LIC Dhan Sanchay 865 is a non-participating savings plan that pays a guaranteed income for several years after the policy term, plus a lump-sum terminal benefit. It was sold from 14 June 2022 to 1 January 2025 with four options. In our estimate, ₹1 lakh a year for 10 years under Option A returns ₹85,000 a year for 10 years and ₹10 lakh at the end: ₹18.5 lakh in total.
Dhan Sanchay 865 Guaranteed Income Calculator
Your estimate
total income + terminal benefit, all guaranteed
- Income per instalment
- ₹85,000
- Income periodfrom year 11 to year 20
- 10 years
- Total premium paid
- ₹10,00,000
- Total guaranteed income
- ₹8,50,000
- Guaranteed terminal benefitpaid with the last income instalment
- ₹10,00,000
- Sum assured on deathduring the policy term; lump sum or 5-year instalments
- ₹10,50,000
- Approx. return (IRR)
- 4.69%
- Total premium paid₹10,00,00054%
- Net gain₹8,50,00046%
Year-wise premiums and guaranteed income
| Year | Age | Premium paid | Income received |
|---|---|---|---|
| 1 | 31 | ₹1,00,000 | ₹0 |
| 2 | 32 | ₹1,00,000 | ₹0 |
| 3 | 33 | ₹1,00,000 | ₹0 |
| 4 | 34 | ₹1,00,000 | ₹0 |
| 5 | 35 | ₹1,00,000 | ₹0 |
| 6 | 36 | ₹1,00,000 | ₹0 |
| 7 | 37 | ₹1,00,000 | ₹0 |
| 8 | 38 | ₹1,00,000 | ₹0 |
| 9 | 39 | ₹1,00,000 | ₹0 |
| 10 | 40 | ₹1,00,000 | ₹0 |
| 11 | 41 | ₹0 | ₹85,000 |
| 12 | 42 | ₹0 | ₹85,000 |
| 13 | 43 | ₹0 | ₹85,000 |
| 14 | 44 | ₹0 | ₹85,000 |
| 15 | 45 | ₹0 | ₹85,000 |
| 16 | 46 | ₹0 | ₹85,000 |
| 17 | 47 | ₹0 | ₹85,000 |
| 18 | 48 | ₹0 | ₹85,000 |
| 19 | 49 | ₹0 | ₹85,000 |
| 20 | 50 | ₹0 | ₹10,85,000 |
Individual life insurance premiums are exempt from GST from 22 September 2025. Figures are estimates based on typical rates and may differ from LIC’s official quote.
What is LIC Dhan Sanchay Plan 865?
LIC Dhan Sanchay (Plan 865) is a non-linked, non-participating savings plan built for people who want a fixed income later, not a lump sum. You pay premiums first. When the policy term ends, LIC pays a guaranteed income benefit every year (or month) for a set period, and a guaranteed terminal benefit with the last instalment.
The plan (UIN 512N346V01) was launched on 14 June 2022 and withdrawn on 1 January 2025. It sits alongside Dhan Rekha 863, which pays money back during the term rather than after it.
Dhan Sanchay 865 at a glance
| Feature | Options A & B | Option C | Option D |
|---|---|---|---|
| Premium | Regular / limited | Single | Single |
| Income | Level (A) / increasing (B) | Level | Level |
| Policy term | 10 or 15 years | 5, 10 or 15 years | 5, 10 or 15 years |
| Entry age | 3 to 50 | 3 to 65 | 3 to 40 |
| Minimum sum assured | ₹3,30,000 | ₹2,50,000 | ₹22,00,000 |
| Cover on death | High (about 10× premium) | 1.25× premium | 11× premium |
Status: withdrawn from 1 January 2025.
How the calculator estimates the income
- Options A and B: yearly income = an option-specific rate × total premiums payable. Under B, the income rises by 5% of the first-year amount every year. The terminal benefit returns the total premiums.
- Options C and D: yearly income and terminal benefit are multiples of the single premium; D gives lower income in exchange for much higher life cover.
