LIC's Dhan Rekha

Introduction to LIC’s Dhan Rekha

LIC’s Dhan Rekha is a life insurance policy that offers a combination of savings and protection. Briefly, it comes with –

(a) Financial security for the family of the life assured on his/her death

(b) Regular amount tthe life assured on surviving specific policy years

(c) Lump sum at maturity if the policyholder survives the whole period

These are guaranteed benefits meaning that there is nrisk tthe money invested by you.

Key Features of LIC’s Dhan Rekha

• You get guaranteed additions tthe original sum assured from the 6th policy year.

• There is flexibility tchoose your own policy term and premium payment term.

• You can choose treceive the death and maturity benefit in installments instead of a lump sum amount.

• There are special discounts on premiums if your purchase online. You will alsget discounts on a sum assured of Rs. 5 Lakhs and above.

• You can alsavail of loans with the Dhan Rekha policy. It is subject ta certain limit based on the surrender value of policy.

Eligibility Criteria of LIC’s Dhan Rekha

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*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

LIC’s Dhan Rekha Plan Benefits

1. Death Benefit

   If the life assured dies during the policy term, his/her nominee will receive the sum assured on death. Along with this, the guaranteed additions that have accrued till the time of death will alsbe paid.

   (a) Death benefit with single premium payment mode

   Dependents shall be entitled t125% of the basic sum assured along with guaranteed additions.

   (b) Death benefit with limited premium payment mode

   Sum assured on death will be equal t7 times the annual premium or 125% of the basic sum assured, whichever is higher.

2. Survival Benefit

   The life assured on surviving specific policy years will receive a fixed percentage of the basic sum assured on those years. Here’s how the survival benefits will look -

   Policy Term	Policy Years	Survival Benefit (% of BSA)
   20 years	10th and 15th policy years	10%
   30 years	15th, 20th, 25th policy year	15%
   40 years	20th, 25th, 30th, 35th policy year	20%

3. Maturity Benefit

   If the life assured survives the entire duration of the LIC’s Dhan Rekha cover, (s)he will get a maturity benefit. It is equal tthe sum assured on maturity (which is the basic sum assured) along with guaranteed additions.

4. Guaranteed Additions

   Guaranteed additions are the extra sums added tthe original death and maturity benefit amount. With LIC Dhan Rekha –

   • These are added tthe sum assured every year.

   • It starts from the 6th policy year and continues till the end of the policy tenure.

   • The additions are defined at a rate per 1000 basic sum assured. The rate of addition increases as the duration of the policy increases.

   • The table below highlights the rates of additions put forth by LIC.

   Duration of Policy	Guaranteed Addition per Year
   6th t20th policy year	Rs.50
   21st t30th policy year	Rs.55
   31st t40th policy year	Rs.60

   Please note that the guaranteed additions with LIC Dhan Rekha will stop if premiums are not paid.

5. Tax Benefits

   The premium amount and the benefit amounts are applicable for tax exemptions under Sections 10(10D) and 80C of the Income Tax Act, 1961. For further information on income tax savings, it is advisable treach out ta financial advisor or a tax specialist.

Rider Benefits with LIC Dhan Rekha

Like most life insurance policies offered by LIC, Dhan Rekha alscomes with several riders as well. Available at nominal premiums, these add-on benefits can enhance your life insurance cover with extra protection. The riders available with LIC's Dhan Rekha are:

1. Single-Premium Payment Mode

   • LIC’s Accidental Death and Disability Benefit Rider

   • LIC’s New Term Assurance Rider

2. Limited Premium Payment Mode

   • LIC’s Accidental Death and Disability Benefit Rider

   • LIC’s Accident Benefit Rider

   • LIC’s New Term Assurance Rider

   • LIC’s New Critical Illness Benefit Rider

   • LIC’s Premium Waiver Benefit Rider

LIC’s Dhan Rekha Additional Policy Details

1. Surrender Benefit

   Factors	Single-Premium Payment Mode	Limited Premium Payment Mode
   Time to Surrender	The policy can be surrendered at any point throughout the policy term.	The policy can be surrendered if twwhole years’ premiums have been paid.
   Guaranteed Surrender Value (GSV) Payable	Equal to 75% of the single premium amount if the policy is surrendered within the first three policy years 90% of the single premium amount if the policy is surrendered after the third policy year	The total premium paid is Multiplied by the GSV factor about total premiums paid Plus the accrued guaranteed additions Multiplied by the GSV factor about the accrued guaranteed additions Minus the survival benefits that have been paid

2. Grace Period

   A grace period is only applicable in the case of limited premium paying mode. From the date of the first unpaid premium, LIC offers 30 days as grace tresume payments for yearly, half-yearly, and quarterly premiums. In the case of monthly premium payments, the grace period is 15 days.

   On failure tpay premiums during this period, the policy shall lapse.

3. Free-look Period

   From the date of receipt of the policy bond, the policyholder has 15 days treview the terms of the life insurance policy and return it if they are not satisfied. The free look period is 30 days in the case of online purchases of LIC Dhan Rekha.

4. Suicide Exclusion

   If the life assured dies by suicide within the first 12 months of the policy - the beneficiary can claim up t80% of the total premium paid.