LIC Dhan Rekha Policy is a Non-Linked, Non-Participating, Individual, Savings, Money Back Plan. It offers savings and protection at the same time. It is a Money Back plan and provides you survival benefit at regular intervals. Death benefits, Maturity benefit and loan facility is also available with this plan.
| Plan Name | LIC Dhan Rekha Plan |
| Table No. | 863 |
| UIN No. | 512N343V01 |
| Plan Type | Money Back Plan |
| Launch Date | 13 December, 2021 |
List of Topic Covered
Key Features of LIC Dhan Rekha Plan
- This plan provides an attractive combination of protection and savings.
- It offers financial support in case of the unfortunate death of a policyholder.
- This plan can be purchased through offline mode (Agent) as well as online.
- Loan facility is also available under LIC Dhan Rekha Plan.
- You have the option to take death benefit and maturity benefit in installments.
- Rider benefit is available.
- Tax benefit is also available under LIC Dhan Rekha Plan.
Benefits of LIC Dhan Rekha Plan
Death Benefit in LIC Dhan Rekha Plan
Death benefit payable on death during the policy term shall be Sum Assured on Death along with accrued guaranteed additions.
- For Single Premium Payment – Sum Assured on Death is defined as 125% of the Basic Sum Assured.
- For Limited Premium Payment – Sum Assured on Death is defined as the higher of 125% of Basic Sum Assured or 7 times annualized premium. It should not be less than 105% of total premiums paid excluding any extra premium, taxes as on date of death.
Maturity Benefit in LIC Dhan Rekha Plan
If policyholder survives till the end of the policy term, he will get Sum Assured on Maturity along with accumulated bonus till date. Here Sum Assured on Maturity is Basic Sum Assured.
Survival Benefit in LIC Dhan Rekha Plan
If policyholder survives to the given policy term, provided policy is in force, a fixed percentage of basic Sum Assured shall be payable. Refer to the table below.
| Policy Term (in Years) | Survival benefit (Per 1000 of Basic Sum Assured) |
| 20 | 10% of Basic Sum Assured at the end of 10th & 15th policy year |
| 30 | 15% of Basic Sum Assured at the end of 15th, 20th & 25th policy year |
| 40 | 20% of Basic Sum Assured at the end of 20th, 25th, 30th & 35th policy year. |
Guaranteed Additions in LIC Dhan Rekha Plan
Guaranteed additions under this policy shall be payable from 6th policy year till the end of the policy term provided policy is in force. Rate is given below in the table.
| Policy Duration (in Years) | Guaranteed Additions (Per 1000 of Basic Sum Assured) |
| 6th to 20th policy year | Rs. 50 |
| 21st to 30th policy year | Rs. 55 |
| 31st to 40th policy year | Rs. 60 |
Apart from this there are tax benefits, loan benefits, riders benefits which we will cover later in this article.
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Eligibility conditions and other restrictions in LIC Dhan Rekha Plan
| Minimum | Maximum | |
| Basic Sum Assured | ₹2,00,000 | No Limit |
| Policy Term | 20 years, 30 years and 40 years | |
| Premium Paying Term | Single Premium : Not Applicable Limited Premium 10 years – For 20 years policy term 15 years – For 30 years policy term 20 years – For 40 years policy term | |
| Entry Age | 8 years (completed) – For 20 years policy term 3 years (completed) – For 30 years policy term 90 days (completed) – For 40 years policy term | Single Premium : 60 years (Near Birthday) – For 20 years policy term 50 years (Near Birthday) – For 30 years policy term 40 years (Near Birthday) – For 40 years policy term Limited Premium: 55 years (Near Birthday) – For 20 years policy term 45 years (Near Birthday) – For 30 years policy term 35 years (Near Birthday) – For 40 years policy term |
| Maturity Age | 28 years (completed) – For 20 years policy term 33 years (completed) – For 30 years policy term 40 days (completed) – For 40 years policy term | Single Premium : 80 years (Age near birthday) Limited Premium : 75 years (Age near birthday) |
Date of commencement of risk under LIC Dhan Rekha Policy
In LIC Dhan Rekha plan, risk cover totally depends on the age of the policyholder.
- If the policyholder is below 8 years at the time of taking the policy – So in this case the risk cover benefit will start one day before policy completes 2 years or day before the policy anniversary after the child turns 8 years of age.
