LIC Dhan Rekha Plan Benefits

LIC Dhan Rekha is a Non-Participating, Non-Linked, Individual, Savings, Life Insurance policy that provides financial security and wealth creation opportunities. It provides dual benefits of protection and savings which makes this plan an ideal choice for those looking for a secure future. 

Eligibility Criteria

Key Features LIC Dhan Rekha Plan

LIC Dhan Rekha policy offers the below key features: 

1. Policy Loan

Policyholders can avail loans against their policies subject to specific conditions.

For Single Premium Payment Policies:

• Loans can be availed after three months from the policy issuance or after the free-look period, whichever is later.
• Maximum loan amount: Up to 75% of Surrender Value.

For Limited Premium Payment Policies:

• Loans can be availed if at least two full years' premiums have been paid.
• Maximum loan amounts:

For in-force policies: Up to 90% of Surrender Value.

For paid-up policies: Up to 80% of Surrender Value.

2. Free Look Period

If the Policyholder finds the policy terms unsatisfactory, they have the option to return the policy to the Corporation. This must be done within 15 days of receiving the policy bond (30 days for online sales), stating reasons for objections.

3. Grace Period

For Limited Premium Payment policies, there is a grace period of 30 days for yearly, half-yearly, and quarterly premiums. On the other hand, a grace period of 15 days is allowed for monthly premiums. 

4. Policy Revival

If premiums are not paid within the grace period, the policy will lapse. However, a lapsed policy can be revived within a period of 5 consecutive years from the date of the first unpaid premium but before the maturity date. 

To revive the policy, all outstanding premiums must be paid, along with interest compounded half-yearly. 

5. Policy Surrender

For Single Premium Payment Policies:

Policyholders can surrender their policy at any time during the policy term, and the Guaranteed Surrender Value payable under the policy shall be:

• Within the first three policy years: 75% of the Single Premium paid
• After the third policy year: 90% of the Single Premium paid

For Limited Premium Payment Policies:

Policyholders can surrender their policy at any time during the policy term, provided at least two full years’ premiums have been paid. 

The Guaranteed Surrender Value is determined by multiplying the total premiums paid by the applicable GSV factor for premiums paid. It also includes accrued Guaranteed Additions, adjusted by the GSV factor for these additions, and subtracts any survival benefits already disbursed.

6. Payment of Premiums

Premiums can be paid on yearly, half-yearly, quarterly, or monthly intervals in case of Limited Premium payment policies. 

Key Benefits of LIC Dhan Rekha Plan

1. Death Benefit

If the insured with LIC Dhan Rekha policy passes away during the policy period after the date of risk commencement, the nominee gets the "Sum Assured on Death" plus any Guaranteed Additions.

• For Single Premium: The "Sum Assured on Death" is 125% of the Basic Sum Assured.
• For Limited Premium: The "Sum Assured on Death" is either 125% of the Basic Sum Assured or 7 times the yearly premium, whichever is higher. 

The minimum death benefit is 105% of all premiums paid (excluding extra fees, rider costs, and taxes) until the date of death.

If the insured person is under 8 years old, their family receives a refund of the premiums paid. 

2. Survival Benefit

If the insured person survives the whole policy term and the policy remains active, they receive a fixed percentage of the Basic Sum Assured, according to the chosen policy term. (as shown below)

3. Maturity Benefit

If the policyholder survives the stipulated Date of Maturity and the policy is active, they receive the "Sum Assured on Maturity" along with any accumulated Guaranteed Additions.

Here, “Sum Assured on Maturity” is equal to Basic Sum Assured.

4. Guaranteed Additions

Guaranteed Additions are paid if the policy is active and premiums are paid on time. They accumulate from the 6th policy year until the end of the policy term. The rate of Guaranteed Additions increases based on the policy duration:

5. Option to take Death Benefit & Maturity Benefit in installments

This plan gives policyholders flexibility to receive Maturity and Death Benefits in installments over a period of 5 years instead of as a lump sum. Installments can be paid yearly, half-yearly, quarterly, or monthly, depending on your choice. The minimum installment amounts are:

• Monthly: ₹5,000
• Quarterly: ₹15,000
• Half-Yearly: ₹25,000
• Yearly: ₹50,000

If the Life Assured passes away after choosing the Settlement Option, the remaining installments will continue to be paid to the nominee as per the original option selected, with no changes allowed.

