LIC Dhan Rekha Plan (Plan No. 863)
Non-Linked, Non-Participating, Individual Savings Life Insurance Plan
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The LIC Dhan Rekha Plan 863 is a unique life insurance product launched by the Life Insurance Corporation of India (LIC) on 13th December 2021. It is designed to offer a combination of life insurance protection and savings to policyholders.
However, as of 1st January 2025, this plan has been withdrawn from sale. Despite the withdrawal, understanding this plan and how to calculate its benefits is useful for those who already have this policy or are studying insurance schemes.
This plan is a non-linked, non-participating individual savings and life insurance plan that provides guaranteed benefits, money-back options, and financial security to the policyholder and their family. It comes with two modes of premium payment—single premium and limited premium payment—giving flexibility to the customers.
Key Features of LIC Dhan Rekha Plan 863
Before understanding the calculator, let’s explore some key features of this plan:
- Non-linked and Non-participating: This means the plan is not affected by market fluctuations and does not participate in the profits or losses of the corporation.
- Guaranteed Additions: The plan offers guaranteed additions on the sum assured at a specified rate during the policy term.
- Money Back Benefits: Periodic survival benefits are paid to the policyholder at predetermined intervals, making it a money-back plan.
- Death Benefit: Financial protection is provided to the family in case of the policyholder’s unfortunate death during the policy term.
- Loan Facility: Policyholders can avail loans against their policy to meet urgent liquidity needs.
- Premium Payment Options: Customers can choose between a single premium payment or limited premium paying term.
- Flexibility in Policy Term: The policy term can be selected based on the customer’s choice, usually ranging from 15 to 40 years.
This plan is ideal for individuals looking for a risk-free investment with periodic benefits and insurance cover.
LIC Dhan Rekha Plan 863 Launch and Withdrawal Dates
- Launch Date: 13th December 2021
- Withdrawal Date: 1st January 2025
The withdrawal indicates that LIC no longer sells this plan to new customers, but existing policyholders will continue to enjoy the benefits as per the terms.
For official confirmation and more details, you can visit LIC India’s official site and check the latest updates on withdrawn plans here.
How Does LIC Dhan Rekha Plan 863 Work?
To understand how this plan works, it is essential to know the benefits it provides:
Death Benefit
In case the policyholder dies during the policy term (post commencement of risk), the nominee receives the “Sum Assured on Death” along with accrued guaranteed additions.
- For single premium payment mode, the sum assured on death is 125% of basic sum assured.
- For limited premium payment mode, it is the higher of 125% of the basic sum assured or 7 times the annualized premium. Additionally, it is ensured that the death benefit is not less than 105% of total premiums paid.
Survival Benefits (Money Back)
The plan offers money-back benefits at specific intervals during the policy term. Upon survival to these durations, the policyholder receives a fixed percentage of the basic sum assured. This amount acts as periodic returns on the savings portion of the plan.
Maturity Benefit
On survival till the end of the policy term, the policyholder receives the remaining sum assured along with all accrued guaranteed additions. This lump sum amount marks the maturity benefit.
Understanding the LIC Dhan Rekha Plan 863 Calculator
The LIC Dhan Rekha Plan 863 calculator is a tool that helps policyholders and prospective investors estimate:
- The premium amount to be paid (yearly, half-yearly, quarterly, or monthly).
- The money-back benefits they will receive at various intervals.
- The total maturity amount at the end of the policy term.
- The death sum assured and benefits payable in case of untimely death.
Why Use a Calculator?
Since the calculation of premiums and benefits depends on various factors such as age, policy term, sum assured, payment mode, and premium paying term, doing manual calculations can be difficult. The calculator simplifies this by providing instant figures after entering basic details.
How to Use the LIC Dhan Rekha Plan 863 Calculator
To use the calculator effectively, you need to know some inputs:
- Age of the policyholder: The age at which you want to purchase the policy.
- Policy Term: Duration of the policy, usually in years.
- Basic Sum Assured: The amount you want as insurance cover.
- Premium Paying Term (PPT): Number of years you want to pay premium (if limited premium mode).
- Mode of premium payment: Yearly, half-yearly, quarterly, or monthly.
Once these inputs are provided, the calculator outputs:
- Annual premium amount excluding GST.
- Money-back benefits amount payable at survival intervals.
- Total maturity amount including guaranteed additions.
- Death sum assured amount.
Benefits Explained with an Example
Suppose a 28-year-old person chooses a policy term of 20 years with a basic sum assured of Rs 10,00,000 and a premium paying term of 10 years.
- The yearly premium would be calculated based on the sum assured and policy term (for example, Rs 1,03,036 approx excluding GST).
- Money-back benefits will be paid at specified durations during these 20 years.
- On maturity, the person will receive the remaining lump sum plus accrued guaranteed additions.
- In case of death, the nominee receives 125% of the basic sum assured or an amount higher as per the formula discussed earlier.
These calculations ensure transparency and help customers plan their finances better.
Advantages of LIC Dhan Rekha Plan 863
- Guaranteed Returns: The plan offers guaranteed additions which accrue over time, ensuring returns.
- Financial Security: Money-back and death benefits provide financial support.
- Flexibility: Various policy terms and payment options to suit different needs.
- Liquidity: Loan facility against the policy makes it helpful in emergencies.
- Safe Investment: Being a non-linked plan, it is free from market risk.
Important Points to Remember
- Premium does not include GST. GST rates may vary over years.
- The plan is not linked to market performance; thus, returns are guaranteed but fixed.
- The policyholder must ensure premium payments to keep the policy in force.
- The plan was withdrawn from sale on 1st January 2025, so it cannot be newly purchased now.
- Existing policyholders can continue enjoying benefits as per terms.
Frequently Asked Questions
What is LIC Dhan Rekha Plan 863?
LIC Dhan Rekha Plan 863 is a non-linked, non-participating money-back life insurance plan offering guaranteed survival benefits and life cover. It was launched by LIC on 13th December 2021 and withdrawn on 1st January 2025.
What are the premium payment options under this plan?
This plan has two premium payment options: Limited Premium Payment (10, 15, or 20 years) and Single Premium Payment. The policy term can range from 20 to 40 years.
What is the minimum and maximum entry age for the policyholder?
The minimum entry age depends on the policy term—typically starting from 90 days for single premium and 8 years for limited premium. The maximum entry age ranges from 40 to 60 years depending on the premium mode.
What are the sum assured limits?
The minimum basic sum assured is Rs. 2,00,000, with no upper limit specified, allowing for higher coverage based on the policyholder’s preference.
What are the survival benefits under LIC Dhan Rekha?
Money-back benefits are payable as a fixed percentage of the basic sum assured at specific intervals during the policy term, provided the policy is in force.
Can the policyholder avail of loans against the policy?
Yes, loan facilities are available provided the policy has completed at least 2 full years of premium payment.
Conclusion
LIC Dhan Rekha Plan 863 is a thoughtfully designed insurance-cum-saving plan that provides both periodic returns and life cover. While the plan was withdrawn in 2025, understanding its benefits and how to use the LIC Dhan Rekha Plan 863 calculator can help existing policyholders track their benefits and potential investors understand similar money-back plans by LIC.