A single-premium, non-participating endowment plan called Dhan Vriddhi has been introduced by the Life Insurance Corporation of India (LIC).
It is a limited-time guaranteed returns policy that can only be purchased through September 30, 2023.
The minimum sum assured is Rs. 1.25 lakh, and the policyholder has the choice of selecting a sum assured option that is either 1.25 times (option 1) or 10 times (option 2) the premium amount. The admission age ranges from 90 days to eight years, and the maximum age ranges from 32 years to sixty years.
Tenure options for the single premium policy include 10, 15, or 18.
When the policy matures, the policyholder will get the initial sum promised as well as guaranteed additions, which are essentially earned returns that have been credited over time to increase the corpus. If she passed away in the middle of her term, the candidates would get the total assured amount and any guaranteed additions.
Throughout the term, the guaranteed additions will accumulate at the conclusion of each insurance year. For every Rs. 1,000 of the base sum promised, these can be between Rs. 60 and Rs. 75 for option 1 and Rs. 25 to Rs. 40 for option 2. The option, basic sum assured, and policy tenure all affect how much of a guarantee there is. For larger covers, the increases are guaranteed to be higher.
The accidental death and disability benefit rider, as well as the New Term Assurance rider, are additional options available to policyholders for the base life insurance policy. Both agents and internet shopping are options for buying it.
The beneficiary will have five years from the time of maturity or death to decide whether to receive the claim amount in monthly, quarterly, half-yearly, or annual payments.
Since the announcement of its initial public offering (IPO) last year, LIC has made a concerted effort to raise the proportion of non-participating policies in order to boost profitability margins. With-profits, or participation, plans that issue annual and terminal incentives based on the success of the funds have historically dominated the company’s portfolio.