LIC Dhan Rekha Policy
LIC's Dhan Rekha is a simple life insurance plan that gives both savings and protection. It is a non-linked and non-participating plan, which means it is not connected to the stock market and does not give bonuses from company profits. This is an individual plan, so it is taken by one person.
In this plan, the policyholder's family gets financial support if the policyholder dies during the policy period. If the policyholder stays alive, they receive money at fixed times during the policy. At the end of the policy, the policyholder gets a guaranteed lump sum amount.
This plan also helps in case of financial needs, as you can take a loan against the policy.
Eligibility Criteria for LIC Dhan Rekha Policy
| Parameters | Criteria |
|---|---|
| Basic Sum Assured | Min: Rs. 2,00,000Max: No limit |
| Policy Term | 20, 30, 40 years |
| Policy Term | Min Age at Entry | Max Age at Entry (Regular) | Max Age at Entry (Limited) | Min Age at Maturity | Max Age at Maturity (Regular) | Max Age at Maturity (Limited) |
|---|---|---|---|---|---|---|
| 20 years | 8 years | 60 years | 55 years | 28 years | 80 years | 75 years |
| 30 years | 3 years | 50 years | 45 years | 33 years | 80 years | 75 years |
| 40 years | 90 days | 40 years | 35 years | 40 years | 80 years | 75 years |
Key Benefits of LIC Dhan Rekha Plan
Death Benefit
If the insured person dies during the policy period, the nominee (family member) gets the money. They will receive the Sum Assured on Death plus any extra guaranteed bonus.For Single Premium: The death benefit is 125% of the basic sum assured.For Limited Premium: The death benefit is either 125% of the basic sum assured OR 7 times the yearly premium, whichever is higher.The minimum amount paid will be 105% of all premiums paid (not including extra charges, rider costs, or taxes).If the insured person is below 8 years of age, the family will get all the premiums paid back.
Survival Benefit
If the insured person stays alive till the end of the policy and the policy is active, they will receive a fixed part of the sum assured, based on the policy term.
Option II - Flexi Income Benefit:If the policyholder chooses Flexi Income, they also get 10% of the Basic Sum Assured each year. But here, the money can be kept aside and added up, growing at 5.5% per year until they decide to take it out.
Policy Term (Years) Survival Benefit Payment Details 20 years 10% of Basic Sum Assured at the end of the 10th and 15th year 30 years 15% of Basic Sum Assured at the end of the 15th, 20th, and 25th year 40 years 20% of Basic Sum Assured at the end of the 20th, 25th, 30th, and 35th year 
Maturity Benefits:
If the insured person lives until the end of the policy and the policy is active, they will get the Sum Assured on Maturity plus any Guaranteed Additions. The Sum Assured on Maturity is the same as the Basic Sum Assured.
Guaranteed Additions:
You will get Guaranteed Additions if you keep paying your premiums and the policy is active. These additions start from the 6th year of the policy and keep adding every year until the policy ends. The amount of Guaranteed Additions will increase as the policy goes on, following a set rate.
Policy Term (in years) Guaranteed Additions (per Rs. 1000 Basic Sum Assured) From 6th to 20th Rs. 50 From 21st to 30th Rs. 55 From 31st to 40th Rs. 60 
Option to Receive Death or Maturity Benefits in Installments
This plan allows you to take your Maturity or Death Benefits in installments instead of getting all the money at once. You can choose to receive the installments: monthly, quarterly, half-yearly, or yearly. The minimum amounts for each installment are:Monthly: Rs. 5,000Quarterly: Rs. 15,000Half-Yearly: Rs. 25,000Yearly: Rs. 50,000
If the insured person dies after choosing this installment option, the remaining payments will continue to go to the nominee exactly as per the option selected. No changes can be made after that.
Riders Available in LIC Dhan Rekha Policy
Riders are extra benefits you can add to your plan by paying a little more. You can choose from these:
- 01
Accidental Death and Disability Benefit Rider
Accidental Death: If the insured person dies in an accident, the Accident Benefit Sum Assured is paid in full, along with the normal death benefit of the plan.Accidental Disability: If the insured becomes disabled because of an accident within 180 days of the accident, the Accident Benefit Sum Assured is paid in monthly installments for 10 years. - 02
Accident Benefit Rider
If the insured person dies due to an accident, the Accident Benefit Sum Assured is paid in full, along with the normal death benefit. This rider covers only accidents that happen during the premium paying term of the plan.
- 03
New Term Assurance Rider
You can add this rider only when starting the policy. If the insured person dies during the policy period, the Term Assurance Rider Sum Assured is paid to the nominee.
- 04
New Critical Illness Benefit Rider
If the insured person is diagnosed with any of the 15 critical illnesses covered by this rider for the first time during the policy, the Critical Illness Sum Assured is paid.
- 05
Premium Waiver Benefit Rider
If the insured person dies, all remaining premiums for the base policy will be waived from the date of death until the end of the rider term. If the base policy's premium term is longer than the rider term, the insured will need to pay any remaining premiums after the rider ends.
