LIC Dhan Varsha - Plan No. 866

LIC Dhan Varsha is a newly launched single premium plan offered by the Life Insurance Corporation of India. With a single, one-time premium payment, policyholders will enjoy coverage for up to 15 years along with additional savings in the form of guaranteed additions. The death benefit amount in case of the unfortunate death of the policyholder and the maturity benefit on surviving the policy term make this plan a comprehensive option. 

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Introduction to LIC Dhan Varsha

The LIC of India’s Dhan Varsha Policy combines the benefits of a life cover and long-term savings. It can be bought by paying a single lump sum premium amount which will protect policyholders and their families in case of any eventuality. Further, the guaranteed additions made by LIC every year can significantly increase the final payouts at death or maturity.

Key Features of LIC’s Dhan Varsha

  • The plan is a single premium plan which means the plan can be bought through a lump sum amount only.

  • The policyholder can choose to remain covered under a policy term or 10 years or 15 years.

  • The policy offers guaranteed additions ranging from Rs. 25 to Rs. 75 per thousand of the Basic Sum Assured at the end of each policy year.

  • After completeing 3 months of the policy, one can avail of the loan facility to finance any urgent capital needs.

  • Policyholders can choose to receive the maturity or death benefit in instalments over 5 years through the Settlement option.

  • Buyers can enjoy a 2% rebate on the premium if the policy is bought online.

Core Benefits Of LIC Dhan Varsha

  • Death Benefits: In case the life assured dies within the policy term, the nominee will receive the Sum assured on Death along with guaranteed additions. This Sum Assured on Death depends on the option chosen by the policyholder:

    • Option 1: 1.25 times the premium amount charged against the basic sum assured

    • Option 2: 10 times the premium amount charged against the basic sum assured

  • Maturity Benefits: The policyholder shall receive the Basic Sum Assured along with the accumulated guaranteed additions as maturity benefit on outliving the policy term.

  • Guaranteed Additions: Depending on the option and the policy term chosen, a certain amount will accumulate at the end of each policy year. The total sum will be added to the maturity or death benefit. The guaranteed amount per Rs. 1000 of the Basic Sum Assured will be as follows:

Basic Sum Assured Policy term of 10 years Policy term of 15 years
Option 1 Option 2 Option 1 Option 2
Rs. 1,25,000 to Rs. 2,45,000 Rs. 60 Rs. 25 Rs. 65 Rs. 30
Rs. 2,50,000 to Rs. 6,95,000 Rs. 65 Rs. 30 Rs. 70 Rs. 35
Rs. 7,00,000 and above Rs. 70 Rs. 35 Rs. 75 Rs. 40

Here’s how one can calculate the total guaranteed additions for their policy. Let’s take the following example for Option 2 of LIC Dhan Varsha:

    • Sum Assured - Rs 5 Lakhs

    • Policy Term - 15 years

    • Rate of Guaranteed Addition - Rs 35 per Rs 1000 Basic Sum Assured (as per the table above)

Therefore, total Guaranteed Addition at the end of 15 years will be Rs (35 x 5,00,000/1,000) x 15 = Rs 2,62,500.

  • Tax Benefits: The policyholder will receive tax benefits under Section 80C and Section 10(10D) of the Income Tax Act.

Sample Benefit Illustration for LIC Dhan Varsha

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

  • Age at the time of policy purchase = 35 years

  • Basic Sum Assured = Rs 10 Lakhs

  • Policy Term = 15 years

  • Policy Option = Option 2

  • Single premium payable (excluding taxes) = Rs 8,74,950

  • Guaranteed Additions = Rs 40 per Rs 1000 Basic Sum Assured

Here’s a look at different scenarios:

  1. If the policyholder dies in the 10th policy year

    The nominee will receive a total of the following amounts:

    • Sum Assured on Death for Option 2: Single Premium paid x 10 = Rs 87,49,500

    • Guaranteed Additions for 10 years: Rs (40 x 10,00,000/1,000) x 10 = Rs 4,00,000

    This brings the final death benefit to Rs 91,49,500.

  2. If the policyholder dies in the 15th policy year

    The nominee will receive the sum assured on death (Rs 87,49,500) plus Guaranteed Additions for 15 years (Rs 6,00,000), which brings the total to Rs 93,49,500.

  3. If the policyholder survives the policy term

    He/she will receive a total of the following amounts:

    • Basic Sum Assured: Rs 10,00,000

    • Guaranteed Benefits for 15 years: Rs (40 x 10,00,000/1,000) x 15 = Rs 6,00,000

    This brings the final maturity benefit to Rs 16,00,000.

    You can also use LIC Calculator to make these calculations easier and quicker in just a few clicks.

Eligibility Criteria

In order to use the LIC Calculator you need to make sure you satisfy the following conditions.


Minimum Maximum
Entry Age For policy term of 10 years 8 years Option 1: 60 years
Option 2: 40 years
For policy term of 15 years 3 years 35 years
Age at Maturity 18 years Option 1: 75 years
Option 2: 50 years
Basic Sum Assured Rs. 1,25,000 No limit
Policy Term 10 years and 15 years
Mode of Premium Payment Single premium (lump sum) only

Rider Benefits With LIC Dhan Varsha

LIC Dhan Varsha offers the option of including the following two riders which the policyholders can include in their base plan to enhance its coverage. These riders can only be included at the time of policy purchase.

  1. LIC Accidental Death and Disability Benefit Rider

    Under this rider if the policyholder passes away due to accidental death, the nominee will receive the Accident Benefit Sum Assured in lump sum amount. If the policyholder suffers an accidental permanent disability, the policyholder will receive the Accident Benefit Sum Assured in monthly installments over the course of 10 years.

  2. LIC’s New Term Assurance Rider

    Under this rider, the Term Assurance Rider Sum Assured will be paid on the death of the policyholder within the policy term.

Additional Policy Details

  • Free Look Period: The policy offers a free look period of 30 days from the day of policy purchase. During this period the policyholder can go through the T&C of the plan, and if unsatisfied can return the plan to the company.

  • Surrender Benefits: The policyholder can surrender the policy at any point in the policy term. The Guaranteed Surrender Value will be:

    1. For the first 3 policy years: 75% of the Single premium

    2. 4th policy year onwards: 90% of the Single premium

  • Policy Loan: The policyholders can apply for a policy loan at any point of the policy term after the completion of 3 months from the day of policy purchase. The maximum loan granted will be as follows:

Option Maximum loan that can be availed (percentage of surrender value)
10-year policy term 15-year policy term
Option 1 70% 60%
Option 2 60% 50%

Exclusions Under LIC Dhan Plan

Suicide Claims: In case the policyholder commits suicide within the first 12 months of the policy purchase, 80% of the single premium paid will be payable to the nominee of the policy. This claim is only applicable to the policyholder over 8 years of age.

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