LIC Dhan Rekha Insurance Policy: What Should You Look For For Profit?

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Eligibility

Eligibility

As per the policy, there will be different minimum entry ages, depending on the length of the policy. The minimum entry age will be 8 years for a policy term of 20 years, 3 years for a policy term of 30 years, 90 days for a policy term of 40 years. On the other hand, the maximum entry ages also vary under this plan. In the case of a limited premium, it will be 55 years for the term of the 20 year policy, 45 years for the term of the 30 year policy, 35 years for the 40 year policy term. The minimum maturity age must be 28 for a policy term of 20 years, 33 years for a policy term of 30 years, 40 years for a policy term of 40 years. Maximum maturity age for the Limited Premium 75 years.

The minimum base sum insured under the LIC Dhan Rekha plan is Rs. 2,000,000, with no restriction on the maximum limit. The basic sum insured will be in multiples of Rs. 25,000, of said amount. You can choose from 3 policy term options, such as 20 years, 30 years, and 40 years. There will be 3 limited premium options, such as 10 years for the 20 year policy term, 15 years for the 30 year policy term and 20 years for the 40 year policy term.

LIC Dhan Rekha plan death benefit

LIC Dhan Rekha plan death benefit

The LIC Dhan Rekha plan, as part of the death benefit, provides financial support / protection to the families of policyholders. In accordance with the LIC, the death benefit will be paid by the Company on death during the term of the policy, will be the sum insured at death as well as any accrued guaranteed additions. In addition, for single premium payments, the face amount on death will be 125% of the base face amount. However, for the payment of the limited premium, the face amount on death will be greater than 125% of the base face amount or 7 times the annualized premium. The death benefit under the limited premium payment will not be less than 105% of the total premiums paid. For underage policyholders, whose enrollment age is less than 8 years, in the event of death before the start of the Risk, refund of the premium (s) paid net of tax.

The family of an insured person can claim the death benefit in installments over a chosen period of 5 years instead of a lump sum. The monthly payment will be Rs. 5,000, the quarterly payment will be Rs. 15,000, the semi-annual payment will be Rs. 25,000, and the annual payment will be Rs. 50,000.

Survival and maturity benefit of the LIC Dhan Rekha plan

Survival and maturity benefit of the LIC Dhan Rekha plan

On the surviving insured at each term of the policy, a fixed percentage of the base sum insured will be paid. For 20 years of the term of the policy, the survivor benefit will be 10% of the basic insured capital at the end of each of the 10th and 15th policy years. During 30 years of the term of the policy, the survivor’s benefit will be 15% of the basic insured capital at the end of each of the 15th, 20th and 25th years of insurance. During 40 years of the term of the policy, the survivor’s benefit will be 20% of the basic insured capital at the end of each of the 20th, 25th, 30th and 35th years of insurance. At maturity, the sum insured at maturity as well as the accumulated guaranteed additions will be paid, when they are equal to the basic sum insured.

(Also read: LIC Jeevan Lakshya for a bright future for your child)

Calculation of benefits

Calculation of benefits

This calculation was made considering the limited premium option. The first year, the premium will be taxed at 4.5%, and from the following year, it will be 2.25%.

Here, considering the entry age is 30 years. If the base sum insured is Rs. 2,000,000, the policy term is 20 years and the premium payment term is 10 years, the insured death benefit will be Rs. 2,50,000. In the first year the annual premium will be Rs. 22,202, and from next year the annual premium will be Rs. 21,724. Survivor benefits after the end of the 10th insurance year will be Rs. . 20,000, and after the 15th year of insurance Rs. 20,000. At the time of maturity, the approximate total return will be Rs. 350,000.

Here, considering the entry age is 15 years. If the base sum insured is Rs. 5.00,000, the term of the policy is 30 years and the premium payment term is 15 years, the sum of death insured will be Rs. 6 20,000. first year the annual premium will be Rs. 38,675, and from next year the annual premium will be Rs. 37,843. Survivor benefits after the end of the 15th insurance year will be Rs. 75,000, after the 20th year of insurance it will be Rs. 75,000, and after the 25th year of insurance it will be Rs. 75,000. At maturity, the approximate total return will be Rs. 1,150,000 .

(Also read: LIC Nav Jeevan: Insurance policy with flexible premiums: should you choose?)

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