LIC Discontinues Dhan Vriddhi Scheme

The Life Insurance Corporation of India (LIC) has discontinued its Dhan Vriddhi scheme, a single-premium life insurance plan that offered a combination of protection and savings. This news comes after an interesting turn of events in 2024.

LIC’s Dhan Vriddhi details

The Dhan Vriddhi scheme was a classic endowment plan that provided both insurance coverage and savings. The plan included a guaranteed sum paid at maturity, as well as bonuses and other benefits. It was created for people who want to build wealth and secure their financial future.

  • It was originally launch on June 23, 2023, it provided a guaranteed lump sum amount on maturity and death benefit for the policyholder.
  • However, the scheme was withdrawn on September 30, 2023.
  • In a surprising turn of events, LIC reintroduced Dhan Vriddhi in February 2024.
  • Unfortunately, the scheme is discontinue yet again on April 1, 2024.

LIC Dhan Vriddhi Policy Features

  • It is a single premium plan.
  • Option to choose policy term and death cover.
  • Guaranteed additions during the policy term.
  • Higher Basic Sum Assured means higher profit
  • There is a large benefit at the time of death or maturity.
  • There is a loan facility on the policy.

Reasons for Discontinuation

  • Low interest rates: Traditional endowment plans such as Dhan Vriddhi depends primarily on interest rates. With low interest rates in the market, it is difficult for LIC to provide attractive returns on such schemes.
  • Increased competition: The insurance sector has been more competitive in recent years. LIC has competition from both private insurers and other financial organisations that provide comparable products with possibly higher returns.
  • Shift in consumer preferences: Consumer preferences are changing as they become more sophisticated and demanding in their investing decisions. They are searching for plans that provide flexibility, transparency, and increased returns.

Impact on Policyholders

Existing policyholders will be unaffect by the Dhan Vriddhi scheme’s withdrawal. All benefits, including death benefits and maturity payouts, will be paid according to the terms and conditions of the policy at the time of purchase. However, no new policies will be issued using this system in the future.


The discontinuation of LIC’s Dhan Vriddhi scheme marks a significant step in the insurance market. While this may be disappointing for some policyholders, it is critical to understand the rationale behind the decision and consider alternative investing opportunities. Policyholders can make informed decisions that match their specific needs by carefully assessing their needs and financial goals.