LIC Dhan Sanchay Plan 865 Review, Features & Benefit

LIC Dhan Sanchay is a newly launched non-linked, non-participating, individual life insurance savings Plan.

• Offers a combination of savings and protection at the same time.
• Provides financial support to the family in case an unfortunate death of the life assured during the policy term.

Plan Name	LIC Dhan Sanchay
Table No.	865
UIN No.	512N346V01
Plan Type	Endowment Plan
Launch Date	14 June 2020
Bonus Facility	–

Key Features of LIC Dhan Sanchay Plan

• It is an endowment plan which provides a dual combination of protection and savings.
• It protects your family with guaranteed income in life assured absence.
• Provides guaranteed income during the payout period from the date of maturity.
• You can purchase this plan offline and online as well.
• Loan facility is also available under LIC Dhan Sanchay plan.
• You have the option to take death benefit in installments and maturity benefit in lump sum.
• Rider benefits are available with this plan.
• Tax benefit is also available under this Plan.

LIC Dhan Sanchay Benefits Options

There are following benefit options available with this plan at inception.

• In case of Regular/ Limited premium payment:
  • Option A: Level Income Benefit
  • Option B: Increasing Income Benefit

• In case of Single premium payment:
  • Option C: Single Premium Level Income Benefit
  • Option D: Single Premium enhanced cover with Level Income Benefit

Above benefit option once chosen at inception cannot be changed.

Eligibility conditions and other restrictions in LIC Dhan Sanchay Plan

	Minimum	Maximum
Entry Age	3 years (Completed)	Option A & B : 50 Years (nearer birthday) Option C: 65 Years (nearer birthday) Option D: 40 Years (nearer birthday)
Maturity Age	18 years (Completed)	Option A & B : 65 Years (nearer birthday) Option C: 80 Years (nearer birthday) Option D: 55 Years (nearer birthday)
Policy Term	Option A & B :10 & 15 years Option C & D : 5, 10 & 15 years	Option A & B :10 & 15 years Option C & D : 5, 10 & 15 years
Premium Paying Term (For Regular/Limited Premium)	For 10 Years Policy Term : 5 & 10 years	For 15 Years Policy Term : 5, 10 & 15 years
Payout Period	Option A & B : Equal to Premium Paying Term Option C & D : Equal to Policy Term	Option A & B : Equal to Premium Paying Term Option C & D : Equal to Policy Term
Sum Assured	Option A & B : ₹3,30,000 Option C: ₹2,50,000 Option D: ₹22,00,000	–
Annual Single Premium	Option A & B : ₹30,000 Option C & D: ₹2,00,000	No Limit

Benefits under LIC Dhan Sanchay Plan

1) Death Benefit:

If death happens during the policy term after the date of commencement of risk but before the date of maturity, then sum assured on death will be payable to the nominee.

Here sum assured on death is defined as under,

Option	Sum Assured on Death
Option A & B	Shall be higher of 11 times of “Annualized Premium”;or “Sum Assured on Maturity”; or 105% of total premiums paid upto the date of death.
Option C	Shall be higher of 1.25 times of “Single Premium” or “Sum Assured on Maturity”
Option D	Shall be 11 times of “Single Premium”

2) Maturity Benefit:

If Life Assured survived the entire policy term then he/she will receive the maturity benefit which will be payable in the form of Guaranteed Income Benefit and Guaranteed Terminal Benefit.

• Guaranteed Income Benefit (GIB) : Guaranteed Income Benefit shall be payable in advance during the Payout Period from the date of maturity and thereafter, based on the Payout Mode opted for by the Policyholder.
• Guaranteed Terminal Benefit (GTB): As a lump sum payment shall be payable along with the last installment of Guaranteed Income Benefit (GIB) and policy will terminate.

3) Rider Benefit:

Riders enhance your coverage and provide added protection to the life assured. You have to pay an additional cost to opt these riders. Following rider benefits are available under all the four options.

• Regular/Limited Premium payment (Option A & Option B): There are five optional riders available under Option A and Option B.
  • LIC’s Accidental Death and Disability Benefit Rider
  • LIC’s Accident Benefit Rider
  • LIC’s New Term Assurance Rider
  • LIC’s New Critical Illness Benefit Rider
  • LIC’s Premium Waiver Benefit Rider

• Single Premium payment (Option C & Option D): There are two optional riders available under Option C and Option D.
  • LIC’s Accidental Death and Disability Benefit Rider
  • LIC’s New Term Assurance Rider

4) Death Benefit in instalments:

Nominee can receive Death Benefit in instalments over a period of 5 years instead of lump sum amount under an in-force as well as paid-up policy.

