The Buyt Desk
LIC’s Dhan Sanchay plan offering protection and savings is a non-participating, non-linked, individual savings life insurance.
The Life Insurance Corporation of India’s (LIC) Dhan Sanchay plan is the life insurance plan mainly for savings and protection. It is a non-linked, non-participating, individual savings plan. This plan will take care of the family of the insured after his/ her death. The policy is valid only till the policy term ends. LIC will pay monthly from the date of maturity throughout the payout period. So this will assure monthly income from the date of maturity till the payout period ends.
Things about the LIC’s Dhan Sanchay Plan
1. Benefit options – In case of Regular/ Limited premium payment it is option A and B and in case of Single premium payment it is option C and D.
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Option A – Level Income Benefit
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Option B – Increasing Income Benefit
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Option C – Single Premium Level Income Benefit
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Option D – Single Premium enhanced cover with Level Income Benefit The benefit option once chosen at inception cannot be altered.
2. Guaranteed Income Benefit – The plan has guaranteed income benefit (GIB). LIC pays monthly during the payout period. The payout period is from the date of maturity till for the duration decided while buying the plan. The last installment of guaranteed income benefit is guaranteed terminal benefit which will be the last payout.
3. Policy term – The plan term is for minimum of five years and maximum of 15 years. It has various benefits and one needs to decide the benefit while buying the plan. Each has a different minimum sum assured and no limit on maximum premium. Under this plan, the minimum sum assured for Level Income Benefit and Increasing Income Benefit is Rs 330000, for Single Premium Level Income Benefit is Rs 250000 and for Single Premium enhanced cover with Level Income Benefit is Rs 2200000. There is no limit for maximum premium.
4. Maturity – The maturity benefit is paid through guaranteed terminal benefit and guaranteed income benefit. Buying this plan will financially support the family during the death of the policyholder when the policy term is active.
5. Death benefit – LIC will pay a death benefit as per the insured wish. Nominees of the policy can opt for a lump sum death benefit or death benefit in installments for up to five years.
6. Loan against policy – The plan can also be used to generate funds or for liquidity needs. This can be achieved by taking a loan against the policy.
7. Riders – The plan also has optional riders. You can look into all riders and buy the one you need. The additional rider can be availed on payment of additional premium and is subjected to conditions.
