LIC launches Dhan Vriddhi, a single premium guaranteed endowment policy

At maturity, the policyholder will get the basic sum assured, along with guaranteed additions – essentially, returns earned - credited over the years to boost the corpus. In case of her death mid-term, the sum assured amount, along with guaranteed additions, will be handed over to the nominees.

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The guaranteed additions will accrue at the end of each policy year, throughout the tenure. These can range from Rs 60 to Rs 75 under option 1 and Rs 25 to Rs 40 under option 2 per Rs 1,000 of the basic sum assured. The quantum of guaranteed additions will depend on the option, basic sum assured and the policy tenure chosen. Guaranteed additions will be higher for larger covers.

Policyholders can also choose to add accidental death and disability benefit rider and New Term Assurance rider to the base life insurance policy. It can be purchased through the online route as well as through agents.

At maturity or death, the beneficiary will have the option to choose disbursal of the claim amount in monthly, quarterly, half-yearly and annual intervals for five years.

LIC has, since its initial public offering (IPO) was announced last year, made a conscious effort to increase the share of non-participating policies to drive up profitability margins. Traditionally, its portfolio has been skewed towards with-profits, or participating, policies that announce annual and terminal bonuses depending on the performance of the funds.