Insurance PlansLIC of IndiaMoney Back

LIC’s Dhan Rekha – Plan 863 -Guaranteed benefits money back plan

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Dhan Rekha (Plan no 863) is a new guaranteed benefit, money back plan, introduced by the LIC of India. Guaranteed additions and fixed maturity benefits, that too in the era of dwindling interest rates, make this plan unique. Dhan Rekha can be defined as a Non-linked, Non- participating, individual savings cum insurance plan available with premium payment of Single Premium, 10 Years, 15 Years, and 20 years.

Let us have a detailed look at the various benefits and features of the plan…

Eligibility conditions and restrictions
Policy Term20 Years30 Years40 Years
Premium Payment10 years/Single Premium15 Years/Single Premium20 Years/Single Premium
Minimum Age at Entry8 Years completed3 Years completed90 days completed
Maximum Age at Entry
(Single Premium)
60 Years (nbd)50 Years (nbd)40 Years (nbd)
Maximum Age at Entry
(limited Premium)
55 Years (nbd)45 Years (nbd)35 Years (nbd)
Minimum Age at Maturity28 Years (completed)33 Years (completed)40 Years (completed)
Maximum Age at MaturitySingle Premium - 80 Years (nbd) Limited Premium-75 Years (nbd)

Salient Features - Plan Dhan Rekha

  • Maturity Benefit: On the life assured surviving the term of the plan basic sum assured along with accrued guaranteed additions shall become payable.
  • Death Benefit: Death benefit payable during the term after the date of commencement of risk shall be equal to 125% of the basic sum assured +accrued guaranteed additions.
  • Survival Benefits:
    Policy Term (in years)Payment of Survival Benefit
    2010 % of the Basic Sum Assured at the end of each of 10th and 15th Year
    3015 % of the Basic Sum Assured at the end of each of 15th, 20th and 25th policy year.
    4020% of the Basic Sum Assured at the end of each of 20th, 25th, 30th and 35th policy year.
  • Guaranteed Additions:
    Policy Duration (in Years)Guaranteed additions (per 1000 Basic Sum Assured)
    From 6 th policy year to 20 th policy yearRs 50
    From 21 st policy year to 30 th policy yearRs 55
    From 31 st policy year to 40th policy yearRs 60

Dhan Rekha - 863- Illustration of benefits

Benefit and Coverage Table - Dhan Rekha

Riders available

If this rider is opted for, an amount equal to the Accident Benefit Sum Assured is payable on death due to accident, provided the Rider is in force at the time of the accident.

In case of accidental permanent disability, an amount equal to the accident benefit sum assured will be paid in equal monthly installments spread over 10 years of future premiums.

This rider shall be available up to the policy anniversary on which the Age Nearer Birthday of the life assured is 70 years or till the end of the policy term whichever is earlier.

If this benefit is opted for and the Life Assured is involved in an accident leading to death within 180 days from the date of the accident then an amount equal to the Accident Benefit sum assured is payable.

If this benefit is opted for, an amount equal to Term Assurance Rider Sum Assured shall be payable on the death of the Life Assured during the policy term, provided the rider cover is in force.

On the first diagnosis of any one of the 15 critical illnesses covered under this rider, the Critical illness rider sum assured shall become payable.

If this rider is opted for on the death of proposer of the base policy, during the rider term, premiums payable in respect of base policy falling due on and after the date of death till the expiry of rider term shall be waived.

And to conclude, LIC’s Dhan Rekha is a fixed benefit money-back savings cum insurance plan which is immune to future interest rate fluctuations. 

Anish L J

Anish L J is a 'Financial Planner' and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.