LIC Bima Diamond

About the Bima Diamond Plan

• It is a special endowment plan which provides periodic repayments and extended life cover
• The money is repaid at the end of every fourth year of the policy term
• Offers an option to extend death risk cover for a specific extended term
• No premiums to pay on extension of life cover for a specific term
• Has an option to choose the fixed policy term of 16 or 12 or 24 years
• Premium paying term (10 or 12 or 15) is less than the policy term (16 or 20 or 24 respectively)
• Bima Diamond plan offers loan facility  to take care of the liquidity needs

How does this plan work?

Under this LIC Bima Diamond plan, an individual pays a regular premium for a specific period (10 or 12 or 15) depending upon the selected policy term (16 or 20 or 24) respectively. In this policy one can choose to extend the risk cover for an extended term which is half of the original policy term selected. During the policy term the insured receives a percentage of the survival benefit in the form of periodic repayments. As per the policy term, given below is the percentage of the survival benefit repaid.

After the term is over the insured receives a maturity benefit which is 55% of basic sum assured or 40% of basic sum assured depending upon the policy term and loyalty additions if any. If in-case on death of the individual during the policy term, depending upon the death year his nominee receives death benefit lumpsum.

• Death occurs within first 5 years, nominee receives Sum assured
• Death occurs after 5 years, nominee receives death sum assured and loyalty additions if any. The death sum assured should be greater than 105% of the total premiums paid and is of a higher value paid from;

1. 10 times the annual premiums paid
2. Amount equivalent to maturity amount
3. Basic sum assured

• Death occurs during the extended term, nominee receives amount equal to 50% of the basic sum assured.

Let us understand this by an illustration,

Consider,

Person’s age: 30
Policy term: 16 years
Premium paying term: 10 years
Premium paying mode: Annually pays Rs. 8712
Sum assured:  Rs 1 lakh

Consider a 30 year old who pays an annual premium of Rs. 8712, under LIC Bima Diamond for 10 years.  At the end of fourth, eight and twelfth year he receives Rs 15000 each as a survival benefit. On maturity he gets approximately Rs 69000 as maturity amount which consists of total premium paid after deducting the 45000 (15000 + 15000+ 15000 paid in the 4^th, 8^th and 12^th year) as survival benefit and loyalty additions.  If in-case on death of the person during the policy term, his nominee gets approximately Rs 1 lakh and loyalty additions. Suppose if he dies during the extended term (.i.e 8 years as per the example) then, the nominee receives Rs 50000 as death benefit.

Riders & Add On

Accidental Death and Disability Rider: In this rider the nominee/ family receives the sum assured after the insured’s accidental death or dismemberment or permanent disability.

New Term Assurance Rider:  In this rider the policyholder gets an additional life cover (sum assured). On death of the insured, the nominee receives additional equivalent amount of money payable in this rider

Claim Process

Know Claim Process of LIC Bima Diamond

Claim Process