LIC New Money Back Policy with Guaranteed Return: Know Maturity Benefits, Other Features

LIC Dhan Rekha is a life insurance plan, and non-equity-linked policy, which is offering protection and savings to the policyholders and their family members. The Dhan Rekha plan pays a percentage of the basic sum assured as a survival benefit at regular intervals of the premium-paying term. All benefits under the LIC Dhan Rekha plan are fully guaranteed. While there are special premium rates for women, the policy is also allowed for the third gender.

LIC Dhan Rekha Plan: Who is Eligible?

Depending on the policy term, the minimum age to enter ranges from 90 days to 8 years. Depending on the policy term, the maximum age at the entrance can range from 35 to 55 years old.

LIC Dhan Rekha Plan: Minimum Sum Assured

Under the LIC Dhan Rekha plan, the minimum sum assured is Rs 2 lakh, with no upper restriction on the maximum sum assured. The basic sum assured will be in multiples of Rs 25,000, of the said amount.

LIC Dhan Rekha Plan: Maturity Benefit

On the life assured surviving to each policy term, a fixed percentage of the basic sum assured will be paid. For 20 years of the policy term, the survival benefit will be 10 per cent of the basic sum assured at the end of each of the 10th and 15th policy years.

For 30 years of the policy term, the survival benefit will be 15 per cent of the basic sum assured at the end of each of the 15th, 20th, and 25th policy years.

For 40 years of the policy term, the survival benefit will be 20 per cent of the basic sum assured at the end of each of the 20th, 25th, 30th, and 35th policy years. On maturity, the sum assured on maturity along with the accrued guaranteed additions, will be paid, where it will be equal to the basic sum assured.

Death Benefit of LIC Dhan Rekha Plan

As per LIC, the death benefit will be paid by the corporation on death during the policy term, will be the Sum Assured on Death along with Accrued Guaranteed Additions. Additionally, for Single premium payments, the Sum Assured on Death will be 125 per cent of the Basic Sum Assured. However, for the limited premium payment, the Sum Assured on Death will be higher of 125 per cent of Basic Sum Assured or 7 times of annualized premium. The Death Benefit under Limited Premium payment will not be less than 105 per cent of total premiums paid. For the minor policyholders, whose age at entry is below 8 years, on death before the commencement of Risk, return of premium(s) paid excluding taxes.

A policyholder’s family can apply for the death benefit in installments over a chosen period of 5 years instead of a lump sum amount. The monthly installment will be Rs 5,000, the quarterly installment will be Rs 15,000, the half-yearly installment will be Rs 25,000, and the yearly installment will be Rs 50,000.

LIC Dhan Rekha Plan: Loan Facility

This plan also includes a loan facility to meet liquidity requirements. Optional riders are available under this plan for an extra price, however, there will be some restrictions, stated LIC. The plan can be purchased both offline and online through agents/intermediaries such as POSPLI/Common Public Service Centres (CPSC-SPV) and the website www.licindia.in.

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