LIC Dhan Vriddhi Plan 869 Details: Secure Your Future with Guaranteed Returns

LIC of India has introduced a new life insurance plan namely LIC Dhan Vriddhi Yojana 869 on June 23, 2023. This exceptional policy is designed as a Non-Linked, Non-Participating, Individual, Savings, Life Insurance plan that offers a remarkable combination of protection and savings. In this article, we will explore the features, eligibility criteria, application process, benefits, and other essential details of LIC Dhan Vriddhi Plan 869.

What is LIC Dhan Vriddhi Plan 869?

LIC Dhan Vriddhi Plan 869 is a Non-Linked, Non-Participating, Individual, Savings, Life Insurance plan offered by LIC. It combines the benefits of life insurance coverage with a savings and investment component, making it an ideal choice for individuals looking to secure their financial future.

The primary objective of this plan is to provide financial assistance to the family in the unfortunate event of the death of the life assured during the policy term. Additionally, it guarantees a lump sum amount on the maturity date for the surviving life assured.

Unlike regular premium paying plans, LIC’s Dhan Vridhi plan requires a lump sum premium payment at the inception of the policy. The returns are then distributed to the policyholder at the end of the policy term or to the nominee in case of death of the policyholder. The plan can be easily purchased offline through Agent/POSP-LI and online through the official LIC website, www.licindia.in.

LIC Dhan Vriddhi Plan 869 Details List

Maturity Benefits : Sum Assured + Guaranteed Additions

Example of buying this plan for maturity benefit

Key Features and Benefits of LIC Dhan Vridhi Plan 869

Guaranteed Returns: LIC Dhan Vriddhi Yojana 869 offers guaranteed returns on both the sum assured and accrued bonuses. This ensures that policyholders receive a fixed amount at maturity, providing them with financial stability and certainty.

High Bonus and Liquidity: LIC plan no 869 offers attractive bonus rates and high liquidity option, which ensures flexibility to the savings of the policyholders.

Maturity Benefit: If the policyholder survives to the end of the policy term, they will receive the maturity benefit, which includes Sum Assured and Guaranteed Bonus.

Death Benefit: In the unfortunate event of death of the policyholder during the policy term, the nominee is entitled to receive the death benefit. Two options are available:

• Option 1: 1.25 times the Basic Sum Assured plus accrued Guaranteed Bonuses.
• Option 2: 10 times the Basic Sum Assured plus accrued Guaranteed Bonuses.

Also read:- Lic Jeevan Kiran Plan 870 Details

Please note that the tabulated premium is determined on the basis of entry age of the life assured, policy term and option chosen, without considering any discount. Excludes taxes, extra premium and rider premium, if applicable.

For the Minor Life Assured below the age of 8 years, if death occurs before the commencement of risk, the death benefit payable shall be a refund of the premiums paid (excluding taxes and extra premium) without interest.

In addition, LIC’s wealth enhancement plan 869 offers the policyholder an opportunity to enhance his coverage through two optional riders:

1. Accidental Death and Disability Benefit Rider of LIC
2. New Term Assurance Rider of LIC

Tax Benefits: Under the prevailing tax laws, the premiums paid towards LIC Dhan Vriddhi Plan 869 are eligible for tax benefits under Section 80C of the Income Tax Act. Additionally, the maturity proceeds are also tax-free under Section 10(10D) of the Act, making it a tax-efficient investment option.

Loan Facility: LIC Dhan Vriddhi Plan 869 offers a loan facility, enabling policyholders to avail themselves of a loan against the policy’s surrender value. This feature can be beneficial during financial emergencies or to meet other financial obligations.

Eligibility and parameters of LIC Dhan Vriddhi Plan 869

Minimum Entry Age:

• 90 days (completed) for a policy term of 18 years.
• 3 years (completed) for a policy term of 15 years.
• 8 years (completed) for a policy term of 10 years.

Maximum Entry Age:

Option 1:

• 60 years (nearer birthday)

Option 2:

• 40 years (nearer birthday) for policy term of 10 years.
• 35 years (nearer birthday) for policy term of 15 years.
• 32 years (nearer birthday) for policy term of 18 years.

Policy term:

• 10, 15 and 18 years options available.

Minimum Basic Sum Assured:

• Rs. 1,25,000 in multiples of Rs. 5,000.

Maximum Investment Amount:

• No Limit.

Premium Payment Options:

• One-time Premium Payment Option: The plan offers the convenience of a one-time premium payment option. You can make a single premium payment at the beginning of the policy term, eliminating the need for regular premium payments.

Minimum Maturity Age:

• 18 Years (Completed).

Maximum Maturity Age:

• Option 1: 78 Years (Nearest Birthday).
• Option 2: 50 Years (Nearest Birthday).