- If the policyholder is 8 years or more at the time of taking the policy – The risk cover benefit will start immediately.
How LIC Dhan Rekha Plan Works with Example
Let’s understand how this plan works.
Suppose Ram takes this plan with following details in limited premium :
- Age – 30
- Sum Assured – 10 Lakh
- Policy Term – 30 years
- Premium Paying Term – 15 years
So based on the selected parameters Ram will pay premium of Rs. 73,342 for 15 years.
from the 6th policy year, guaranteed additions of Rs. 50 per 1000 sum assured will be added to it’s policy.
So for 10 lakhs, (50 X 10,00,000) / 1000 = Rs. 50,000 will be added to Ram’s policy at the end of every year till 20th policy year.
Therefore for 15 years 50,000 X 15 = 7,50,000 will be added to Ram’s policy till 20th policy year.
From 21st to 30th policy year Rs. 55 per 1,000 sum assured will be added to Ram’s policy.
So (55 X 10,00,000) / 1,000 = 55,000 will be added to Ram’s policy till 30th policy year.
Therefore for 10 years 55,000 X 10 = Rs. 5,50,000 will be added to Ram’s policy till 20th policy year.
So total guaranteed additions that Ram will get will be (7,50,000 + 5,50,000) = 13,00,000
Apart from this Ram will get 15% of the basic sum assured at the end of 15th, 20th and 25th policy year’s end as a survival benefit.
So he will get (15% of 10,00,000) = 1,50,000 at the end of 15th, 20th and 25th policy year.
Total Ram will get 4,50,000 as a survival benefit.
Scenario 1 – If Ram survives at the end of the policy term.
So in this case Ram will receive = Sum Assured + Guaranteed Additions + Survival Benefit = 10,00,000 + 13,00,000 + 4,50,000 = Rs. 27,50,000
Scenario 2 – If Ram dies after paying a premium for 5 years
Now in this case Ram’s nominee will get a Sum Assured on Death + Accrued Bonus (If any)
Here Sum Assured on Death will be higher of
125% of BSA = (125 X 10,00,000) / 100 = Rs. 12,50,000 or
7 times annualized premium = 7 X 73,342 = Rs. 5,13,394
So it is clear that 12,50,000 is higher and Ram’s nominee will get Rs. 12,50,000 as Death benefit and policy will close.
Riders Benefit in LIC Dhan Rekha Plan
- Single Premium Payment – Under single premium payment only two riders are available.
- Accidental Death and Disability Benefit Rider
- New Term Assurance Rider
- Limited Premium Payment – Under limited premium payment there are 5 riders.
There are five optional riders available under this plan. You can avail these riders by paying a small additional premium which will be separate from your main premium.
- LIC Accidental Death and Disability Benefit Rider
- LIC Accident Benefit Rider
- LIC New Term Assurance Rider
- LIC New Critical Illness Benefit Rider
- LIC Premium Waiver Benefit Rider
Premium Payment in LIC Dhan Rekha Plan
Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals by ECS (through NACH only) or through salary deductions over the Policy Term.
Grace Period in LIC Dhan Rekha Plan
A grace period of 30 days is given for payment of yearly, halfyearly and quarterly premiums and 15 days for monthly premiums from the date of First unpaid premium. If premiums are not paid in this period the your policy will lapse.
