LIC Dhan Rekha Calculator: Plan 863 Money Back Guide
Balancing periodic liquidity requirements with guaranteed financial growth and robust life cover is a primary goal for Indian families. LIC Dhan Rekha (Plan No. 863) is a non-linked, non-participating, individual money-back endowment savings plan introduced by the Life Insurance Corporation of India (LIC). It features a unique **half-term premium paying term (PPT)**, periodic survival money-back cash payouts, and fixed contractual **Guaranteed Additions** ranging from ₹50 to ₹60 per ₹1,000 Sum Assured.
Our free online LIC Dhan Rekha Calculator enables policyholders, investors, and insurance advisors to compute exact annual/monthly premium rates, model survival money-back cash flow schedules, project total accrued Guaranteed Additions, and estimate net maturity payouts.
What is LIC Dhan Rekha (Plan 863)?
LIC Dhan Rekha is a modern money-back policy offering enhanced liquidity and guaranteed returns:
- Half Premium Paying Term (PPT): Under Limited Premium Pay, you pay premiums for only half of the policy term (10 yrs for a 20-yr term, 15 yrs for a 30-yr term, and 20 yrs for a 40-yr term).
- Periodic Survival Money-Back Payouts: Receive guaranteed cash installments during the policy term (10% to 20% of Sum Assured) to meet milestones like child education, home renovations, or business capital.
- High Guaranteed Additions (GA): Accrues every policy year from Year 1 to maturity at ₹50 to ₹60 per ₹1,000 SA without any market dependence.
- Enhanced Life Cover (125% SA): Provides a life insurance cover equal to 125% of the Basic Sum Assured or 7 times annual premium.
Policy Term, PPT, and Survival Payout Matrix
| Policy Term | PPT (Limited Pay) | Survival Money-Back Payout Schedule | Maturity Payout Formula | Guaranteed Addition Rate |
|---|---|---|---|---|
| 20 Years | 10 Years | 10% of SA at End of Year 10 & Year 15 (Total 20% SA) | 80% of SA + Total GA | ₹50 per ₹1,000 SA / year |
| 30 Years | 15 Years | 15% of SA at End of Year 15 & Year 25 (Total 30% SA) | 70% of SA + Total GA | ₹55 per ₹1,000 SA / year |
| 40 Years | 20 Years | 20% of SA at End of Yrs 20, 25, 30, & 35 (Total 80% SA) | 20% of SA + Total GA | ₹60 per ₹1,000 SA / year |
Eligibility Criteria & Entry Age Limits
| Parameter | 20-Year Policy Term | 30-Year Policy Term | 40-Year Policy Term |
|---|---|---|---|
| Min Entry Age | 3 Years (Completed) | 2 Years (Completed) | 90 Days (Completed) |
| Max Entry Age (Limited Pay) | 55 Years | 45 Years | 35 Years |
| Max Entry Age (Single Pay) | 60 Years | 50 Years | 40 Years |
| Max Maturity Age | 75 Years | 75 Years | 75 Years |
| Min Basic Sum Assured | ₹2,00,000 (2 Lakhs) | ₹2,00,000 (2 Lakhs) | ₹2,00,000 (2 Lakhs) |
How Guaranteed Additions (GA) Accrue in Plan 863
Unlike traditional participating policies that depend on variable annual bonus declarations, LIC Dhan Rekha guarantees your bonus returns upfront:
| Policy Term | GA Rate per ₹1,000 SA / yr | Annual GA for ₹10 Lakhs SA | Total GA Accrued at Maturity |
|---|---|---|---|
| 20-Year Term | ₹50 per ₹1,000 SA | ₹50,000 / year | ₹10,00,000 (10 Lakhs) |
| 30-Year Term | ₹55 per ₹1,00,0 SA | ₹55,000 / year | ₹16,50,00,0 (16.5 Lakhs) |
| 40-Year Term | ₹60 per ₹1,00,0 SA | ₹60,000 / year | ₹24,00,00,0 (24 Lakhs) |
How the LIC Dhan Rekha Calculator Works
The LIC Dhan Rekha Calculator calculates your complete financial schedule using standard actuarial formulas:
- Tabular Premium Rate Calculation: Computes base premium rate according to age, policy term, and payment mode.
- Rebate Adjustments: Applies mode rebate (2% for yearly) and high sum assured rebates (up to ₹5 per ₹1,000 SA).
- GST Addition: Adds 4.5% GST in Year 1 and 2.25% in Year 2 onwards (or 1.8% for Single Pay).
- Cash Flow Schedule: Renders exact dates and amounts of survival money-back payouts and final maturity corpus.
