LIC Dhan Varsha 866 Plan Details - Eligibility, Calculator, Benefits
The Life Insurance Corporation (LIC) has launched a new scheme known as LIC Dhan Varsha. It is a single premium plan with a combination of savings and insurance.
LIC Dhan Varsha Plan Details
LIC’s Dhan Varsha Plan is a non-participating, non-linked, savings life insurance plan. It offers a combination of savings and protection. It gives financial support for the family during the policy term in case of any unfortunate death of the life assured. It also provides a guaranteed lump sum amount on the maturity date for the surviving life assured. It is a close-ended plan available for sale up to 31.03.2023. The policy maturity is as low as 18 years. It has two rider benefits, and the life assured can select two options for the life-insurance coverage based on age.
LIC Dhan Varsha Plan Eligibility
- The minimum age of entry is three years for 15 years policy term and eight years for ten years policy term.
- The maximum age of entry is 60 years for option 1.
- The maximum entry age under option 2 is 40 years for ten years policy term and 35 years for 15 years policy term.
- The minimum age of maturity is 18 years.
- The maximum age of maturity is 75 years for option 1 and 50 years for option 2.
- The policy term is 15 and 10 years.
- The mode of premium payment is a single premium.
- The minimum basic sum assured is Rs.1,25,000.
- There is no limit on the maximum basic sum assured.
- The basic sum assured shall be in multiples of Rs.5,000.
LIC Dhan Varsha Plan Features
- It is a single premium plan.
- There are two options to select from, i.e. policy terms of 10 years or 15 years.
- The guaranteed additions are up to Rs.75 per thousand.
- There are options to choose the sum assured (1.25 times or ten times of premium).
- There is an option to receive the maturity benefit in instalments over five years instead of a lump sum amount.
- There is an option to receive a death benefit in instalments over five years instead of a lump sum amount.
- It can be purchased offline through an agent or intermediaries, including Common Public Service Centers (CPSC-SPV) or Point of Sales Persons-Life Insurance (POSP-LI). It can also be purchased online through the LIC website.
- It can be surrendered at any time during the policy term by the policyholder. Upon surrender of the policy, the LIC will pay the surrender value equal to the higher Special Surrender Value (SSV) and Guaranteed Surrender Value (GSV).
- The policyholder can return the policy within 30 days to the LIC if he/she is not satisfied with the terms and conditions. It can be returned within 30 days from the receipt of the physical or electronic mode of the policy document, along with the reason for objections.
- In the case the entry age of the life assured is less than eight years, the risk will commence either two years from the commencement of policy or immediately following the attainment of eight years, whichever is earlier. For life assured aged eight years or more, the risk will commence immediately from the issuance date of the policy.
- If the life assured commits suicide within one year from the commencement of risk of the policy, the beneficiary or nominee would be entitled to 80% of the single premium paid.
Dhan Varsha LIC Plan Calculator
The premiums under this policy can be paid only in a single (lump sum) payment mode. The single premium for the basic sum assured of Rs.10,00,000 for standard lives is as follows:
| Age | Policy Term 10 years (Option 1) | Policy Term 15 years (Option 1) | Policy Term 10 years (Option 2) | Policy Term 15 years (Option 2) |
| 10 | 9,53,500 | 8,84,300 | 8,01,100 | 7,27,600 |
| 20 | 9,54,550 | 8,85,500 | 8,28,850 | 7,56,300 |
| 30 | 9,55,200 | 8,86,750 | 8,48,950 | 7,98,700 |
| 40 | 9,58,800 | 8,93,050 | 9,78,250 | – |
| 50 | 9,71,800 | 9,13,200 | – | – |
| 60 | 9,99,000 | 9,57,900 | – | – |
However, please note that the above premium is exclusive of taxes.