Sample Illustrative Premium in LIC Dhan Rekha Plan
a) Single Premium – The sample illustrative annual premiums for Basic Sum Assured of 10 Lakhs for Standard male lives are as under: (Price in Rs)
| Age (Nearer Birthday) | Premium Term – 20 years | Premium Term – 30 years | Premium Term – 40 years |
| 20 | 7,17,350 | 6,62,150 | 6,12,250 |
| 30 | 7,20,550 | 6,70,650 | 6,27,000 |
| 40 | 7,33,050 | 6,92,250 | 6,59,450 |
| 50 | 7,61,400 | 7,36,600 | – |
b) Limited Premium – The sample illustrative annual premiums for Basic Sum Assured of 10 Lakhs for Standard male lives are as under:
| Age (Nearer Birthday) Policy Term | (Premium Term) – 20 (10) years Policy Term | (Premium Term) – 30 (15) years Policy Term | (Premium Term) – 40 (20) years 20 |
| 20 | 1,02,693 | 72,264 | 56,290 |
| 30 | 1,03,232 | 73,342 | 57,858 |
| 40 | 1,05,633 | 76,527 | – |
| 50 | 1,12,101 | – | – |
Rebates in LIC Dhan Rekha Plan
- Mode Rebate:
| Mode | Rebate |
| Yearly mode | 2% of Tabular premium |
| Half yearly mode | 1% of Tabular premium |
| Quarterly, Monthly & Salary Deduction | NIL |
2) High Basic Sum Assured Rebate under Single Premium:
| Basic Sum Assured (BSA) | Rebate on tabular premium per Rs. 1000 BSA |
| 2,00,000 to 4,75,000 | Nil |
| 5,00,000 to 7,25,000 | 5 |
| 7,50,000 to 9,75,000 | 10 |
| 10,00,000 and above | 15 |
3) High Basic Sum Assured Rebate under Limited Premium:
| Basic Sum Assured (BSA) | Rebate on tabular premium per Rs. 1000 BSA |
| 2,00,000 to 4,75,000 | Nil |
| 5,00,000 to 7,25,000 | 1 |
| 7,50,000 to 9,75,000 | 2 |
| 10,00,000 and above | 3 |
4) Rebate under online sale:
| Premium paying Term | Rate of Rebate (As a percentage of tabular premium) |
| Single Premium | 2% |
| Limited Premium – 10 years | 7.5% |
| Limited Premium – 15 & 20 years | 10% |
Other features of LIC Dhan Rekha Plan
Revival in LIC Dhan Rekha Plan
If premiums are not paid within the grace period then the policy will lapse. A lapsed policy can be revived within a period of 5 consecutive years from the date of first unpaid premium but before the date of maturity.
LIC Dhan Rekha Paid Up Policy:
- If less than two full years premiums have been paid and any subsequent premiums be not
duly paid, then the policy and all the benefits shall cease after the expiry of the grace period. - If at least two full years premiums have been paid and any subsequent premiums be not
duly paid, the policy shall continue as a paid-up policy.
Surrender Value in LIC Dhan Rekha Policy:
Under single premium payment, the policy can be surrendered at any time during the policy term. Under limited premium payment, you can surrender your policy any time provided two full years premiums have been paid.
Loan Facility in LIC Dhan Rekha Policy:
- Under Single Premium Payment : Loan can be availed at any time after completing three months in the policy. The maximum loan would be 75% of the Surrender Value.
- Under Limited Premium Payment : Loan can be availed at any time provided two full years premiums have been paid.
- The maximum loan for in-force policies – 90% of the Surrender Value.
- The maximum loan for paid-up policies – 80% of the Surrender Value.
Tax Benefit in LIC Dhan Rekha Policy
- Premiums paid are exempted under section 80C of the income tax act of 1961.
- The maximum exemption can be availed is 1.5 Lakhs
- Also the Death and Maturity amount received are exempted under section 10(10D).
Free Look Period in LIC Dhan Rekha Policy
If the policyholder is not satisfied with the policy, he or she can return the policy to the corporation stating the reason for the same. After receiving the request, the Corporation shall cancel the policy and return the premium amount after deduction of risk premium, expenses incurred on medical examination, special report if any and stamp duty charges.
Exclusion in LIC Dhan Rekha Policy
Suicide:
- Under Single Premium Payment Policy : If policholder commits suicide within 12 Months from the date of commencement of risk, only 80% of the premium paid till death will be refunded.
- Under Limited Premium Payment Policy :
- If the policyholder commits suicide within 12 Months from the date of commencement of risk, then the amount which 80% of the single premiums paid shall be payable.
- If the policyholder commits suicide within 12 Months from the date of revival, then the amount which will be higher of 80% of the total premiums paid till the date of death or the surrender value available as on the date of death, shall be payable.
How to buy LIC Dhan Rekha Plan
This plan can be purchased online as well as offline.
Click here to know the process How to buy LIC Dhan Rekha Plan Online
How to make claim in LIC Dhan Rekha Plan
When a life insurance policy is maturing, the insurance company will usually send intimation to the policyholder along with a discharge voucher at least two to three months in advance of the date of maturity.
Click here to Know how to make claims in LIC Policy.
Paisa kaudi Recommendation on LIC Dhan Rekha Plan
We recommend that you first have a protection plan for your family, then take a health insurance and then think about investments. Money back plans are good when you need money at important milestones. You can consider other investment tools for better returns.
In case you face any issue, contact your agent or visit your respective servicing branch.