Riders Available

Riders are additional benefits that you can add to the plan by paying an extra premium. Here's what you can opt for:

• Accidental Death and Disability Benefit Rider
  • Accidental Death Benefit: If the insured person dies due to an accident, the Accident Benefit Sum Assured is paid as a lump sum along with the death benefit under the base plan.
  • Accidental Disability Benefit: In case of accidental disability arising within 180 days from the accident date, an amount equal to the Accident Benefit Sum Assured is paid in equal monthly installments over 10 years.

• Accident Benefit Rider

In case of accidental death, the Accident Benefit Sum Assured is paid as a lump sum in addition to the death benefit under the base plan. Also, this rider covers accidents only during the premium paying term of the base plan.

• New Term Assurance Rider

This rider can only opt at the time of policy inception. If the insured person passes away during the policy term, the Term Assurance Rider Sum Assured is paid out. 

• New Critical Illness Benefit Rider

If the insured person is diagnosed with any of the specified 15 Critical Illnesses covered under this rider for the first time during the policy term, the Critical Illness Sum Assured is paid out.

• Premium Waiver Benefit Rider

If the investor passes away, the premiums due for the base policy from the date of their death until the end of the rider term will be waived. But if the base policy's premium payment term is longer than the rider term, the insured person will need to pay any remaining premiums after the rider term ends. 

It is worth remembering that rider availability varies according to the Premium Payment Term. 

For Single Premium Payment: 

• Accidental Death and Disability Benefit Rider 
• LIC’s New Term Assurance Rider

For Limited Premium Payment:

• LIC’s Accidental Death and Disability Benefit Rider
• LIC’s Accident Benefit Rider
• LIC’s New Term Assurance Rider
• LIC’s New Critical Illness Benefit Rider
• LIC’s Premium Waiver Benefit Rider

However, the policyholder can opt between either the Accidental Death and Disability Benefit Rider or Accident Benefit Rider and/or the remaining three riders. 

Premium Chart

Below is the sample illustrative annual premiums for Basic Sum Assured of ₹10 lakhs. 

• For Single Premium

• For Limited Premium

Exclusions

• Under Single Premium Payment Policy:

If the insured person commits suicide within 12 months from when the policy's coverage started, the nominee or beneficiary will receive 80% of the Single Premium paid.

• Under Limited Premium Payment Policy:

Death within 12 months of Risk Commencement

If the policyholder commits suicide within 12 months from when the policy's coverage started, the nominee or beneficiary will receive 80% of all premiums paid. 

Death within 12 months of Revival

If the insured person commits suicide within 12 months from the date the policy was revived, the beneficiary will receive either 80% of all premiums paid until the date of death or the surrender value available on the date of death, whichever is higher.

How to Buy LIC Dhan Rekha Plan Online? 

Follow the below steps to buy LIC Dhan Rekha policy online from InsuranceDekho. 

1. Head to the life insurance section to start the procedure. Firstly, you are required to enter your personal information. Once completed, click on the “View Plans for Free” button. Then, select “LIC Dhan Rekha.”
2. Choose if you want to opt for Single Premium Payment or Limited Premium Payment. 

Confused about which one to choose? Get in touch with our relationship manager at +91-7551196989, and they will help you with all your queries. 

1. Add details about your education, occupation, and annual income. Review the premium amount and click “Next Step.”
2. Confirm the premium amount. If correct, proceed by clicking "Accept and Pay." 
3. Provide the necessary documents, such as KYC, income proof, and proposal form. 
4. A medical evaluation might be required according to specific scenarios. The underwriting team will analyze the proposal and medical results. Based on this assessment, the policy will be approved, and you’ll receive confirmation via mobile number or email. 

Frequently Asked Questions (FAQs) 

Ques 1. Is a loan facility available under the LIC Dhan Rekha Plan? 

Ans. Yes! LIC Dhan Rekha Plan offers loan facilities. 

• For Single Premium Payment Policies: Three months from the policy issuance or after the free-look period, whichever is later.
• For Limited Premium Payment Policies: If at least two full years' premiums have been paid. 

Ques 2. What happens if I miss paying the premium?

Ans. LIC provides a grace period of 15 and 30 days, during which you can pay the premium without any penalty. If the premium remains unpaid even after the grace period, the policy might lapse or be converted to a paid-up policy, depending on the terms.

Ques 3. What documents are required to buy LIC Dhan Rekha Plan?

Ans. The below documents are typically required to buy LIC Dhan Rekha Plan 

• Identity proof
• Address proof
• Age proof 
• Income proof 
• Proposal form

Note: The company may request additional documents! 

Ques 4. What are the premium payment options available in the LIC Dhan Rekha Plan?

Ans. It offers both single premium payment and limited premium payment options.