Also Read:- lic monthly pension plan

Additional Info about LIC Dhan Vridhi 869

• Risk Coverage: Extended till the end of the policy term.
• Date of commencement of risk: For children below the age of 8 years, the risk starts after 2 years of taking the policy or when the child turns 8 years old, whichever is earlier.
• Surrender: The policy can be surrendered at any time during the policy term.
• Loan Facility: Loan facility is available after 3 months under this policy.
• Proposal Form: Proposal Form No. 300 and 360 will be used for this plan.
• Cooling-off period: If a policyholder is dissatisfied with the terms and conditions of the policy, they can return the policy within 15 days from the date of receipt.

Please note that any additional details and clarifications may be obtained directly from the official website of LIC or through their authorized agents.

How to Apply for LIC Dhan Vriddhi Plan 869?

• Online Application Process: To apply for LIC Dhan Vriddhi Yojana 869 online, visit the official LIC website and follow the step-by-step instructions provided. Fill in the required details, upload the necessary documents, and make the premium payment online to complete the application process.

• Offline Application Process: If you prefer to apply offline for LIC Dhan Vriddhi Plan 869, you have the option of buying it through agents or other intermediaries, including Point of Sale-in-Person-Life Insurance (PoSP-LI) or Common Public Service Center (CPSC). Please note that all purchases are subject to relevant terms and conditions.

Option to Receive Death Benefit in Installments:

This provision offers the choice to receive the Death Benefit in installments over a period of five years instead of a lump sum amount. The Policyholder has the opportunity to exercise this option when the Life Assured is a minor or when the Life Assured is 18 years of age or older, during their lifetime, either for the entire or a portion of the Death benefits payable under the policy. The amount chosen by the Policyholder/Life Assured (referred to as the Net Claim Amount) can be expressed as an absolute value or as a percentage of the total claim proceeds payable.

Also Read:- how to check unclaimed amount in lic policy

The installments will be paid in advance at yearly, half-yearly, quarterly, or monthly intervals, depending on the preference, subject to the following minimum installment amounts for different payment frequencies:

If the Net Claim Amount is less than the required amount to provide the minimum installment based on the option chosen by the Policyholder/Life Assured, the claim proceeds will be paid as a lump sum only.

For all installment payment options starting within the 12-month period from 1st May to 30th April, the interest rate used to calculate each installment amount will be the annual effective rate, not lower than the 5-year semi-annual G-Sec rate minus 200 basis points. The 5-year semi-annual G-Sec rate will be determined as of the last trading day of the previous financial year.

Accordingly, for the 12-month period from 1st May, 2023 to 30th April, 2024, the applicable interest rate for calculating the installment amount will be 5.17% per annum, effective.

To exercise the option of receiving the Death Benefit in installments, the Policyholder, while the Life Assured is a minor, or the Life Assured, if they are of legal age, can exercise this option during the currency of the policy, by specifying the net claim amount for which the option is to be exercised. The death claim amount will then be paid to the nominee according to the option chosen by the Policyholder/Life Assured, and no changes will be allowed to be made by the nominee.

Tax Benefits

LIC Dhan Vriddhi Plan 869 offers tax benefits under the prevailing tax laws. The premiums paid towards the policy are eligible for tax deductions under Section 80C of the Income Tax Act, 1961. The maturity and death benefits are also tax-exempt under Section 10(10D) of the Income Tax Act, subject to conditions mentioned therein. However, tax laws are subject to change, and it’s advisable to consult a tax advisor for personalized advice.

Comparison with Other Investment Options

When considering investment options, it’s essential to compare LIC Dhan Vriddhi Plan 869 with other available alternatives. While LIC Dhan Vriddhi Plan 869 offers guaranteed returns and life insurance coverage, it’s important to evaluate factors such as risk appetite, expected returns, liquidity needs, and investment goals. Consulting a financial advisor can help you make an informed decision based on your individual circumstances.

Risks and Considerations

Before investing in LIC Dhan Vriddhi Plan 869, it’s important to consider the following risks:

• Interest Rate Risk: The plan offers guaranteed returns, but the actual returns may be affected by changes in interest rates.
• Inflation Risk: Inflation can erode the purchasing power of the maturity benefit over time. It’s essential to consider the impact of inflation while planning for long-term financial goals.
• Policy Surrender: Surrendering the policy before completion of the policy term may result in a loss of benefits and may not be suitable if you require long-term savings.

Conclusion

LIC Dhan Vriddhi Plan 869 offers a comprehensive solution for individuals seeking financial security and growth. With guaranteed returns, flexible policy terms, and tax benefits, it provides a reliable investment avenue while ensuring financial protection for the policyholder’s loved ones. By considering the eligibility criteria, understanding the plan’s working, and applying through the convenient online or offline channels, individuals can take a step towards securing their financial future with LIC Dhan Vriddhi Yojana 869.

Also read:- LIC Jeevan Labh 936 Plan: Secure Your Future with Assured

FAQ’s About LIC Dhan Vriddhi Plan 869