Life Insurance Corporation of India (LIC) has introduced a new scheme called Dhan Vridhi, a non-linked, non-participating, individual, savings, single premium life insurance plan that offers a combination of protection and savings.
“LIC has introduced a new scheme, LIC’s Money Growth with effect from June 23. This is a close ended scheme and will be available for sale from June 23 to September 30. The Unique Identification Number (UIN) for LIC’s Dhan Vridhi plan is 512N362V01,” the LIC said in a statement.
LIC’s Dhan Vridhi plan provides financial assistance to the family in the event of an unfortunate death of the life assured during the policy term. It also provides a guaranteed lump sum amount to the life assured on the date of maturity. Being a single premium plan, there is no future premium liability and will not lapse.
The proposer will have two options to choose from where the ‘Sum Assured on Death’ can be 1.25 times (Option 1) or 10 times (Option 2) the tabulated premium for the opted Basic Sum Assured subject to certain eligibility conditions.
The scheme is available for a term of 10, 15 or 18 years. The minimum age at entry varies from 90 days to 8 years depending on the period chosen. The maximum age for entry ranges from 32 years to 60 years depending on the duration and option selected. Minimum basic sum assured Rs 1,25,000 and Rs 5000 in multiples of Rs 5000 and above can be opted for.
On the death of the life assured during the policy term after the date of commencement of risk but before the stipulated date of maturity, the “sum assured on death” plus accrued guaranteed additions shall be payable.
On survival of the life assured till the stipulated date of maturity, along with the basic sum assured, earned guaranteed additions will be payable.
Guaranteed additions will accrue at the end of each policy year during the entire policy term. Guaranteed additions depending on the option chosen, Basic Sum Assured and policy term are Rs 60 to Rs 75 (Option 1) and Rs 25 to Rs 40 (Option 2) per 1000 Basic Sum Assured. The guaranteed additions are higher for a higher sum assured, said the LIC in the statement.
LIC’s Accidental Death and Disability Benefit Rider and LIC’s New Term Assurance Rider are available, if opted for. Settlement option on maturity or death is available to receive claims at monthly, quarterly, half-yearly and yearly intervals for five years. The plan provides the assistance of encashment through loan facility which is available from three months after the completion of the policy.