If the policyholder passes away during the tenure of the policy, the nominee will receive the sum assured as well as any accumulated guaranteed additions.
The Life Insurance Corporation of India is offering a special policy that blends the features of an insurance policy with long-term savings. By paying a single lump sum premium payment, policyholders safeguard their financial future and their family. Every year, LIC is responsible for guaranteed contributions that customers receive upon death or maturity depending on preference. These additions made by LIC increase the final benefit that has to be given to the policyholder.
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Death benefits: If the policyholder passes away during the tenure of the policy, the nominee receives sum assured as well as any accumulated guaranteed additions. The basic sum assured can be chosen as the sum assured on death. This can be either 1.25 times the premium amount charged against it, or 10 times the premium amount charged against it.
Benefits of Maturity: If a policyholder outlives the policy’s term, they will receive the basic sum assured plus any accumulated guaranteed additions as a maturity benefit.
Guaranteed additions: Depending on the option and policy term selected, a specific amount will accumulate at the end of each policy year and be added to the maturity or death benefit. Based on the insurance term and choice selected, the rate of guaranteed increase per Rs. 1000 of the basic sum assured varies.
Tax advantages: Section 80C and Section 10(10D) of the Income Tax Act allow the policyholder to take advantage of tax advantages. Now let’s understand the LIC Dhan Varsha with the help of an example-
Let’s imagine that a 35-year-old buys a policy with a basic sum assured of Rs. 10 lakh, a 15-year policy term, and policy option 2. The total amount due for a single premium (taxes excluded) is Rs. 8,74,950. For every Rs. 1000 in basic sum assured, there is a guaranteed addition rate of Rs.
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In this instance, the nominee will receive Rs. 91,49,500 (Rs. 87,49,500 + Rs. 4,00,000) if the policyholder passes away in the tenth policy year. The nominee will receive Rs. 93,49,500 (Rs. 87,49,500 + Rs. 6,00,000) if the policyholder passes away in the 15th policy year. The policyholder will receive Rs. 16,00,000 (Rs. 10,00,000 + Rs. 6,00,000) if he or she lives out the policy term.
How to apply?
The LIC Dhan Varsha Policy can be purchased by paying a single premium using a variety of payment methods, including cash, check demand draft, or online through the LIC portal. These are the eligibility criteria:-
Minimum age: 8 years
Maximum age: Option 1 (for a 10-year insurance term, 60 years), Option 2 (for a 10-year policy term, 40 years ), Option 3 (for a 15-year policy term, 55 years), and Option 4 (for a 15-year policy term, 35 years).
The policy term for LIC Dhan Varsha: 10-15 years
The basic amount assured is between Rs. 1,25,000 and Rs. 99,00
