The Buyt Desk
The biggest insurance company of India, the Life Insurance Corporation of India has launched a new insurance plan – ‘Dhan Rekha’. This is a Non- linked, Non-participating, Individual, Savings Insurance plan. The term non-linked means that this policy will not invest in the equity markets thus promising that the performance will not be linked to any underlying asset. Dhan Rekha promises a combination of protection and savings to the investor. This plan promises financial support to the policyholder’s family in case of his untimely death. There is the provision of periodic payment on the survival of the policyholder and guaranteed lump-sum payment upon the maturity of the policy.
Who Could Buy this Plan?
The most unique thing about the plan is that it gives a concession to women buyers. The women investor will get a discount on the premium. Another uniqueness is that there are provisions for the third gender too. There are three plans of different time tenure- 20, 30 and 40 years. Depending upon the tenure of the plan the minimum age of entry varies from 90 days to 8 years. Similarly, the maximum age also varies as per the plan and it is 35 to 55 years of age.
Sum Assured Upon Death
The minimum sum assured on the Dhan Rekha insurance plan is Rs 2 Lakhs and there is no fixed upper limit. In case of the untimely death of the policyholder, his/her family will get the maturity benefit. The death sum assured is 125% of the basic sum assured or 7 times the annualised return whichever is more but in any case, the payment would not be less than 105% of the total premium paid.
Survival benefits
The policyholder will also get periodic payment after the policy completes its tenure. A fixed percentage of the sum assured shall be payable depending upon the tenure of the plan. The disbursal of the payment will be as follows-
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For a 20-year Insurance Plan – 10% of the Sum Assured at the end of the 10th and 15th policy years.
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For a 30-year Insurance Plan – 15% of the Sum Assured at the end of 15th, 20th and 25th policy years.
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For a 40-year Insurance plan – 20% of the Sum Assured at the end of the 20th, 25th,30th and 35th policy years.
The policyholder can avail loan on this policy. But if you want to take a loan then you will have to abide by the rider attached to the policy. The Dhan Rekha Policy could be purchased offline through an agent or intermediaries or online from the LIC website www.licindia.in
