LIC launched the Bima Diamond Plan (table No. 841) on September 19, 2016. This is a non-linked plan, i.e. it doesn't depend on the share market. It is a limited premium paying money-back plan in which the policyholder would be paying fewer premiums for a more extensive policy coverage period.
It provides an aggregate of insurance and savings that cover the financial requirements of the family in the event of miserable death of the policyholder even after the policy tenure.
This is one of the close-ended plans with the last date for enrollment being August 31st, 2017 accompanied with the LIC’s Diamond Jubilee Year.
On completion of every 4 years of the policy period, 15% of the Basic Sum Assured is paid at regular intervals based on the policy term.
Choice to opt for the accidental benefit and one more rider together with the plan.
Benefits against the Section 80C of the Income Tax Act, premiums paid under the plan are exempted from tax.
Premium paying terms are much less than the policy coverage duration.
Enjoy tax-free maturity amount under Section 10(10D) of the Income Tax Act, 1961.
Final Additional Bonus is payable after the policy ends.
Auto cover and loan facility is available on successful completion of 3 policy years.
Minimum Basic Sum Assured = Rs. 1 lakh
Maximum Basic Sum Assured = Rs. 5 lakhs (multiples of 10,000)
|Policy Term (in years)||Minimum Entry Age (in years)||Maximum Entry Age (in years)||Maximum Maturity Age (in years)||Extended Cover Period (in years)||Premium Payment Term (in years)|
|Premium paying mode||Annual, bi-annual, quarterly, monthly|
|Premium Payment Mode rebate||2% (annual), 1% (bi-annual), Nil (Quarterly & Monthly)|
|Rebate on High Sum Assured (Per 1000 of Sum Assured)||0% up to Rs. 1.8 lakhs|
2.5% for Rs. 2 lakhs to Rs. 4.8 lakhs
3% for Rs. 5 lakhs
|Loan Facility||After completion of 3 years|
|Surrender Value||After 3 years of full premium payment|
If the policyholder dies during the first 5 years of the policy term the "Sum Assured on Death" would be payable.
In the case of death after a period of 5 years but before the policy matures, besides the Sum Assured, an additional amount would be payable as 'Loyalty Addition'.50% of the Basic Sum Assured will be paid In case of death during the Extended Coverage.
If all premiums have been duly paid (on time) for not less than 3 years but less than 5 years (i.e. between 3-5 years), and after that you miss a payment, then also you will be auto-covered for 6 months.
If you have paid all premiums for full 5 years and miss subsequent premium(s), you are auto-covered for a period of 2 years.
If all the due premiums are paid and the policyholder survives the policy term ‘Sum Assured on Maturity’ is paid to the insured once the policy matures, inclusive of Loyalty Addition, if applicable.
The company does this by enabling the policyholders to participate in-profits in the form of Loyalty Addition. This shall be applicable after the completion of 5 years, before/at maturity, or if the policyholder dies unfortunately.
If the policyholder survives the policy tenure, a fixed percentage of the Basic Sum Assured will be paid only if all due premiums are paid after every certain period of 4 years.
You get Optional Benefits in the form of Accidental Death and Disability Benefit, and New Term Assurance Rider. However, the Rider sum won't exceed the Basic Sum Assured.
You remain covered even after the policy matures for a period half the duration of the actual policy coverage period, for half the amount of the Basic Sum Assured. For instance, if you have bought a policy of 24 years duration for the amount of Rs. 5 lakhs you will be covered for another 12 years once the policy matures for a risk cover of Rs. 2.5 lakhs and you do not have to pay any premiums for this extension.
Lesser Premiums Larger Coverage
3 Policy Term options are available as follows:-
16 Years: Pay premiums only for the first 10 years
20 Years: Pay premiums only for the first 12 years
24 Years: Pay premiums only for the first 15 years
The rates and terms shall be determined by the LIC, keeping in mind the company's experience with the policyholder.
Let’s have a look at the following benefit details:
|Policy Term||Death Benefit||Survival Benefit||Maturity Benefit||Loyalty Addition|
|16 Years||Sum Assured||15% of the Basic Sum Assured at the end of 4th, 8th, 12th policy years||55% of the Basic Sum Assured||Upon death and after 5 years|
|20 Years||Sum Assured||15% of the Basic Sum Assured at the end of 4th, 8th, 12th, 16th policy years||40% of the Basic Sum Assured||Upon death and after 5 years|
|24 Years||Sum Assured||12% of the Basic Sum Assured at the end of 4th, 8th, 12th, 16th and 20th policy years||40% of the Basic Sum Assured||Upon death and after 5 years|
*Note :Sum Assured on Death being the highest of 10 times of annualized premiums, or, amount assured on maturity, or absolute amount assured upon death.
Following are the annual premium rates per Rs. 1000 of the Basic Sum Assured (excluding service tax):
|Policy Term||Age: 20||Age: 30||Age: 40||Age: 50|
There can be two scenarios under the LIC Bima Diamond Plan.
If the policyholder survives the duration of the policy coverage.
Suppose Gaurav was 25 years of age when he purchased the policy for a Sum Assured of Rs. 5 lakhs in 2016. The money-back and maturity details are as follows:
|Completion of policy years||Year||Age||money-back||Calculation|
|4||2020||29||Rs. 60,000||12% of Sum Assured|
|8||2024||33||Rs. 60,000||12% of Sum Assured|
|12||2028||37||Rs. 60,000||12% of Sum Assured|
|16||2032||41||Rs. 60,000||12% of Sum Assured|
|20||2036||45||Rs. 60,000||12% of Sum Assured|
|24||2040||49||Rs. 2 lakhs + LA||40% of Sum Assured + LA (at maturity)|
The add-on feature of this policy makes it more convenient as it comes with an extended life coverage that provides cover from the maturity age at 49 up to 61 years i.e. the extended cover would be until the year 2052 along with the risk cover amount of Rs. 2.5 lakhs.
In this case, if Gaurav does not survive the policy term of 24 years, then the death claim will be as follows:
|Death Year||Death Age||Premium Paid||Claim||Accidental Death Claim|
|2016||25||30002||5 lakhs||10 lakhs|
|2017||26||59462||5 lakhs||10 lakhs|
|2018||27||88922||5 lakhs||10 lakhs|
|2019||28||118382||5 lakhs||10 lakhs|
|2020||29||147842||5 lakhs||10 lakhs|
|2021||30||177302||5 lakhs + LA||10 lakhs + LA|
|2022||31||206762||5 lakhs + LA||10 lakhs + LA|
|2023||32||236222||5 lakhs + LA||10 lakhs + LA|
|2024||33||265682||5 lakhs + LA||10 lakhs + LA|
|2025||34||295142||5 lakhs + LA||10 lakhs + LA|
This plan assures a regular income to provide protection against loss of steady income as an individual grows older. For instance, with this plan one could plan his/her child's higher education.
You would be paying premiums for a considerably shorter duration of years than the policy coverage. For instance, you would be paying premiums only for 12 years for a policy term of 20 years.
You remain being covered by the Auto Cover feature of this policy even if you miss paying a few premiums.
Surrender the policy anytime after 3 years.
Eligibility for a loan in this policy after the first 3 consecutive years.
Eligibility for a rebate on the high Sum Assured of 2.5% for Rs. 2 lakhs to Rs. 4.8 lakhs and a rebate of 3% for Rs. 5 lakhs per Rs. 1,000 of the Sum Assured.
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Last updated on 13-11-2019