Formula
P = (T − R) × (1 − m) × S / 1000
I = P / f
T = A / (ä × (1 − λ))
M = G + (Σt=1n at) × S / 1000
P × Σt=0k−1 (1 + r)−t = Σt Ct (1 + r)−t + M (1 + r)−n
where
- P
- annual premium
- T
- tabular premium per ₹1,000 of sum assured, for your age, term and premium paying term
- R
- high sum assured rebate, ₹ per ₹1,000, from this plan's table (nil on smaller policies)
- m
- mode rebate: 2% yearly, 1% half-yearly, nil quarterly and monthly
- S
- Basic Sum Assured
- I
- each instalment
- f
- instalments a year: 1, 2, 4 or 12
- A
- present value, per ₹1,000 of sum assured, of everything the policy pays: death cover, survival benefits and maturity
- ä
- present value of ₹1 a year, paid at the start of each year of the premium paying term while you are alive
- λ
- expense loading, 8%
- M
- maturity amount
- G
- guaranteed maturity sum, 100% of S (the rest is paid out earlier as survival benefits)
- at
- guaranteed addition credited in policy year t, ₹ per ₹1,000 of sum assured
- Ct
- survival benefit at the end of year t, set by the term: on 20 years, 10% of S in year 10, 10% of S in year 15; on 30 years, 15% of S in year 15, 15% of S in year 20, 15% of S in year 25; on 40 years, 20% of S in year 20, 20% of S in year 25, 20% of S in year 30, 20% of S in year 35
- r
- annualised return: the rate that makes both sides equal
- n
- policy term, in years
- k
- premium paying term, in years
*Source LIC Dhan Rekha brochure (PDF)
In short (tl;dr)
Dhan Rekha pays a share of the sum assured back at five-year intervals from the middle of the term, credits guaranteed additions from the sixth year, and still returns the full sum assured at maturity.
Worked example: at 30, ₹5,00,000 of cover over 30 years costs ₹37,651 a year for 15 years and is projected to pay ₹11,50,000 at maturity, a return of 4.25% a year.
What is LIC Dhan Rekha?
Dhan Rekha (Plan 863) is a non-participating money back plan with terms of 20, 30 or 40 years. On limited premium you pay for half the term: 10 years on a 20-year policy, 15 on 30 and 20 on 40. A single premium version was also sold; this calculator prices limited premium only.
The survival benefits are set by the term. A 20-year policy pays 10% of the Basic Sum Assured at the end of years 10 and 15; a 30-year policy pays 15% at years 15, 20 and 25; a 40-year policy pays 20% at years 20, 25, 30 and 35. Unlike LIC's participating money back plans, these payouts do not eat into the maturity value: the full Basic Sum Assured is paid at maturity on top, with the accrued Guaranteed Additions.
Guaranteed Additions start at the 6th policy year, not the first: ₹50 per ₹1,000 from year 6 to year 20, ₹55 from 21 to 30 and ₹60 from 31 to 40. On a 30-year policy that is ₹1,300 per ₹1,000 of sum assured by maturity.
On death during the term LIC pays the Sum Assured on Death, the higher of 125% of the Basic Sum Assured and 7 times the annualised premium, plus the additions accrued, with no deduction for survival benefits already paid.
Key features
- Money back at five-year intervals: 10%, 15% or 20% of the sum assured a time, depending on the term
- Full Basic Sum Assured still payable at maturity, on top of the payouts
- Guaranteed Additions of ₹50 to ₹60 per ₹1,000 a year from the 6th policy year
- Premiums payable for half the term: 10, 15 or 20 years
- Death cover of 125% of the Basic Sum Assured or 7 times the annualised premium, whichever is higher
Which Dhan Rekha term should you pick?
