LIC Dhan Rekha Plan 863 – Invest 6.7 lakhs and get back 23 lakhs! Check policy benefits, maturity calculator and other details

What is the LIC Dhan Rekha Plan 863?

LIC Dhan Rekha is a non-participating, non-linked, individual, savings and life insurance policy. This plan comes with either a yearly premium payment option or a one-time investment option. The LIC Dhan Rekha Plan 863 offers a maximum guaranteed addition of Rs. 60 per thousand basic SA. This policy can easily be purchased offline as well as online. This makes it an ideal investment for those who want to make some quick and easy money.

How does the Jeevan Shanti Policy Work?

LIC Dhan Rekha Plan provides financial assistance for loved ones in case of the unfortunate demise of the assured during the policy term. Payments on a periodic basis will also be made upon the survival of the life assured at specified tenures during the policy tenure and guaranteed lump sum payouts to the surviving assured during the maturity.

What Are the Benefits of the LIC Dhan Rekha Plan?

Death Benefit: The death benefit amount payable in case of death during the policy tenure after the risk commencement date shall be SA on demise along with accumulated guaranteed additions.

In the case of Single and Limited premium pay options: SA on death is payable as the maximum of 125 percent of basic SA or 7X of annual premiums.

In the limited premium option, the death benefit shall not be below 105% of the total premium amount paid, excluding additional premiums, any rider premium, and taxes as of the death date.

Survival Benefits: Upon the policyholder surviving to each of the specified tenures during the plan term, provided the policy is active, a fixed % of the basic SA shall be payable.

Let’s understand this with the help of an example:

• If the policy term is of 20 years, then the policyholder will receive 10 percent of the basic SA at the last of each of the 10th & 15th years of the policy.

• If the policy term is of 30 years, the policyholder will receive 15 percent of the basic SA at the last of each of the 15th, 20th, and 25th years of the policy.

• In the case of a policy term of 40 years, 20% of the basic SA is at the last of each of the 20th, 25th, 30th, and 35th policy years.

Maturity Benefits: In case of surviving the stipulated maturity date, SA on maturity shall be payable

Guaranteed Additions: They are payable by paying the due amount of the premium. The guaranteed additions shall accumulate at the last of the policy year from the 6th year of policy to the end of plan tenure.

Investment and Maturity Calculator of LIC Dhan Rekha Plan

Imagine a 30-year-old male is thinking to invest in this plan with a premium term of 30 years. He has to pay a single premium amount of Rs. 670650 for a SA of Rs. 10 Lakhs and a death SA of Rs. 12.5 Lakhs. However, the maturity benefit for the surviving member at the last of the 30th policy year will be 23 Lakhs. If the life assured dies in the 30th policy year, the nominee will receive 25.5 Lakhs.

But in the case of the annual premium for an individual of the same age and plan tenure, the premium paying term will be of 15 years and the yearly premium amount will be Rs. 73342. The returns will remain the same i.e., 23 Lakhs for survivors and 25.50 Lakhs for nominees at the last of the 30th year.

Conclusion

So these were some important features and benefits of LIC’s Dhan Rekha Plan that you must know before buying it. This is a decent investment option that offers good returns with limited downside risk. However, do keep in mind that returns are not guaranteed and they depend on various factors such as stock market conditions, etc. Therefore, it is always advisable to consult a financial advisor before making any decision regarding investments.