LIC Dhan Sanchay Plan (865) - UIN 512N346V01
LIC Dhan Sanchay Plan (865) Review
LIC’s Dhan Sanchay is a Non-Linked, Non-Participating, Individual, Savings, Life Insurance Plan which offers a combination of protection and savings. This plan provides financial support to the family in case of unfortunate death of the life assured during the policy term. It also provides a guaranteed income stream during the Payout Period from the date of maturity.
| Launch Date | 14th June 2022 |
| 14th June 2022 | 865 |
| Product Type | Endowment |
| Bonus | Yes |
| UIN | 512N346V01 |
How to buy the LIC Dhan Sanchay Plan (865)
This plan can be purchased Offline through agents/other intermediaries including Point of Sales Persons-Life Insurance (POSP-LI)/Common Public Service Centers (CPSC-SPV) as well as Online directly through website www.licindia.in.
Rider Benefits
Policy Loan
Free Look Period
Compare this plan with other Investment Plans
Key Features
Rider Benefits
- Accidental Death and Disability Benefit Rider
- Accident Benefit Rider
- New Term Assurance Rider
- Premium Waiver Benefit Rider
- New Critical Illness Benefit Rider
Payment of Premium
- Monthly
- Quarterly
- Half-yearly
- Yearly
Grace Period
- 15 days: Monthly premium
- 30 days: Quarterly, half-yearly, and yearly premium
Policy Loan
Loan against policy can be availed
Free Look Period
If you are dissatisfied with the policy's terms and conditions, you can return the policy to the corporation within 30 days of receipt of the policy bond indicating the grounds for the objections.
Benefits
Maturity Benefit
On Life Assured surviving the stipulated Date of Maturity, maturity benefit shall be payable in the form of Guaranteed Income Benefit (GIB) and Guaranteed Terminal Benefit (GTB).
i) Guaranteed Income Benefit (GIB): Guaranteed Income Benefit shall be payable in advance during the Payout Period from the date of maturity i.e. the first installment of GIB will be made on the Date of Maturity and thereafter, based on the Payout Mode opted for by the Policyholder.
For Regular/ Limited premium payment
Payout Period of GIB = Premium Paying Term
For Single premium payment
Payout Period of GIB = Policy Term
Guaranteed Income Benefit depends on the Benefit Option chosen by the policyholder, Policy Term and Premium Paying Term and shall be as below:
a) Under Regular/ Limited Premium payment (Option A & Option B):
Guaranteed Income Benefit amount shall be calculated as under:
Guaranteed Income Benefit = Annualised Premium x GIB Multiple x Modal factor for GIB
GIB Multiples applicable for Option A & Option B are as under:
| Option | Policy Term | Premium Paying Term | Payout Period | GIB Multiple |
| Option A-Level Income Benefit | 10 | 5 | 5 | 1.10 |
| 10 | 10 | 10 | 1.30 | |
| 15 | 5 | 5 | 1.40 | |
| 15 | 10 | 10 | 1.60 | |
| 15 | 15 | 15 | 1.65 | |
| Option B-Increasing Income Benefit |
10 | 5 | 5 | 1.00 |
| 10 | 10 | 10 | 1.05 | |
| 15 | 5 | 5 | 1.25 | |
| 15 | 10 | 10 | 1.30 | |
| 15 | 15 | 15 | 1.30 |
Under Option-A Guaranteed Income Benefit shall remain constant during the Payout Period.
Under Option-B Guaranteed Income Benefit shall be increased yearly by a simple rate of 5% per annum on completion of each year of the Payout Period and shall remain the same during the year. GIB Multiples as mentioned in Option B above are applicable for the First Year of the Payout Period.
b) Under Single Premium payment (Option C & Option D):
Guaranteed Income Benefit amount shall be calculated as under:
Guaranteed Income Benefit = Single Premium x GIB Multiple x Modal factor for GIB
GIB Multiples applicable for Option C & Option D are as under:
| Option | Policy Term | Payout Period | GIB Multiple |
| Option C: Single Premium Level Income Benefit
|
5 | 5 | 0.25 |
| 10 | 10 | 0.18 | |
| 15 | 15 | 0.16 | |
| Option D: Single Premium enhanced cover with Level Income Benefit
|
5 | 5 | 0.20 |
| 10 | 10 | 0.15 | |
| 15 | 15 | 0.10 |
Under Option-C & Option-D Guaranteed Income Benefit shall remain constant during the Payout Period.