The term is the choice that moves everything else, and the brochure lists the options without ever setting them beside each other. Here they are at age 30 on ₹5,00,000 of cover, so the rows differ only by the term and the premium term that goes with it.
| Policy term | You pay for | Premium a year | Total paid in | Projected maturity | Return a year |
|---|---|---|---|---|---|
| 20 years | 10 years | ₹53,548 | ₹5,35,479 | ₹8,75,000 | 4.14% |
| 30 years | 15 years | ₹37,651 | ₹5,64,767 | ₹11,50,000 | 4.25% |
| 40 years | 20 years | ₹29,040 | ₹5,80,801 | ₹14,50,000 | 4.28% |
The gap between the first two columns is how long the cover runs on after the last premium: 10, 15, 20 years, in the order above.
Dhan Rekha at a glance
- Plan number
- 863
- Category
- Money Back
- Entry age
- 0 to 55 years
- Policy term
- 20, 30, 40 years
- Premium paying term
- 10, 15, 20 years
- Sum assured
- ₹2 Lakh and above
- Maximum maturity age
- 75 years
- UIN
- 512N343V01
We checked the plan number and UIN above against LIC's own page for this plan on 2026-10-04. Check it on licindia.in
What are the benefits of LIC Dhan Rekha?
What does LIC Dhan Rekha pay on death?
Sum Assured on Death, the higher of 125% of the Basic Sum Assured and 7 times the annualised premium, plus accrued Guaranteed Additions, subject to a minimum of 105% of premiums paid. Survival benefits already paid are not deducted.
What do you get at maturity?
The full Basic Sum Assured plus the Guaranteed Additions accrued from the 6th policy year to the end of the term, in addition to all survival benefits already received.
Who is LIC Dhan Rekha for?
A long-horizon buyer who wants to finish paying in half the term but keep contractual payouts and life cover running for the other half.
What should you watch out for?
LIC has withdrawn the plan, so this page is for valuing a policy already held. On a 40-year term the last payout is a very long way off, so check the projection against inflation.
What does LIC Dhan Rekha cost?
Worked out on a 30-year term with premiums paid for 15 years. Change any of these in the calculator above for your own figures.
By sum assured, at age 30
| Sum assured | Premium a year | Total paid in | Projected maturity |
|---|---|---|---|
| ₹5,00,000 | ₹37,651 | ₹5,64,767 | ₹11,50,000 |
| ₹10,00,000 | ₹73,342 | ₹11,00,133 | ₹23,00,000 |
| ₹25,00,000 | ₹1,83,356 | ₹27,50,333 | ₹57,50,000 |
Premiums are modelled on this plan's own tabular rates. The additions on this plan are contractual rather than declared, so unlike a with-profits plan the figure does not rest on a bonus declaration.
By age, on ₹5,00,000 of cover
Sum assured moves the premium almost in a straight line, so the table above is easy to read across. Age does not, and it is the input people most often want to test before filling anything in.
| Age at entry | Premium a year | Total paid in | Projected maturity | Age when it pays |
|---|---|---|---|---|
| 25 years | ₹37,512 | ₹5,62,676 | ₹11,50,000 | 55 |
| 30 years | ₹37,651 | ₹5,64,767 | ₹11,50,000 | 60 |
| 40 years | ₹38,397 | ₹5,75,953 | ₹11,50,000 | 70 |
The premium barely moves across the rows. Mortality is a small part of a savings premium and the savings part is the same at any age. What age changes is the last column: when the money arrives, and how old you are when it does.
LIC's own sample premium, from the brochure
From the sourceNot modelled: this is the table LIC prints in its own brochure (Sales brochure, section 6(b) Sample Illustrative Premium, limited premium (offline, standard male lives)), at ₹10,00,000 of cover, the sum assured LIC chose to illustrate. Everywhere else on this page the premium is worked out for the sum assured you enter; here it is fixed at that figure, because that is what LIC published.
