Dhan Vriddhi Plan 869: LIC’s Single-Premium Life Insurance Scheme, Subscriptions Open Till Sep 30—Know Details

Life Insurance Corporation’s (LIC) Dhan Vriddhi Plan 869 is a non-linked, non-participating, single-premium life insurance plan with savings protection.
Dhan Vriddhi Plan 869: LIC’s Single-Premium Life Insurance Scheme, Subscriptions Open Till Sep 30—Know Details

The Life Insurance Corporation (LIC) of India on Friday launched the Dhan Vriddhi Plan 869, a close-ended single-premium life insurance plan open for subscriptions till September 30, 2023.

The Dhan Vriddhi plan provides both life and savings protection, designed to financially support families if the insured dies during the policy term. The plan offers a guaranteed lump sum amount at maturity. Since it is a single-premium plan, there is no premium liability later.

If the insured person passes away during the policy term, LIC will pay the sum assured on death and “accrued guaranteed additions”. If the insured survives until the maturity date, the person will receive the basic sum assured besides the accrued guaranteed additions.

Offers Flexibility Due To Two Plan Options  

Buyers of the Dhan Vriddhi plan have two options to choose from, each providing different protection levels, subject to certain eligibility conditions. In the first option, the sum assured on death is up to 1.25 times the “tabular” premium for the basic sum assured. In the second option, the sum assured on death can be 10 times the tabular premium for the chosen basic sum assured.

Basic Sum Assured and Premium

The minimum basic sum assured is Rs. 1,25,000. Individuals can choose higher sums in multiples of Rs. 5,000. The premium amount varies based on the chosen option, policy term, and age. For instance, for a 28-year-old individual opting for Option 1 with a sum assured of Rs. 15 lakh, the total premium, including tax, is Rs. 14,34,687 (basic premium Rs. 13,72,906). The sum assured on death is Rs. 17,51,156.

Under Option 2, for the same sum assured of Rs. 15 lakh, the sum assured on death is Rs. 1,23,16,500, and the total premium, including tax, is Rs. 12,61,333 (basic premium  Rs. 12,07,017). Note that this calculation is based on the LIC website’s premium calculator for this scheme and applies only to plans purchased directly from the website.

The LIC Dhan Vriddhi plan offers policy terms of 10, 15, and 18 years. The minimum and maximum entry ages depend on the selected policy term and option. The minimum entry age ranges from 90 days to 8 years, while the maximum entry age ranges from 32-60 years.

Accrued Guaranteed Additions

LIC Dhan Vriddhi provides guaranteed additions, which accumulate at the end of each policy year throughout the policy term. The guaranteed additions amount varies based on the chosen option, the basic sum assured, and the policy term. For Option 1, the range is between Rs. 60 and Rs. 75 per Rs. 1000 basic sum assured, and for Option 2, it ranges from Rs. 25 to Rs. 40. The higher the sum assured higher the guaranteed additions.

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