LIC Bima Diamond and LIC Jeevan Labh are two different types of insurance policies serving the same basic need for financial protection for the future of their policyholders. While LIC Jeevan Labh is an endowment-based plan, LIC Bima Diamond is a money-back insurance scheme. Please note that the LIC Bima Diamond plan has been withdrawn by the company.Read more
Let’s briefly discuss the two plans first to establish a comprehensive comparison between them.
LIC Bima Diamond offers a limited premium paying insurance avenue and survival benefits at specified durations during the policy term. The policy is a non-linked, participating policy that supports your capital needs during the policy tenure and beyond. Given that it has been withdrawn by LIC, it is no longer available for sale or purchase.
The policy offers death benefit on the unfortunate demise of the life assured while the policy is still in force.
If death occurs in the first five years, beneficiaries are entitled to the sum assured on death. However, if it occurs after five years, the sum assured on death is payable along with loyalty editions.
The life assured is entitled to a percentage of the basic sum assured (BSA) at the end of certain policy years.
|Policy Term||Survival Benefit (% of BSA)||Policy years|
|16 years||15%||4th, 8th, and 12th|
|20 years||15%||4th, 8th, 12th, and 16th|
|24 years||12%||4th, 8th, 12th, 16th, and 20th|
On surviving the entire duration of the policy term, policyholders are entitled to 55% and 40% of the basic sum assured for a policy term of 16 years, 20 years, and 24 years respectively.
The loyalty editions that one is entitled to, along with death and maturity benefits, are payable if death occurs on the completion of five years but within the policy period.
You can avail rider benefits with LICs Accidental Death and Disability Benefit Rider and LIC’s New Term Assurance Rider.
LIC Jeevan Labh is a fairly comprehensive life insurance scheme that protects the financial needs of the family of the life assured on his/her demise. It is an endowment-based policy that offers both death and maturity benefits along with a loan facility.
It is a limited premium paying policy wherein policyholders can choose from a premium paying term of 10 years, 15 years, or 16 years.
The corresponding policy term against the aforementioned premium paying terms is 16 years, 21 years, or 25 years.
The death benefit is payable along with bonuses such as the simple reversionary bonus. Further, one can choose to receive the amount in installments throughout 5, 10, or 15 years.
Similarly, the maturity benefit that is equal to the basic sum assured can also be received in installments, if the settlement option is opted for.
The policy participates in the profit of the company, which entitles one to additional returns along with the assured benefits.
If you are in urgent need of capital, you can also avail yourself of the loan facility that comes with LIC Jeevan Labh.
LIC Bima Diamond was introduced as a close-ended policy in 2017 and, therefore, is no longer serviceable. It ensures that you receive a part of your investments at periodic intervals, which makes for a good option for diligent financial planning. The plan also offered the option to increase one's life cover. During this extended period, the assigned beneficiaries are entitled to 50% of the basic sum assured on the policyholder's unfortunate demise.
LIC Jeevan Labh is a fairly recent product by LIC that offers benefits of protection and savings. You receive death as well as maturity benefits along with additional bonus amounts that enhance your savings corpus while remaining protected under a life insurance cover. With this plan, you can rest assured that the financial needs of your family are taken care of even in your absence.
The following section highlights all the distinguishing features of each plan.
|LIC Bima Diamond||LIC Jeevan Labh|
|Type of Policy|
|Age At Entry|
|Minimum: 14 years Maximum: 50 years||Minimum: 8 years Maximum: 59 years|
|16/ 20/ 24 years||16/ 21/ 25 years|
|Premium Paying Term|
|Limited (10/ 12/ 15 years)||Limited (10/ 15/ 16 years)|
|Can be availed of after 3 years||Can be availed of after 2 years|
|Extended Cover Period|
|50% of the basic sum assured||XX|
|Minimum Sum Assured|
|Rs. 1,00,000||Rs. 2,00,000|
|Sum Assured On Death|
|Basic sum assured or; 10 times the annualized premium or; Sum assured on maturity||Absolute sum assured or; 7 times the annualized premium|
|Under sections 80C and 10(10D)||Under sections 80C and 10(10D)|
Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.
LIC Bima Diamond versus LIC Jeevan Labh presents significant differences as highlighted in the table below. However, both plans also resemble in certain aspects such as the availability of loan facilities or profit participation. You must take the final call based on your potential needs and goals.
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
+Returns Since Inception of LIC Growth Fund
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