LIC’s Dhan Rekha is a Non-Linked, Non-Participating, Individual, Savings, Life Insurance Plan which offers an attractive combination of protection and savings.¹ It provides financial support for the family in case of the unfortunate death of the policyholder during the policy term and² a guaranteed lump sum payment to the surviving policyholder at the time of maturity. This plan also takes care of liquidity needs through loan facility.

Key features:

• Eligibility:

  • Minimum Basic Sum Assured: ₹2,00,000

  • Maximum Basic Sum Assured: No limit (Basic Sum Assured shall be in multiples of 25,000/-)

  • Policy Term: 20, 30, and 40 years (20 years in case of policies procured through POSP-LI/CPSC-SPV I)

  • Premium Paying Term:

    • Single Premium: Not Applicable

    • Limited Premium: 10 years for Policy Term 20 years, 15 years for Policy Term 30 years, 20³ years for Policy term⁴ 40 years

  • Minimum Age at Entry: 8 years (Completed) for Policy Term 20 years, 3 years (Completed) for Policy Term 30 years, 90 days (Completed) for Policy⁵ Term 40 years

  • Maximum Age at Entry:

    • Single Premium: 60 years (Age Nearer Birthday) for Policy Term 20 years, 50 years (Age Nearer Birthday) for Policy Term 30 years, 40 years (Age Nearer Birthday) for Policy Term 40 years

    • Limited Premium: 55 years (Age Nearer Birthday) for Policy Term 20 years, 45 years (Age Nearer Birthday) for Policy Term 30 years, 35 years (Age Nearer Birthday) for Policy Term 40 years (65 years (Age Nearer Birthday) minus policy term in case of policies procured through POSP-LI/CPSC-SPV)⁶

  • Minimum Age at Maturity: 28 years (Completed) for Policy Term 20 years, 33 years (Completed) for Policy Term 30 years, 40 years (Completed) for Policy Term 40 years⁷

  • Maximum Age at Maturity:

    • Single Premium: 80 years (Age Nearer Birthday)

    • Limited Premium: 75 years (Age Nearer Birthday) (65 years (Age Nearer Birthday) in case of policies procured through POSP-LI/CPSC-SPV)⁸

• Benefits:

  • Death Benefit: Payable on death during the policy term after the date of commencement of risk. The amount is “Sum Assured on Death” along with Accrued Guaranteed Additions.

  • Survival Benefit: On the life assured surviving to each of the specified duration during the policy term, provided the policy is in-force, a fixed percentage of Basic Sum Assured shall be payable.

  • Maturity Benefit: On Life Assured surviving the stipulated Date of Maturity provided the policy is in-force, “Sum Assured on Maturity” along with accrued Guaranteed Additions, shall be payable.⁹

  • Guaranteed Additions: Guaranteed Additions shall be payable, provided the policy is in-force by payment of due premiums.

• Options:

  • Rider Benefits:

    • Single Premium Payment: LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02) and LIC’s New Term Assurance Rider (UIN: 512B210V01) shall be available under this plan and the policyholder can opt for these riders at the inception only.¹⁰

    • Limited Premium Payment: The following five optional riders shall be available under this plan. However, the policyholder can opt between either of the LIC’s Accidental Death and Disability Benefit Rider or LIC’s Accident Benefit Rider and/or the remaining three riders subject to the eligibility as detailed below.¹¹

  • Settlement Option (for Maturity Benefit): Settlement Option is an option to receive Maturity Benefit in instalments over a period of 5 years instead¹² of a lump sum amount under an in-force as well as Paid-up policy.

  • Option to take Death Benefit in instalments: This is an option to receive Death Benefit in instalments over a chosen period of 5 years instead¹³ of a lump sum amount under an in-force as well as paid-up policy.

• Additional features:

  • Payment of Premiums: (Applicable in case of Limited Premium payment policies only) Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals (monthly premiums through NACH only)¹⁴ or through salary deductions.¹⁵

  • Grace Period: (Applicable in case of Limited Premium payment policies only) A grace period of 30 days shall be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for¹⁶ monthly premiums from the date of First Unpaid Premium.¹⁷

  • Revival: (Applicable in case of Limited Premium payment policies only) If the premiums are not paid within the grace period, then the policy will lapse.¹⁸

  • Plan purchased through Point of Sales Person – Life Insurance (POSP-LI) and CPSC-SPV: This plan can be purchased through Point of Sales Persons-Life Insurance (POSP-LI).¹⁹

  • Paid-up value: (Applicable in case of Limited Premium payment policies only) If less than two full years’ premiums have been paid in respect of this policy and any subsequent premium²⁰ is not duly paid, all the benefits under this policy shall cease after the expiry of grace period from the date of First Unpaid Premium and nothing shall be payable.²¹

  • Surrender: Under Single Premium payment, the policy can be surrendered by the Policyholder at any time during the policy term.²²

  • Policy Loan: Loan can be available under the Policy subject to the following terms and conditions, within the surrender value of the policy for such amounts and on such further terms and conditions as the Corporation may fix from time to time.²³