LIC Bima Diamond Plan 841 Review
LIC Bima Diamond Plan is a new Money Back Plan introduced by Life Insurance Corporation of India. On the occasion of the diamond jubilee celebration of the LIC India, our Hon’ble Finance Minister Shri Arun Jaitley has launched this LIC Beema Diamond Plan 841 on 1st September 2016 at Mumbai. Since the New Bima Diamond plan is a close ended plan, it will be available for sale from 1st September 2016 to 31st August 2017. LIC India has given a Unique Identification Number for this LIC Bima Diamond Money Back Plan, i.e., 512N307V01. The policyholder should quote this UIN no. in all relevant documents that are required to buy the policy. LIC’s Bima Diamond plan is a non-linked, with-profit, limited premium payment money back life insurance policy.
The policyholder can avail a Death Benefit of ‘Sum Assured equal to 10 times’ of the Annualised Premium, which is payable as on date of death. The Unique Feature of this LIC New Plan 841 is extended risk cover even after the policy term. Since this is a Money back plan, it provides money back at an interval of every 4th year and maturity at the end of the policy term. You can use LIC Bima Diamond Plan Premium Calculator to calculate your premiums. Here we have provided the LIC Bhima Diamond Maturity Calculator and Premium Calculator to calculate Maturity benefits and Death benefits. So, once refer this Lic New Bima Diamond Premium Chart before buying this plan.
LIC New Bima Diamond Plan Eligibility Conditions
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| Minimum Basic Sum Assured: |
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| Maximum Basic Sum Assured: |
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| Policy term (Premium Payment Term): |
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| Premium Payment Modes: |
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| Premium Payment Mode Rebate |
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| Maturity Age: |
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| Documents required for a new policy: |
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LIC’s Bima Diamond Policy Benefits
Death Benefit
- In case of death during first 5 years of the policy, the Sum Assured will be paid as the Death claim.
- If the death of the insured occurs after 5 years of the policy, then Death Benefit = Sum Assured + Loyalty Additions.
- In case of death after maturity (Extended cover period – Half of the Policy term), then 50% of Basic Sum Assured will be paid as the death claim.
Survival Benefit
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 shall be payable as shown in the table below.
LIC’s Bima Diamond (Table no. 841) Survival Benefits:
| Policy Term | Survival Benefit as % of Basic Sum Assured | ||||
| 4th year | 8th year | 12th year | 16th year | 20th year | |
| 16 yrs | 15% | 15% | 15% | — | — |
| 20 yrs | 15% | 15% | 15% | 15% | — |
| 24 yrs | 12% | 12% | 12% | 12% | 12% |
Maturity Benefit
If the policyholder survives till the end of the policy term, “Sum Assured on Maturity” along with Loyalty Addition, if any will be payable. Where “Sum Assured on Maturity” in LIC Bima Diamond Policy is
- 55% of Basic Sum Assured in policy term 16 years.
- 40% of Basic Sum Assured in Policy Terms 20 and 24 years.
Loyalty Addition
Provided all the due premiums have been paid till date of death or maturity, whichever is earlier, depending upon the Corporation’s experience, the policy shall participate in profits in the form of Loyalty Addition. The LIC’s Bima Diamond Plan gives loyalty additions after the payment of all the premiums or on death after 5 years within the policy term.
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.
LIC Bhima Diamond Plan Rebates
Rebates are available on the premium if the life assured opts for the higher mode and take the high-risk cover policy. The basic rebates for this LIC Bima Diamond Plan are as follows.
- Mode Rebate.
- High Basic Sum Assured Rebate.
High Basic Sum Assured Rebate
| Basic Sum Assured | Rebate per Rs. 1000/- BSA |
| Rs. 1,00,000/- to Rs. 1,80,000/- | NIL. |
| Rs. 2,00,000/- to Rs. 4,80,000/- | 2.50% of BSA |
| Rs. 5,00,000/- | 3.00% of BSA |
Mode Rebate
| Mode of Payment | % of Tabular Premium |
| Yearly Mode | 2% |
| Half-yearly Mode | 1% |
| Quarterly and Monthly | NIL |
Optional Riders for LIC Beema Diamond Plan 841
LIC Accidental Death & Disability Benefit Rider and LIC New Term Assurance Rider are the two optional riders available for this LIC New Money Back Plan. The insured can avail the rider benefits only during the policy term by payment of additional premium. The Rider Sum Assured cannot exceed the Basic Sum Assured. If the Insured opts for LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V01), he/ she will get an additional amount equal to ‘Accidental Benefit sum Assured’ will be payable on death due to the accident, provided that the rider is in force at the time of the accident. If in case, the policyholder opts for LIC’s New term assurance rider (UIN: 512B210V01), then the nominee will be paid an additional amount equal to “Term Assurance Rider sum Assured” on death.
