Life Insurance Corporation (LIC) has introduced the "LIC Dhan Varsha" programme.This individual savings life insurance plan provides protection and savings and is not linked to any other plans or participants.
LIC Dhan Varsha plan offers financial help to the family in the terrible event that the life assured passes away during the period of the policy. According to a statement from LIC, it also guarantees a lump sum payment for the living life assured on the date of maturity. This close-ended plan would remain on the market until March 31, 2023.
Here are a few benefits that’s under the LIC Dhan Varsha plan:
Death benefits:
According to LIC, the "Sum Assured on Death" and accrued guaranteed additions will be the death benefit payable in the event that the life assured passes away within the policy term following the date on which risk first became a concern but before to the policy's maturity date.
Benefit of maturity:
"Basic Sum Assured" and accrued guaranteed additions will be payable on life assured surviving the designated date of maturity.
Guaranteed additions:
The initial sum assured, the option selected, and the length of the policy term will all affect how much is guaranteed to be added on at the conclusion of each policy year. For example: In case the basic sum assured is from Rs. 1,25,000 to 2,45,000 then policy term 10 and 15 years for Rs. 1,25,000 will be 60 and 65 and for 2,45,000 it will be 25 and 30.
How to pay the premiums?
The policyholders can pay the premium in single payment mode only (lumpsum).
Can the policy be cancelled?
According to LIC, the policyholder may cancel the policy at any moment throughout the policy period.
"On surrender of the policy, the corporation shall pay the surrender value equal to the higher of guaranteed surrender value and special surrender value," it said.
The following will be the Guaranteed Surrender Value (GSV) payable under the policy:
- 75 percent of the single premium for the first three years of the policy
- 90 percent of the single premium afterwards
Taxes, additional premiums, and rider premiums, if applicable, are not included in the single premium mentioned above.
In addition, the surrender value of accrued Guaranteed Additions i.e. accrued Guaranteed Additions multiplied by GSV factor applicable to the accrued Guaranteed Additions, will also be payable, LIC said.
