LIC Bima Diamond Plan (Table 841) – Review, Features and Benefits

LIC’s Bima Diamond plan offers dual benefits of protection and savings. In case of the unfortunate death of the policyholder, this policy will provide financial support for the family not only during the policy term but also beyond the policy term during the Extended Cover Period (equal to half of the policy term and beginning from the date of maturity).

Features of this policy – (Table 841)

• The policy is Money Back Plan with tenure of 16, 20 & 24 years.
• Regular payouts are made every 4 years depending on the policy term.
• An additional bonus to be paid at the end of the policy term.
• Option of selecting 2 rider benefits with the policy by paying the extra premium amount.
• The minimum entry age in the policy is 14 years.
• This policy offers extended cover period for half of the policy tenure after the maturity of the policy.

Benefits of this policy –

a) Survival Benefit – If the policyholder survives till the end of the policy tenure, then, the policyholder will receive a fixed percentage of Basic Sum Assured provided all the due premiums have been paid. The fixed percentage for various policy terms is as follows:

• For policy term 16 years:
  15% of Basic Sum Assured at the end of each 4th, 8th and 12th policy year.
• For policy term 20 years:
  15% of Basic Sum Assured at the end of each 4th, 8th, 12th and 16th policy year.
• For policy term 24 years:
  12% of Basic Sum Assured at the end of each 4th, 8th, 12th, 16th and 20th policy year.

b) Maturity Benefit –

If the policyholder survives till the end of the policy tenure then the policyholder will get “Sum Assured on Maturity” + Loyalty Addition, if any, provided all the due premiums have been paid.

Where “Sum Assured on Maturity” is as under:

• 55% of Basic Sum Assured for policy term 16 years
• 40% of Basic Sum Assured for policy terms 20 and 24 years

c) Rider Benefit –

Rider Benefit is an additional benefit a policyholder takes by paying an extra premium. Rider Benefit options are –

• LIC’s Accidental Death and Disability Benefit Rider.
• LIC’s New Term Assurance Rider ( Please note that Rider sum assured cannot exceed the Basic Sum Assured)

d) Death Benefit –

a) Death Benefit payable in case of death of the policyholder before the maturity of the policy provided the policy is in force shall be as under:

• On death during the first five years: “Sum Assured on Death”.
• On death after completion of five policy years but before the stipulated Date of Maturity: “Sum Assured on Death” + Loyalty Addition, if any.

Where “Sum Assured on Death” is defined as the highest of 10 times of annualized premium or Basic Sum Assured. This death benefit shall not be less than 105% of the total premiums paid excluding extra amount if charged under the policy due to underwriting decision and Rider(s) premium, if any, as on date of death.

b) In case of death during the Extended Cover Period provided the policy is in force: An amount equal to 50% of Basic Sum Assured shall be payable.

Can the lapsed policy be revived?

Lapse Policy may be revived within a period of 2 consecutive years from the date of the first unpaid premium, provided all the arrears have been paid with interest.

What I surrender the policy?

Yes, the policy can be surrendered by the policyholder only after 3 years of the active policy provided all premiums have been paid. No surrender value will be available on Rider(s) if any.

Can I get a loan against this policy?

A loan can be availed against this policy only if 3 full years’ premiums have been paid

The maximum loan as a percentage of surrender value shall be as under:

• For in force policies – up to 90%
• For paid-up policies – up to 80%

Conclusion –

So, by now every one of you has come to know each and every detail of this policy. Now it’s up to you all to decide if this policy is what you need or something else. If you have any doubt regarding this policy, they please let us know in the comment section.