LIC Dhan Vriddhi Launches New Non-Linked Period Plan

When it comes to securing our financial future, investing in the right plan is crucial. LIC’s Dhan Vriddhi Plan No. 869, offered by Life Insurance Corporation of India (LIC), presents an excellent opportunity for individuals seeking a secure path to financial growth. In this article, we will delve into the key features, benefits, and FAQs related to LIC’s Dhan Vriddhi Plan No. 869, ensuring you have all the information needed to make an informed decision.

Life Insurance Corporation of India (LIC), one of the largest insurance companies in India, has recently launched a LIC Dhan Vriddhi new non-linked period plan. This plan offers individuals an opportunity to secure their financial future by providing life coverage and an avenue for long-term savings. In this article, we will delve into the details of LIC’s new non-linked period plan, its benefits, and why it is a valuable investment option for individuals.

Understanding LIC’s Dhan Vriddhi Plan No. 869

What is LIC’s Dhan Vriddhi Plan No. 869?

LIC’s Dhan Vriddhi Plan No. 869 is a non-linked, non-participating, single premium, limited period endowment plan offered by Life Insurance Corporation of India. It provides a secure avenue for individuals to invest a lump sum amount and receive guaranteed returns with life insurance coverage.

How does LIC’s Dhan Vriddhi Plan No. 869 work?

To avail of LIC’s Dhan Vriddhi Plan No. 869, individuals need to pay a single premium amount. The policy offers a specific maturity period, during which the invested amount grows at a guaranteed interest rate. At the end of the policy term, the policyholder receives the maturity benefit, which includes the guaranteed sum assured and accrued bonuses.

Who is eligible for LIC’s Dhan Vriddhi Plan No. 869?

LIC’s Dhan Vriddhi Plan No. 869 is available to individuals aged between 30 days and 60 years. The minimum sum assured for this plan is Rs. 1,50,000, with no upper limit.

