Life Insurance LIC of India LIC Dhan Vriddhi
LIC Dhan Vriddhi Plan
Dhan Vriddhi (Plan No. 869, UIN No. 512N349V01) is a non-participating, non-linked, and individual plan that combines protection and saving. The plan was launched recently on 23rd June 2023 and its sale will be till 30th September 2023.
The primary aim of the plan is to offer financial support to the family in case the life assured passes away during the period of the policy. Additionally, it offers the surviving life assured a guaranteed lump sum payment on the date of maturity. As it is a single-premium life insurance plan, there is no future premium obligation. The plan comes in two options, namely Option 1 and Option 2.
Keep reading to know about the plan in detail!
Eligibility Conditions
Parameters | Details |
Policy Term (PT) | 10, 15, & 18 Years |
Minimum Entry Age | 90 Days To 8 Years Except for the minimum age at entry as indicated in the maximum entry age below, the age at entry for the life assured is to be taken as the age closer to the birthday. |
Maximum Entry Age | Option 1: 60 Years Option 2: 40 Years (For PT 10 Years); 35 Years (For PT 15 Years); 32 Years (For PT 18 Years) |
Minimum Maturity Age | 18 Years |
Maximum Maturity Age | Option 1: 78 Years; Option 2: 50 Years |
Minimum Basic Sum Assured | Rs.1,25,000/- |
Maximum Basic Sum Assured | No Limit |
Salient Features & Benefits Of LIC Dhan Vriddhi Plan
Listed below are some of the top key features and benefits of the LIC Dhan Vriddhi Plan:
- Flexibility Of 2 Options: Subject to specific qualifying requirements, the plan has two alternatives to choose from, each offering a different level of protection. In the first option, the basic sum assured’s death benefit can be up to 1.25 times the “tabular” premium. The second choice allows for a death benefit that is 10 times the tabular premium for the selected basic sum insured.
- Online Sale Rebates: Policies bought through online sales without the use of an agent or intermediary are eligible for a 2% rebate on the tabular premium for the base plan and any additional riders if chosen.
- Surrender Benefit: At any point throughout the policy term, the policyholder may surrender the coverage. When a policy is surrendered, the company will pay the higher of the guaranteed surrender value or the special surrender value as the surrender value.
- Loan Facility: A loan facility shall be made available under the plan anytime after 3 months of the date of issuance of the policy.
- Death Benefits: The “Sum Assured on Death” and “Accrued Guaranteed Additions” are payable upon the death of the life assured within the policy period following the date of beginning of risk but prior to the specified date of maturity. The “Sum Assured on Death” for both the options stated in the first point above.
- Maturity Benefit: ‘Basic Sum Assured’ and ‘Accrued Guaranteed Additions’ will be paid if the life assured survives the designated date of maturity.
- Guaranteed Additions: Throughout the policy term, the ‘Guaranteed Additions’ will accrue after each policy year. The ‘Basic Sum Assured’, the ‘Policy Term’, and the ‘Option Selected’ will all affect the ‘Guaranteed Additions’. The rates for GA are shown below:
Guaranteed Additions (Per Rs. 1000 Basic Sum Assured) | ||||||
Basic Sum Assured | Option 1 | Option 2 | ||||
Policy Term (PT) Of 10 Years | PT: 15 Years | PT: 18 Years | PT: 10 Years | PT: 15 Years | PT: 18 Years | |
Rs. 1,25,000 To Rs. 2,45,000 | 60 | 65 | 65 | 25 | 30 | 30 |
Rs. 2,50,000 To Rs. 6,95,000 | 65 | 70 | 70 | 30 | 35 | 35 |
Rs. 7,00,000 & Above | 70 | 75 | 75 | 35 | 40 | 40 |
Generic Functioning Of LIC Dhan Vriddhi Plan
The plan can be bought by paying a single premium amount. In the terrible event that the policyholder passes away, the nominee is awarded the death benefit, which is equal to five times the minimal single premium. The policyholder is entitled to the guaranteed maturity benefit and loyalty additions if they live to maturity.
