LIC Dhan Vriddhi: LIC launched a new insurance policy with tax exemption, check details

LIC's Jeevan Vriddhi is an insurance plan provided by the Life Insurance Corporation, offering a multitude of advantages for policyholders. This policy provides a risk cover that is a multiple of the premium chosen by the policyholder. On maturity, a guaranteed maturity sum assured and loyalty addition are bestowed upon the policyholder, making it an attractive investment option. The guaranteed maturity sum assured is determined based on the entry age of the life insured and the single premium payable.

Eligibility criteria for LIC's Jeevan Vriddhi:

To avail LIC's Jeevan Vriddhi insurance plan, the prospective policyholder must meet the following eligibility criteria:

1. Minimum age at policy inception: 8 years (completed)

2. Maximum entry age: 50 years (nearest birthday)

3. Maximum age at plan maturity: 60 years

Key features of LIC's Jeevan Vriddhi:

This life insurance policy comes with several noteworthy features, including:

1. Minimum basic sum assured: Rs 1,50,000

2. No limit on the maximum basic sum assured

3. Policy term: 10 years

4. Minimum annual premium: Rs 30,000

Benefits of LIC's Jeevan Vriddhi:

LIC's Jeevan Vriddhi offers an array of benefits for policyholders and their nominees, including:

1. Guaranteed maturity sum assured and loyalty additions on policy maturity

2. Death benefit equal to five times the single premium paid, payable to the nominee in case of the policyholder's demise

3. Eligibility for loyalty additions as per the Corporation's regulations upon maturity

4. Loan facility available against the policy after one year

5. 15-day look-in period allowing policy cancellation with a refund of the single premium after deduction of stamp duty and medical expenses incurred, if any

6. Surrender value of 90% of the premium amount, applicable after completion of one year

7. Tax exemptions under Section 80(C) for premiums paid and Section 10 (10D) for maturity amounts

How LIC's Jeevan Vriddhi works:

Jeevan Vriddhi requires a single premium payment on an annual basis. The policy has a fixed tenure of 10 years, offering the flexibility to avail loans and surrender benefits after completing one year. In the event of the policyholder's unfortunate demise, the nominee receives the death benefit, which is five times the basic single premium. On surviving till maturity, the policyholder is entitled to the guaranteed maturity sum assured and loyalty additions.

Premium payment:

The premium or contribution can be paid annually as a single premium in multiples of Rs 1000.

Read more: Income Tax Return: Who can use ITR-1 and who cannot? Know here