LIC Dhan Vriddhi: Single Premium, Guaranteed Returns

LIC Dhan Vriddhi is the answer for people who receive a large lump sum, a bonus, inheritance, maturity proceeds from another policy, or proceeds from selling an asset, and want to invest it safely with guaranteed returns and life cover.

Here is the core structure. You pay a single premium upfront. LIC then guarantees a fixed maturity amount at the end of your chosen term (10, 15, or 18 years). The plan is non-linked, it has absolutely no exposure to equity markets or interest rate fluctuations. The return is locked in at the time of purchase.

The guaranteed addition rate as of 2026 is approximately ₹125 to ₹135 per ₹1,000 sum assured per year, depending on the policy term. This translates to an effective yield of around 6.5% to 7.5% annually, not spectacular by equity standards, but guaranteed and tax-efficient.

Let me illustrate. If you invest ₹5 lakh as a single premium in Dhan Vriddhi with a 15-year term, and the sum assured works out to approximately ₹7 lakh (after applying the single premium rates), the guaranteed maturity proceeds in 15 years would be approximately ₹12.5 to ₹14 lakh. This is fully tax-free under Section 10(10D). The effective post-tax return is significantly better than a bank fixed deposit where the interest is fully taxable.

Dhan Vriddhi is also useful for NRIs who receive foreign remittances and want a safe, guaranteed rupee-denominated instrument with life cover.

Who should avoid this plan? Anyone who needs liquidity in the short term, surrendering early results in significant penalty. Also, if your goal is maximum growth over long periods (10+ years), mutual funds have historically outperformed. But if you prioritise capital safety, zero market risk, guaranteed returns, life cover, and tax-free maturity, Dhan Vriddhi is a strong choice.

I can help you calculate the exact premium, sum assured, and guaranteed maturity amount for your specific investment amount. Call 9415313434.

Use our free [Surrender Value Calculator](/calculators/surrender-value) to calculate your own numbers.