LIC Bima Diamond is money back policy launched by LIC. The name of policy is kept as a Bima Diamond because it is launched as a part of LIC’s diamond jubilee year celebration (60th Birthday). LIC’s Bima Diamond is non-linked, traditional money back policy. Let’s take a look at policy features and other details.
LIC Bima Diamond Plan Key Features & Benefits
LIC Bima Diamond is marketed with quote “It’s thrice as nice” as it provides three main advantages to the customer.
Money Back– Money back every 4 Years, during the policy term
Auto Cover – Auto Life cover is provided for 2 years even if the premium is not paid. This benefit will be extended only if 5 policy years are completed.
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Extended Life Cover – Extended cover period for half of the policy term after end of policy term
Minimum Sum Assured – 1 Lac
Maximum Sum Assured – 5 Lac
Minimum Entry Age – 14 years
Option 1 –
Policy term -16 Years
Premium Paying Term – 10 Years
Example – If you take LIC Bima Diamond with 1 Lac sum assured with option 1 you need to pay a premium up to 10 years. Life risk coverage of 1 Lac shall be extended for 24 years (16 years policy term + 8 years extended coverage).You will get money back after every 4 years. (4 Times)
Option 2 –
Policy term -20 Years
Premium Paying Term – 12 Years
Example – If you take LIC Bima Diamond policy with 1 Lac sum assured with option 2 you need to pay a premium up to 12 years. Your life cover shall be for 30 years (20 Years policy term + 10 years extended coverage). You will get money back for 5 times.
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Option 3 –
Policy term -24 Years
Premium Paying Term – 15 Years
Example – If you take LIC Bima Diamond policy with 1 Lac sum assured with option 3 you need to pay a premium up to 15 years. Your life cover shall be for 36 years (24 Years policy term + 12 years extended coverage). You will get money back for 6 times.
Few Important points about LIC Bima Diamond.
- This plan assures a regular income to provide protection against loss of steady income as an individual grows older. For instance, with this plan one could plan his/her child’s higher education.
- You would be paying premiums for a considerably shorter duration of years than the policy coverage. For instance, you would be paying premiums only for 12 years for a policy term of 20 years.
- You remain being covered by the Auto Cover feature of this policy even if you miss paying a few premiums.
- Surrender the policy anytime after 3 years.
- Eligibility for a loan in this policy after the first 3 consecutive years.