A Complete Guide with Example & Benefits
Launched on 13th December 2021, LIC of India introduced a unique life insurance-cum-savings plan called the LIC Dhan Rekha (Plan No. 863). This plan is designed to provide a combination of financial protection, guaranteed returns, and liquidity with both limited premium and single premium payment options.
This is a non-linked, non-participating, individual savings life insurance plan, meaning it does not invest in equity markets and offers fixed guaranteed returns.
✅ Key Highlights of LIC Dhan Rekha 863
- 100% Guaranteed Maturity Payout
- Money Back at regular intervals
- Single Premium and Limited Premium Payment options
- Attractive Guaranteed Additions starting from the 6th policy year
- Loan and Surrender facilities available after 2 years
- Income tax benefits under Sections 80C and 10(10D)
- Can be purchased offline or online
🛡️ What Makes LIC Dhan Rekha Special?
LIC Dhan Rekha is designed for those who:
- Want fixed and guaranteed returns
- Prefer lesser premium paying years compared to policy term
- Need intermittent payouts (money-back benefits)
- Seek financial protection for their family in case of untimely death
📋 Eligibility Criteria & Plan Parameters
| Criteria | Details |
|---|---|
| Entry Age (Min.) | 90 days (for 40 yrs term) 3 years (30 yrs term) 8 years (20 yrs term) |
| Entry Age (Max.) | Single Premium: Up to 60 years |
| Limited Premium: Up to 55 years | |
| Policy Terms | 20, 30, 40 years |
| Premium Paying Terms | 10, 15, 20 years (or Single) |
| Basic Sum Assured | ₹2,00,000 and above (in ₹25,000 multiples) |
| Maturity Age (Max.) | 80 years |
| Premium Modes | Yearly, Half-Yearly, Quarterly, Monthly, Single |
| Loan Facility | Available after 2 years |
| Surrender Option | After 2 years of premium payment |
💰 Guaranteed Additions
Guaranteed Additions are accrued from the 6th policy year and vary depending on the policy term:
| Policy Term | Guaranteed Additions per ₹1,000 Sum Assured |
|---|---|
| 6 to 20 years | ₹50 |
| 21 to 30 years | ₹55 |
| 31 to 40 years | ₹60 |
These additions are payable at maturity or death, provided premiums are paid as due.
💵 Survival Benefits (Money Back)
LIC Dhan Rekha offers fixed money-back payouts during the term:
| Policy Term | Money Back Schedule |
|---|---|
| 20 Years | 10% of Sum Assured at 10th & 15th year |
| 30 Years | 15% of Sum Assured at 15th, 20th & 25th year |
| 40 Years | 20% of Sum Assured at 20th, 25th, 30th & 35th year |
🎯 Maturity Benefit
On survival till maturity, the policyholder receives:
Sum Assured on Maturity + Accrued Guaranteed Additions
For example, if the policy term is 30 years and Sum Assured is ₹10,00,000, the policyholder gets ₹10,00,000 + total Guaranteed Additions at maturity (excluding the money-back payouts already received).
⚰️ Death Benefits
In case of unfortunate death during the policy term:
| Premium Type | Death Benefit |
|---|---|
| Single Premium | 125% of Sum Assured + Guaranteed Additions |
| Limited Premium | Higher of 125% of Sum Assured OR 7x Annual Premium (Min. 105% of premiums paid) + Guaranteed Additions |
For minors below 8 years, if death occurs before risk commencement, premiums paid (excluding tax & rider) are returned.
📊 Example: LIC Dhan Rekha 863 – ₹10 Lakhs, 30-Year Term
Policyholder: Sandeep
Age at Entry: 30 Years
Sum Assured: ₹10,00,000
Policy Term: 30 Years
Premium Paying Term: 15 Years
Annual Premium: ₹76,642 (1st year), ₹74,992 (2nd year onward)
🔹 Total Premium Paid: ₹11,26,530 (over 15 years)
🔹 Money Back Benefits:
- ₹1,50,000 each at end of 15th, 20th & 25th year = ₹4,50,000
🔹 Maturity Benefit:
- Sum Assured: ₹10,00,000
- Guaranteed Additions: ₹13,00,000
- Total Maturity Payout = ₹23,00,000
🔹 Total Return:
- ₹27,50,000 (₹4,50,000 + ₹23,00,000)
📉 Year-wise Illustration: Key Events
| Age | Year | Annual Premium | Guaranteed Additions | Money Back | Normal Life Cover |
|---|---|---|---|---|---|
| 30 | 2021 | ₹76,642 | – | – | ₹12,50,000 |
| 35 | 2026 | ₹74,992 | ₹2,50,000 | – | ₹15,00,000 |
| 44 | 2035 | ₹0 | ₹4,50,000 | ₹1,50,000 | ₹17,50,000 |
| 49 | 2040 | ₹0 | ₹7,50,000 | ₹1,50,000 | ₹20,00,000 |
| 54 | 2045 | ₹0 | ₹10,50,000 | ₹1,50,000 | ₹22,75,000 |
| 60 | 2051 | ₹0 | ₹13,00,000 | ₹0 | ₹25,50,000 |
⚠️ In Case of Death (e.g. in 2042, Age 51)
- Total Premium Paid: ₹11,26,530
- Death Claim (Normal): ₹20,55,000
- Death Claim (Accidental): ₹30,55,000
- Money Back already received will not be deducted
🔁 Surrender, Loan & Paid-Up Value
| Feature | Condition |
|---|---|
| Loan Facility | After 2 years |
| Surrender | After 2 years of premium payment |
| Paid-up Value | Available after 2 full years of premium |
Paid-Up Value Formula:
= Sum Assured × (Premiums Paid ÷ Total Premiums Payable)
📝 Additional Features
- Riders Available:
- Accidental Death & Disability Benefit Rider
- Term Assurance Rider
- Critical Illness Rider
- Premium Waiver Benefit Rider (PWB)
- Suicide Clause:
- Within 12 months: 80% of premium returned
- After 12 months: Full claim payable
- Cooling-Off Period:
- 15 days from policy receipt for free cancellation
- Proposal Forms Used:
- Form No. 300 & 360
📌 Summary of LIC Dhan Rekha Plan 863
| Feature | Details |
|---|---|
| Policy Type | Non-Linked, Non-Participating, Savings Plan |
| Payment Options | Single or Limited Premium (10, 15, 20 yrs) |
| Money Back Payouts | 2, 3 or 4 depending on term |
| Maturity Benefit | 100% Guaranteed Sum Assured + Additions |
| Death Benefit | 125% SA or 7× premium + Additions |
| Tax Benefits | Under Sec 80C & 10(10D) |
| Ideal For | Long-term savings + periodic liquidity |