LIC New Plan Bima Diamond Buying Procedure
The documents required to buy LIC Bima Diamond Policy are
- Application form/ Proposal form issued by U & R Department along with a photo.
- Address proof.
- Age proof.
- Medical reports(if required).
LIC Bima Diamond Money Back Plan Claim Process
The documents that are needed for claiming procedure under LIC Bima Diamond Money Back plan are given below.
- Original Policy Document.
- NEFT Mandate Form.
- Death Certificate.
- Proof of Title.
- Accident/ Disability Proof (as mentioned in the rider circular).
- School/ College/ employer’s certificate.
- If age is not admitted under the policy, the proof of age of the insured shall also be submitted.
LIC Bima Diamond Plan Premium Calculator
Here we are providing the required data for calculating the premium rates in LIC Bhima Diamond Policy using LIC Bima Diamond Premium and Maturity calculator. To calculate premiums online, the policyholder has to enter the following details mentioned below.
- Name.
- Email Id.
- Mobile.
- Age.
- Term.
- Sum Assured.
After entering all the above details, you can quickly calculate the premium for LIC Beema Diamond Plan 841.
LIC Beema Diamond Maturity Calculator
LIC Beema Diamond Maturity Calculator helps you to calculate the maturity value or maturity amount. Maturity amount is the amount that is payable to the life assured during the maturity time. You can calculate the Maturity benefits using LIC Bima Diamond Plan Maturity calculator. But you will receive approximate or nearby maturity amount with this LIC Bima Diamond Calculator.
LIC Bhima Diamond Plan Benefit Illustration for Money Back & Maturity Details
For example, If Mr. George survives 24 years, then he will get five money backs that are equal to 12% of Sum Assured at the end 4th, 8th, 12th, 16th & 20th years. On completion of 24 th year (maturity), the insured will get 40% of Sum Assured along with Loyalty Addition.
| At the end of | Year | Age | Return | Remarks |
|---|---|---|---|---|
| 4th year | 2021 | 29 | 60,000 | Money Back: 1 (12% of SA) |
| 8th year | 2025 | 33 | 60,000 | Money Back: 2 (12% of SA) |
| 12th year | 2029 | 37 | 60,000 | Money Back: 3 (12% of SA) |
| 16th year | 2033 | 41 | 60,000 | Money Back: 4 (12% of SA) |
| 20th year | 2037 | 45 | 60,000 | Money Back: 5 (12% of SA) |
| 24th year | 2041 | 49 | 2,00,000 | Maturity (40% of SA + Loyalty Addition) |
Since this LIC New Plan comes with extended life cover feature, so Mr. George will have life cover equal to half of the Sum Assured. The duration of this extended life cover for the LIC Bima Diamond Plan is equal to half of the policy term starting from year of maturity. Following table describes this feature under this example.
| Extended Term (in Years) | Form Age to Age | From Year to Year | Risk Cover Amount |
|---|---|---|---|
| 12 | 49-61 | 2041-2053 | 2,50,000 |
Additional Information about LIC Bima Diamond Policy
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. Benefits received at maturity or death are exempted from tax under Section 10(10D).
Surrender Value: The insured can surrender the LIC Bima diamond plan anytime. The surrender value of this New LIC plan is always less than the paid-up value as you get it immediately. But, the policyholder should not forget that any policy does not give the surrender value if the premium amount for at least three years has not paid.
Paid-up Value: If you don’t revive the policy up to 2 years of non-payment, the LIC never gives you full basic sum assured and future bonus. Rather you would get only the paid up value of the policy on maturity. The basic sum assured for the death cover is also reduced to the paid up value.
Loan Facility:
Loan can be availed during the policy term provided the policy has acquired a surrender value. The interest rate to be charged for policy loan shall be determined at periodic intervals.
The maximum loan amount for this LIC New policy shall be as under:
- For inforce policies – up to 90% of surrender value.
- For paid-up policies – up to 80% of surrender value.
Grace Period: The Grace period of 30 days is available for yearly, half-yearly, and quarterly premium payment modes. Whereas 15 days for monthly premium payment mode. If you don’t pay the premiums even during the grace period, the LIC Bima diamond plan gets lapsed. After the policy has lapsed, you will get an Auto cover up to 2 years.
Free Look Period: If the Life assured is not satisfied with the terms and conditions of the policy, he/she will be provided with a free look period of 15 days. The insured have to state the reason and should submit the policy to the Life Insurance Corporation of India within the given free look period.
Exclusions:
This LIC Beema Diamond policy shall be void
a) If the policyholder commits suicide at any time within 1 year (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.
b) If the insured commits suicide within 1 year from the date of revival, an amount which is higher of 80% of the premiums paid till the date of death or the surrender value, will be payable. The Corporation shall not entertain any other claim. This clause shall not be applicable for a policy lapsed without acquiring paid-up value and nothing shall be payable under such policy.