Date of commencement of risk

• If Life Assured age is less than 8 years.
  • Risk will start either 2 years from the date of commencement or from the policy anniversary coinciding with or immediately following the attainment of 8 years of age, whichever is earlier.

• If Life Assured age is 8 years or more.
  • Risk will commence immediately from the date of issuance of policy.

Other Benefits in LIC Dhan Sanchay Plan

Grace Period in LIC Dhan Sanchay Plan

Grace period is applicable in case of Option A & Option B only.

• A grace period of 30 days is given for payment of yearly, half yearly and quarterly premiums
• A grace period of 15 days for monthly premiums from the date of First unpaid premium.
• If premiums are not paid in this period then your policy will lapse.

Revival in LIC Dhan Sanchay Plan

Revival is applicable in case of Option A & Option B only.

• If premiums are not paid within the grace period then the policy will lapse.
• A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium but before the date of maturity.

LIC Dhan Sanchay Paid Up Value:

Paid Up value is applicable in case of Option A & Option B only.

• If less than two full years premiums have been paid and any subsequent premiums be not duly paid, then the policy and all the benefits shall cease after the expiry of the grace period.
• If at least two full years premiums have been paid and any subsequent premiums be not duly paid, the policy shall continue as a paid-up policy.

Surrender Value in LIC Dhan Sanchay Plan:

• Regular/Limited Premium payment (Option A & Option B) can be surrendered by the policyholder at any time during the policy term provided at least two full years’ premiums have been paid.
• Single Premium payment (Option C & Option D) 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 or Special Surrender Value.

Loan Facility in LIC Dhan Sanchay Plan:

Loan facility is available under this plan during the policy term.

• For Regular/Limited premium payment (Option A & Option B), loan can be availed provided two full years’ premiums have been paid. Maximum loan can be availed as follows,
  • For in-force policies: upto 90% of Surrender Value
  • For paid-up policies: upto 80% of Surrender Value

• For Single Premium payment (Option C & Option D), loan can be availed at any time after three months from completion of the policy. Maximum loan can be availed as follows,
  • Option C & Option D: Upto 75% of Surrender Value

Tax Benefit in LIC Dhan Sanchay Plan

• Premiums paid are exempted under section 80C of the income tax act of 1961.
• The maximum exemption can be availed is 1.5 Lakhs.
• Death and Maturity amount received are exempted under section 10(10D).

Free Look Period in LIC Dhan Sanchay Plan

If the policyholder is not satisfied with the policy, he or she can return the policy to the corporation stating the reason for the same. After receiving the request, the Corporation shall cancel the policy and return the premium amount after deduction of risk premium, expenses incurred on medical examination, special report if any and stamp duty charges.

Exclusion in LIC Dhan Sanchay Plan

Suicide:

• Under Regular/ Limited Premium payment (Option A & Option B):
  • If policyholder commits suicide within 12 Months from the date of commencement of risk then only 80% of the premium paid till death will be refunded to the nominee.
  • If the policyholder commits suicide within 12 Months from the date of revival, then the amount which will be higher of
    • 80% of the total premiums paid till the date of death or
    • the surrender value available as on the date of death, shall be payable.

• Under Single Premium payment (Option C & Option D):
  • If policyholder commits suicide within 12 Months from the date of commencement of risk, only 80% of the premium paid till death will be refunded to the nominee.

How to buy LIC Dhan Sanchay Plan

This plan can be purchased through,

• Agents
• Point of Sales Persons-Life Insurance (POSP-LI)
• Common Public Service Centers (CPSC-SPV)
• Online

Documents required to buy LIC Dhan Sanchay Plan

following documents are needed to buy this plan.

• LIC Proposal form, duly filled and signed by the proposer/Policyholder/Life Assured
• Photograph of the Policyholder
• Age proof of the proposer
• Identity proof of the proposer/Poliholder
• Address proof of the proposer
• Medical examination report of the life insured is required.
• Income proof of the proposer if the sum assured or the premium of the policy is high
• PAN card of the proposer
• Cheque on the name of “Life Insurance Corporation of India/LIC of India” towards policy premium.
• Cancelled cheque for NEFT registration for new/existing life insurance policy.

LIC Dhan Sanchay Plan FAQs