On the occasion of its Diamond Jubilee, state-run LIC (Life Insurance Corporation) announced its LIC Bima Diamond Plan in September 2016. The Bima Diamond Plan is a non-linked, with profits, limited premium payment money back plan. It is a close ended plan and will be available till August 31, 2017.
What are the features of LIC’s latest plan? How will this plan benefit you and your family? Read on to find out.
LIC Bima Diamond Plan: Key Features
- It 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.
- The Bima Diamond Plan provides a fixed percentage of sum assured after every 4 years with policy terms of 16, 20 or 24 years while premium paying terms are 10, 12 and 15, respectively.
- It is a closed ended plan and will be available for sale till August 31, 2017.
- Periodic payments of fixed percentage of sum assured is payable on survival of the policyholder at specified durations during the policy term.
- LIC’s Bima Diamond Plan also also takes care of liquidity needs through its Auto Cover as well as loan facility. The Auto Cover option is available after payment of 3 years premium.
- Premiums can be paid regularly at yearly, half-yearly, quarterly or monthly intervals (monthly premiums through ECS only) or through salary deductions during the Premium Paying Term of the policy.
- Grace period option is available: one month but not less than 30 days for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly premiums.
- Policy will lapse if the premiums are not paid by the end of the grace period.
- A lapsed policy can be revived within 2 consecutive years from the date of first unpaid premium.
- The minimum entry age for this plan is 14 years (completed).
- Minimum Basic Sum Assured is Rs. 1,00,000 and Maximum Basic Sum Assured is Rs. 5,00,000
LIC Bima Diamond Plan: Benefits
1. Death Benefit (Provided all the due premiums have been paid):
i) In case of death of the life assured:
a) Before the date of maturity: ‘Sum Assured on Death’ will be paid during first five years.
b) After completion of five policy years but before the date of maturity: ‘Sum Assured on Death’ and Loyalty Addition, if any, will be paid.
ii) In case of death during the Extended Cover Period: An amount equal to 50% of Basic Sum Assured will be paid.
2. Survival Benefit:
On the life assured surviving to the end of each of the specified durations during the policy term, a fixed percentage of Basic Sum Assured will be paid. (Provided all due premiums have been paid).
Fixed percentage for various policy terms are:
- For policy term 16 years: 15% of Basic Sum Assured at the end of each of 4th, 8th and 12th policy year.
- For policy term 20 years: 15% of Basic Sum Assured at the end of each of 4th, 8th, 12th and 16th policy year.
- For policy term 24 years: 12% of Basic Sum Assured at the end of each of 4th, 8th, 12th, 16th and 20th policy year.
3. Maturity Benefit:
On the life assured surviving to the end of the policy term, ‘Sum Assured on Maturity’ along with Loyalty Addition, if any, will be paid. (Provided all due premiums have been paid)
4. Loyalty Addition:
The Loyalty Addition, if any, will be paid on death after completion of 5th policy year but within the policy term or on maturity. The rate and terms will be decided by the Corporation. (Provided all the due premiums have been paid)
5. Optional Benefit:
There are some optional Rider benefits as well such as LIC’s Accidental Death and Disability Benefit Rider (UIN: 512B209V01) and LIC’s New Term Assurance Rider (UIN: 512B210V01).