LIC’s Dhan Rekha is a Non-Linked, Non-Participating, Individual, Savings, Life Insurance Plan that offers both protection and savings benefits. It provides financial support to the policyholder’s family in the event of the policyholder’s unfortunate death during the policy term. Additionally, the plan offers periodic payments to the policyholder on survival at specified intervals during the policy term and a guaranteed lump sum payment at maturity. The plan also includes a loan facility to address liquidity needs. You can purchase this plan both offline through agents or other intermediaries and online directly through the website www.licindia.in.

Benefits

Death Benefit:

Death Benefit consists of “Sum Assured on Death” along with Guaranteed Additions:

  • Single premium: 125% of Basic Sum Assured
  • Limited premium: Higher of 125% of Basic Sum Assured or 7 times the annualized premium
  • Not less than 105% of total premiums paid under Limited Premium, excluding extras, rider premiums, and taxes on the date of death.

For minor Life Assured under 8 years at entry who pass away before the Risk commencement, a return of premiums paid (excluding taxes, extra amounts, and rider premiums) is provided.

Survival Benets

If the policyholder survives to the specified durations during the policy term, and the policy is in force, a fixed percentage of the Basic Sum Assured will be paid.

Maturity Benefits

If the policyholder survives until the specified Date of Maturity and the policy is active, they will receive the “Sum Assured on Maturity” along with any accrued Guaranteed Additions. The “Sum Assured on Maturity” is equal to the Basic Sum Assured.

Guaranteed Additions

Guaranteed Additions are paid while the policy is active with timely premium payments, starting from the 6th year. The rate increases with the policy’s duration, as follows:

  • 6th to 20th year: ₹50 per ₹1000 of Basic Sum Assured.
  • 21st to 30th year: ₹55 per ₹1000 of Basic Sum Assured.
  • 31st to 40th year: ₹60 per ₹1000 of Basic Sum Assured. In case of the policyholder’s death under an active policy, the Guaranteed Addition for the entire policy year of death is granted. If premiums aren’t paid for a limited premium policy, Guaranteed Additions stop accruing. For paid-up or surrendered policies, the addition is proportional to the last premium paid.

Eligibility Conditions

Minimum Basic Sum Assured Rs. 2,00,000
Maximum Basic Sum Assured No Limit
Policy Term 20 years, 30 years and 40 years (20 years in case of policies procured through POSP-LI/CPSC- SPV l)
Premium Paying Term
  • Single Premium: Not Applicable Limited Premium
  • 10 years for Policy Term 20 years
  • 15 years for Policy Term 30 years
  • 20 years for Policy term 40 years
  • Maximum Age at entry
  • 8 years (Completed) for Policy Term 20 years
  • 3 years (Completed) for Policy Term 30 years
  • 90 days (Completed) for Policy Term 40 years
  • Maximum Age at entry
  • Single Premium
  • 60 years (Age Nearer Birthday) for Policy Term 20 years
  • 50 years (Age Nearer Birthday) for Policy Term 30 years
  • 40 years (Age Nearer Birthday) for Policy Term 40 years
  • Limited Premium
  • 55 years (Age Nearer Birthday) for Policy Term 20 years
  • 45 years (Age Nearer Birthday) for Policy Term 30 years
  • 35 years (Age Nearer Birthday) for Policy Term 40 years
  • Maximum Age at Maturity
  • Single Premium: 80 years (Age Nearer Birthday)
  • Limited Premium 75 years (Age Nearer Birthday) (65 years (Age Nearer Birthday) in case of policies procured through POSP-LI/CPSC-SPV )
  • 66 years (nearer birthday) for policy term 18 years
  • 65 years (nearer birthday) for policy term 20 years
  • Payment Options Available

    Mode of Instalment payment Minimum instalment amount
    Monthly Rs 5,000/-
    Quarterly Rs 15,000/-
    Half-Yearly Rs 25,000/-
    Yearly Rs 50,000/-

    Exclusion:

    Certainly, here’s a concise version:

    a) Single Premium Payment Policy: In the event of the Life Assured’s suicide within 12 months from the risk commencement date, the nominee or beneficiary is entitled to receive 80% of the Single Premium paid, excluding taxes, extra premium, and rider premiums, except for the Term Assurance Rider. This does not apply if the Life Assured is below 8 years of age at entry.

    b) Limited Premium Payment Policy: i. If the Life Assured commits suicide within 12 months from the risk commencement date, the nominee or beneficiary can claim 80% of the total premiums paid, excluding taxes, extra premium, and rider premiums, except for the Term Assurance Rider, provided the policy is in-force. This exception does not apply if the Life Assured is below 8 years of age at entry. ii. In the case of suicide within 12 months from the date of revival, the higher amount of either 80% of the total premiums paid (excluding taxes, extra premium, and rider premiums, except for the term assurance rider) or the surrender value as of the date of death shall be payable. No other claims are applicable in such situations. This exception does not apply if the Life Assured’s age is below 8 years at the time of revival, or for a policy that has lapsed without acquiring paid-up value.

    As a leading insurance advisor in LIC, We ABP CONSULTANT are well placed to you the best insurance solutions,customized as per your requirements.Whether it is retirement planning, planning for your child's education or marriage,we have the perfect for all your needs.

    Latest Blog

    Need Any Help? Get in Touch

    Working Hours : Sun-monday, 09am-5pm
    © 2022 ABP Consultant. All Rights Reserved.