These figures are taken from the document linked below. Check them there.
| Age at entry | 10 years | 15 years | 20 years |
|---|---|---|---|
| 20 | ₹1,02,693 | ₹72,264 | ₹56,290 |
| 30 | ₹1,03,232 | ₹73,342 | ₹57,858 |
| 40 | ₹1,05,633 | ₹76,527 | Not printed |
| 50 | ₹1,12,101 | Not printed | Not printed |
Priced on ₹10,00,000 of cover, exclusive of taxes, standard lives. Our own model is anchored on the age 30, 30-year term, 15-year premium term cell in this table; the other cells are the real test of the model, and the editorial and methodology policy publishes how far off they run.editorial and methodology policy publishes how far off they run.
Where the maturity figure comes from
Taken apart, on the ₹5,00,000 policy in the first table. Every line is contractual on this plan: the additions are written into the policy at a stated rate rather than declared each year, so none of this depends on how LIC's investments do.
- Basic sum assured (guaranteed)
- ₹5,00,000
- Guaranteed additions
- ₹6,50,000
- Paid at maturity
- ₹11,50,000
- Income paid before then, 3 payments of ₹75,000 from year 15
- ₹2,25,000
- Return a year on the premiums
- 4.25%
When does LIC Dhan Rekha pay for itself?
The grey line is what you have paid in by each policy year. The yellow line is what the policy has paid back by then. They cross in year 30, which is the point the policy has returned everything it cost.
That return counts everything the policy pays back, income included, against everything you put in, after the cost of the life cover it carried for 30 years. It is not a market return. On this plan the figures behind it are contractual, so it moves only with the age and term you enter.
Who can take LIC Dhan Rekha?
Age to start
- Minimum
- 30 days
- Maximum
- 55 years
These are the widest limits the plan allows. The range narrows once you choose a policy term, and the calculator applies whichever range fits your answers.
Policy term
- Terms sold
- 20, 30 or 40 years
Age when the policy matures
- Maximum
- 75 years
Your age at entry plus the policy term cannot come to more than 75.
Years you pay for
- Terms available
- 10, 15 or 20 years
Sum assured
- Minimum
- ₹2,00,000
- Maximum
- No limit set by LIC
LIC caps this by what underwriting allows rather than with a printed figure. This calculator accepts up to ₹5 Crore.
The calculator applies every limit above. LIC sets them out under "Eligibility Conditions and Other Restrictions" on page 3 of the Dhan Rekha sales brochure, linked in the form above.
Tax on LIC Dhan Rekha
Two provisions do the work, and both turn on the size of the premium rather than on the plan. The Income-tax Act, 2025 renumbered both from 1 April 2026 without changing the rules, so each is given here under its old number and its new one.
Section 80C, now Section 123, on what you pay in
Premiums count towards the ₹1.5 lakh limit, in the year they are paid, if you are on the old regime. The deduction is restricted where the annual premium is more than 10% of the sum assured.
Section 10(10D), now Schedule II, on what comes back
Maturity proceeds are exempt where the premium in every year stays inside 10% of the sum assured, and, for a policy issued on or after 1 April 2023, where the premiums on all such policies together stay inside ₹5 lakh a year. Death proceeds are exempt either way.
Where this policy sits
The ₹5,00,000 policy priced above costs ₹37,651 a year, which is 7.5% of the sum assured. That is inside the 10% test, on both provisions. A larger sum assured moves the ratio down.
GST
Nil. Individual life insurance premiums have been exempt since 22 September 2025, so the instalment the calculator shows is the amount that leaves your account.
None of this is tax advice. Which regime you are on, what else you hold and when the policy was issued all change the answer, so confirm your own position with a tax adviser before you rely on it.
How this calculator works
Dhan Rekha is priced here on its own parameters, not a generic formula. We build the plan's full cash-flow schedule, meaning the death benefit in each policy year, every survival payout and the maturity value, then discount it on a basis calibrated to a reference premium for this plan. That reference is checked two ways: against LIC's published tabular rate, and against the return the plan's own benefits imply for the policyholder.