1. Age is the age nearer birthday of the Life Assured at the time of commencement of the policy except for minimum age at entry where age is 8 years completed for Policy Term 10 years, 3 years completed for Policy Term 15 years and 90 days completed for Policy Term 18 years.
2. Appointee is the person to whom the proceeds/benefits secured under the Policy are payable if the benefit becomes payable to the nominee and nominee is minor as on the date of claim payment.
3. Assignee is the person to whom the rights and benefits are transferred by virtue of an Assignment. 
4. Assignment is the process of transferring the rights and benefits to an “Assignee”. Assignment should be in accordance with the provisions of Section 38 of Insurance Act, 1938 as amended from time to time.
5. Base Policy is that part of the Policy referring to basic benefit (benefits referred to in this Policy Document excluding benefits covered under rider(s), if opted for).
6. Basic Sum Assured means the amount specified in the Schedule as opted by the Policyholder at the time of taking the policy.
7. Beneficiary/Claimant means the person(s)/entity who is/are entitled to receive benefits under this Policy. The Beneficiary to whom benefits are payable is the Proposer or Life Assured or his Assignee under Section 38 of the Insurance Act,1938 as amended from time to time or Nominee(s) under Section 39 of the Insurance Act, 1938 as amended from time to time or proved Executors or Administrators or other Legal Representatives who should take out representation to his/ her Estate or limited to the moneys payable under this Policy from any Court of any State or Territory of the Union of India, as applicable.
8. Corporation means the Life Insurance Corporation of India established under Section 3 of the LIC Act, 1956.
9. Date of commencement of policy is the start date of this Policy.
10. Date of commencement of risk is the date on which the Corporation accepts the risk for insurance (cover) as evidenced in the Schedule of the policy. 
11. Date of issuance of policy is a date when a proposal after underwriting is accepted as a policy and this contract gets effected.
12. Date of Maturity means the date specified in the Schedule on which the Policy Term expires.
13. Date of Vesting shall be the policy anniversary date coinciding with or immediately following the completion of 18 years of age. On such vesting date, this policy shall be deemed to be a contract between the Corporation and the Life Assured. The Life Assured shall become the absolute owner of the policy and the proposer or his estate shall cease to have any right or interest therein. 
14. Death Benefit means the benefit, which is payable on death, as specified in Condition 1.A of Part C of this Policy Document.
15. Discharge form is the form to be filled by policyholder/claimant to claim the maturity/surrender/death benefit under the policy.
16. Endorsement means conditions attached/ affixed to this Policy incorporating any amendments or modifications agreed to or issued by the Corporation.
17. Extra premium means a charge due to underwriting decision, for any additional risk not provided for, in minimum contract premium.
18. Foreclosure is an action of closing the policy due to default in payment of outstanding loan and/or loan interest on due date when the outstanding loan amount along with interest is to exceed the surrender value.
19. Free Look Period is the period of 30 days from the date of receipt of the electronic or physical mode of Policy Document, whichever is earlier, by the Policyholder to review the terms and conditions of this policy and where the Policyholder disagrees to any of those terms and conditions, he/ she has the option to return this policy. 
20. Government Security (G-Sec) in this policy document refers to the tradable instruments issued by Central Government for various durations, declared as benchmark securities corresponding to the stated tenors, by Reserve Bank of India.
21. Guaranteed Surrender Value is the minimum guaranteed amount of Surrender Value payable to the policyholder on surrender of the policy.
22. IRDAI means Insurance Regulatory and Development Authority of India earlier called as Insurance Regulatory and Development Authority (IRDA).
23. Life Assured is the person on whose life the insurance cover has been accepted.
24. Loan is the interest-bearing repayable amount granted by the Corporation against the surrender value payable to the policyholder.
25. Maturity Benefit means the benefit, which is payable on maturity, as specified in in Condition 1.B of Part C of this Policy Document.
26. Material information is the information already known to the Policyholder/ Life Assured/Proposer at the time of obtaining a policy which has a bearing on underwriting of the proposal /Policy submitted.
27. Minor is a person who has not completed 18 years of age.
28. Nomination is the process of nominating a person(s) who is (are) named as “Nominee(s)” in the proposal form or subsequently included/ changed by an endorsement. Nomination should be in accordance with provisions of Section 39 of the Insurance Act, 1938 as amended from time to time.
29. Nominee(s) means the person(s) nominated by the Policyholder (who is also the Life Assured) under this Policy who is(are) authorised to receive the claim benefit payable under this Policy and to give a valid discharge to the Corporation on settlement of the claim.
30. Option to take Death Benefit in instalments: Option to take death benefit in instalments, as specified in Condition 8 of Part D of this Policy Document, is an option available under this Policy, to receive Death Benefit in instalments instead of lumpsum amount over a period chosen by the Policyholder/Life Assured.
31. Policy Anniversary means one year from the date of commencement of the Policy and the same date falling each year thereafter, till the date of maturity.
32. Policy/ Policy Document means this document along with endorsements, if any, issued by the Corporation which is a legal contract between the Policyholder and the Corporation.
33. Policyholder is the legal owner of this policy.
34. Policy term is the period, in years, as chosen by the policyholder and mentioned in the Schedule, commencing from the Date of commencement of policy and ending on the Date of Maturity. 
35. Policy year is the period between two consecutive policy anniversaries. This period includes the first day and excludes the next policy anniversary day.
36. Premium is the contractual amount payable by the Policyholder as Single Premium as mentioned in the Schedule of this Policy Document to secure the benefits under the policy. The premium payable will be “Total Single Premium” which includes
    1. Single Premium for Base Policy and 
    1. Single Premium for Rider(s), if rider(s) has been opted for.

The term ‘Premium’ used anywhere in this Policy Document does not include any taxes which are payable separately.

• Proposer is a person who proposes the life insurance proposal.
• Rider is an additional cover which can be opted for along with Base Policy.
• Rider Benefits means an amount of benefit payable on a specified event offered under the rider, and is allowed as add-on benefit to benefit under Base Policy.
• Rider Premium is the premium payable by the Policyholder along with the premium under Base Policy towards the additional cover/benefit opted under the rider, if opted.
• Rider Sum Assured is the assured amount payable on happening of a specified event covered under the rider, if opted.
• Schedule is the part of Policy Document that gives the specific details of your policy. 
• Settlement Option: Settlement Option, as specified in Condition 7 of Part D of this Policy Document, is an option available under this Policy, to receive Maturity Benefit in instalments instead of lumpsum amount over a period chosen by the Policyholder/ Life Assured.
• Sum Assured on Death means an absolute amount of benefit which is guaranteed to become payable on death of life assured in accordance with the terms and conditions of the policy as mentioned in Condition 1.A of Part C of this Policy Document.
• Surrender means complete withdrawal or termination of the entire policy before expiry of the policy term.
• Surrender Value means an amount, if any, that becomes payable in case of surrender in accordance with the terms and conditions of the policy.
• Tabular premium shall be based on the age of the Life Assured, policy term and option chosen but before allowing for any rebate. It does not include any taxes, extra premiums and rider premium(s), if any.
• Underwriting is the term used to describe the process of assessing risk and ensuring that the cost of the cover is proportionate to the risks faced by the individual concerned. Based on underwriting, a decision on acceptance or rejection of cover as well as applicability of suitable premium or modified terms, if any, is taken. 
• UIN means the Unique Identification Number allotted to this plan by the IRDAI.

