LIC's Dhan Rekha Scheme: Profits And Benefits For Investors, Eligibility

LIC's Dhan Rekha insurance policy is a Non-Linked, Non-Participating policy that offers an attractive combination of protection and savings. The policy provides financial support for the family in case of the unfortunate death of the policyholder during the policy term. Here, the benefits and eligibility of the policy have been discussed below.

Eligibility and Purchase Price of LIC's Dhan Rekha Scheme

The Minimum Basic Sum Assured under this policy is Rs. 2,00,000, while there is no limit on the Maximum Basic Sum Assured. However, the Basic Sum Assured should be in multiples of Rs. 25,000.

The Policy Terms, as mentioned by LIC are 20 years, 30 years and 40 years. Under this policy, the Single Premium is not applicable. The limited premium will be 10 years for Policy Term of 20 years, 15 years for Policy Term of 30 years, and 20 years for Policy term of 40 years. The minimum entry age is 8 years for Policy Term of 20 years, 3 years for Policy Term of 30 years, 90 days for Policy Term of 40 years. The maximum entry age for limited premium will be 55 years for Policy Term of 20 years, 45 years for Policy Term of 30 years, and 35 years for Policy Term of 40 years.

Additionally, the Minimum Age at Maturity will be 28 years for Policy Term of 20 years, 33 years for Policy Term of 30 years, and 40 years for Policy Term of 40 years.

Death Benefits of LIC's Dhan Rekha Scheme

The death benefits of the LIC Dhan Rekha plan will be paid if the policyholder dies during the policy term after the date of commencement, he or she will be entitled to the 'Sum Assured on Death' along with Accrued Guaranteed Additions. For the single premium payment, 'Sum Assured on Death' is will be identified as 125% of the Basic Sum Assured. According to LIC. For Limited premium payment, the 'Sum Assured on Death' will be identified as the higher of 125% of the Basic Sum Assured, or 7 times of annualized premium. The Death Benefit under Limited Premium payment will not be less than 105% of total premiums paid excluding any extra premium.

Additionally, the Guaranteed Additions will be paid, provided the policy is in-force by payment of due premiums. LIC also informs that in case of death under in-force policy, the Guranteed Addition in the year of death shall be for the full policy year.

Survival and Maturity Benefits of LIC's Dhan Rekha Scheme

The survival benefits of the policy depend on the plan's policy term. A fixed percentage for different policy terms is paid by LIC. For the 20 years of policy term, 10% of the Basic Sum Assured at the end of each of 10th and 15th policy year will be paid as survival benefit. For the 30 years of policy term, 15% of the Basic Sum Assured at the end of each of 15th, 20th and 25th policy year will be paid as survival benefit. For the 40 years of policy term, 20% of the Basic Sum Assured at the end of each of 20th, 25th, 30th and 35th policy year will be paid as survival benefit.

On Life Assured surviving, the 'Sum Assured on Maturity' which will be the same as the Basic Sum Assured, along with accrued Guaranteed Additions, will be paid.

Policy loan, tax, and free lock-in period

As an investor, you can take a loan, available under the Policy, which will be subject to the following terms and conditions, within the surrender value of the policy, as LIC informs. Under the Single Premium Payment policies, you can take a loan, at any time during the policy term after 3 months from the completion of the policy, or after the expiry of the free-look period, whichever is later. The applicable taxes should be paid by the policyholder on premiums including extra premiums if any. It will be collected separately over and above to the premiums payable by the investors. Also, like other policies, if the investor is not satisfied with the policy, it may be returned to LIC within 15 days (30 days in case of online sale) from the date of receipt of the policy bond.