LIC’s Dhan Rekha (Table No. 863)

INTRODUCTION :- LIC’s Dhan Rekha (Table No. 863) is a Non-linked, Non-participating, Individual, Savings, Life Insurance Plan which offers an attractive combination of protection and savings. LIC’s Dhan Rekha plan provides financial support for the family in case of unfortunate death of the policyholder during the policy term. Periodic payments will also be made on survival of the policyholder at specified durations during the policy term and guaranteed lumpsum payments to the surviving policyholder at the time of maturity. LIC’s Dhan Rekha plan also takes care of liquidity needs through loan facility. LIC’s Dhan Rekha Policy is the best insurance policy for those people who want to pay premiums for a short period, who like a money-back policy, and also want to get guaranteed maturity without taking any risks.

Basic Eligibility Conditions and Features of LIC’s Dhan Rekha Plan (Table No.863): –

a) Minimum Basic Sum Assured:- Rs. 200000/

b) Maximum Basic Sum Assured:- No Limit (Basic Sum Assured shall be in multiples of Rs 25,000/-)

c) Policy Term:- 20 years, 30 years and 40 years

d) Premium Paying Term:-

Single Premium:- Applicable

Limited Premium:- 10 years for Policy Term 20 years

15 years for Policy Term 30 years

20 years for Policy Term 40 years

e) Minimum Age at entry:- 8 years (Completed) for Term 20 years

3 years (Completed) for Policy Term 30 years

90 days (Completed) for Policy Term 40 years

f) Maximum Age at Entry:-

Single Premium:- 60 years (Age Nearer Birthday) for Policy Term 20 years

50 years (Age Nearer Birthday) for Policy Term 30 years

40 years (Age Nearer Birthday) for Policy Term 40 years

Limited Premium:- 55 years (Age Nearer Birthday) for Policy Term 20 years

45 years (Age Nearer Birthday) for Policy Term 30 years

35 years (Age Nearer Birthday) for Policy Term 40 years

g) Minimum Age at Maturity:- 28 years (Completed) for Policy Term 20 years

33 years (Completed) for Policy Term 30 years

40 years (Completed) for Policy Term 40 years

h) Maximum Age at Maturity:- Single Premium: 80 years (Age Nearer Birthday

Limited Premium: 75 years (Age Nearer Birthday)

Death Benefit:- Death Benefit payable on death during the policy term after the date of commencement of risk shall be “Sum Assured on Death” along with Accrued Guaranteed Additions.

For Single premium payment, “Sum Assured on Death” is defined as 125% of Basic Sum Assured.

For Limited premium payment, “Sum Assured on Death” is defined as the highest of 125% of Basic Sum Assured or 7 times of annualized premium.

The Death Benefit under Limited Premium payment shall not be less than 105% of total premiums paid excluding any extra premium, any rider premium(s), if any, and taxes as on date of death.

Survival Benefit:- On the life assured surviving to each of the specified duration during the policy term, provided policy is in-force, a fixed percentage of Basic Sum Assured shall be payable. The fixed percentage for various policy terms is as below:

Policy Term 20:- 10% of the Basic Sum Assured at the end of each of 10th and 15th policy year.

Policy Term 30:- 15% of the Basic Sum Assured at the end of each of 15th, 20th and 25th policy year.

Policy Term 40:- 20% of the Basic Sum Assured at the end of each of 20th, 25th, 30th and 35th policy year.

Maturity Benefit:- On Life Assured surviving the stipulated Date of Maturity provided the policy is in-force, “Sum Assured on Maturity” along with accrued Guaranteed Additions, shall be payable. Where “Sum Assured on Maturity” is equal to Basic Sum Assured.

Guaranteed Additions:- Guaranteed Additions shall be payable, provided the policy is in-force by payment of due premiums. The Guaranteed Additions shall accrue at the end of the Policy Year from the 6th Policy Year to the end of the Policy Term. The rate of Guaranteed Additions will be as follows:

Policy Duration From 6th to 20th years Guaranteed Additions of Rs 50 per Rs 1000 Basic Sum Assured Policy Duration From 21st to 30th years Guaranteed Additions of Rs 55 per Rs 1000 Basic Sum Assured Policy Duration From 31st to 40th years Guaranteed Additions of Rs 60 per Rs 1000 Basic Sum Assured.