page. After entering all the required information, captcha code, and ticking the boxes, press the “Proceed” button.
- Now the “Access ID” will be displayed on the screen. After entering the OTP, which was sent to the registered mobile number, click “Proceed”.
- Make the payment online and the customer will be able to successfully buy the plan. The policy details will be sent to the registered mail address.
Frequently Asked Questions
The maximum loan that can be availed as a percentage of surrender value is as follows:
|Options||Policy Term = 10 Years||Policy Term = 15 Years|
Yes. There is an option to receive death benefits in installments over a period of 5 years. The minimum installment amount for different modes of payment are as follows:
- Monthly: Rs. 5,000
- Quarterly: Rs. 15,000
- Half-Yearly: Rs. 25,000
- Yearly: Rs. 50,000
Yes. The risk will start 2 years from the policy’s start date or from the anniversary of the policy that coincides with or immediately follows the completion of 8 years of age, whichever comes first if the age at entry of the life assured is less than 8 years.