Key Features of LIC’s Dhan Vriddhi Plan No. 869

Guaranteed Returns

LIC’s Dhan Vriddhi Plan No. 869 ensures that policyholders receive guaranteed returns on their investment. The plan offers a competitive interest rate, providing financial security and peace of mind.

1. Death Benefit:

Death Benefit payable, on death of the Life Assured, during the policy term after the date of commencement of risk but before the stipulated date of maturity, shall be “Sum Assured on Death” along with accrued Guaranteed Additions. “Sum Assured on Death” shall be as per the Option selected and is defined as:

• Under Option 1: 1.25 times of ‘Tabular Premium for the chosen Basic Sum Assured.
  • Under Option 2: 10 times of Tabular Premium for the chosen Basic Sum Assured.

However, in case of minor Life Assured, whose age at entry is below 8 years, on death before the commencement of Risk (as specified in Condition 4 of Part C below), the death benefit payable shall be refund of premium(s) paid (excluding taxes, any extra premium and rider premium(s), if any), without interest.

The Death Benefit shall be paid in lump sum as specified above and/or in instalments, as specified in Condition 8 of Part D of this Policy Document, as per the option exercised by the Policyholder/ Life Assured.

• Maturity Benefit: 

On Life Assured surviving the stipulated Date of Maturity, Basic Sum Assured along with accrued Guaranteed Additions shall be payable.

The Policyholder/Life Assured shall have an option to receive the Maturity Benefit in lumpsum as specified above and/or in instalments (Settlement Option), as specified in Condition 7 of Part D of this Policy Document.

• Guaranteed Additions: 

Guaranteed Additions as specified below shall accrue at the end of each policy year, throughout the policy term. The Guaranteed Additions shall depend on the Option Chosen, Basic Sum Assured and the Policy Term and shall be as under:

In case of death, the Guaranteed Additions corresponding to the year of death shall be payable for full policy year.

In case of surrender of a policy, the accrued Guaranteed Additions shall also include the Guaranteed Additions on proportionate basis in proportion to the completed months for the Policy Year in which the policy is surrendered.

• Rider Benefits:

The following two rider(s) are available at the inception of the policy on payment of additional premium:

1. LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
   1. LIC’s New Term Assurance Rider (UIN 512B210V01)

  The Rider Sum Assured in respect of these riders shall not exceed the Sum Assured on Death under this plan.

No rider shall be available in case of the policies procured through POSP-LI/CPSC-SPV.  

Conditions of the rider(s), if opted, are enclosed as endorsement to this policy.

• Date of Commencement of Risk:

In case the age at entry of the Life Assured is less than 8 years, the risk under this plan will commence either 2 years from the date of commencement of policy or from the policy anniversary coinciding with or immediately following the completion of 8 years of age, whichever is earlier.

For those aged 8 years or more at entry, risk will commence immediately from the Date of issuance of policy.

• Vesting of policy on the life of a minor: 

If the Life Assured is alive on the Date of Vesting and if a request in writing for surrendering the policy has not been received by Corporation before such Date of Vesting from the person entitled to the policy moneys, this policy shall automatically vest in the Life Assured on such Date of Vesting.

Flexibility in Premium Payments

This plan offers flexibility in premium payments. Individuals can choose to pay the premium in a lump sum at the policy’s inception. It eliminates the need for frequent premium payments and allows policyholders to enjoy the benefits of the plan hassle-free.

The Premium payable under the Base Policy and Premium for Optional Riders have been calculated on the age of the Life Assured as declared in the Proposal Form. 