The applicable shall be as under:
| Payout Mode | Modal factor for GIB |
| Yearly | 1.0000 |
| Half-yearly | 0.5050 |
| Quarterly | 0.2537 |
| Monthly | 0.0850 |
ii) Guaranteed Terminal Benefit (GTB): Guaranteed Terminal Benefit (GTB) as a lump sum payment shall be payable along with the last installment of Guaranteed Income Benefit (GIB). After this payment, the policy shall terminate. Guaranteed Terminal Benefit depends on the Option chosen by the policyholder, Policy Term, Premium Paying Term & Age at Entry of life assured and shall be as under:
a) Under Regular/Limited Premium payment (Option A & Option B):
Guaranteed Terminal Benefit amount shall be calculated as under:
Guaranteed Terminal Benefit = Annualized Premium x GTB Multiple x Modal factor for GTB
Sample GTB Multiples applicable under Regular/ Limited premium payment are as under:
| Option | Age at Entry | GTB Multiple for Policy Term (Payout Period) | ||||
| Option A-Level Income Benefit | 10 (5) | 10(10) | 15 (5) | 15 (10) | 15 (15) | |
| 20 | 1.9659 | 2.0372 | 2.7260 | 3.7996 | 5.1431 | |
| 40 | 1.7459 | 1.8202 | 2.2881 | 3.2762 | 4.0068 | |
| Option B-Increasing Income Benefit | 20 | 1.9986 | 2.5316 | 2.9028 | 4.2653 | 4.2260 |
| 40 | 1.7787 | 2.3151 | 2.4649 | 3.7447 | 3.0958 | |
b) Under Single Premium payment (Option C & Option D):
Guaranteed Terminal Benefit amount shall be calculated as under:
Guaranteed Terminal Benefit = Single Premium x GTB Multiple x Modal factor for GTB
Sample GTB multiples applicable under Single Premium payment are as under:
| Option | Age at Entry | GTB Multiple for Policy Term (Payout Period) | ||
| Option A-Level Income Benefit | 5 (5) | 10 (10) | 15 (15) | |
| 20 | 0.1627 | 0.3724 | 0.9277 | |
| 40 | 0.1615 | 0.3606 | 0.8707 | |
| Option B-Increasing Income Benefit | 20 | 0.3568 | 0.5014 | 1.6821 |
| 40 | 0.2572 | 0.0469 | 0.2216 | |
The applicable Modal Factor for GTB shall be as under:
| Payout Mode | Modal factor for GTB |
| Yearly | 1.000 |
| Half-yearly | 1.020 |
| Quarterly | 1.035 |
| Monthly | 1.045 |
Death Benefit
Death benefit payable on the death of Life Assured during the policy term after the date of commencement of risk but before the stipulated date of maturity shall be “Sum Assured on Death”; where “Sum Assured on Death” for various options is defined as under:
| Option | Sum Assured on Death |
| Option A & Option B | “Sum Assured on Death” shall be higher of 11 times of “Annualized Premium”; or “Sum Assured on Maturity”; or 105% of total premiums paid up to the date of death. Total premiums paid means the total of all the premiums received, excluding any extra premium, any rider premium, and taxes. |
| Option C | “Sum Assured on Death” shall be higher than 1.25 times “Single Premium” or “Sum Assured on Maturity”. |
| Option D | “Sum Assured on Death” shall be 11 times “Single Premium”. |
Variants
To buy LIC Dhan Sanchay Plan, one has to submit the following documents:
- Plan Proposal Form duly filled in and signed
- Cheque or cash for the first premium
- A passport-sized photograph
- A valid Identity Proof
- A valid Address Proof
- Date of Birth Proof
- Vaccination certificate
How it works
The policyholder chooses the Sum Assured and the Term of the plan when buying the policy. Based on the age of the insured, the sum assured and the policy term selected, the premium is determined.
