LIC's Dhan Sanchay (Plan No. 865)

 

Sure, here's an overview of LIC's Dhan Sanchay plan:

What is LIC Dhan Sanchay?

LIC Dhan Sanchay is a non-linked, non-participating individual savings life insurance plan offered by the Life Insurance Corporation of India (LIC). It provides a combination of protection and savings, offering financial support to the policyholder's family in case of death while also providing guaranteed income payments if the policyholder survives the policy term.

Key features of LIC Dhan Sanchay:

• Death benefit: In case of the policyholder's death during the policy term, the nominee receives the sum assured on death, which is higher of 125% of the basic sum assured or 7 times the annual premium.
• Guaranteed income benefit (GIB): The policyholder receives a guaranteed income payment for a specified period after the policy term ends. The GIB is calculated as a percentage of the basic sum assured, and the percentage depends on the policy term and the premium payment term.
• Maturity benefit: If the policyholder survives the policy term, they receive the sum assured along with any accrued bonuses.
• Guaranteed bonus: The plan offers guaranteed bonuses at the rate of Rs. 50 per Rs. 1,000 sum assured for the first 5 years, Rs. 55 per Rs. 1,000 sum assured for the next 5 years, and Rs. 60 per Rs. 1,000 sum assured for the remaining years of the policy term.
• Tax benefits: Premiums paid for LIC Dhan Sanchay are eligible for tax deduction under Section 80C of the Income Tax Act, 1961. The maturity benefit and death benefit are also tax-free under certain conditions.

Eligibility for LIC Dhan Sanchay:

• Minimum age at entry: 8 years
• Maximum age at entry: 50 years
• Policy term: 20 years or 25 years
• Premium payment term: 10 years, 15 years, or 20 years

Things to consider:

• LIC Dhan Sanchay is a non-linked plan, which means that the returns are guaranteed but not market-linked.
• The plan does not offer any riders or add-on benefits.
• Premiums for LIC Dhan Sanchay are relatively higher compared to other similar plans.

Overall, LIC Dhan Sanchay is a good option for individuals looking for a traditional savings life insurance plan with guaranteed returns and death benefit protection. However, it is important to compare different plans before making a decision.

Here are some of the pros and cons of LIC Dhan Sanchay:

Pros:

• Guaranteed death benefit
• Guaranteed income benefit
• Tax benefits

Cons:

• Non-linked plan
• No riders or add-on benefits
• Relatively higher premiums

Comparison with LIC Bima Ratna:

LIC Dhan Sanchay and LIC Bima Ratna are both traditional savings life insurance plans offered by LIC. Both plans offer guaranteed death benefit and tax benefits. However, there are some key differences between the two plans:

Feature	LIC Dhan Sanchay	LIC Bima Ratna
Policy term	20 years or 25 years	20 years or 25 years
Premium payment term	10 years, 15 years, or 20 years	10 years or 20 years
Guaranteed income benefit	Yes	No
Guaranteed bonus	Yes	Yes
Riders or add-on benefits	No	Yes
Premiums	Relatively higher	Relatively lower

In general, LIC Dhan Sanchay is a better option for individuals who are looking for a plan with guaranteed income benefits. LIC Bima Ratna is a better option for individuals who are looking for a plan with lower premiums or who want the flexibility to add riders or add-on benefits.