LIC Dhan Ratna Life Insurance Plan: Benefits, Policy Term & Premium Paying Term:Should You Invest?

LIC's Bima Ratna plan is a non-linked, savings, life insurance plan which offers a combination of protection and savings. The policy financial supports the family of the policyholder in case of his/her unfortunate death and also provides for periodical payments on the survival of the policyholder at specified durations, LIC informs.

Eligibility Criteria, Policy Term and Premium Paying Term- Dhan Ratna Plan

For LIC Dhan Ratna Plan, the Minimum Basic Sum Assured is Rs. 5,00,000. There is no limit on Maximum Basic Sum Assured, but the Basic Sum Assured will be in multiples of Rs. 25,000. The Policy Term options are 15 years, 20 years and 25 years. The Premium Paying Term will be 11 years for Policy Term of 15 years, 16 years for Policy Term of 20 years, 21 years for Policy Term of 25 years.

The Minimum Age at entry is 5 years for Policy Term of 15 years, and 90 days for Policy Term of 20 & 25 years. The Maximum Age at Entry is 55 years for Policy Term of 15 years, 50 years for Policy Term of 20 years, 45 years for Policy Term of 25 years, and 65 years minus the Policy Term (in case of policies procured through POSP-LI/CPSC-SPV). The Minimum Age at Maturity is 20 years for Policy Term of 15 & 20 years, 25 years for Policy Term of 25 years. The Maximum Age at Maturity is 70 years, and 65 years (in case of policies procured through POSP-LI/CPSC-SPV)

Death benefit and maturity benefits

Death Benefit payable on death of Life Assured during the policy term will be "Sum Assured on Death" along with Accrued Guaranteed Additions, where "Sum Assured on Death" is defined as the higher of 125% of Basic Sum Assured or 7 times of annualized premium. According to the corporation, this death benefit payment will not be less than 105% of total premiums paid upto date of death. However, for the minor Life Assured, on death before the commencement of Risk, the Death Benefit payable will be refund of premium(s) paid without interest.

Additionally, on surviving the stipulated Date of Maturity provided the policy is in-force, "Sum Assured on Maturity" along with accrued Guaranteed Additions, will be paid to the policy holder. The "Sum Assured on Maturity" will be the same as the 50% of Basic Sum Assured, LIC informs.

Survival benefits

On the life assured surviving to each of the specified duration during the policy term, when the policy is in-force, a fixed percentage of Basic Sum Assured will be payable. The fixed percentage has been as below.

Policy Term (in years)	Payment of Survival Benefit
15	25% of the Basic Sum Assured at the end of each of 13th and 14th policy year.
20	25% of the Basic Sum Assured at the end of each of 18th and 19th policy year.
25	25% of the Basic Sum Assured at the end of each of 23rd and 24th policy year.

Settlement Option

Settlement Option is known as the option to receive Maturity Benefit in instalments over a period of 5 years instead of the lump sum amount. LIC informs that this option can be exercised during minority of the Life Assured or by the Life Assured aged 18 years and above, for full or part of the maturity proceeds payable under the policy.

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