In case, the age of Life Assured is misstated in the Proposal Form and correct age is found to be different (higher or lower) than such age, without prejudice to the Corporation’s other rights and remedies, including the provisions under Insurance Act, 1938, as amended from time to time, Corporation shall check the eligibility of Life Assured based on the correct age as on the date of commencement of policy and the following action shall be taken:

If the Life Assured remains eligible for Base Policy and Rider(s) opted, if any: 

Subject to the then existing underwriting norms, the premium for the Base Policy and Rider(s) opted, if any, shall be  recalculated on the Basic Sum Assured and Rider(s) Sum Assured respectively for the correct age and the revised premium(s) shall be payable by the policyholder under the Base Policy and Rider(s). Further, accumulated difference between the premiums for the correct age and the original premiums, from the commencement of the Base Policy / Rider upto the date of payment of revised premium shall be paid to the Corporation with interest at such rate as fixed by the Corporation from time to time.  Any outstanding premium and/or interest, if unpaid the same shall be recoverable from any claim proceeds payable under the policy. 

If the correct age is found to be lower than the declared age, excess Premium for Base Policy and Rider(s) premium collected shall be refunded without interest.

If the Life Assured is ineligible for Base Policy:

Base Policy along with opted Riders shall be cancelled and the Premiums paid towards Base Policy and Riders, if any, shall be refunded without interest subject to deduction of all applicable expenses like proportionate risk premium (for Base Policy and Rider(s), if any) for the period of cover, applicable taxes and charges for medical examination, special reports, if any and stamp duty, incurred under the policy. The policy shall terminate on said payment.

If Life Assured is eligible for Base Policy but ineligible for any of the opted Riders:

Such Rider(s) shall be cancelled and the Premiums paid in respect of such Rider(s) shall be refunded without interest, subject to deduction of all applicable expenses like proportionate risk premium for Rider(s) for the period of cover, applicable taxes and charges for medical examination, special reports, if any and stamp duty, incurred in respect of the Rider(s). The respective Rider(s) shall terminate on said payment. However, the Base Policy shall continue with the altered terms. 

• Forfeiture in Certain Other Events:

In case any condition herein contained or endorsed hereon be contravened or in case it is found that any untrue or incorrect statement is contained in the proposal, personal statement, declaration and connected documents or any material information is withheld, then and in every such case this policy shall be void and all claims to any benefit in virtue of this policy shall be subject to the provisions of Section 45 of the Insurance Act, 1938, as amended from time to time.

• Surrender:

The policy can be surrendered by the Policyholder at any time during the policy term. On surrender of the policy, the Corporation shall pay the Surrender Value equal to higher of Guaranteed Surrender Value and Special Surrender Value.

The Guaranteed Surrender Value (GSV) payable under the policy shall be:

• During first three policy year: 75% of the Single Premium
  • Thereafter: 90% of the Single Premium

Life Insurance Coverage

Along with the investment component, LIC’s Dhan Vriddhi Plan No. 869 provides life insurance coverage. In case of the unfortunate demise of the policyholder during the policy term, the nominee receives the sum assured along with accrued bonuses, ensuring financial protection for the family.

Loan shall 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:

1. Loan can be availed at any time after three months from completion of the policy (i.e., 3 months from the Date of issuance of policy) or after expiry of the Free-Look Period, whichever is later.
   1. The maximum Loan that can be granted as a percentage of surrender value is mentioned below:

1. The loan during the minority of Life Assured can be availed by the Proposer provided the loan is raised for the benefit of the minor Life Assured.

1. The Policy shall be assigned absolutely to and held by the Corporation as security for the repayment of Loan and of the interest thereon.

• Interest on Loan shall be paid on compounding half-yearly basis to the Corporation at the rate to be specified by the Corporation at the time of taking loan under this policy. The rate of loan interest applicable for full loan term, for the loan to be availed under this policy for every 12 months’ period from 1^st May to 30^th April shall not exceed 10 year G-Sec Rate p.a. compounding half-yearly as at the last trading date of previous financial year plus 300 basis points or the yield earned on the Corporation’s Non-Linked Non-Participating fund plus 100 basis points, whichever is higher. For loan sanctioned during 12 months’ period commencing from 1st May, 2023 to 30th April, 2024 the applicable interest rate shall be 9.5% p.a. compounding half-yearly for entire term of the loan. The basis of determination of applicable loan interest for policy loan is subject to change. The first payment of interest is to be made on the next Policy anniversary or on the date six months before the next Policy anniversary whichever immediately follows the date on which the Loan is sanctioned and every half year thereafter.