LIC Dhan Varsha Plan Benefits
a) Death Benefit
The death benefit paid on the death of the life assured after the commencement of risk during the policy term but before the maturity date is the ‘sum assured on death’ along with accrued guaranteed additions. The ‘sum assured on death’ depends on the options chosen by the policyholder, which are as under:
- Option 1 – 1.25 times of premium for the selected basic sum assured
- Option 2 – 10 times of premium for the selected basic sum assured
In the case of minor life assured whose entry age is below eight years, upon death before the risk commencement, the death benefit payable will be the refund of premiums paid without interest.
b) Maturity Benefit
When the life assured survives the stipulated maturity date, the basic sum assured, along with accrued guaranteed additions, is payable.
c) Guaranteed Additions
The guaranteed additions accrue at the end of every policy year throughout the term. It depends on the basic sum assured, the option chosen and the policy term. The guaranteed additions rate (as per Rs.1,000 basic sum assured) is as follows:
| Basic Sum Assured | Policy Term 10 years (Option 1) | Policy Term 15 years (Option 1) | Policy Term 10 years (Option 2) | Policy Term 15 years (Option 2) |
| Rs.1,25,000 to Rs.2,45,000 | 60 | 65 | 25 | 30 |
| Rs.2,50,000 to Rs.6,95,000 | 65 | 70 | 30 | 35 |
| Rs.7,00,000 and above | 70 | 75 | 35 | 40 |
Upon the death of the life assured, the guaranteed additions corresponding to the death year will be payable for the entire policy year.
d) Loan Benefits
The life assured can avail of a loan at any time during the policy term after three months from policy completion, i.e., three months from the issuance date of the policy or after the free-look expiry period, whichever is later. The maximum loan amount that can be granted under the policy as a percentage of surrender value is provided below:
| Option | Maximum loan for policy term of 10 years | Maximum loan for policy term of 15 years |
| Option 1 | 70% | 60% |
| Option 2 | 60% | 50% |
The loan interest rate applicable for the availed loan for the full loan term for every 12 months starting from 1st May to 30th April will not exceed a 10-year G-Sec rate p.a. compounding half-yearly as of the last date of trading of the previous financial year plus 300 basis points. For loans sanctioned during the one-year period commencing from 1st May 2022 to 30th April 2023, the interest rate will be 9.5% p.a., compounding half-yearly.
LIC Dhan Varsha Plan Tax Benefits
The policyholder needs to pay the applicable taxes as per the prevailing rates on the premium (for base policy and rider, if any), including extra premiums. The amount of tax paid is not considered for calculating benefits payable under the policy.
LIC Dhan Varsha Plan Returns
An illustration of plan returns under Option 1 with the following specifications is provided in the table:
- Age – 30
- Policy term – 15
- Single premium (without GST) – Rs.8,86,750
- GST rate – 4.50%
- Basic sum assured – Rs.10,00,000
- Single premium (with GST) – Rs.9,26,654
| Policy Year (End of Year) | Single Premium | Accrued Guaranteed Additions | Maturity Benefit | Death Benefit | Minimum Guaranteed Surrender Benefit |
| 1 | 8,86,750 | 75,000 | – | 11,83,438 | 6,78,023 |
| 2 | – | 1,50,000 | – | 12,58,438 | 6,91,268 |
| 3 | – | 2,25,000 | – | 13,33,438 | 7,04,798 |
| 4 | – | 3,00,000 | – | 14,08,438 | 8,51,625 |
| 5 | – | 3,75,000 | – | 14,83,438 | 8,66,175 |
| 6 | – | 4,50,000 | – | 15,58,438 | 8,81,775 |
| 7 | – | 5,25,000 | – | 16,33,438 | 8,98,770 |
| 8 | – | 6,00,000 | – | 17,08,438 | 9,17,655 |
| 9 | – | 6,75,000 | – | 17,83,438 | 9,38,813 |
| 10 | – | 7,50,000 | – | 18,58,438 | 9,63,000 |
| 11 | – | 8,25,000 | – | 19,33,438 | 9,90,960 |
| 12 | – | 9,00,000 | – | 20,08,438 | 10,23,525 |
