LIC's Dhan Rekha Plan No. 863 is a non-linked, non-participating endowment assurance plan offered by Life Insurance Corporation of India (LIC). This plan is designed to provide a combination of protection and savings to policyholders, making it an ideal option for individuals who are looking for financial security for their families in case of any unforeseen events, as well as a source of long-term savings. In this article, we will discuss the salient features, benefits, eligibility criteria, and other important details of this plan.
Salient Features of LIC's Dhan Rekha Plan No. 863
- Premium Payment Options: Policyholders can choose to pay premiums annually, half-yearly, quarterly, or monthly as per their convenience.
- Policy Term: The policy term for this plan ranges from 15 to 25 years, which means that the policyholder can choose the duration of the policy as per their requirement.
- Sum Assured: The minimum sum assured under this plan is Rs. 1 lakh, and there is no upper limit on the sum assured.
- Maturity Benefit: On survival of the policyholder till the end of the policy term, a lump sum amount equal to the sum assured plus the vested simple reversionary bonuses and final additional bonus (if any) is paid.
- Death Benefit: In case of the unfortunate demise of the policyholder during the policy term, the sum assured along with the vested simple reversionary bonuses and final additional bonus (if any) is paid to the nominee.
- Surrender Value: The policy can be surrendered at any time during the policy term, and the surrender value will be paid as per the applicable rules and regulations.
- Loan Facility: Policyholders can avail of a loan against their policy after three years from the commencement of the policy.
Benefits of LIC's Dhan Rekha Plan No. 863
- Life Cover: The plan provides life cover to the policyholder, which means that in case of their unfortunate demise, the sum assured along with the bonuses is paid to the nominee.
- Maturity Benefit: On survival of the policyholder till the end of the policy term, the sum assured along with the bonuses is paid to the policyholder, which can be used as a source of savings or for any other purpose.
- Tax Benefits: The premiums paid towards the policy are eligible for tax benefits under Section 80C of the Income Tax Act, 1961. The maturity proceeds are also tax-free under Section 10(10D) of the Income Tax Act, 1961.
- Loan Facility: Policyholders can avail of a loan against their policy after three years from the commencement of the policy, which can be used for any personal or business-related purposes.
- Bonus: The policy is eligible for simple reversionary bonuses and final additional bonus (if any), which are declared by LIC from time to time.
Eligibility Criteria for LIC's Dhan Rekha Plan No. 863
- Minimum Entry Age: The minimum entry age for this plan is 18 years, and the maximum entry age is 50 years.
- Maximum Maturity Age: The maximum maturity age for this plan is 70 years.
- Premium Payment Options: Policyholders can choose to pay premiums annually, half-yearly, quarterly, or monthly as per their convenience.
- Sum Assured: The minimum sum assured under this plan is Rs. 1 lakh, and there is no upper limit on the sum assured.
- Policy Term: The policy term for this plan ranges from 15 to 25 years, which means that the policyholder can choose the duration of the policy as per their requirement.
How to Buy LIC's Dhan Rekha Plan No. 863?
Individuals who are interested in buying LIC's Dhan Rekha Plan No. 863 can follow the steps mentioned below:
- Visit the official website of LIC India and go to the 'Buy Policies Online' section.
- Choose the 'Endowment Plan' option from the list of available policies.
- Select 'Dhan Rekha Plan No. 863' from the list of endowment plans.
- Fill in the required details such as age, sum assured, policy term, premium payment frequency, etc.
- Make the premium payment online using any of the available payment modes.
- Once the payment is processed, the policy document will be sent to the policyholder's registered address.
Explain With a Simple Example
Let's consider an example to understand how LIC's Dhan Rekha Plan No. 863 works:
Suppose Mr. Sharma, who is 35 years old, decides to buy a policy for 20 years with a sum assured of Rs. 10 lakh under LIC's Dhan Rekha Plan No. 863. The annual premium for this policy is Rs. 56,618 (excluding taxes). Mr. Sharma decides to pay the premium annually.