• In the event of default in payment of loan interest on the due dates as herein mentioned above, and when the outstanding loan along with interest is to exceed the surrender value, the Corporation would be entitled to foreclose such policies. Such policies when being foreclosed shall be entitled to payment of the difference of surrender value and the loan outstanding amount along with interest, if any.

• In case the policy shall mature or is surrendered or becomes a claim by death, the Corporation shall become entitled to deduct the amount of the Loan or any portion thereof which is outstanding, together with all interest from the policy moneys.

• Corporation is entitled to recover or recall the amount of the Loan with all due interest by giving 3 months’ notice.

• Termination of Policy:

The policy shall immediately and automatically terminate on the earliest occurrence of any of the following events:

1. The date on which lump sum death benefit/final instalment of death benefit is paid; or
   1. The date on which surrender benefits are settled under the policy; or 
   1. The date of maturity if settlement option is not exercised; or
   1. On payment of final  instalments under Settlement Option; or
   1. In the event of default in payment of loan interest as specified in Condition 4 of Part D of this Policy

Document; or 

• On payment of free look cancellation amount; or
  • In the event of forfeiture as specified in Condition 2 of Part D of this Policy Document.

• Free look period:  

During the Free Look period of 30 days from the date of receipt of the electronic or physical mode of Policy Document, whichever is earlier, by the Policyholder, if the Policyholder is not satisfied with the Terms and Conditions of the policy, he/she may return the policy to the Corporation stating the reason of objections. On receipt of the same the Corporation shall cancel the policy and

Loan Facility

Policyholders can also avail of a loan against LIC’s Dhan Vriddhi Plan No. 869. This feature provides liquidity in times of financial need, allowing individuals to meet their urgent requirements without prematurely surrendering the policy.

Tax Benefits

Investing in LIC’s Dhan Vriddhi Plan No. 869 offers tax benefits under the prevailing tax laws. The premiums paid and the maturity benefits received are eligible for tax deductions, providing an added advantage to policyholders.

Benefits of LIC’s Dhan Vriddhi Plan No. 869

Financial Security

LIC’s Dhan Vriddhi Plan No. 869 offers financial security by providing guaranteed returns and life insurance coverage. It ensures that your investment grows over time while protecting your family’s financial well-being in case of any unforeseen circumstances.

1. Assignments:   

Assignment is allowed under this plan as per Section 38 of the Insurance Act, 1938, as amended from time to time. The current provisions of Section 38 are contained in Annexure-1 of this Policy Document. The notice of assignment should be submitted for registration to the office of the Corporation, where the policy is serviced.

b) Nominations: 

Nomination by the holder of a policy of life assurance on his/her own life is allowed as per Section 39 of the Insurance Act, 1938, as amended from time to time. The current provisions of Section 39 are contained in Annexure-2 of this Policy Document. The notice of nomination or change of nomination should be submitted for registration to the office of the Corporation, where the policy is serviced. In registering nomination, the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.

• Suicide Exclusion: Notwithstanding the provision of benefits payable on death mentioned anywhere in this Policy Document, the provisions related to claim payment in case of death due to Suicide shall be subject to the condition as specified herein under:

 If the Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk, the nominee or beneficiary of the Life Assured shall be entitled to 80% of the Single Premium paid (excluding any taxes, extra premium and rider premium other than Term Assurance rider, if any). The nominee or beneficiary of the Life Assured shall not be entitled to any other claim under this Policy.

This clause shall not apply in case of Life Assured whose age at the time of entry is below 8 years i.e.,if age of the Life assured is below 8 years normal death benefit shall be payable.

• PLAN PURCHASED THROUGH POSP-LI & CPSC- SPV:
  • In case the Plan is purchased through Point of Sales Persons-Life Insurance (POSP-LI) or Common Public Service Centers (CPSC-SPV), the eligibility conditions and other terms and conditions shall be as per the Regulations, Circulars and Guidelines etc. issued by the IRDAI applicable to POS Plans and POSP-LI/ CPSC-SPV from time to time.