- Reference premium
- ₹77.84 per ₹1,000 at age 30, 30-year term, 15-year premium term
- Discount basis
- 4.59% a year, on LIC (2012-14) Ultimate mortality
- Guaranteed additions
- ₹50 per ₹1,000 for years 6 to 20; ₹55 per ₹1,000 for years 21 to 30; ₹60 per ₹1,000 for years 31 to 40
- GST
- Nil. Individual life insurance premiums have been exempt from GST since 22 September 2025, so the instalments shown are what you actually pay.
Bonus rates are declared annually and are not guaranteed; only the sum assured and any contractual guaranteed additions are. Read our editorial and methodology policyfor the full basis, and confirm every figure with LIC before you buy.
Check the source:Dhan Rekha on licindia.inLIC valuation and bonus declarationsIRDAI regulations
How LIC Dhan Rekha compares
The plans people weigh this one against, and what separates each from it.
| Plan | Policy term | You pay for | Cover from | What is different |
|---|---|---|---|---|
| Dhan RekhaNo. 863 · this page | 20, 30, 40 years | 10, 15, 20 years | ₹2 Lakh | Non-participating money back: payouts keyed to the term, guaranteed additions from year six, and the full sum assured at maturity. |
| Bima RatnaNo. 764 | 15, 20, 25 years | Term minus 4 years | ₹5 Lakh | Guaranteed additions that step up over time, plus two payouts before maturity. |
| New Money Back Plan - 25 YearsNo. 721 | 25 years | 20 years | ₹2 Lakh | Four payouts of 15% across 25 years, with the highest money back bonus rate. |
| Bima JyotiNo. 760 | 15 to 20 years | Term minus 5 years | ₹1 Lakh | Non-participating endowment with a guaranteed addition of ₹50 per ₹1000 every year. |
| Jeevan UmangNo. 745 | 30 to 100 years | 15, 20, 25, 30 years | ₹2 Lakh | 8% of the sum assured every year for life once premiums finish, and cover to age 100. |
To price several of these against each other on the same age and sum assured, the LIC premium calculator runs every plan on the site through the same engine and puts the answers in one table.
LIC Dhan Rekha: frequently asked questions
What is the money back schedule in Dhan Rekha?
For a 20-year term: 10% of the sum assured at the end of years 10 and 15. For 30 years: 15% at years 15, 20 and 25. For 40 years: 20% at years 20, 25, 30 and 35. The full sum assured is then paid at maturity on top.
Does Dhan Rekha pay the sum assured at maturity as well as the money back?
Yes. This is the plan's distinguishing feature: the survival benefits are extra, not an advance against the maturity value. The full Basic Sum Assured plus all Guaranteed Additions is payable at the end.
What is the death benefit under Dhan Rekha?
The higher of 125% of the Basic Sum Assured and 7 times the annualised premium, plus accrued Guaranteed Additions, with no deduction for survival benefits already received. On a single premium policy it is 125% of the Basic Sum Assured.
What is the premium paying term for Dhan Rekha?
Half the policy term on limited premium: 10 years for a 20-year term, 15 years for a 30-year term and 20 years for a 40-year term. A single premium option was also sold.
When do the guaranteed additions start in Dhan Rekha?
At the end of the 6th policy year. The rate is ₹50 per ₹1,000 of Basic Sum Assured from year 6 to 20, ₹55 from 21 to 30 and ₹60 from 31 to 40. Nothing is credited in the first five years.
Spot something wrong?
If a figure on this page disagrees with an LIC premium notice, bonus statement or benefit illustration, tell us and we will check it against the brochure. Anything else you think this page gets wrong is just as welcome.
Related calculators
Plans people usually weigh up against Dhan Rekha before deciding.
Bima Ratna
No. 764Guaranteed additions that step up over time, plus two payouts before maturity.
Open calculatorNew Money Back Plan - 25 Years
No. 721Four payouts of 15% across 25 years, with the highest money back bonus rate.
Open calculatorBima Jyoti
No. 760Non-participating endowment with a guaranteed addition of ₹50 per ₹1000 every year.
Open calculatorJeevan Umang
No. 7458% of the sum assured every year for life once premiums finish, and cover to age 100.
Open calculator