LIC Dhan Varsha : Looking for a secure investment with high returns and guaranteed benefits? LIC Dhan Varsha might be the perfect fit. As one of LIC’s limited premium payment policies, it offers the twin benefits of life coverage and a lump sum maturity amount. But what really turns heads is its potential for 10x returns under the right circumstances. Here’s how you can make the most of it.
What is LIC Dhan Varsha?
LIC Dhan Varsha is a non-linked, non-participating, individual savings life insurance plan offered by the Life Insurance Corporation of India (LIC). This plan is designed for those looking for short-term premium commitment and long-term financial security. Unlike regular endowment plans, Dhan Varsha is a single premium plan, meaning you pay only once and enjoy coverage for a fixed term.
The plan offers guaranteed returns, life cover, and tax benefits—all while providing peace of mind with zero risk from market fluctuations. It is ideal for conservative investors, especially those nearing retirement or with low risk tolerance.
Key Features of LIC Dhan Varsha
- Single premium payment – pay only once and enjoy benefits throughout the policy term
- Guaranteed returns – fixed benefits at maturity, irrespective of market volatility
- Two plan options – choose between Option 1 and Option 2 based on your risk appetite
- Flexible policy terms – choose between 10 and 15 years
- Tax benefits – under Sections 80C and 10(10D) of the Income Tax Act
- Loan facility – available after the first policy year
LIC Dhan Varsha Plan Options: Comparison
LIC Dhan Varsha comes in two variations. Here’s a detailed comparison to help you decide which one suits your financial goals:
| Feature | Option 1 | Option 2 |
|---|---|---|
| Death Benefit | 1.25 times the single premium | 10 times the single premium |
| Maturity Benefit | Guaranteed Sum Assured | Guaranteed Sum Assured |
| Risk Coverage | Medium | High |
| Premium Payment | One-time | One-time |
| Policy Term | 10 or 15 years | 10 or 15 years |
| Eligibility Age | 3 to 60 years | 3 to 40 years |
| Best Suited For | Conservative investors | Investors seeking high life cover |
Eligibility Criteria and Policy Details
Here are the basic requirements and policy terms associated with LIC Dhan Varsha:
| Criteria | Details |
|---|---|
| Minimum Entry Age | 3 years (completed) |
| Maximum Entry Age (Opt 1) | 60 years |
| Maximum Entry Age (Opt 2) | 40 years |
| Policy Term | 10 or 15 years |
| Premium Payment Mode | Single |
| Minimum Premium | ₹50,000 (varies with age & option) |
| Maximum Premium | No limit (subject to underwriting) |
| Maturity Benefit | Guaranteed Sum Assured |
| Loan Facility | Yes, after 3 months |
How LIC Dhan Varsha Offers 10x Returns
You may wonder how a traditional insurance plan can offer up to 10x returns. Here’s how:
- Option 2 provides 10x life cover: If you opt for Option 2, your nominee receives 10 times the premium paid in case of your unfortunate demise during the policy term.
- Guaranteed Maturity Benefit: On survival, you receive the guaranteed sum assured at maturity, which can be significantly higher than your one-time investment, depending on your age and the policy term.
- Tax-Free Returns: The maturity benefit is tax-free under Section 10(10D), enhancing your effective return.
See more : How Many Years Does It Take to Double Your Money in LIC?
Here’s an example to make it clearer:
| Age | Premium Paid | Policy Term | Option Chosen | Death Benefit | Maturity Benefit |
|---|---|---|---|---|---|
| 30 | ₹1,00,000 | 15 years | Option 2 | ₹10,00,000 | ₹2,30,000 |
| 40 | ₹1,00,000 | 10 years | Option 2 | ₹10,00,000 | ₹1,90,000 |
| 50 | ₹1,00,000 | 10 years | Option 1 | ₹1,25,000 | ₹1,50,000 |
Note: Maturity values are indicative and may vary based on age and other underwriting factors.
Benefits of Investing in LIC Dhan Varsha
- No market risk: Guaranteed returns ensure your investment is protected
- High life cover in Option 2: Ideal for those seeking comprehensive protection
- One-time payment: No hassle of yearly premium payments
- Liquidity via loans: Need funds mid-way? You can get a loan against the policy
- Tax savings: Premium qualifies for deduction under Section 80C
- Wealth transfer: Efficient tool for intergenerational wealth planning
Is LIC Dhan Varsha Right for You?
LIC Dhan Varsha is ideal if:
- You want a risk-free investment with guaranteed maturity value
- You have a lump sum amount to invest and don’t want to commit to regular premiums
- You’re looking for life cover along with savings
- You prefer tax-efficient returns and long-term wealth preservation
- You are nearing retirement age and want safe investment options
However, if you’re looking for high market-linked returns, mutual funds or ULIPs might be better suited.
Frequently Asked Questions (FAQs)
1. Can I surrender the LIC Dhan Varsha plan before maturity?
Yes, you can surrender the policy anytime after 3 months. A surrender value will be paid depending on the duration and policy terms.
2. Are the returns guaranteed?
Yes, the maturity and death benefits are fixed at the time of policy inception and are not linked to market performance.
3. Can I revive the policy if it lapses?
Since this is a single premium policy, revival is not applicable.
4. Can I take a loan against the policy?
Yes, you can avail a loan after 3 months from the date of policy commencement.
5. Is LIC Dhan Varsha available online?
Yes, you can purchase it directly through the LIC website or visit your nearest LIC branch.
LIC Dhan Varsha is a powerful investment tool for those who value safety, guaranteed returns, and life coverage in a single product. Its simplicity, combined with high protection and stable returns, makes it suitable for conservative investors. If you’re looking to invest a lump sum amount and want the assurance of LIC’s legacy and