If the insured survives till the end of the policy term and all premiums have been paid, a Maturity Benefit would be paid to the policyholder. Maturity benefit would be equal to the Sum Assured + Bonus Amounts which have been received throughout the policy term + any Final Addition Bonus if declared. Now if the death of the insured occurs during the policy tenure, the nominee will get ‘Sum assured on death’ with Accrued Guaranteed Additions. Where “Sum Assured on Death” is defined as the higher of 125% of Basic Sum Assured or 7 times of annualized premium.
LIC Dhan Sanchay Plan (865) Policy Options
Following benefit options are available 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
The benefit option once chosen at inception cannot be altered.
Tax Benefit
Premiums – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act. The maximum exemption that can be availed is Rs.1.5 lakhs. To claim this exemption, the premium should be restricted to 10% of the Sum Assured selected.
Maturity Claim – Any amount received on plan maturity is exempt from taxation under Section 10(10D). To claim this exemption, the Sum Assured should be at least 10 times the premium amount paid.
Death Claim – Death claims received under the plan are free from taxation under Section 10(10D). There is no maximum limit on exemptions of death claims.
Premiums – The premiums paid for the plan are exempt from taxation under Section 80C of the Income Tax Act. The maximum exemption that can be availed is Rs.1.5 lakhs. To claim this exemption, the premium should be restricted to 10% of the Sum Assured selected.
Maturity Claim – Any amount received on plan maturity is exempt from taxation under Section 10(10D). To claim this exemption, the Sum Assured should be at least 10 times the premium amount paid.
Death Claim – Death claims received under the plan are free from taxation under Section 10(10D). There is no maximum limit on exemptions of death claims.
Eligibility
| Minimum | Maximum | |
| Entry Age | 3 years | Option A & B: 50 Years Option C: 65 Years Option D: 40 Years |
| Maturity Age | 18 years | Option A & B:65 Years Option C: 80 Years Option D: 55 Years |
| Policy Term | Option A & B:10 & 15 years Option C & D: 5, 10 & 15 years |
|
| Premium Paying Term | 5 & 10 years for 10 Year Policy Term. 5, 10 & 15 years for 15 Year Policy Term. |
|
| Payout Period | Option A & B: Equal to Premium Paying Term Option C & D: Equal to Policy Term |
|
| Option A & B: ₹30,000 Option C & D: ₹2,00,000 |
No limit | |
| Sum Assured on Death | Option A & B: ₹3,30,000 Option C: ₹2,50,000 Option D: ₹22,00,000 |
No limit |
Surrender Value
Paid-up Value
If less than two full years’ premiums have been paid and any subsequent premium be not duly paid, all the benefits under this policy shall cease after the expiry of grace period from the date of First Unpaid Premium and nothing shall be payable.
If, after at least two full years’ premiums have been paid and any subsequent premiums be not duly paid, the policy shall not be wholly void, but shall subsist as a paid-up policy till the end of policy term.
The Sum Assured on Death under a paid-up policy shall be reduced to such a sum, called ‘Death Paid-up Sum Assured’ and shall be equal to Sum Assured on Death multiplied by the ratio of the total period for which premiums have already been paid bears to the maximum period for which premiums were originally payable. In case of Death of Life Assured during the policy term under a paid-up policy, ‘Death Paid-up Sum Assured’ shall be payable in lump sum and thereafter no further benefits shall be payable.
Surrender Value
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. The Special Surrender Value is reviewable and shall be determined by the Corporation from time to time subject to prior approval of IRDAI.
The Guaranteed Surrender Value payable under the policy shall be-
Under Regular/ Limited Premium payment (Option A & Option B): The Guaranteed Surrender Value payable during the policy term shall be equal to the total premiums paid (excluding any extra premium, any premiums for rider(s), if opted for and taxes), multiplied by the Guaranteed Surrender Value factor.
