LIC Dhan Ratna Life Insurance Scheme: Benefits, Policy Duration and Premium Payment Duration: Should You Invest?

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Eligibility Criteria, Policy Duration and Premium Payment Duration – Dhan Ratna Plan

For LIC Dhan Ratna plan, the minimum basic sum insured is Rs. 5,00,000. There is no limit to the maximum basic sum insured, but the basic sum insured will be in multiples of rupees. 25,000. The policy term options are 15 years, 20 years and 25 years. The premium payment term will be 11 years for the 15 year policy term, 16 years for the 20 year policy term, 21 years for the 25 year policy term.

The minimum entry age is 5 years for the 15 year policy term and 90 days for the 20 and 25 year policy term. The maximum entry age is 55 for the 15 year policy term, 50 for the 20 year policy term, 45 for the 25 year policy term and 65 minus the term of the policy (in the case of policies purchased through POSP-LI /CPSC-SPV). The minimum age at maturity is 20 years for an insurance period of 15 and 20 years, 25 years for an insurance period of 25 years. Maximum age at maturity is 70 and 65 (in case of policies purchased through POSP-LI/CPSC-SPV)

Death Benefit and Maturity Benefit

Death Benefit and Maturity Benefit

The death benefit payable on the death of the insured during the term of the policy will be the “sum insured at death” plus the cumulative guaranteed additions, where the “sum insured at death” is defined as the greater of 125% of the basic sum insured or 7 times the annualized premium amount. According to the company, this death benefit payment will not be less than 105% of the total premiums paid up to the date of death. However, for the minor insured, in the event of death before the start of the risk, the death benefit payable will be the reimbursement of the premium(s) paid without interest.

In addition, upon surviving the stated Maturity Date, provided the Policy is in force, the “Maturity Sum Insured” together with accrued Guaranteed Top-Ups will be paid to the Policyholder. The “sum insured at maturity” will be the same as 50% of the basic sum insured, informs LIC.

Survivor benefits

Survivor benefits

On the insured life surviving each of the durations specified during the term of the policy, when the policy is in force, a fixed percentage of the basic sum insured will be payable. The fixed percentage was as below.

Policy duration (in years) Payment of survivor’s benefit
15 25% of the basic sum insured at the end of each of the 13th and 14th insurance years.
20 25% of the basic sum insured at the end of each of the 18th and 19th insurance years.
25 25% of the basic sum insured at the end of each of the 23rd and 24th insurance years.
Settlement option

Settlement option

The settlement option is known as the option to receive the maturity benefit in installments over a period of 5 years instead of the lump sum. LIC informs that this option can be exercised during the minority of the Insured or by the Insured aged 18 and over, for all or part of the proceeds at maturity payable under the policy.

Installment payment method Minimum payment amount
Monthly Rs.5,000
Quarterly Rs. 15,000
Semester Rs. 25,000
Annual Rs.50,000
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