• Waiting Period: In case the Plan is purchased through Point of Sales Persons-Life Insurance (POSP-LI) or Common Public Service Centers (CPSC-SPV) on death of the Life Assured within the first 90 days from the date of commencement of risk, the Corporation shall refund the total premiums paid, provided the policy is in force and death is not on account of an accident. However, in case of death due to accident during waiting period Death Benefit as specified in Condition 1.A of Part C of this Policy Document shall be payable. This clause shall not be applicable in case age at entry of the Life Assured is below 8 years.

• Tax: 

Statutory Taxes, if any, imposed on such insurance plans by the Government of India or any other constitutional tax Authority of India shall be as per the Tax laws and the rate of tax, as applicable from time to time.

The amount of applicable taxes as per the prevailing rates shall be payable by the policyholder on premiums (for base policy and rider(s), if any) including extra premium(s) if any, which shall be collected separately over and above in addition to the premiums payable by the  policyholder. The amount of tax paid shall not be considered for the calculation of any benefits payable under the plan.

• Normal requirements for a claim:
  • Death Claim: The normal documents which the claimant shall submit while lodging the claim in case of death of the Life Assured shall be claim forms, as prescribed by the Corporation, accompanied with original Policy Document, NEFT mandate from the claimant for direct credit of the claim amount to the bank account, proof of title, proof of death, medical treatment prior to the death (if any), school/college/employer’s certificate, whichever is applicable, to the satisfaction of the Corporation. If the age is not admitted under the policy, the proof of age of the Life Assured shall also be submitted. 

In case of unnatural death or death on account of or arising from an accident, the Corporation may call for the copies of First Information Report (FIR), Panchnama and Post Mortem report. The Corporation may also call for additional documents as may be required by them.

Within 90 days from the date of death, intimation of death along with death certificate must be notified in writing to the office of the Corporation where the policy is serviced for any claims to be admissible. However, delay in intimation of the genuine claim by the claimant, may be condoned by the Corporation, on merit, and where delay is proved to be for the reasons beyond his/her control.

• Maturity/Surrender Claim: Where the policy results into a maturity claim or in case of surrender of the policy, the Life Assured shall submit the discharge form along with the original Policy Document, NEFT mandate from the claimant for direct credit of the claim amount to the bank account besides proof of age, if the age is not admitted earlier.

In addition to above, any requirement mandated under any statutory provision or as may be required as per law shall also be required to be submitted.

• Legislative Changes: 

The Terms and Conditions including the premiums and benefits payable under this policy are subject to variation in accordance with the relevant Legislation & Regulations.

• Benefit Illustration: 

Your customized Benefit Illustration is enclosed to this Policy Document.

• Issuance of Duplicate Policy:

The Policyholder can make an application for duplicate Policy on payment of policy preparation charges , policy stamp charges and applicable taxes, if any, which are specified from time to time* upon loss of policy document along with other requirements as may be prescribed by the Corporation . 

*As on January, 2023, the applicable duplicate policy preparation charge is Rs 75.00. In addition, Indemnity Bond notarized as per requisite stamp value is also required and the stamp fee for the same shall be borne by the Policyholder.

• Governing Law and Jurisdiction:

The Policy shall be governed by the laws of India and the Indian Courts shall have jurisdiction to settle any disputes arising under the Policy.

Wealth Accumulation

By investing in LIC’s Dhan Vriddhi Plan No. 869, individuals can accumulate wealth over the policy term. The guaranteed returns, along with the accrued bonuses, help grow the invested amount, providing a valuable corpus at maturity.

Risk Cover

Apart from wealth accumulation, LIC’s Dhan Vriddhi Plan No. 869 provides life insurance coverage. This ensures that your loved ones are financially protected in your absence, relieving them of any financial burden and securing their future.

Tax Savings

Investing in LIC’s Dhan Vriddhi Plan No. 869 offers tax savings. The premiums paid towards the policy are eligible for tax deductions under Section 80C of the Income Tax Act. Additionally, the maturity benefits are tax-free under Section 10(10D), subject to the prevailing tax laws.

Frequently Asked Questions (FAQs)

LIC’s Dhan Vriddhi Plan No. 869 is a comprehensive investment and insurance solution offered by Life Insurance Corporation of India. With guaranteed returns, life insurance coverage, tax benefits, and loan facilities, it provides individuals with a secure path to financial growth and stability. By choosing LIC’s Dhan Vriddhi Plan No. 869, you can protect your loved ones, accumulate wealth, and enjoy a financially secure future.

