Life insurance is a crucial aspect of financial planning, providing a safety net for your loved ones in the event of an unforeseen circumstance. One popular life insurance policy offered by LIC (Life Insurance Corporation of India) is the Lic Jeevan Dhara II Policy. This policy combines the benefits of insurance coverage and savings in a single plan, offering financial security and peace of mind to policyholders. In this comprehensive guide, we will delve into the details of the Lic Jeevan Dhara II Policy, its features, benefits, eligibility criteria, and other important aspects.
Understanding Lic Jeevan Dhara II Policy
What is Lic Jeevan Dhara II Policy?
The Lic Jeevan Dhara II Policy is a non-linked, with-profits, limited premium payment whole life assurance plan offered by LIC. This policy provides financial protection against the risk of premature death throughout the lifetime of the life assured. It also offers the opportunity to fund long-term financial goals through the accrued bonuses and maturity benefits.
Features of Lic Jeevan Dhara II Policy
- Whole Life Assurance: The policy provides life cover up to the age of 100 years of the life assured.
- Limited Premium Payment: Premiums are payable for a limited period, while the coverage continues for the entire lifetime.
- Loan Facility: Policyholders can avail of a loan against the policy after the policy acquires a surrender value.
- Bonuses: The policy participates in the profits of the Corporation and receives bonuses declared by LIC.
- Maturity Benefits: The policy matures at the age of 100 years of the life assured or on death, whichever is earlier.
Benefits of Lic Jeevan Dhara II Policy
- Death Benefit: In the unfortunate event of the death of the life assured during the policy term, the nominee receives the sum assured along with accrued bonuses.
- Maturity Benefit: If the life assured survives till the maturity of the policy, he/she receives the sum assured along with the vested bonuses.
- Surrender Value: The policy acquires a surrender value after payment of three full years’ premiums. The policyholder can surrender the policy and receive the surrender value.
- Tax Benefits: Premiums paid towards the policy are eligible for tax benefits under Section 80C, and the maturity proceeds are tax-free under Section 10(10D) of the Income Tax Act.
Eligibility Criteria for Lic Jeevan Dhara II Policy
- Entry Age: The minimum entry age for the policy is 18 years, and the maximum entry age is 58 years.
- Policy Term: The policy term ranges from 10 to 40 years, subject to the maximum age of 100 years of the life assured.
- Premium Payment Term: Premiums are payable for a limited period, which can be opted for 15, 20, or 25 years.
- Sum Assured: The minimum sum assured under the policy is Rs. 1 lakh, with no maximum limit (subject to underwriting norms).
How Lic Jeevan Dhara II Policy Works
Once the policy is purchased, the policyholder needs to pay the premium for the selected premium payment term. The accrued bonuses start accumulating after a certain period, adding to the policy’s maturity value. In the unfortunate event of the death of the life assured during the policy term, the nominee receives the death benefit comprising the sum assured and bonuses. If the life assured survives till the maturity of the policy, he/she receives the maturity benefit, including the sum assured and accrued bonuses.
Frequently Asked Questions (FAQs)
Q1. What is the minimum and maximum entry age for the Lic Jeevan Dhara II Policy?
A1. The minimum entry age for the policy is 18 years, while the maximum entry age is 58 years.
Q2. Can I avail of a loan against the Lic Jeevan Dhara II Policy?
A2. Yes, policyholders can avail of a loan against the policy after it acquires a surrender value.
Q3. Are the premiums paid towards the policy eligible for tax benefits?
A3. Yes, premiums paid towards the policy are eligible for tax benefits under Section 80C of the Income Tax Act.
Q4. What happens if the life assured survives till the maturity of the policy?
A4. If the life assured survives till the maturity of the policy, he/she receives the maturity benefit comprising the sum assured and accrued bonuses.
Q5. Is there a surrender value associated with the Lic Jeevan Dhara II Policy?
A5. Yes, the policy acquires a surrender value after payment of three full years’ premiums.
In conclusion, the Lic Jeevan Dhara II Policy offered by LIC is a comprehensive whole life insurance plan that provides financial protection and long-term savings. By understanding the features, benefits, eligibility criteria, and workings of this policy, individuals can make an informed decision about investing in their financial security. Remember to consult with a financial advisor to assess your insurance needs and determine if this policy aligns with your financial goals.
