LIC Bima Diamond Plan Review
LIC Bima Diamond Plan is a non-linked, with-profit, limited premium payment money back life insurance policy. The LIC Beema Diamond Plan was introduced on 1st September 2016 at Mumbai by our Hon’ble Finance Minister Shri Arun Jaitley. LIC India has specially designed this Diamond plan for those who are looking for a short term investment that issues guaranteed returns in periodic installments. Life Insurance Corporation of India has launched this LIC New Bima Diamond Policy on the occasion of their diamond jubilee celebration with Unique Identification Number (UIN) 512N307V01. Since this LIC New Plan is a close ended plan, it will be available for sale from 1st September 2016 to 31st August 2017.
This plan comes with the triple benefits of enhanced protection, money back, and auto cover features. On the completion of every 4 years, this LIC Bhima Diamond Policy allows the insured to receive guaranteed payouts. The unique feature of this LIC Bima Diamond Plan 841 is extended risk cover after policy term, i.e., LIC of India provides financial support for the family of Life assured not only during the policy term but also behind the policy term in the extended cover period. Also, the insured can avail a Death Benefit of ‘Sum Assured equal to 10 times’ of the Annualised Premium, which is payable as on date of death. Here you can calculate the Premiums, Maturity benefits, and Death benefits using LIC Bima Diamond Calculator and LIC Premium chart.
Benefits & Key Features of LIC Beema Diamond Policy
LIC Bima Diamond Policy Benefits
On the death of insured before the policy tenure, he/ she will get the below benefits.
- If death occurs during first five years: Sum Assured on death shall be payable to the beneficiary (nominee) of the policy.
- If death occurs after the completion of 5 years but before the completion of policy term or before the maturity date: Sum Assured on Death along with Loyalty additions, if any, will be payable to the nominee.
- In case if death occurs during the extended cover period: An amount equal to 50% of the basic sum assured shall be payable to the nominee as the death benefit.
Where Sum Assured on Death = 10 times of annualized premium (or) Absolute Amount assured to be paid on death i.e. Basic Sum assured.
If the policyholder survives till the end of each of the specified durations during the policy term, with all due premiums have been paid, a fixed percentage of Basic Sum Assured will be payable for different policy terms as shown in the table below.
|Policy tenure||Survival Benefit as % of Basic Sum Assured (BSA)|
|4th year||8th year||12th year||16th year||20th year|
On the policyholder surviving to the end of the policy tenure, provided all due premiums have been paid, he/ she will get Maturity benefit as
Maturity Benefit = Basic Sum Assured + Loyalty Addition.
Where Sum Assured on Maturity is
- 55% of Basic Sum Assured for 16 yrs policy term.
- 40% of Basic Sum Assured for policy terms 20 and 24 years.
Key Features of LIC’s Bima Diamond plan
Life Insurance Corporation of India features this LIC New plan 841 as a unique product with so many features included. The features of LIC Bima Diamond Plan are as follows.
- Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals or through salary deductions during the premium paying term of the policy.
- It provides a fixed percentage of sum assured after every 4 years with policy terms of 16, 20 or 24 years.
- Since this is a Money back plan, the corporation provides money back at an interval of every 4th year and maturity at the end of the policy term.
- The beneficiary will get an extended risk cover benefit after maturity.
- If a subsequent premium is not duly paid for at least 5 full years, then the Auto cover period of 2 years is available.
- The Bima Diamond Plan offers insurance cover of full sum assured during the policy term and half the sum assured beyond the policy term during the extended cover period.
- After the payment of premium for at least full 3 years, Loan facility is available.
- The maturity amount is tax-free under 10 (10D).
- The Life Assured can revive the policy within the 2 years of the FUP.
- Paid premiums under this Bima Diamond policy are exempted from income tax under 80C.
- The policyholder can also avail two optional accidental benefit and term riders.
Eligibility Criteria for LIC New Bima Diamond Plan 841
|Minimum Entry Age for Insured||
|Maximum Entry Age for Life Assured||
|Policy Term (Premium Payment Term)||
|Premium Payment Mode||
|Basic Sum Assured (in multiples of 10,000)||
(NBD = Nearest Birthday)
|Premium Payment Mode Rebate||
New Bima Diamond Plan Premium Calculator
You can calculate the minimum premium that has to be paid to take the policy by using the LIC Bima Diamond Premium Calculator. The Amount of premium to be paid depends on the Sum Assured, Policy Term, Premium Payment Modes and Age of the Insured. You need to enter some basic information like Name, Mail Id, Mobile Number, Age, Policy Term, and Minimum Sum Assured to calculate the Premium Value for this LIC Bima Diamond Plan.
Sample Premium Rates:
Following are some of the sample tabular annual premium rates per Rs. 1000/- Basic Sum Assured excluding the service tax.
|Age / Policy Term (PPT)||16(10)||20(12)||24(15)|
Riders for LIC Bhima Diamond Policy
LIC India offers two optional riders under this LIC Bima Diamond Plan namely LIC Accidental Death and Disability Benefit Rider (UIN: 512B209V01) and LIC New Term Assurance Rider (UIN: 512B210V01). By paying an additional premium, the insured can avail these riders. Moreover, the benefits of optional rider will be available during the policy term only. If the insured have chosen LIC’s Accidental Death and Disability Benefit Rider, then an extra amount equal to Accidental Benefit Sum Assured will be payable on death due to the accident, provided that the rider is inforce at the time of the accident. If the policyholder selects LIC’s New Term Assurance Rider, then Term Assurance Rider Sum Assured will be payable on death to the assignee of the policy.