| 13 | – | 9,75,000 | – | 20,83,438 | 10,61,910 |
| 14 | – | 10,50,000 | – | 21,58,438 | 11,13,075 |
| 15 | – | 11,25,000 | 21,25,000 | 22,33,438 | 11,91,825 |
An illustration of plan returns under Option 1 with the following specifications is provided in the table:
- Age – 30
- Policy term – 15
- Single premium (without GST) – Rs.7,98,700
- GST rate – 4.50%
- Basic sum assured – Rs.10,00,000
- Single premium (with GST) – Rs.8,34,642
| Policy Year (End of Year) | Single Premium | Accrued Guaranteed Additions | Maturity Benefit | Death Benefit | Minimum Guaranteed Surrender Benefit |
| 1 | 7,98,700 | 40,000 | – | 80,27,000 | 6,05,937 |
| 2 | – | 80,000 | – | 80,67,000 | 6,13,001 |
| 3 | – | 1,20,000 | – | 81,07,000 | 6,20,217 |
| 4 | – | 1,60,000 | – | 81,47,000 | 7,47,390 |
| 5 | – | 2,00,000 | – | 81,87,000 | 7,55,150 |
| 6 | – | 2,40,000 | – | 82,27,000 | 7,63,470 |
| 7 | – | 2,80,000 | – | 82,67,000 | 7,72,534 |
| 8 | – | 3,20,000 | – | 83,07,000 | 7,82,606 |
| 9 | – | 3,60,000 | – | 83,47,000 | 7,93,890 |
| 10 | – | 4,00,000 | – | 83,87,000 | 8,06,790 |
| 11 | – | 4,40,000 | – | 84,27,000 | 8,21,702 |
| 12 | – | 4,80,000 | – | 84,67,000 | 8,39,070 |
| 13 | – | 5,20,000 | – | 85,07,000 | 8,59,542 |
| 14 | – | 5,60,000 | – | 85,47,000 | 8,86,830 |
| 15 | – | 6,00,000 | 16,00,000 | 85,87,000 | 9,28,830 |
LIC Dhan Varsha Plan Helpline Number
The helpline number for LIC Dhan Varsha Plan is as follows – 022-66598928 / 66598955
FAQs
Do I need to take a medical exam to apply for this plan?
The policy is available for non-medical and medical schemes depending on the total non-medical limit, chosen sum assured and age.
What minimum and maximum cover can I choose in this plan?
The minimum basic sum assured is Rs.1,25,000, while no maximum basic sum-assured limit exists.
What are optional riders which are available in this plan?
The following two optional riders are available under this plan:
- LIC’s accidental death and disability benefit rider:
Under this rider, an equal amount to the accident benefit sum assured is paid on death because of an accident (within 180 days from the accident). If there is an accidental permanent disability (within 180 days from an accident), an equal amount to the accident benefit sum assured is paid in equal monthly instalments over ten years. If the policy is claimed due to death or maturity before the expiry of 10 years, the disability benefit instalments not fallen due are paid along with the claim amount.
- LIC’s new term assurance rider:
Under this rider, an equal amount to the term assurance rider sum assured is paid on the policyholder’s death during the policy term.
Can I purchase this plan for my family members?
Yes, you can purchase this plan for your children and spouse, subject to the overall financial limit.
How can I pay towards this plan?
You can make payments through debit card, net banking, credit card, UPI, NEFT/RTGS, e-wallets and IMPS.
Are premature withdrawals permitted under this plan?
Yes. A policyholder can partially withdraw after the five years lock-in period only for the following stipulated reasons:
- Marriage of children.
- Higher education of children.
- For treatment of critical illnesses of self or spouse.
- For the purchase or construction of residential houses.
Premature withdrawals are allowed only up to three times during the entire policy term. The guaranteed additions to be attached after the partial withdrawal date will be reduced on a pro-rata basis.
Where to apply to claim this plan?
You must approach the LIC’s designated servicing branch to claim the plan amount. You will get the address of the servicing branch after completing the policy. You can also get all the required information from the LIC branch for the claim requirement.
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