Worked Financial Example & Cash Flow Schedule
Consider a 30-year-old individual purchasing **₹10,00,000 (10 Lakhs) Basic Sum Assured** under a **20-Year Policy Term (10-Yr PPT)**:
| Policy Milestone / Cash Flow Event | Timing & Financial Details |
|---|---|
| Premium Paying Term (PPT) | 10 Years (Pay only from Age 30 to Age 39) |
| Approx. Annual Premium (incl. GST) | ~₹98,500 / year |
| Total Premiums Paid (10 Yrs Outflow) | ₹9,85,00,0 (Approx ₹9.85 Lakhs) |
| 1st Survival Money-Back Payout (End of Yr 10) | ₹1,00,000 (10% of SA Cash Payout) |
| 2nd Survival Money-Back Payout (End of Yr 15) | ₹1,00,000 (10% of SA Cash Payout) |
| Maturity Sum Assured (80% of SA) | ₹8,00,000 |
| Total Accrued Guaranteed Additions (20 Yrs @ ₹50/1k) | ₹10,00,000 |
| Final Maturity Lump Sum Payout (End of Yr 20) | ₹18,00,000 (18 Lakhs) |
| Total Returns Received (Money-Back + Maturity) | ₹20,00,000 (20 Lakhs — Over 2x Total Outflow!) |
Strategic Comparison: LIC Dhan Rekha (863) vs LIC Bima Ratna (864) vs LIC Money Back (920)
| Comparison Parameter | LIC Dhan Rekha (Plan 863) | LIC Bima Ratna (Plan 864) | LIC Money Back (Plan 920) |
|---|---|---|---|
| PPT Options | Half Policy Term (10/15/20 Yrs) | Short PPT (4 or 5 Yrs less than term) | Full PPT (15 Yrs for 20-Yr term) |
| Bonus Structure | Guaranteed Additions (₹50–₹60/1k SA) | Guaranteed Additions (₹50/1k SA) | Simple Reversionary Bonus + FAB |
| Life Cover SA | 125% of Basic SA | 125% of Basic SA | 125% of Basic SA |
| Single Pay Option | Available | Available | Not Available |
Tax Exemptions under Section 80C & Section 10(10D)
- Section 80C Tax Savings: Premiums paid qualify for annual income tax deduction up to ₹1,50,000.
- Section 10(10D) Tax-Free Benefits: All periodic survival money-back installments, maturity lump sums, and death claim benefits are 100% tax-free.
How to Use the LIC Dhan Rekha Calculator
- Select Payment Mode: Choose Limited Premium Pay or Single Premium Pay.
- Select Policy Term: Pick 20, 30, or 40 years.
- Set Proposer Entry Age: Input age (0 to 60 years).
- Enter Basic Sum Assured: Specify sum assured (min ₹2,00,000).
- Select Payment Frequency: Choose Yearly, Half-Yearly, Quarterly, or Monthly.
Frequently Asked Questions (FAQs)
What is LIC Dhan Rekha Plan 863?
LIC Dhan Rekha (Plan 863) is a non-linked, non-participating, individual money-back endowment savings plan. It provides periodic survival payouts during the policy term, high contractual Guaranteed Additions accruing every policy year, and a 125% life insurance cover.
What Premium Payment Term (PPT) options are available?
Under Limited Premium Pay, the Premium Paying Term (PPT) is exactly half the Policy Term (10 yrs for 20-Yr Term, 15 yrs for 30-Yr Term, 20 yrs for 40-Yr Term). Alternatively, policyholders can choose a Single Premium one-time payment.
What are the Survival Money-Back payout schedules?
For 20-Yr Term: 10% of SA at Yrs 10 and 15. For 30-Yr Term: 15% of SA at Yrs 15 and 25. For 40-Yr Term: 20% of SA at Yrs 20, 25, 30, and 35.
What Guaranteed Addition (GA) rates apply in Plan 863?
Guaranteed Additions accrue annually at ₹50 per ₹1,000 Sum Assured for 20-Yr Term, ₹55 per ₹1,000 SA for 30-Yr Term, and ₹60 per ₹1,000 SA for 40-Yr Term.
What is the Minimum Sum Assured and entry age limit?
Minimum Basic Sum Assured is ₹2,00,000 (2 Lakhs). Entry age ranges from 90 days to 60 years depending on policy term and payment mode.
Are maturity and money-back payouts tax-free?
Yes, survival money-back installments, maturity payouts, and death claim benefits are 100% tax-free under Section 10(10D) of the Income Tax Act.