The Life Insurance Corporation of India (LIC) has introduced Dhan Rekha, a non-linked, non-participating, individual savings life insurance plan. The product has been made public on December 13, 2021, and under the scheme, specific premium rates for female lives are assured, and the plan is also open to transgender individuals also.
The plan offers a percentage of the basic sum assured as a survival benefit at periodic intervals beginning at the conclusion of the premium-paying period. If the policy is in place, assured additions will be provided at the conclusion of each policy year from the 6th policy year to the end of the policy term.
The policyholder receives the whole sum assured without deduction of the money-back amount received coupled with accumulated guaranteed add-ons at maturity, which is a key attraction of this policy. This plan offers financial assistance to the policyholder's family in the event of the policyholder's untimely death during the tenor period of the policy.
Single Premium Death Sum Assured
Death sum assured for single premium is 125 percent of basic sum assured including guaranteed additions. Death sum assured for fixed payment premiums is 125 percent of basic sum assured or 7 times annualised premium, whichever is higher, but not less than 105 percent of all premiums paid up to the date of death of the policyholder, including guaranteed add-ons. Instead of receiving a lump payment, maturity and death benefits can be received in installments over a 5-year period. Single premium or limited premium payment options of 10 years, 15 years, or 20 years are available under the plan.
Minimum sum assured
Under this plan, the minimum sum assured is Rs.2 lakhs, with no upper restriction. Depending on the policy term, the minimum age to enter varies from 90 days to 8 years. Based on the term of the policy, the maximum age upon enrollment ranges from 35 to 55 years. The plan may be purchased both offline and online through agents/intermediaries such as POSPLI/Common Public Service Centres (CPSC-SPV) or by visiting www.licindia.in. Loan facility and optional riders are also available under the plan subject to certain terms and conditions.