Understanding LIC’s LIC Dhan Vriddhi New Non-Linked Period Plan

LIC’s LIC Dhan Vriddhi new non-linked period plan is a comprehensive life insurance policy that provides coverage for a specific period. It is a non-participating, non-linked, term assurance plan designed to offer financial protection and peace of mind to policyholders. The plan ensures that the policyholder’s family receives a lump sum amount in case of any unfortunate event during the policy term.

Key Features and Benefits of LIC Dhan Vriddhi

• Flexible Policy Term: The plan offers flexible policy terms ranging from 5 to 40 years, allowing individuals to choose a duration that suits their needs and financial goals.
• Death Benefit: In the event of the policyholder’s demise during the policy term, the sum assured is paid to the nominee, providing financial security to the family.
• Maturity Benefit: If the policyholder survives the policy term, no maturity benefit is payable as it is a pure term insurance plan. However, individuals can opt for other savings and investment options offered by LIC.
• Affordability: LIC’s non-linked period plan is available at affordable premium rates, making it accessible to a wide range of individuals looking for life coverage.
• Surrender Value: The plan allows surrendering the policy after completion of a certain number of years, providing a surrender value to the policyholder.

Eligibility Criteria for LIC Dhan Vriddhi

To be eligible for LIC’s new Dhan Vriddhinon-linked period plan, individuals must fulfill the following criteria:

• Minimum Entry Age: 18 years (completed)
• Maximum Entry Age: 65 years (nearest birthday)
• Policy Term: 5 to 40 years
• Minimum Sum Assured: ₹500,000
• Maximum Sum Assured: No limit (subject to underwriting)

How to Apply for LIC’s Dhan Vriddhi Non-Linked Period Plan

Applying for LIC’s non-linked period plan is a simple and straightforward process. Individuals can follow these steps to apply:

1. Visit the official LIC website or contact the nearest LIC branch.
2. Fill out the application form with accurate personal and contact details.
3. Provide the necessary documents as per LIC’s requirements, including age proof, identity proof, and address proof.
4. Pay the premium amount through the available payment options.
5. Complete the medical examination if required.
6. Review the policy details, terms, and conditions before finalizing the application.
7. Once the application is submitted and processed, LIC will issue the policy documents.

Comparison with Other Insurance Plans

LIC’s new non-linked period plan offers several advantages when compared to other insurance plans available in the market. Unlike traditional life insurance policies, this plan provides affordable premiums while ensuring comprehensive coverage for the chosen policy term. Additionally, the plan offers flexibility in choosing the policy term, allowing individuals to align it with their financial goals and obligations.

Tax Benefits

LIC’s non-linked period plan also provides tax benefits under the prevailing tax laws in India. The premiums paid towards the policy are eligible for deduction under Section 80C of the Income Tax Act, 1961. The maturity proceeds are also exempted from tax under Section 10(10D) of the Income Tax Act, subject to certain conditions.

Frequently Asked Questions (FAQs)

Q1. What is a non-linked period plan?

A non-linked period plan is a term insurance policy that provides coverage for a specific period without any investment or savings component attached.

Q2. Can I surrender the policy before the completion of the policy term?

Yes, LIC’s non-linked period plan allows surrendering the policy after completion of a certain number of years, providing a surrender value to the policyholder.

Q3. Can I enhance the sum assured during the policy term?

No, the sum assured cannot be enhanced during the policy term in LIC’s non-linked period plan.

Q4. Can I avail of a loan against the policy?

No, loans cannot be availed against LIC’s non-linked period plan as it is a pure term insurance policy.

Q5. Is the death benefit taxable?

No, the death benefit received by the nominee is tax-free under the prevailing tax laws in India.

Conclusion

LIC’s new non-linked period plan is an excellent choice for individuals seeking comprehensive life coverage and financial security. With its flexible policy terms, affordable premiums, and valuable benefits, this plan ensures that your loved ones are protected in case of any unfortunate event. Additionally, the tax benefits provided by the plan make it a lucrative investment option for individuals looking to save on taxes while securing their future.

Don’t miss out on this opportunity! Get access to LIC Dhan Vriddhi new non-linked period plan now and secure your financial future.