LIC launches close-ended ‘Dhan Vridhhi’ plan

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Life Insurance Corporation of India (LIC) On Friday he launched the ‘Dhan Vridhhi’ scheme which offers a combination of protection and savings.

India’s largest life insurer said the Closed Plan, which is a single, non-participating, individual, savings and premium life insurance plan, will be available for sale from June 23 to the end of September 2023.

This plan provides financial support to the family in the unfortunate event of the death of the insured during the term of the policy. It also provides a guaranteed lump sum on maturity date to the secured life.

“Being a single premium plan, there is no future premium commitment and no lapse,” LIC’s statement said.

The offeror will have two options to choose from, with the “amount insured at death” being either 1.25 times (Option 1) or 10 times (Option 2) the table premium of the chosen principal amount, depending on certain eligibility conditions, the insurance company said.

The plan is available for 10, 15, or 18-year terms. The minimum age at entry ranges from 90 days to 8 years, depending on the selected term. The maximum age at entry ranges from 32 to 60 years, depending on the duration and option selected.

Minimum guaranteed principal amount is Rs 1,25,000; One can opt for a higher guaranteed basic amount in multiples of Rs 5,000, as per the statement.

On the death of the life insurance during the term of the policy after the risk commencement date, but prior to the specified due date, the sum payable shall be the ‘insured amount upon death’ along with the guaranteed additions due.

On the secured life after the specified due date, the ‘guaranteed principal amount’ will be paid plus the secured extras due.

“Secured Additions will accrue at the end of each Policy Year, for the duration of the Policy. Guaranteed Additions range from Rs 60 to Rs 75 (Option 1) and Rs 25 to Rs 40 (Option 2) per Rs 1,000,” the LIC said.

The insurance company said an accidental death and disability benefit rider and a new range warranty rider are available if chosen.