Scenario 1: Mr. Sharma Survives the Policy Term
After paying the premium for 20 years, Mr. Sharma survives the policy term. In this case, he will receive a lump sum amount of Rs. 10 lakh, along with the simple reversionary bonuses and final additional bonus (if any) that have accrued over the policy term. Assuming that the simple reversionary bonus rate is 4% per annum, and the final additional bonus rate is Rs. 50 per thousand sum assured, the total maturity benefit for Mr. Sharma would be as follows:
Sum Assured = Rs. 10 lakh
Simple Reversionary Bonus = Rs. 8 lakh (20 years x 10,000 sum assured x 4% bonus rate)
Final Additional Bonus = Rs. 1 lakh (Rs. 50 per thousand sum assured x 10 lakh sum assured)
Total Maturity Benefit = Sum Assured + Simple Reversionary Bonus + Final Additional Bonus = Rs. 19 lakh
Scenario 2: Mr. Sharma Passes Away During the Policy Term
Suppose Mr. Sharma passes away due to an unfortunate event after paying the premium for 10 years. In this case, his nominee will receive a lump sum amount of Rs. 10 lakh, along with the simple reversionary bonuses and final additional bonus (if any) that have accrued over the policy term. Assuming that the simple reversionary bonus rate is 4% per annum, and the final additional bonus rate is Rs. 50 per thousand sum assured, the total death benefit for Mr. Sharma's nominee would be as follows:
Sum Assured = Rs. 10 lakh
Simple Reversionary Bonus = Rs. 4 lakh (10 years x 10,000 sum assured x 4% bonus rate)
Final Additional Bonus = Rs. 50,000 (Rs. 50 per thousand sum assured x 10 lakh sum assured)
Total Death Benefit = Sum Assured + Simple Reversionary Bonus + Final Additional Bonus = Rs. 14.5 lakh
Scenario 3: Mr. Sharma Surrenders the Policy After 10 Years
Suppose Mr. Sharma decides to surrender the policy after paying the premium for 10 years due to a financial emergency. In this case, he will receive the surrender value, which is calculated based on the premiums paid and the number of years for which the policy was active. The surrender value may also depend on the bonus rates declared by LIC during the policy term. Assuming that the surrender value for Mr. Sharma is Rs. 6 lakh, he will receive this amount as the surrender value.
In summary, LIC's Dhan Rekha Plan No. 863 provides financial security and savings to individuals by offering a combination of protection and savings. The plan is flexible in terms of premium payment options, policy term, and sum assured, making it suitable for a wide range of individuals. The plan also provides tax benefits, loan facility, and bonus, making it an attractive investment option.
Conclusion
LIC's Dhan Rekha Plan No. 863 is an excellent option for individuals who are looking for a combination of protection and savings. The plan provides life cover, maturity benefit, tax benefits, loan facility, and bonus. The premium payment options and policy term are flexible, making it easy for individuals to choose a policy that suits their financial requirements. The eligibility criteria for this plan are also quite simple, making it accessible to a wide range of individuals. Overall, LIC's Dhan Rekha Plan No. 863 is a reliable and secure way to secure one's financial future while also providing for the future of their loved ones.
FAQ
Q. What is LIC's Dhan Rekha Plan No. 863?
LIC's Dhan Rekha Plan No. 863 is an endowment plan that provides life cover and savings benefits. The plan provides a lump sum amount as the death benefit to the nominee in case of the policyholder's unfortunate demise during the policy term. In case the policyholder survives the policy term, they receive a lump sum amount, along with accrued bonuses.
Q. What are the eligibility criteria for buying LIC's Dhan Rekha Plan No. 863?
The minimum age of entry for this plan is 18 years, and the maximum age of entry is 55 years. The minimum sum assured for this plan is Rs. 1 lakh, and there is no maximum limit. The policy term for this plan can range from 10 to 25 years, and the premium payment frequency can be annual, half-yearly, quarterly, or monthly.
Q. What are the premium payment options available under LIC's Dhan Rekha Plan No. 863?
The premium payment options available under this plan are annual, half-yearly, quarterly, and monthly. The premium payment frequency can be chosen based on the policyholder's convenience.
Q. What are the tax benefits available under LIC's Dhan Rekha Plan No. 863?
The premium paid for this plan is eligible for tax deduction under Section 80C of the Income Tax Act. The death benefit and maturity benefit received under this plan are also tax-free under Section 10(10D) of the Income Tax Act.
Q. Is there a loan facility available under LIC's Dhan Rekha Plan No. 863?
Yes, policyholders can avail of a loan against their policy under this plan after the completion of three policy years. The maximum loan amount that can be availed is up to 90% of the surrender value of the policy.
Q. What is the surrender value of LIC's Dhan Rekha Plan No. 863?
The surrender value of this plan depends on the premiums paid and the number of years for which the policy was active. The surrender value may also depend on the bonus rates declared by LIC during the policy term. Policyholders can surrender their policy after the completion of three policy years.
Sales Brochure attached file is in PDF Document Format(1.6 MB)
Policy Document attached file is in PDF Document Format(1 MB)
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