The Bima Diamond Plan from Life Insurance Corporation of India (LIC) is a with-profit, limited premium payment, non-linked, money-back, life insurance policy. This policy provides members a range of benefits including a death benefit, a survival benefit, maturity benefit, and payment of loyalty additions. In addition, in case the policyholder is in need of funds during the policy tenure, he/she also can avail a loan against the policy.
The insurer will decide the premium amount on a case-by-case basis, as per the policy tenure, sum assured, and other factors. Customers purchasing this policy can also opt to avail LIC’s Accidental Death and Disability Benefit Rider and/or LIC’s New Term Assurance Rider. Tax benefits as per the prevailing Income Tax laws will be applicable.
Eligibility - Who is the Bima Diamond Plan for?
Insurers have a pre-defined eligibility criteria that you need to meet in order to purchase the plan.
|Parameters||Criteria for eligibility|
|Minimum age at entry||14 years|
|Maximum age at entry||
|Maximum age at maturity||
Sum Assured and Premium Range - What you get and what it costs?
Sum Assured is the basic amount payable by the insurer to the policyholder or nominee, before the addition of bonuses. Policy buyers will have to choose the sum assured at the inception of the policy.
|Minimum Sum Assured||Rs.1 lakh|
|Maximum Sum Assured||Rs. 5 lakh|
You will have to pay your insurer a certain premium amount on a regular basis to avail the policy coverage. Listed below are a few details related to your policy tenure and premium payments.
|Premium Payment Tenure||
|Premium Payment Mode||
*Premiums vary based on age, location, plan term, GST, and other factors.
Plan Coverage - What LIC’s Bima Diamond Plan covers?
|Death Benefit||If the policyholder passes away during the first 5 years, the insurer will pay the Death Sum Assured to the nominee. If the policyholder passes away 5 years, the Death Sum Assured and Loyalty Additions will be paid.|
|Survival Benefit||Survival benefits will be paid on the completion of certain policy years, as per the policy tenure.
|Maturity Benefit||The maturity benefit will be paid at the end of the policy tenure with loyalty additions.
Riders/Add-On Plans – Additional coverage under LIC’s Bima Diamond Plan
Policyholders who wish to enhance their level of coverage or benefits payable in case of an eventuality can also opt for LIC’s Accidental Death and Disability Benefit Rider and LIC’s New Term Assurance Rider. You will have to note that your Rider Sum Assured cannot be more than the sum assured of your base policy.
Exclusions - What the Bima Diamond Plan doesn’t cover?
If the policyholder passes away due to committing suicide within 1 year of purchasing the policy, the insurer will return 80% of the overall premiums paid. In comparison, if the policyholder commits suicide within 1 year of reviving the policy, the insurer will pay the Surrender Value of the policy or 80% of the premium paid, based on which is higher, to the nominee.
Other Key Features – Free-Look Period, Surrender Value, Grace Period, etc.
|Free-Look Period||You can return the policy within 15 days, if you don’t find the policy terms and conditions satisfactory.|
|Loan against Policy||If the policy has acquired a surrender value, one can avail a loan against the policy.|
|Surrender Value||One can surrender the policy if a minimum of at least 3 years’ premiums have been paid. The insurer shall pay the higher of the Guaranteed Surrender Value or the Special Surrender Value.|
|Paid-Up Policy||If the policyholder has paid 3 years’ premiums but not the subsequent premium, the policy will be converted into a paid-up policy.|
|Policy Revival||Lapsed policies can be revived within 2 years of the date of policy lapse. You will need to pay the unpaid premiums with interest to revive your policy.|
|Rebates||Rebates can be availed if one opts for a yearly or half-yearly mode of payment, and also for opting for a sum assured over Rs.2 lakh.|
|Loyalty Additions||Loyalty Additions will be paid along with the death benefit, provided at least 5 policy years were completed, or along with the maturity benefit. Loyalty Additions can also be paid with the Special Surrender Value.|
Tax Benefits – How you can save with LIC’s Bima Diamond Plan?
Individuals can claim tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. Tax laws can change with time, and hence you will have to ensure that you consult with a tax advisor.
Other Benefits of opting for LIC as your Insurance Provider
Why you should buy the Bima Diamond Plan from LIC?
The Bima Diamond Plan from LIC offers significant monetary benefits to policyholders, thus helping them secure the lives of their dependents. In addition to a comprehensive risk cover, the policy also guarantees a death/maturity benefit and payment of survival benefits at regular intervals, which can help one plan for future milestones. In addition, the insurer also pays loyalty additions along with the benefits.
Life Insurance Corporation of India (LIC) was established decades ago in order to provide life insurance solutions to the Indian population. The company has a wide reach, with a number of branches across India. For FY15-16, LIC has reported a claim settlement ratio of 98.33%, which one of the highest claim settlement ratios in the country that financial year. The company offers competitive insurance solutions and has set the benchmark for the life insurance industry time and again.