LIC Dhan Rekha

Death Benefit

In case the death of the life assured occurs during the policy term, the Life Insurance Corporation of India (LICi) pays the Death Benefits to the nominee. The death benefits paid are equal to the ‘Sum Assured on Death’ with accrued guaranteed benefits as applicable. The death benefits are payable in the following way

Sum assured for single premium payment: 125% of the Basic Sum Assured
Sum assured for limited premium payment: Higher of 125% of Basic Sum Assured or 7 times the annualized premium.

Survival Benefit

Suppose the life assured survives the specified policy years during the policy term. In that case, the Life Insurance Corporation of India (LIC) pays a fixed percentage of the Basic Sum Assured to the policyholder. The survival benefits are paid in the following manner:

Maturity Benefit

Suppose the life assured survives the specified maturity term of the LIC Dhan Rekha Plan. In that case, the Life Insurance Corporation of India (LIC) provides ‘Sum Assured on Maturity’ and guaranteed additions. The sum assured on maturity equals the Basic Sum Assured as promised under the Dhan Rekha LIC.

Guaranteed Additions

LIC Dhan Rekha Plan provides guaranteed additions at the end of the policy year, starting from the 6th policy year to the completion of the policy term. The rate of guaranteed additions in accordance with each policy year is defined as

Rider Benefits

The policyholder can pay an additional premium to add riders to the base plan. The following riders can be availed under the LIC Dhan Rekha Plan.

LIC’s Accidental Death and Disability Benefit Rider: If the policyholder opts for LIC’s Accidental Death Benefit Rider, in case of accidental death, the beneficiaries receive the Accident Benefit Sum Assured in lumpsum along with the death benefit under the base plan.
LIC’s New Term Assurance Rider: The policyholder can opt for this rider only at the time of inception of the policy. If the LIC’s New Term Assurance Rider is opted for, in case of death of life assured during the policy term, the beneficiaries receive the Term Assurance Rider Sum Assured.
LIC’s New Critical Illness Benefit Rider: If the policyholder opts for LIC’s New Critical Illness Benefit Rider, the life assured receives Critical Illness Sum Assured on the first diagnosis of any of the specified 15 Critical Illnesses covered under the rider.
LIC’s Premium Waiver Benefit Rider: LIC’s Premium Waiver Benefit Rider can only be opted for the life of the proposer when the life assured is minor at the time of policy purchase. If this rider is opted for, then on the death of the proposer, payment of premiums due on or after the death (in respect of the base policy) till the expiry of the rider term are waived off. Later on, after the expiry of the rider, the life assured is responsible for paying further premiums of the base policy.

Settlement Option

The LIC Dhan Rekha Plan offers a settlement option to provide maximum flexibility to the policyholder. At the time of policy inception, the policyholder can receive the maturity benefits in instalments over 5 years instead of a lump sum amount. The instalments are payable in advance in the following manner:

Receive Death Benefit in Instalments

LIC Dhan Rekha Plan allows the policyholder to receive the death benefit in instalments over 5 years instead of a lump sum amount. The instalments are paid in advance at the selected intervals, depending on the modes of payment.

Flexible-Premium Payment

You can pay the LIC Dhan Rekha Plan premium regularly as per your financial suitability and convenience. The premium payment options available are: monthly, quarterly, half-yearly, or annually.

Grace Period

In case the policyholder fails to pay the premium within the due date, the grace period provides extended time to pay the premium. LIC Dhan Rekha Plan allows a grace period of 30 days to pay quarterly, half-yearly, or annual and 15 days for monthly premiums from the date of the first unpaid premiums. During the grace period, the policy is considered in force.

Policy Revival

If the policyholder fails to pay the premium within the given grace period, the policy lapses. The policyholder can revive a lapsed policy within 5 consecutive years from the first unpaid premium but before the policy maturity date. The policy can be revived by paying all the outstanding premiums with the interest.

Rebates

The policyholder can avail of the definite rebates/discounts under the LIC Dhan Rekha in the following manner.

Rebates on the premium payment mode:

Rebates on the High Basic Sum Assured under Single Premium:

Rebates on the High Basic Sum Assured under Limited Premium:

If the LIC Dhan Rekha Plan is purchased online without any assistance from an agent or intermediaries, then the rebates are available on the premium.

Paid-up Value

If the policyholder pays the premium for at least 2 full years and further premiums are not paid, then the policy acquires the paid-up value. In such cases, the Sum Assured on Death is paid as ‘Death Paid-up Sum Assured’ along with applicable guaranteed additions. The Sum Assured on Maturity under a paid-up policy is received as ‘Maturity Paid-up Sum Assured’, including maturity benefits.

Surrender Value

In the case of a single premium payment policy, the policyholder can surrender the policy anytime during the policy term. Under the limited premium payment policy, the policyholder can surrender the policy anytime during the policy term after the two-year premium payment. Upon surrender, the Life Insurance Corporation of India (LIC) pays the surrender value under LIC Dhan Rekha as approved by the Insurance Regulatory and Development Authority of India (IRDAI).

Loan Facility

The policyholder is allowed to avail of loans once the LIC Dhan Rekha policy acquires the surrender value. The maximum loan that can be granted by the Life Insurance Corporation of India (LIC) is as follows.

Tax Benefits

LIC Dhan Rekha policy offers tax benefits as per the Income Tax Act and enforced tax laws of the Government of India.

Free Look Period

LIC Dhan Rekha provides 15 days (30 days in case of online sale) of free look period to review the policy after purchase. During the period, if the policyholder is not satisfied with the terms and conditions of LIC Dhan Rekha policy, they can return it to LIC after stating the reason for objections. In such cases, the Life Insurance Corporation of India (LIC) shall cancel the policy and return the premium amount deposited after deducting the applicable charges.