India: LIC launches new life insurance plan with guaranteed death benefit and savings component

| 29 Jun 2023

LIC has launched Dhan Vriddhi, a new non-linked, non-participating, individual, savings, life insurance plan. The plan is only available in the domestic market.

The plan features:

  • A guaranteed death benefit;
  • A savings component that allows policyholders to accumulate a lump sum amount at maturity; and
  • A premium waiver benefit that can be used to waive premiums in the event of the policyholder's death.

The plan is suitable for individuals who are looking for a simple and affordable life insurance plan with a death benefit. In the terrible event that the life assured passes away during the period of the policy, this plan offers monetary help to the family. It also provides a guaranteed lump sum amount on the date of maturity to the assured.

Premium is paid in lump sum at the beginning of the policy, and the returns are given to the policyholder at the end of the policy term or to the nominee in case of death of the policyholder. The policyholder will also be eligible for tax benefits under Section 80C only if premiums are paid. During the insurance term, the policyholder has the option to cancel the policy at any time. 

If the policyholder lives until the maturity date, the "Basic Sum Assured" as well as any accrued "Guaranteed Bonus" additions will be paid.

On the other hand, if the insured person dies within the policy term after the commencement of risk, then death benefit will be given to the nominee of the policy.

The policy has risk coverage till the end of term of the policy.

For children who are less than eight years old, risk commencement starts either from two years of taking the policy or eight years old whichever is earlier.

The policy can be surrendered at any time. Loan facilities are available after three months under this policy, reported Mint.