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LIC's Dhan Varsha Plan - 866

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Life Insurance Corporation (LIC) is a leading life insurance provider in India, offering a wide range of insurance plans to meet the diverse needs of its customers. One such plan is LIC's Dhan Varsha Plan- 866, which is a non-linked, with-profits, limited premium payment, endowment plan that provides financial protection to the policyholder and also helps in wealth creation. This plan is suitable for individuals looking for a long-term investment option with insurance coverage.

In this article, we will discuss the features, benefits, and eligibility criteria of LIC's Dhan Varsha Plan- 866 in detail.

Features:


  • Policy term: The policy term of this plan ranges from 15 to 25 years, depending on the policyholder's preference.
  • Premium payment term: The premium payment term is limited, which means the policyholder needs to pay premiums only for a specific number of years, depending on the policy term chosen.
  • Maturity benefit: On maturity of the policy, the policyholder receives the sum assured plus any bonuses declared during the policy term.
  • Death benefit: In case of the policyholder's unfortunate demise during the policy term, the nominee receives the sum assured plus any bonuses declared until that date.
  • Bonuses: The policy participates in the profits of the Corporation, and the policyholder is entitled to receive bonuses, if any, declared by LIC.
  • Surrender value: The policyholder can surrender the policy after completing at least three years of the policy term and receive a surrender value as per the surrender value factors.
  • Loan facility: The policyholder can avail of a loan against the policy after completing at least three years of the policy term.

Benefits:

  • Financial protection: The policy provides financial protection to the policyholder's family in case of the policyholder's unfortunate demise during the policy term.
  • Maturity benefit: The policyholder receives the sum assured plus any bonuses declared on the maturity of the policy, which helps in wealth creation.
  • Tax benefits: The policyholder can avail of tax benefits under Section 80C of the Income Tax Act, 1961, for the premium paid towards the policy. Additionally, the maturity amount and death benefit are also tax-free under Section 10(10D) of the Income Tax Act, 1961.
  • Flexible premium payment: The policyholder can choose the premium payment term as per their preference and pay the premium annually, half-yearly, quarterly, or monthly.

Eligibility Criteria:

  • Age: The minimum age of entry for this plan is 13 years, and the maximum age of entry is 50 years.
  • Policy term: The policy term can be chosen between 15 to 25 years.
  • Sum assured: The minimum sum assured for this plan is Rs. 1 lakh, and there is no maximum limit.
  • Premium payment term: The premium payment term is limited, and it can be chosen between 10 to 20 years.

Explain By Simple Example

LIC's Dhan Varsha Plan is a savings cum protection plan that provides guaranteed returns and life coverage. Here's an example to understand how the plan works:

Suppose Mr. Sharma, a 35-year-old, wants to save for his child's education, which he estimates will cost around Rs. 10 lakh in 10 years. He invests Rs. 5 lakh in LIC's Dhan Varsha Plan for a tenure of 10 years.

Based on his age and the premium paid, he is eligible for a guaranteed sum assured of Rs. 8.05 lakhs at the end of the policy term. Additionally, he will receive a guaranteed bonus of Rs. 20,000 per year, which amounts to Rs. 2 lakhs over 10 years.

Assuming there are no claims made during the policy term, Mr. Sharma will receive a total of Rs. 10.05 lakhs at the end of the 10-year period, which will help him meet his child's education expenses.

If unfortunately, something happens to Mr. Sharma during the policy term, his nominee will receive the sum assured of Rs. 8.05 lakhs immediately, along with the accrued bonus till that date.

Thus, LIC's Dhan Varsha Plan offers a safe and secure way to save for future expenses while also providing life protection.

Conclusion:

LIC's Dhan Varsha Plan- 866 is a non-linked, with-profits, limited premium payment, endowment plan that provides financial protection to the policyholder and also helps in wealth creation. This plan is suitable for individuals looking for a long-term investment option with insurance coverage. The policyholder can choose the premium payment term, policy term, and sum assured as per their preference. The policy participates in the profits of the Corporation, and the policyholder is entitled to receive bonuses, if any, declared by LIC. Additionally, the policyholder can avail of tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

FAQ

Q. What is LIC's Dhan Varsha Plan - 866?

LIC's Dhan Varsha Plan - 866 is a non-linked, with-profit, limited premium payment endowment plan offered by LIC (Life Insurance Corporation of India). It is a savings-cum-insurance plan designed to provide financial security and help individuals achieve their long-term financial goals.

Q. What are the key features of LIC's Dhan Varsha Plan - 866?

The key features of LIC's Dhan Varsha Plan - 866 include limited premium payment term, guaranteed maturity benefit, guaranteed death benefit, bonus accrual, tax benefits, loan facility, and optional riders.

Q. What is the premium payment term of LIC's Dhan Varsha Plan - 866?

The premium payment term of LIC's Dhan Varsha Plan - 866 is limited, which means the policyholder has to pay premiums only for a fixed number of years (5, 7, 10, or 12 years), while the policy continues for a longer duration.

Q. What is the minimum and maximum entry age for LIC's Dhan Varsha Plan - 866?

The minimum entry age for LIC's Dhan Varsha Plan - 866 is 18 years, and the maximum entry age is 60 years.

Q. What is the minimum and maximum maturity age for LIC's Dhan Varsha Plan - 866?

The minimum maturity age for LIC's Dhan Varsha Plan - 866 is 28 years, and the maximum maturity age is 70 years.

Q. What are the minimum and maximum sum assured for LIC's Dhan Varsha Plan - 866?

The minimum sum assured for LIC's Dhan Varsha Plan - 866 is Rs. 1,00,000, and there is no maximum limit on the sum assured.

Q. What are the tax benefits of LIC's Dhan Varsha Plan - 866?

The premiums paid towards LIC's Dhan Varsha Plan - 866 are eligible for tax benefits under Section 80C of the Income Tax Act, and the maturity proceeds are tax-free under Section 10(10D) of the Income Tax Act.

Q. Can I take a loan against LIC's Dhan Varsha Plan - 866?

Yes, you can take a loan against LIC's Dhan Varsha Plan - 866 after the policy acquires a surrender value.

Q. What are the optional riders available with LIC's Dhan Varsha Plan - 866?

The optional riders available with LIC's Dhan Varsha Plan - 866 include accidental death and disability benefit rider, critical illness rider, and term assurance rider.

Q. How can I purchase LIC's Dhan Varsha Plan - 866?

You can purchase LIC's Dhan Varsha Plan - 866 by contacting any LIC agent or visiting the nearest LIC branch office. You can also purchase the plan online through the official website of LIC.

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