- Payout frequency: the yearly income is split evenly into half-yearly, quarterly or monthly instalments.
Example 1 (Option A): a 30-year-old pays ₹1 lakh a year for 10 years on a 10-year policy (₹10 lakh in total). From year 11 to year 20 they receive ₹85,000 a year (about ₹7,083 a month), plus ₹10 lakh with the last instalment. Total: ₹18,50,000, an IRR of about 4.7%.
Example 2 (Option C): a ₹5 lakh single premium on a 10-year term pays ₹45,000 a year for 10 years and ₹9 lakh at the end, ₹13,50,000 in all (IRR about 5.6%). Death cover is ₹6,25,000.
Example 3 (Option B): ₹1 lakh a year for 10 years on a 15-year term starts at ₹70,000 a year and rises each year, for a total of ₹18,57,500.
Tip: no GST is added to these premiums from 22 September 2025. Earlier receipts show 4.5% on the first-year or single premium and 2.25% on later premiums.
Death benefit
If the life assured dies during the policy term, the nominee receives the sum assured on death, as a lump sum or in instalments over five years. In Example 1 the cover is ₹10,50,000. For minors under 8, cover begins two years after the policy date or at age 8, whichever comes first.
Loan and surrender
Loans are available once the policy has a surrender value, subject to policy terms. Surrendering during the income phase gives a discounted value of the remaining income, so it usually makes sense only in an emergency.
Who is it for?
Dhan Sanchay suits someone planning a known future expense stream, such as a child’s college years or top-up income in early retirement, who prefers certainty to market returns. Returns of roughly 4.5–5.5% are modest, so compare them with your other options using the LIC return calculator. For a current guaranteed income plan, see LIC Jeevan Utsav 771.
How to use this calculator
- Choose the option, age and policy term.
- Enter the premium and, for A or B, the premium paying term.
- Pick the income frequency.
- Check the payout table year by year. All figures are estimates; your policy document has the guaranteed amounts.
Frequently asked questions
Is LIC Dhan Sanchay 865 still on sale?
No. LIC withdrew Dhan Sanchay on 1 January 2025. Policies already issued continue and pay the guaranteed income as promised. For a guaranteed income plan available today, compare LIC Jeevan Utsav 771.
What are the four options in Dhan Sanchay?
Option A pays a level income and Option B an increasing income, both with regular or limited premiums. Option C is single premium with level income and 1.25 times cover. Option D is single premium with level income and enhanced cover of 11 times the premium.
When does the income start and how long does it last?
Income starts right after the policy term ends. For options A and B it lasts as many years as you paid premiums; for C and D it lasts as long as the policy term. The guaranteed terminal benefit is paid with the last instalment.
Who could buy Dhan Sanchay 865?
The minimum entry age was 3 years. The maximum was 50 for options A and B, 65 for option C and 40 for option D. Minimum sum assured was ₹3,30,000 for A and B, ₹2,50,000 for C and ₹22,00,000 for D.
What happens if the policyholder dies during the term?
The nominee receives the sum assured on death, either as a lump sum or in instalments over 5 years, as chosen. For children under 8, risk cover starts two years after the policy date or at age 8, whichever is earlier.
Is Dhan Sanchay income taxable?
It depends on the option. Options A, B and D generally meet the Section 11 read with Schedule II of the Income-tax Act, 2025 (earlier Section 10(10D)) cover test, subject to the ₹5 lakh premium limit for policies after 1 April 2023. Option C has low cover, so its income and terminal benefit are generally taxable.
How accurate is this calculator?
It is an estimate. The published income rate varies slightly with age, while our model uses a fixed rate per option and term and assumes the terminal benefit returns premiums paid for A and B. Your policy bond shows the exact guaranteed amounts.
Disclaimer: LIC Premium Calculators is an independent website. We are not affiliated with, endorsed by or connected to Life Insurance Corporation of India. All figures are estimates for illustration; confirm exact premiums and benefits with LIC or a licensed agent before buying.