LIC Dhan Varsha is no longer available for sale as it was withdrawn by the company. LIC Dhan Varsha Plan is a single-premium plan wherein the policyholder needs to make a lump sum payment and can enjoy coverage for up to 15 years, along with additional savings in the form of guaranteed additions.Read more
LIC Dhan Varsha, offered by the LIC of India, is a single-premium plan that allows the policyholder to secure the future of their loved ones. The plan can be bought by paying a single lump sum premium amount, which will protect policyholders and their families in case of any eventuality. Further, the guaranteed additions by LIC every year can significantly increase the final payouts at death or maturity.
The plan was withdrawn by the company on 31.03.2023; however, those individuals who have already bought this plan can enjoy the benefits offered by Dhan Varsha. Let us explore more about Dhan Varsha plan LIC.
Dhan Varsha LIC is a single premium plan, which means the plan can be bought through a lump sum amount only.
The policyholder can choose to remain covered under a policy term or 10 years or 15 years.
The policy offers guaranteed additions ranging from Rs. 25 to Rs. 75 per thousand of the Basic Sum Assured at the end of each policy year.
After completing 3 months of the policy, one can avail of the loan facility to finance any urgent capital needs.
Policyholders can choose to receive the maturity or death benefit in instalments over 5 years through the Settlement option.
Buyers can enjoy a 2% rebate on the premium if the policy is bought online.
|Entry Age||For a policy term of 10 years||8 years||Option 1: 60 years|
|Option 2: 40 years|
|For a policy term of 15 years||3 years||35 years|
|Age at Maturity||18 years||Option 1: 75 years|
|Option 2: 50 years|
|Basic Sum Assured||Rs. 1,25,000||No limit|
|Policy Term||10 years and 15 years|
|Mode of Premium Payment||Single premium (lump sum) only|
Death Benefits: Under LIC Dhan Varsha Plan LIC, if the life assured dies within the policy term, the nominee will receive the Sum assured on Death along with guaranteed additions. This Sum Assured on Death depends on the option chosen by the policyholder:
Option 1: 1.25 times the premium amount charged against the basic sum assured
Option 2: 10 times the premium amount charged against the basic sum assured
Maturity Benefits: The policyholder shall receive the Basic Sum Assured along with the accumulated guaranteed additions as maturity benefits on outliving the policy term.
Guaranteed Additions: Depending on the option and the policy term chosen, a certain amount will accumulate at the end of each policy year. The total sum will be added to the maturity or death benefit. The guaranteed amount per Rs. 1000 of the Basic Sum Assured will be as follows:
|Basic Sum Assured||Policy term of 10 years||Policy term of 15 years|
|Option 1||Option 2||Option 1||Option 2|
|Rs. 1,25,000 to Rs. 2,45,000||Rs. 60||Rs. 25||Rs. 65||Rs. 30|
|Rs. 2,50,000 to Rs. 6,95,000||Rs. 65||Rs. 30||Rs. 70||Rs. 35|
|Rs. 7,00,000 and above||Rs. 70||Rs. 35||Rs. 75||Rs. 40|
Here’s how one can calculate the total guaranteed additions for their Dhan Varsha Plan LIC. Let’s take the following example for Option 2 of LIC Dhan Varsha plan:
Sum Assured - Rs 5 Lakhs
Policy Term - 15 years
Rate of Guaranteed Addition - Rs 35 per Rs 1000 Basic Sum Assured (as per the table above)
Therefore, the total Guaranteed Addition at the end of 15 years will be Rs (35 x 5,00,000/1,000) x 15 = Rs 2,62,500.
Tax Benefits: The policyholder will receive tax benefits under Section 80C and Section 10(10D) of the Income Tax Act.
Let’s understand the plan with the help of the example of Mr Sumit, a 35-year-old individual who decided to buy the Dhan Varsha plan. Other LIC Dhan Varsha plan details are as follows:
Basic Sum Assured = Rs 10 Lakhs
Policy Term = 15 years
Policy Option = Option 2
Single premium payable (excluding taxes) = Rs 8,74,950
Guaranteed Additions = Rs 40 per Rs 1000 Basic Sum Assured
Here’s a look at different scenarios:
The nominee will receive a total of the following amounts:
Sum Assured on Death for Option 2: Single Premium paid x 10 = Rs 87,49,500
Guaranteed Additions for 10 years: Rs (40 x 10,00,000/1,000) x 10 = Rs 4,00,000
This brings the final death benefit to Rs 91,49,500.
The nominee will receive the sum assured on death (Rs 87,49,500) plus Guaranteed Additions for 15 years (Rs 6,00,000), which brings the total to Rs 93,49,500.
He/she will receive a total of the following amounts:
Basic Sum Assured: Rs 10,00,000
Guaranteed Benefits for 15 years: Rs (40 x 10,00,000/1,000) x 15 = Rs 6,00,000
This brings the final maturity benefit to Rs 16,00,000.
You can also use the LIC Calculator to make these calculations easier and quicker in just a few clicks.
LIC Dhan Varsha Plan offers the option of including the following two riders which the policyholders can include in their base plan to enhance its coverage. These riders can only be included at the time of policy purchase.
Under this rider, if the policyholder passes away due to accidental death, the nominee will receive the Accident Benefit Sum Assured in a lump sum amount. If the policyholder suffers an accidental permanent disability, the policyholder will receive the Accident Benefit Sum Assured in monthly installments over the course of 10 years.
Under this rider, the Term Assurance Rider Sum Assured will be paid on the death of the policyholder within the policy term.
Below mentioned are the Dhan Varsha LIC Details. Have a look:
Free Look Period: The Dhan Varsha Plan LIC offers a free look period of 30 days from the day of policy purchase. During this period, the policyholder can go through the T&C of the plan and, if unsatisfied, can return the plan to the company.
Surrender Benefits: The policyholder can surrender the policy at any point in the policy term. The Guaranteed Surrender Value offered under Dhan Varsha LIC is:
For the first 3 policy years, 75% of the Single premium
4th policy year onwards: 90% of the Single premium
Policy Loan: The policyholders can apply for a policy loan at any point of the policy term after the completion of 3 months from the day of policy purchase. The maximum loan granted will be as follows:
|Option||The maximum loan that can be availed (percentage of surrender value)|
|10-year policy term||15-year policy term|
Suicide Claims: In case the policyholder commits suicide within the first 12 months of the policy purchase, 80% of the single premium paid will be payable to the nominee of the policy. This claim is only applicable to the policyholder over 8 years of age.
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*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
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