LIC Bima Diamond Money Back Plan Rebates
LIC provides Mode and High Basic Sum Assured rebates for the Policyholders under this LIC New Money Back Policy. Rebate means getting a discount on tabular premium as per the payment mode of the policy. These are available on the premium if the insured opts for the higher mode and take the high-risk cover policy. The Rate of Rebates for LIC Bima Diamond Plan is given below.
|Monthly & Quarterly||NIL|
|Half-Yearly||1% tabular premium|
|Yearly||2% tabular premium|
High Basic Sum Assured Rebate:
|Basic Sum Assured (BSA)||Rebate per Rs. 1000 BSA|
|1,00,000 to 1,80,000||NIL|
|2,00,000 to 4,80,000||2.50|
How to Buy Bima Diamond Plan LIC ?
One can buy the LIC Beema Diamond Plan from the nearest LIC Branch Office or through online at the LIC’s Official Website or from the LIC Agent. The Documents required for buying LIC Bima Diamond Money Back Plan 841 are listed below.
- Application form / Proposal form along with the photo.
- Address Proof.
- Age Proof.
- Medical Reports (if required).
Claim Process of LIC Bima Diamond Policy
The Insured/ Nominee can apply for the claim in the case of Death or Disability occurred due to the Sudden Accident of the Policyholder within the Policy Term or Maturity Period of the policy has completed. You can get the Claim form of this LIC Bima Diamond Policy from the LIC Regional Offices or from the Official Website of LIC. The Documents required in LIC Bima Diamond Claim Process are
- Claim Form.
- NEFT Form.
- Proof of death.
- Medical treatment prior to death, school/ college/ employer’s certificate, whichever is applicable.
- Age proof.
LIC’s New Bima Diamond Plan Details
Loan: Loan can be availed during the policy tenure provided the LIC Bima Diamond Plan has acquired a surrender value.
The maximum loan amount for this policy is
- For inforce policies – up to 90% of surrender value.
- For paid-up policies – up to 80% of surrender value.
Paid-up Value: If the insured doesn’t revive the policy for up to 2 years of non-payment, the corporation will never provide them full basic sum assured and future bonus. Instead, they will get only the paid up value of the policy on maturity.
Surrender Value: The life assured can surrender the LIC Bima diamond plan anytime. But one shouldn’t forget that any policy does not give the surrender value if the premium has not paid for at least 3 consecutive years. The surrender value of this plan is always less than the paid-up value as you get it immediately.
The Loyalty Addition, if any, shall be payable, on death after completion of 5th policy year but within the policy term or on maturity, at such rate and on such terms as may be declared by the Corporation. In addition, the loyalty addition shall be considered in Special Surrender Value calculation on surrender of policy during the policy term provided all the premiums have paid.
Auto Cover Period:
The Auto Cover period in a paid-up policy will be the period from the due date of first unpaid premium (FUP), which includes the grace period.
- If premium have been paid and any subsequent premium is not duly paid for at least three full years but less than five full years, then Auto Cover period of 6 months from the due date of the first unpaid premium will be available.
- If premiums have been paid and any subsequent premium is not duly paid for at least five full years, then Auto Cover period of two years from the due date of the first unpaid premium will be available.
Grace Period: The Grace period of this LIC Bima Diamond Plan is 15 days for monthly premium payment mode and 30 days for the other modes of premium payment.
Free Look Period: If the life assured is not satisfied with the terms and conditions of the policy, they can return it to the corporation within the free look period, i.e., 15 days from the date of receipt of the policy bond stating the reasons for objections.
The LIC Bima Diamond Plan will be void
- If the policyholder commits suicide at any time within 12 months from the date of commencement of risk and the Corporation will not entertain any claim except for 80% of the premiums paid, provided the policy is inforce.
- If the insured commits suicide within 12 months from the date of renewal, an amount which is higher of 80% of the premiums paid till the date of death or the surrender value, will be payable. LIC shall not entertain any other claims.
FAQ’s on LIC Bhima Diamond Plan (Table No. 841)
1. Is there any loan facility available for this LIC New Bima Diamond Plan ?
Ans. Yes, Loan facility is available under this plan after the successful payment of premiums for at least three full years.
2. What happens if the policyholder stops paying the premium ?
Ans. If the insured stops paying the premiums after 3 policy years, the policy acquires a paid up value for a Reduced Sum Assured but the policy would be eligible for any future regular additions.
3. What are the benefits available under this LIC New Money Back Plan 841 ?
Ans. Death Benefit, Maturity Benefit, Maturity Benefit, Survival Benefit, and Loyalty Additions are the benefits available for this LIC New Plan.
4. What happens, If I want to Surrender my LIC Beema Diamond Policy ?
Ans: You can avail the Guaranteed Surrender Value & Special Surrender Value on Surrendering the LIC Bhima Diamond Plan at any time during the Policy Period.