LIC Introduces Individual Savings Life Insurance Plan

On Monday, the Life Insurance Corporation of India (LIC) introduced a non-participating, non-linked, individual savings life insurance plan called Dhan Rekha, effective from 13 December 2021.

According to the LIC press release, the plan has unique features and various benefits. It has special premium rates for females and is available to the third gender. All the benefits provided under this plan are fully guaranteed.

Features of the Savings Life Insurance Plan

The plan provides a policyholder with a percentage of the basic sum assured as a survival benefit starting from the end of the premium-paying term at regular intervals, provided the policy is in force.

Upon maturity of the plan, the policyholder receives the entire assured sum without deducting the money-back amount received and the accrued guaranteed additions. In case of single premium death, the sum assured is 125% of the basic sum assured plus guaranteed additions. The plan gives financial support for the family in case of the policyholder’s death during the policy term.

In case of limited payment premium death, the sum assured is 125% of the basic assured sum or seven times of the annualised premium, whichever is higher, not less than 105% of all the premium paid up to date of death along with guaranteed additions. The guaranteed additions will accrue at the end of each policy year, starting from the sixth policy year to the end of the policy term.

The plan provides a provision to receive death and maturity benefits in instalments for five years instead of a lump sum. The premium can be a limited premium or single premium payment option of ten years, 15 years and 20 years.

Coverage of the Savings Life Insurance Plan

The savings life insurance plan takes care of the liquidity needs of the policyholder through a loan facility. Under this plan, optional riders are available upon additional premium payment subject to conditions.

Under the Dhan Rekha plan, the minimum sum assured is Rs.2 lakh, and there is no limit for the maximum sum assured. The minimum age to enter ranges from 90 days to eight years, and the maximum age to enter ranges from 35 years to 55 years, depending upon the selected policy term.

The plan is available for offline purchase mode through agents or intermediaries, including the Point of Sales Person-Life Insurance (POSP-LI) or Common Public Service Centres (CPSC-SPV), as well as online purchase directly through the LIC India website (

For any clarifications/feedback on the topic, please contact the writer at

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