LIC discontinues with Dhan Vriddhi scheme. Check rules to surrender policy

The Life Insurance Corporation of India (LIC) has withdrawn its Dhan Vriddhi scheme. The scheme is a non-linked, non-participating, individual savings life insurance plan that offers a combination of protection and savings. It also provides a guaranteed lump sum amount on the date of maturity to the life assured. It was first launched on June 23, 2023 and then closed in September.

This year, it was relaunched in February and then closed on April 1.  

The LIC Dhan Vriddhi plan offers financial protection to the insured’s family in the event of their untimely demise within the policy duration. This plan ensures that loved ones receive necessary financial support during challenging times, providing a sense of security and stability for the future.

The plan was offered for terms of 10, 15, or 18. Depending on the term chosen, the admission age will range from 90 days to 8 years. Depending on the term and choice chosen by the users, the maximum entry age ranges from 32 to 60 years. The basic sum assured was Rs 1.25 lakh, with the option to increase it by multiples of Rs. 5,000.

Top features of Dhan Vriddhi scheme

> Single Premium Plan
> Choice between the Policy Term and the Death Cover
> Guaranteed Additions throughout the Policy term
> Higher Guaranteed Additions for policies with higher Basic Sum Assured
> Lumpsum Benefit on Death or Maturity 
> Option to take Death Benefit in Instalment and Settlement Option on Maturity
> Option to choose riders i.e. LIC’s Accidental Death & Disability Benefit Rider and LIC’s New Term Assurance Rider
> Policy Loan available

Surrender rules

As per the the LIC policy document, “The policy 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 and Special Surrender Value. The Guaranteed Surrender Value (GSV) payable under the policy shall be:

> During the First three policy year: 75% of the Single Premium
> Thereafter: 90% of the Single Premium Single premium referred above shall not include taxes, extra premiums and rider premium(s), if any.

In addition, the surrender value of accrued Guaranteed Additions i.e. accrued Guaranteed Additions multiplied by GSV factor applicable to the accrued Guaranteed Additions, shall also be payable.

These GSV factors expressed as percentages will depend on the policy term and policy year in which the policy is surrendered and are given below:

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