Review of LIC Bima Diamond

To celebrate the "Diamond Jubilee Year", the LIC of India launched a brand new life insurance product- Bima Diamond Plan. The plan was available for purchase only from 19th September 2016 to 31st August 2017.

LIC Bima Diamond is a Money Back life insurance policy that offers a combination of protection and savings. This plan comes with the triple benefits of enhanced protection, money-back, and auto cover features. The plan best suits those individuals who are looking for a short-term investment that provides guaranteed returns in periodic installments.

LIC Bima Diamond is a withdrawn plan which means the plan is no longer available for sale. However, those individuals who have bought it earlier will enjoy its benefits.

Key Features of LIC Bima Diamond

• Enhanced Protection: The life insurance plan offers an extended cover period for half of the policy tenure after the completion of the policy tenure.

• Money-Back: A certain amount of sum is paid out as the survival benefits on the completion of every 4th policy year.

• Auto Cover Feature:  If a premium is not duly paid for 5 full policy years, an auto cover period of 2 years is available.

What are the Benefits of LIC Bima Diamond

Below mentioned are the benefits offered by LIC Bima Diamond:

• Death Benefit

  If the policyholder dies during the first 5 years of the policy, a sum assured amount as a death benefit is payable to the nominee. 

  If the death occurs after the completion of 5 policy years, but before the completion of policy tenure or before the maturity date of the policy, then the sum assured amount along with the loyalty addition is payable to the nominee of the policy.

• Survival Benefit

  If the policyholder survives till the end of the specific time period and pays all due premiums, then a fixed percentage of the basic sum assured is paid out which is known as survival benefits. The fixed percentage for various policy terms is as below:

  Policy tenure	% of survival benefit
  For the policy tenure of 16 years	15 % of the basic sum assured is paid at the end of the 4th, 8th, and 12th policy year.
  For the policy tenure of 20 years	15 % of the basic sum assured at the end of the 4th, 8th, 12th, and 16th policy year.
  For the policy tenure of 24 years	12% of the basic sum-assured after the 4th, 8th, 12th, 16th, and 20th policy year.

• Maturity Benefit

  In case the policyholder survives till the end of the policy tenure, then a sum assured on maturity along with the loyalty addition is payable to the policyholder. The sum assured on maturity is 55% of the basic sum assured for a policy tenure of 16 years and 40% of the basic sum assured for a policy tenure of 20 and 24 years.

• Loyalty Addition

  The policy provides profit in form of loyalty addition if the insured person has duly paid all the premiums till the date of demise or maturity. Loyalty addition is either paid on the demise of the policyholder after the completion of the 5th policy year or on the maturity of the policy.

• Rider Benefits

  The plan also proves optional rider benefits, which are as follows:

  • LIC Accidental Death Benefit and Disability Rider

  • LIC New Term Insurance Rider

• Tax Benefits

  One can also avail of income tax benefits on the premium paid and the maturity benefits received under sections 80C and 10(10D) of the Income Tax Act.

Summing it up

LIC Bima Diamond was launched by the LIC to celebrate the 60-year anniversary of the company. The plan was available only for a year, and those who have bought this plan can enjoy the benefits of life protection and savings.