Life Insurance Corporation of India (LIC) often launches innovative and beneficial plans for Indian policyholders. One such popular plan is the LIC Dhan Varsha Plan 866. This plan is designed to offer a unique combination of savings and life protection with guaranteed returns, making it appealing for those looking for risk cover along with assured maturity benefits.

Introduction to LIC Dhan Varsha Plan 866

LIC Dhan Varsha Plan 866 is a non-linked, non-participating single premium policy. This means that it is not affected by market fluctuations and the returns are guaranteed upfront without any participation in profits or losses from LIC’s investments.

• Single Premium: You pay one lump sum amount when buying the plan.
• Guaranteed Returns: You get a guaranteed amount on maturity or in case of death during the policy term.
• Life Cover: The plan offers life protection, with two risk cover options.

This plan is suitable for individuals looking for a hassle-free investment with a fixed tenure, providing both savings and life cover benefits.

Launch and Withdraw Dates of LIC Dhan Varsha Plan 866

• The plan was launched on 17th October 2022.
• It remained available only for a limited period and was withdrawn on 31st March 2023.

Given this limited availability, LIC encouraged interested buyers to invest within the specified financial year. The withdrawal means this plan is no longer available for purchase, but existing policyholders continue to enjoy the benefits as per their terms.

Key Features of LIC Dhan Varsha Plan 866

• Plan Type: Non-linked, Non-participating, Individual Life Insurance.
• Premium: Single premium payment with no recurring premium.
• Policy Term Options: 10 years or 15 years.
• Age at Entry: Minimum age is 3 years for 15-year term; 8 years for 10-year term; maximum age can be up to 60 years depending on option.
• Sum Assured: Based on multiples of premium (1.25 times or 10 times).
• Guaranteed Additions: Annual additions to the sum assured.
• Loan Facility: Available after 3 months of policy issuance.
• Tax Benefits: Eligible for deduction under Section 80-C for the premium paid.

Two Risk Cover Options

The plan provides policyholders two options for risk cover on death during the policy term:

1. Option 1: Risk cover of 1.25 times the single premium paid. This option offers better pre-tax returns, but the maturity proceeds are taxable.
2. Option 2: Risk cover of 10 times the single premium paid. This option offers lower returns, but the maturity amount is tax-exempt.

Each option has different eligibility criteria related to entry age and policy term, so the choice depends on the individual’s priorities between guaranteed returns and tax treatment.​

How Does the LIC Dhan Varsha Plan 866 Calculator Work?

The LIC Dhan Varsha Calculator is a helpful tool to estimate your premium and expected benefits under the plan. Here’s what it typically does:

• Input Parameters:
  • Your age.
  • Policy term (10 or 15 years).
  • Sum assured or premium amount you want to invest.
  • Risk cover option (1.25 times or 10 times).
• Calculations:
  • Computes the single premium amount based on product tables.
  • Calculates the accrued guaranteed additions each year.
  • Estimates maturity benefits as the basic sum assured plus the accrued guaranteed additions at the end of the term.
  • Calculates death benefits during the term based on the chosen option.
• Output:
  • Expected maturity amount after the policy term.
  • Risk coverage details.
  • Premium payable.
  • Other benefits like surrender values and loan eligibility.

Using the calculator helps you understand what you will get by investing a certain amount in LIC Dhan Varsha Plan 866 and assists you in planning your finances better.

Step-by-Step Guide to Using the LIC Dhan Varsha Calculator

1. Enter Your Age: Depending on your age, note the eligibility for the plan. For example, for a 15-year term, entry age can be as low as 3 years.
2. Choose Policy Term: Decide if you want a 10-year or 15-year plan.
3. Select Risk Cover Option: Choose between 1.25 times or 10 times risk cover depending on your needs.
4. Enter Sum Assured or Premium Amount: Input the amount you want to invest or the sum assured you want.
5. Calculate: Run the calculation to get your premium, guaranteed additions, maturity benefits, and death benefits.

This process helps you make an informed decision, understanding how your investment grows over time.

Benefits of LIC Dhan Varsha Plan 866

• Guaranteed Returns: Since the plan is non-linked and non-participating, it offers secure and guaranteed benefits.
• Single Premium Investment: You pay once and the plan does the rest—no need to worry about monthly or yearly premiums.
• Life Cover: Provides financial protection for your family through risk cover based on your chosen option.
• Loan Facility: You can avail of loans against your policy after 3 months, providing financial flexibility if needed.
• Tax Benefits: Eligible for tax deduction on premiums under Section 80-C, and Option 2 offers tax-free maturity benefits.
• Flexibility in Term: Choice between 10 and 15 years to suit different planning horizons.
• Simple and Transparent: The plan terms and returns are clear and straightforward, ensuring no surprises.

Example Illustration Using a Calculator

Imagine Ramesh, 30 years old, wants to invest in LIC Dhan Varsha Plan 866 for 15 years with Option 1 (risk cover 1.25 times premium).

• He decides a sum assured of Rs. 10,00,000.
• The calculator estimates his single premium as approximately Rs. 9,26,654 (before GST).
• Guaranteed additions are Rs. 75 per Rs. 1000 of sum assured annually.
• Over 15 years, he gets a total of Rs. 11,25,000 as guaranteed additions.
• So, maturity payout = Sum assured + guaranteed additions = Rs. 10,00,000 + Rs. 11,25,000 = Rs. 21,25,000.
• This gives an internal rate of return (IRR) of about 5.7% annually (subject to tax on maturity).

This example clearly shows how the investment grows and the benefit of guaranteed additions.​

Important Points to Remember

• This plan was available only till March 2023 and is currently withdrawn from sale. Existing policyholders can continue enjoying benefits till maturity.
• The maturity proceeds for Option 1 are taxable, so consider tax impact on returns.
• Calculates guaranteed benefits—not linked to market fluctuations.
• Loan facility provides liquidity if needed.
• Always verify calculations with official LIC tools or by consulting LIC agents.

Where to Find More Information

For those looking for official and detailed information about the LIC Dhan Varsha Plan 866 and its calculator, visit the official LIC India website:

• LIC’s Dhan Varsha Official Page: LIC India – Dhan Varsha Plan 866
• LIC Plan Brochure and Premium Tables: Available on LIC website under the product section.

These resources provide official and updated information to help you better understand the plan features and benefits.

Frequently Asked Questions

Conclusion

LIC Dhan Varsha Plan 866 offers a simple, guaranteed, and secure way to invest a lump sum amount with life cover. Its clear benefits, guaranteed returns, and flexible options make it attractive to many policyholders seeking peace of mind alongside savings.

Although the plan is withdrawn now, understanding its structure and calculations can help you evaluate similar plans in the future or plan your finances better using LIC’s calculator tools.