The Guaranteed Surrender Value factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered and are given below:
| Guaranteed Surrender Value factors for Option A & Option B | ||
| Policy Year | Policy Term | |
| 10 | 15 | |
| 1 | 0.00% | 0.00% |
| 2 | 30.00% | 30.00% |
| 3 | 35.00% | 35.00% |
| 4 | 50.00% | 50.00% |
| 5 | 50.00% | 50.00% |
| 6 | 50.00% | 50.00% |
| 7 | 50.00% | 50.00% |
| 8 | 65.00% | 54.29% |
| 9 | 90.00% | 58.57% |
| 10 | 90.00% | 62.86% |
| 11 | - | 67.14% |
| 12 | - | 71.43% |
| 13 | - | 75.71% |
| 14 | - | 90.00% |
| 15 | - | 90.00% |
Under Single Premium payment (Option C & Option D):
- During the first three policy years: 75% of the Single Premium
- After the third policy year: 90% of the Single Premium
Free-look Period
If the policyholder is not happy with the plan, he can cancel the policy within 15 days of the plan issuance. This period is called the free-look period. Upon cancellation, the premium paid net of any applicable expenses would be returned. To know more about the Free-Look Period, click here.
Exclusions
- If the insured commits suicide within 12 months of policy inception only 80% of the premium paid is refunded.
- If suicide is committed within 12 months of policy revival, a higher of 80% of the premium paid or the Surrender Value is paid.
FAQs
Are riders available under the plan?You have the choice of taking the following rider by paying an extra premium amount:
Under Regular/Limited premium payment (Option A & Option B), the following five optional riders are available.
LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
LIC’s Accident Benefit Rider (UIN:512B203V03)
LIC’s New Term Assurance Rider (UIN: 512B210V01)
LIC’s New Critical Illness Benefit Rider (UIN: 512A212V02)
LIC’s Premium Waiver Benefit Rider (UIN: 512B204V03)
Under Single Premium payment (Option C & Option D) -
LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V02)
LIC’s New Term Assurance Rider (UIN: 512B210V01)
Does the plan provide a loan facility? Yes, loan shall be available during the policy term (i.e. before the start of the Payout Period under the Policy), within the surrender value of the policy. No Loan facility shall be available to the policyholder during the Payout Period.
The maximum Loan that can be granted shall be as under:
- Option A & Option B:
- For in-force policies: upto 90% of Surrender Value
- For paid-up policies: upto 80% of Surrender Value
- Option C & Option D: upto75% of Surrender Value
How much is the revival period?You can revive your lapsed policy within 5 years of the last paid premium. It is applicable in case of Option A & Option B only.
Claim Process
How to make a maturity or surrender claim?
A maturity claim is easy to make. The policyholder would have to fill and sign the claim discharge form and submit it to the insurer for availing of the maturity benefit along with the original policy document, NEFT Mandate Form, and age proof if age was not admitted earlier.
In case of surrender, the policyholder should inform the company in writing to avail the surrender value.
How to make a death claim?
In case of a death claim, the nominee should fill up the claim discharge form and submit it to the company along with -
- Original policy document
- NEFT Mandate Form for the direct settlement of claim into the nominee’s bank account
- Proof of Title which is the nominee’s Identity Proof
- Proof of Death - death certificate
- Medical treatments availed prior to death
- Proof of age if age was not admitted in the policy
- Police inquest report, newspaper cuttings reporting the accident, copy of driving license for road accidents, post-mortem report, etc. might be required in case of accidental or unnatural death.
This is an option to 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.
The instalments shall be paid in advance at yearly or half-yearly or quarterly or monthly intervals, as opted for, subject to minimum instalment amount for different modes of payments being as under:
| Mode of Instalment payment | Minimum instalment amount |
| Yearly | ₹5,000 |
| Half-yearly | ₹15,000 |
| Quarterly | ₹25,000 |
| Monthly | ₹50,000 |