Let’s understand this with an example!
Mr. Singh, a 30-year-old male, purchased Option 1 of the LIC Dhan Vriddhi Plan. He planned to go for the sum assured of Rs. 10 lakhs. The plan will work for him as follows:
Sum Assured | Option Choice | Policy Term | Premium Paying Term | Base Premium Amount | Total GST | Total Payable |
Rs. 10 Lakhs | Option 1 | 10 Years | 1 Year | Rs. 915516.0 | Rs. 41198.0 | Rs. 956714 |
Now, take a look at the benefits that Mr. Singh will receive:
(Amount In Rupees) | ||||||
Policy Year (End Of Year) | Single Premium | Accrued Guaranteed Additions | Maturity Benefit | Death Benefit | Minimum Guaranteed Surrender Benefit | Special Surrender Value |
1 | 915516 | 70000 | 0 | 1237750 | 699307 | 0 |
2 | 0 | 140000 | 0 | 1307750 | 713237 | 0 |
3 | 0 | 210000 | 0 | 1377750 | 728490 | 391193 |
4 | 0 | 280000 | 0 | 1447750 | 882344 | 544384 |
5 | 0 | 350000 | 0 | 1517750 | 900929 | 790965 |
6 | 0 | 420000 | 0 | 1587750 | 922160 | 934644 |
7 | 0 | 490000 | 0 | 1657750 | 946709 | 1083677 |
8 | 0 | 560000 | 0 | 1727750 | 975500 | 1259856 |
9 | 0 | 630000 | 0 | 1797750 | 1012964 | 1459991 |
10 | 0 | 700000 | 1700000 | 1867750 | 1068964 | 1700000 |
How To Purchase LIC Dhan Vriddhi Plan?
For purchasing the policy, adhere to the following steps:
- Visit the home page of LIC’s official website.
- Click on the mustard-colored “Buy Online” banner at the left side of the page.
- A new page will emerge displaying all the policies that are available for online purchase. Click on “LIC Dhan Vriddhi” and press “Ok” for the external link.
- A small brief of the plan will be given on the page. Press “CLICK TO BUY ONLINE”.
- The next page will ask you to keep the required documents ready for the uploading process. Click “Proceed”.
- Enter the COVID-19 information and press “Proceed”.
- Enter your contact details, such as name, date of birth, mobile number, etc., tick on the two boxes below, and then press “Proceed”.
- Your access ID will be generated and the next page will ask you to enter the OTP sent to your mobile number. Enter it and then click on “Proceed”.
- Now, the next page will ask you to enter your personal information and product information. Enter all the details and then click “Calculate Premium”.
- The premium details will be shown on the screen. Just click “Confirm & Proceed”.
- More details will be asked by the company’s website, such as a permanent address, father’s name, mother’s name, and so on. Kindly fill them all out and then proceed to the payment page.
- Once the payment is done, the policy details will be sent to the registered contact details.
People can also get in touch with LIC’s customer care to understand the offline buying process of the policy.
Exclusions Under LIC Dhan Vriddhi Plan
The nominee or beneficiary of the life assured shall be entitled to receive 80% of the single premium paid in case the life assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk. The life assured’s nominee or beneficiary is not eligible to make any further claims under this policy.
Frequently Asked Questions
Yes. There are two riders as mentioned below:
- LIC’s Accidental Death and Disability Benefit Rider
- LIC’s New Term Assurance Rider
Yes. The plan has the option to receive the death benefit in installments. For details, refer to the policy brochure.
The plan has a waiting period of 90 days if it’s purchased through H POSP-LI & CPSC- SPV.
A free look period of 30 days is offered following the date of receipt of the policy document in either the physical or electronic form, whichever comes first.
The maximum loan amount is mentioned below:
Maximum Loan (As Percentage Of Surrender Value) | |||
Options | PT: 10 Years | PT: 15 Years | PT: 18 Years |
Option 1 | 70% | 60% | 50% |
Option 2 | 60% | 50% | 40% |
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