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Published on:
January 30, 2023
By
Jasmine John

LIC Dhan Varsha 866 Plan Details

The LIC Dhan Varsha 866 Plan is a traditional endowment life insurance plan offered by the Life Insurance Corporation of India (LIC). This plan is designed to provide financial security to policyholders and their families in the event of the policyholder's untimely death. It also provides a savings component, as the policy accumulates a cash value over time.

Features of LIC Dhan Varsha 866 Plan

One of the key features of the Dhan Varsha 866 Plan is the option to choose between two different premium paying terms: 10 or 20 years. Policyholders can also choose the sum assured (the amount of death benefit provided to the beneficiaries) at the time of purchasing the policy. This allows for flexibility in terms of how much coverage is needed and how much the policyholder can afford to pay in premiums.

Another important feature of this plan is the bonus system. The Dhan Varsha 866 Plan is eligible for reversionary bonuses, which are declared annually by LIC and are added to the sum assured. This helps to increase the death benefit provided to the beneficiaries and also increases the cash value of the policy. The plan is also eligible for terminal bonuses, which are paid out at the end of the policy term, again increasing the death benefit and cash value.

The Dhan Varsha 866 Plan also provides an option to take a loan against the policy. The policyholder can take a loan up to 90% of the surrender value of the policy after 3 full years of premium payments. This can be useful in case of financial emergencies.

The Dhan Varsha 866 Plan also provides the flexibility to make partial withdrawals from the cash value of the policy. This can be useful for policyholders who need access to cash for specific expenses, such as children's education or a down payment on a house.

The Downside of LIC Dhan Varsha 866 Plan

One potential downside of the Dhan Varsha 866 Plan is that it is a traditional endowment plan, which means that the policyholder is required to pay premiums for the entire policy term. If the policyholder is unable to make premium payments, the policy will lapse and the policyholder will lose the coverage and cash value accumulated in the policy.

Conclusion

Overall, the LIC Dhan Varsha 866 Plan is a solid option for individuals looking for a traditional endowment life insurance plan with a savings component. It offers flexibility in terms of premium paying terms and sum assured, as well as the option for bonuses, loans, and partial withdrawals. However, it is important to keep in mind that it is a long-term commitment and that missed premiums will result in a policy lapse.

It is advisable to always consult with a financial advisor before making any decision on insurance policies.

FAQs

Q: What is the LIC Dhan Varsha 866 Plan?

A: The LIC Dhan Varsha 866 Plan is a traditional endowment life insurance plan offered by the Life Insurance Corporation of India (LIC). It provides financial security to policyholders and their families in the event of the policyholder's untimely death and also provides a savings component as the policy accumulates cash value over time.

Q: What are the premium paying options for the Dhan Varsha 866 Plan?

A: Policyholders can choose between two different premium paying terms: 10 or 20 years. This allows for flexibility in terms of how much coverage is needed and how much the policyholder can afford to pay in premiums.

Q: What is the sum assured for the Dhan Varsha 866 Plan?

A: Policyholders can choose the sum assured (the amount of death benefit provided to the beneficiaries) at the time of purchasing the policy.

Q: What type of bonuses does the Dhan Varsha 866 Plan offer?

A: The Dhan Varsha 866 Plan is eligible for reversionary bonuses and terminal bonuses, which are declared annually by LIC. These bonuses are added to the sum assured and increase the death benefit provided to the beneficiaries and also increase the cash value of the policy.

Q: Is loan available against the policy?

A: Yes, Policyholder can take a loan up to 90% of the surrender value of the policy after 3 full years of premium payments.

Q: Is there an option for partial withdrawals in the Dhan Varsha 866 Plan?

A: Yes, The Dhan Varsha 866 Plan provides the flexibility to make partial withdrawals from the cash value of the policy. This can be useful for policyholders who need access to cash for specific expenses.

Q: What happens if I miss a premium payment on the Dhan Varsha 866 Plan?

A: If the policyholder is unable to make premium payments, the policy will lapse and the policyholder will lose the coverage and cash value accumulated in the policy.

Q: Is it a long-term commitment?

A: Yes, the Dhan Varsha 866 Plan is a long-term commitment and the policyholder is required to pay premiums for the entire policy term.

It is advisable to always consult with a financial advisor before making any decision on insurance policies.

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Updated on:
March 16, 2024