Rider Availability
Riders available depend on the type of premium payment you choose.
- Single Premium Payment:
Accidental Death and Disability Benefit RiderLIC's New Term Assurance Rider
- Limited Premium Payment:
Accidental Death and Disability Benefit RiderAccident Benefit RiderLIC's New Term Assurance RiderNew Critical Illness Benefit RiderPremium Waiver Benefit Rider
Note: If you choose limited premium, you can pick either the Accidental Death and Disability Rider or the Accident Benefit Rider, and you can also choose any of the other three riders.
Premium Chart of LIC Dhan Rekha Policy
These are example annual premiums for a Basic Sum Assured of Rs. 10 lakhs.
Single Premium
The amount you pay once at the start depends on your age and policy term.
| Age (Years) | 20-Year Term | 20-Year Term | 40-Year Term |
|---|---|---|---|
| 20 | Rs. 7,17,350 | Rs. 6,62,150 | Rs. 6,12,250 |
| 30 | Rs. 7,20,550 | Rs. 6,70,650 | Rs. 6,27,000 |
| 40 | Rs. 7,33,050 | Rs. 6,92,250 | Rs. 6,59,450 |
| 50 | Rs. 7,61,400 | Rs. 7,36,600 | - |
Limited Premium
The amount you pay for a few years (not one-time) depends on your age, policy term, and premium paying term.
| Age (Years) | 20-Year Term (10-Year Payment) | 30-Year Term (15-Year Payment) | 40-Year Term (20-Year Payment) |
|---|---|---|---|
| 20 | Rs. 1,02,693 | Rs. 72,264 | Rs. 56,290 |
| 30 | Rs. 1,03,232 | Rs. 73,342 | Rs. 57,858 |
| 40 | Rs. 1,05,633 | Rs. 76,527 | - |
| 50 | Rs. 1,12,101 | - | - |
Note: Premiums are without taxes.
Other Details of the LIC Dhan Rekha Policy
Here are some simple details to help you understand the plan better:
Policy Loan
You can take a loan against your policy if you meet certain conditions.
For Single Premium Policies:You can take a loan after 3 months from the start of the policy or after the free-look period, whichever is later.The maximum loan is up to 75% of the surrender value.
For Limited Premium Policies:You can take a loan after paying at least 2 full years of premiums.Maximum loan amount:For active (in-force) policies: up to 90% of the surrender valueFor paid-up policies: up to 80% of the surrender value
Free Look Period
If you do not like the policy or are not happy with its terms, you can return it to LIC. You must do this within 15 days of receiving the policy papers. If you bought the policy online, you get 30 days. You should also tell the reason for returning the policy.
Grace Period
In a Limited Premium Payment policy, you get some extra time to pay your premium if you miss the due date. For yearly, half-yearly, or quarterly payments, you get 30 days extra. For monthly payments, you get 15 days extra. During this time, your policy will still remain active.
Policy Revival
If you do not pay the premium even during the grace period, your policy will stop (lapse). But you can restart it within 5 years from the date of the first missed premium, as long as the policy has not ended. To restart the policy, you need to pay all the missed premiums along with some extra interest.
Policy Surrender
You can close (surrender) your policy anytime during the policy period.
For Single Premium Policies:If you surrender in the first 3 years, you get 75% of the premium paid.If you surrender after 3 years, you get 90% of the premium paid.
For Limited Premium Policies:You can surrender the policy only after paying at least 2 full years premiums.The amount you get depends on:Total premiums you have paidAny guaranteed additions earnedMinus any survival benefits already received
Payment of Premiums
In Limited Premium policies, you can pay your premium in different ways. You can choose to pay yearly, half-yearly, quarterly, or monthly.
Exclusion of LIC Dhan Rekha Plan
- 01For Single Premium Policy:If the insured person commits suicide within 12 months of the start of the policy, the nominee will get 80% of the premium paid.
- 02For Limited Premium Policy:If death happens within 12 months of the start: If the insured person commits suicide within 12 months of the start of the policy, the nominee will get 80% of all premiums paid.If death happens within 12 months after revival: If the policy was restarted (revived) and the insured person commits suicide within 12 months, the nominee will get either:80% of all premiums paid, orthe surrender value available at that time, whichever is higher.
Disclaimer: Squareinsurance.in does not endorse or recommend any specific insurance company or insurance plan. For more details about this plan, please check the plan brochure or the policy document.
FAQs
It is a life insurance plan that gives both savings and protection. You get money during the policy and also at the end.
LIC gives you extra time to pay the premium. You get 15 days (monthly) or 30 days (other modes). If you still don't pay, your policy may stop or become a paid-up policy, as per the rules
You usually need these documents:
- Identity proof
- Address proof
- Age proof
- Income proof
- Filled proposal form
Note: LIC may ask for some more documents if needed.
You can pay the premium once (single payment) or for a few years (limited payment).
You get some extra time (grace period). If you still don't pay, the policy will stop, but you can restart it later.