State-owned Life Insurance Corporation of India (LIC) introduced Dhan Rekha, a non-linked, non-participating, individual savings life insurance plan. The plan has unique offerings. There are special premium rates for female lives, and the plan is allowed to the third gender.
The insurer said in a statement that Dhan Rekha provides a percentage of the basic sum assured as survival benefit at regular intervals starting from the end of the premium-paying term, provided that the policy is in force.
The policyholder will receive full sum assured without deducting the money-back amount along with accrued guaranteed additions.
Guaranteed additions shall accrue at the end of each policy year starting from the sixth policy year to the end of the policy term.
The sum assured for single premium death is 125 per cent of the basic sum assured plus guaranteed additions. This plan provides financial support for the family in case of the policyholder's unfortunate death during the policy term.
There is a provision to receive Maturity and Death Benefit in instalments over five years instead of a lump sum. The premium can be Single Premium or Limited Premium payment terms of 10 years, 15 years and 20 years.
For limited payment premium, the death sum assured is 125 per cent of basic sum assured or seven times of Annualized Premium, whichever is higher, not less than 105 per cent of all the premium paid up to date of death along with Guaranteed Additions.
The minimum sum assured under the Dhan Rekha plan is Rs 2 lakh and there is no limit for the maximum sum assured. Further, the minimum age at entry ranges from 90 days to eight years as per chosen policy term. The maximum age at entry ranges from 35 years to 55 years, depending upon the chosen policy term.
(With agency inputs)
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