Dhan Rekha (Plan no 863) is a new guaranteed benefit, money back plan, introduced by the LIC of India. Guaranteed additions and fixed maturity benefits, that too in the era of dwindling interest rates, make this plan unique. Dhan Rekha can be defined as a Non-linked, Non- participating, individual savings cum insurance plan available with premium payment of Single Premium, 10 Years, 15 Years, and 20 years.
Let us have a detailed look at the various benefits and features of the plan…
|Eligibility conditions and restrictions|
|Policy Term||20 Years||30 Years||40 Years|
|Premium Payment||10 years/Single Premium||15 Years/Single Premium||20 Years/Single Premium|
|Minimum Age at Entry||8 Years completed||3 Years completed||90 days completed|
|Maximum Age at Entry|
|60 Years (nbd)||50 Years (nbd)||40 Years (nbd)|
|Maximum Age at Entry|
|55 Years (nbd)||45 Years (nbd)||35 Years (nbd)|
|Minimum Age at Maturity||28 Years (completed)||33 Years (completed)||40 Years (completed)|
|Maximum Age at Maturity||Single Premium - 80 Years (nbd) Limited Premium-75 Years (nbd)|
Salient Features - Plan Dhan Rekha
- Maturity Benefit: On the life assured surviving the term of the plan basic sum assured along with accrued guaranteed additions shall become payable.
- Death Benefit: Death benefit payable during the term after the date of commencement of risk shall be equal to 125% of the basic sum assured +accrued guaranteed additions.
- Survival Benefits:
Policy Term (in years) Payment of Survival Benefit 20 10 % of the Basic Sum Assured at the end of each of 10th and 15th Year 30 15 % of the Basic Sum Assured at the end of each of 15th, 20th and 25th policy year. 40 20% of the Basic Sum Assured at the end of each of 20th, 25th, 30th and 35th policy year.
- Guaranteed Additions:
Policy Duration (in Years) Guaranteed additions (per 1000 Basic Sum Assured) From 6 th policy year to 20 th policy year Rs 50 From 21 st policy year to 30 th policy year Rs 55 From 31 st policy year to 40th policy year Rs 60
Dhan Rekha - 863- Illustration of benefits
Benefit and Coverage Table - Dhan Rekha
If this rider is opted for, an amount equal to the Accident Benefit Sum Assured is payable on death due to accident, provided the Rider is in force at the time of the accident.
In case of accidental permanent disability, an amount equal to the accident benefit sum assured will be paid in equal monthly installments spread over 10 years of future premiums.
This rider shall be available up to the policy anniversary on which the Age Nearer Birthday of the life assured is 70 years or till the end of the policy term whichever is earlier.
If this benefit is opted for and the Life Assured is involved in an accident leading to death within 180 days from the date of the accident then an amount equal to the Accident Benefit sum assured is payable.
If this benefit is opted for, an amount equal to Term Assurance Rider Sum Assured shall be payable on the death of the Life Assured during the policy term, provided the rider cover is in force.
On the first diagnosis of any one of the 15 critical illnesses covered under this rider, the Critical illness rider sum assured shall become payable.
If this rider is opted for on the death of proposer of the base policy, during the rider term, premiums payable in respect of base policy falling due on and after the date of death till the expiry of rider term shall be waived.
And to conclude, LIC’s Dhan Rekha is a fixed benefit money-back savings cum insurance plan which is immune to future interest rate fluctuations.
Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.