LIC Bima Diamond Plan is a money back policy which provides life cover for a period greater than the policy term. It is a participating, non-linked policy that offers guaranteed payouts and a Final Addition Bonus.
Bima Diamond Plan is available for purchase only till 31st August, 2017 coinciding with the Diamond Jubilee Celebrations of LIC.
COMPARE THIS PLAN WITH OTHER MONEY BACK PLANS
Key Features of LIC Bima Diamond Plan
Money Back Plan with tenure of 16, 20 & 24 years
Regular payouts are made every 4 years depending on the policy term
Final Addition Bonus to be paid at the end of the policy term
Option of selecting 2 Riders along with the plan
LIC Bima Diamond Plan Parameters
Minimum
Maximum
Sum Assured
Rs. 1,00,000
Rs. 5,00,000
Policy Term
16 years
20 years
24 years
Premium Payment Term
10 years
12 years
15 years
Entry Age
14 years
50 years for a term of 16 years
45 years for a term of 20 years
41 years for a term of 24 years
Max age at Maturity
66 years for a term of 16 years
65 years for a term of 20 & 24 years
LIC Bima Diamond Plan Benefits
Death Benefit
In case of death of the Life Insured within the Policy Tenure, the Nominee would be paid the higher of the following:
Basic Sum Assured
10 times the Annualized Premium
In case of Death of the policyholder after 5 policy years, the nominee will be paid Final Addition Bonus also. The Death Benefit will always be a minimum of 105% of all Premiums paid.
Extended Cover Period - The policyholder will continue to enjoy a life cover even after the expiry of the policy term. The extended cover period will be half the policy term. The Death Benefit in the extended cover period is 50% of the Basic Sum Assured.
So if a customer has taken a 1 lakh cover for 20 years, a Rs. 50,000 cover would be available for 10 years after the completion of the policy term of 20 years.
Survival Benefit
On survival, the policyholder will get the following:
For plans with term of 16 years - 15% of Basic Sum Assured at the end of each of 4th, 8th and 12th policy year
For plans with term of 20 years - 15% of Basic Sum Assured at the end of each of 4th, 8th, 12th and 16th policy year
For plans with term of 24 years - 12% of Basic Sum Assured at the end of each of 4th, 8th, 12th, 16th and 20th policy year
The policy continues till the end of the Policy Term.
Maturity Benefit
On survival till the end of the policy term, the policyholder will get the following payouts:
55% of Basic Sum Assured for policy term 16 years
40% of Basic Sum Assured for policy terms 20 and 24 years
Income Tax Benefit – Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C under current Income Tax Rules. The Maturity Benefit is also tax free under section 10(10)D subject to fulfilment of all terms and conditions.
LIC Bima Diamond Plan Example
Let us understand this plan better with the help of an example.
Suppose Shankar buys this plan with the following parameters:
Age - 30 years
Basic Sum Assured - Rs. 1,00,000
Policy Term = 16 years
So the Annual premium will be Rs. would be Rs. 8,712 + Taxes. The policy term would be 16 years and she will have to pay premiums for 10 years. He would enjoy a cover for an extended period of 8 years after the policy term.
Scenario 1 - Shankar dies after 3 years of buying the plan.
Since Shankar died within 5 years of buying the plan, the Death Benefit paid to the nominee would be the higher of the following:.
Basic Sum Assured = Rs. 1,00,000 = Rs. 1,00,000
10 times the Annual Premium = 10 x Rs. 8,712 = Rs. 87,120
So the nominee will get Rs. 1,00,000 as Death Benefit.
The policy terminates.
Scenario 2 - Shankar dies after paying premiums for 7 years.
Shankar would be eligible to receive the 1st tranche of Survival Benefit and nominee would receive the Death Benefit.
Survival Benefit = 15% of Basic Sum Assured after 4 years = 15% of Rs. 1,00,000 = Rs. 15,000.
Death Benefit - Nominee gets higher of the following:
Basic Sum Assured = Rs. 1,00,000 = Rs. 1,00,000
10 times the Annual Premium = 10 x Rs. 8,712 = Rs. 87,120
So Parvati would have received Rs. 20,000 after 5 years and his nominee will Rs. 1,00,000 + Final Addition Bonus on his death. The amount of Final Addition Bonus can only be known when it is declared.
The policy terminates.
Scenario 3 - Shankar dies after paying premiums for 11 years.
Shankar would be eligible to receive the 1st & 2nd tranches of Survival Benefit. In addition, his nominee will receive the Death Benefit.
Survival Benefit -
15% of Basic Sum Assured after 4 years = 15% of Rs. 1,00,000 = Rs. 15,000
15% of Basic Sum Assured after 8 years = 15% of Rs. 1,00,000 = Rs. 15,000.
Death Benefit - his nominee gets higher of the following:
Basic Sum Assured = Rs. 1,00,000 = Rs. 1,00,000
10 times the Annual Premium = 10 x Rs. 8,712 = Rs. 87,120
So Shankai would have received Rs. 15,000 each after the 4th year and 8th year and his nominee will Rs. 1,00,000 + Final Addition Bonus on his death. The amount of Final Addition Bonus can only be known when it is declared.
The policy terminates.
Scenario 4 - Shankar dies after paying premiums for 15 years.
Shankar would be eligible to receive the 1st, 2nd & 3rd tranches of Survival Benefit. In addition, his nominee will receive the Death Benefit.
Survival Benefit -
15% of Basic Sum Assured after 4 years = 15% of Rs. 1,00,000 = Rs. 15,000
15% of Basic Sum Assured after 8 years = 15% of Rs. 1,00,000 = Rs. 15,000
15% of Basic Sum Assured after 12 years = 15% of Rs. 1,00,000 = Rs. 15,000
Death Benefit - his nominee gets higher of the following:
Basic Sum Assured = Rs. 1,00,000 = Rs. 1,00,000
10 times the Annual Premium = 10 x Rs. 8,712 = Rs. 87,120
So Shankai would have received Rs. 15,000 each after the 4th year, 8th and 12th year and his nominee will Rs. 1,00,000 + Final Addition Bonus on his death. The amount of Final Addition Bonus can only be known when it is declared.
The policy terminates.
Scenario 5 - Shankar survives the policy term of 16 years.
Shankar will get the Survival Benefits and the Maturity Benefits.
Survival Benefit -
15% of Basic Sum Assured after 4 years = 15% of Rs. 1,00,000 = Rs. 15,000
15% of Basic Sum Assured after 8 years = 15% of Rs. 1,00,000 = Rs. 15,000
15% of Basic Sum Assured after 12 years = 15% of Rs. 1,00,000 = Rs. 15,000
Maturity Benefit = 55% of Basic Sum Assured + Final Addition Bonus = Rs. 55,000 + Final Addition Bonus.
He will continue to enjoy a life cover of half the Basic Sum Assured (Rs. 50,000) for a period of 8 years after the completion of the policy.
LIC Bima Diamond Plan Maturity Calculator
You can use this to check returns in the LIC Bima Diamond plan.
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The exact returns may vary as we cannot predict the bonus which will be declared in future.
LIC Bima Diamond Plan Premium Calculator
Use the Premium Calculator to find our premiums for LIC Money Back Plan 20 years.
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If you have any questions on this plan, please drop a comment and we will be happy to help.
