Life Insurance Corporation of India completes the 60th anniversary in 2016 and to celebrate the “Diamond Jubilee Year”, the company has launched a brand new life insurance product- Bima Diamond Plan. This is a non-linked, traditional money back policy available for purchase only from 19th September, 2016 to 31st August, 2017. This plan allows the policyholder to receive guaranteed payouts, on the completion of every 4 years.
This plan comes with the triple benefits of enhanced protection, money back, and auto cover features. The plan is best suited for those who are looking for a short-term investment that offers provides guaranteed returns in periodic installments.
Here, let’s give you a detailed description of LIC’s Bima Diamond Plan.
Key Features of LIC Bima Diamond
Enhanced Protection- The plan offers extended cover period for half of the policy tenure after the completion of the policy tenure.
Money Back- A certain amount of sum is paid out as the survival benefits on the completion of every 4th policy year.
Auto Cover Feature- If a premium is not duly paid for 5 full policy years, an auto cover period of 2 years is available.
Premium Paying Term- The policyholder has an option of three premium paying terms to choose from.
- Option 1: If the policy tenure is 16 years and the term of premium payment is 10 years, then the insured person will have to pay the premium for up to 12 years with Rs 2lakh sum assured. The life coverage provided by the policy will be of 30 years and during the tenure of the policy he/she will get a money back for 5 times.
- Option 2: If the policy tenure is 20 years, then the insured person will have to choose a premium paying term of 12 years.
- Option 3: In case of 24 years of the policy term, the premium paying term of the policy will be of 15 years.
Sum Assured- The minimum basic sum assured provided by the policy is Rs1,00,000 and the maximum basic sum assured offered by the policy is Rs5,00,000.
Entry Age- The minimum entry age of the policy is 14 years.
Benefits offered by LIC Bima Damond
Besides these features, a plethora of benefits are also offered by the plan. The benefits of LIC Bima Damond plan are as follows:
Death Benefit- In case of demise of the life insured during the first 5 years of the policy, a sum assured amount as a death benefit is payable to the beneficiary of the policy. If the death occurs after the completion of 5 policy years but before the completion of policy tenure or before the maturity date of the policy then the sum assured amount along with the loyalty addition is payable to the nominee of the policy.
Either 10 times of the annualized premium or absolute amount assured to be paid on death or the sum assured on maturity whichever is higher is defined as the sum assured amount as a death benefit.
In case if the policyholder dies during the extended cover period, an amount equal to 50% of the basic sum assured is payable to the beneficiary of the policy.
Survival Benefit- If the insured person survives till the end of each specific time, during the tenure of the policy, and pays the entire premium, a fixed percent of basic sum assured is paid out for various policy terms.
- For the policy tenure of 16 years, 15 % of the basic sum assured is paid at the end of 4th, 8th and 12th policy year.
- For the policy tenure of 20 years, 15 % of the basic sum assured at the end of 4th, 8th, 12th and 16th policy year.
- For the policy tenure of 24 years, 12% of the basic sum assured at the completion of 4th, 8th, 12th, 16th and 20th policy year.
Maturity Benefit- If the insured person survives till the end of the policy tenure and has duly paid all the premiums then a sum assured on maturity along with the loyalty addition is payable to the policyholder. The sum assured on maturity is 55% of the basic sum assured for the policy tenure of 16 years and 40% of basic sum assured for policy tenure of 20 and 24 years.
Loyalty Addition- The policy provides profit in form of loyalty addition if the insured person has duly paid all the premiums till the date of demise or maturity. Loyalty addition is either paid on the demise of the policy holder after completion of 5th policy year or on the maturity of the policy.
The Plan also Provides Optional Rider Benefits as Follows:
- LIC Accidental Death Benefit and Disability Rider
- LIC New Term Insurance Rider
Besides these, one can also avail income tax benefits on the premium paid and the maturity benefit received under section 80C and 10(10D) of Income Tax Act.
For the better understanding of our readers, we have highlighted the eligibility criteria in a tabular format:
|
|
Minimum |
Maximum |
|
Sum Assured |
Rs1,00,000 |
Rs5,00,000 |
|
Tenure of Policy |
16, 20 and 24 |
|
|
Tenure of Premium Payment |
10 (for 16), 12(for 20) and 15(for 24) |
|
|
Entry Age |
14 |
50 |
|
Age of Maturity |
- |
66( for Policy Term=16) 65 (for Policy Term=20) 65(for policy Term=24) |
|
Payment frequency |
Yearly, half-yearly, quarterly and monthly |
|
This plan is beneficial for those who want a short-term investment along with a money back facility. However, according to your own needs and affordability, you can compare different life insurance plans online and choose the one that suits you best.
