LIC Bima Diamond

LIC's Bima Diamond plan offers a combination of protection and savings. In case of unfortunate death of the policyholder, this plan provides 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). Periodic payments shall also be made on survival of the policyholder at specified durations during the policy term.

In addition, this plan also takes care of liquidity needs through its Auto Cover as well as loan facility.

It is a close ended plan which shall be available for sale upto 31st August, 2017, coinciding with the Diamond Jubilee Year of the Corporation.

Benefits:

Death Benefit (applicable for policies where all the due premiums have been paid):

  • In case of death of the life assured before the date of maturity: During first five years: "Sum Assured on Death" shall be payable.
    After completion of five policy years but before the date of maturity:"Sum Assured on Death" and Loyalty Addition, if any, shall be payable.
  • In case of death during the Extended Cover Period: An amount equal to 50% of Basic Sum Assured shall be payable.

Where "Sum Assured on Death" is defined as the highest of

  • 10 times of annualised premium; or
  • Sum Assured on Maturity as defined below; or
  • Absolute amount assured to be paid on death, i.e. Basic Sum Assured.The death benefit shall not be less than 105% of all the premiums paid as on date of death.

Premiums referred above shall not include any taxes, extra amount chargeable under the policy due to underwriting decision and rider premiums, if any.

Survival Benefit:

On the life assured surviving to the end of each of the specified durations during the policy term, provided all due premiums have been paid, a fixed percentage of Basic Sum Assured shall be payable. The fixed percentage for various policy terms is as below:

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.

Maturity Benefit:

On the life assured surviving to the end of the policy term, provided all due premiums have been paid, “Sum Assured on Maturity” along with Loyalty Addition, if any, shall be payable.

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

Optional Benefit:

The policyholder has an option of availing following Rider benefit(s):

Rider sum assured cannot exceed the Basic Sum Assured.

Loyalty Addition:

Provided all the due premiums have been paid till date of death or maturity, whichever is earlier, depending upon the Corporation’s experience, the policy shall participate in profits in the form of Loyalty Addition. The Loyalty Addition, if any, shall be payable, on death after completion of 5th policy year but within the policy term or on maturity, at such rate and on such terms as may be declared by the Corporation.

In addition, Loyalty Addition, if any, shall also be considered in Special Surrender Value calculation on surrender of policy during the policy term provided all the premiums for the entire premium paying term have been paid.

Eligibility Conditions and Other Restrictions under a policy :

  • Minimum Basic Sum Assured : Rs. 1,00,000
  • Maximum Basic Sum Assured : Rs. 5,00,000

(The Basic Sum Assured shall be in multiples of Rs. 20,000/-)

  • Policy Term/Premium Paying Term : (16/10), (20/12) & (24/15) years
  • Minimum Age at entry : 14 years (completed)
  • Maximum Age at entry : 50 years (nearest birthday) for policy term 16 years; 45 years (nearest birthday) for policy term 20 years; 41 years (nearest birthday) for policy term 24 years
  • Maximum Age at Maturity : 66 years (nearest birthday) for policy term 16 years; 65 years (nearest birthday) for policy term 20 and 24 years
  • Extended Cover Period : (Policy Term/2) years after elapsation of policy term applicable for policies which are inforce on the date of maturity

Date of commencement of risk: Under this plan the risk will commence immediately from the date of acceptance of the risk including minor lives.

Payment of Premiums:

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.

Rebates:

LIC India offers some benefits to the policyholders by choosing specific mode and high sum assured of the plan.

High Sum Assured Rebate
Basic Sum Assured (B.S.A) Rebate
1,00,000 to 1,80,000 NIL
2,00,000 to 4,80,000 2.5 % of B.S.A.
5,00,000 3% of B.S.A.
Premium Payment Mode Rebate
ModeRebate
Yearly mode2% of Tabular Premium
Half-yearly mode1% of Tabular premium
Quarterly,Monthly(ECS) & Salary deduction NIL

Auto Cover Period:

"Auto Cover Period" under a paid-up policy shall be the period from due date of first unpaid premium (FUP). The duration of Auto Cover Period shall be as under:

  • If at least three full years' but less than five full years' premiums have been paid under a policy and any subsequent premium is not duly paid: Auto Cover Period of six months shall be available.
  • If at least five full years' premiums have been paid under a policy and any subsequent premium is not duly paid: Auto Cover Period of two years shall be available.

The benefits payable under a paid-up policy during Auto Cover Period shall be as follows:

Death Benefit : Death benefit, as payable under an inforce policy, shall be paid after deduction of

  • the unpaid premium(s) in respect of the base policy with interest thereon upto the date of death, and
  • the balance premium(s) for the base policy falling due from the date of death and before the next policy anniversary, if any. If any survival benefit was due but not paid before the date of death, the same shall also be paid along with the above mentioned death benefit.

Survival Benefit : The survival benefit shall be paid only after the policy is revived.

The benefits payable under a paid-up policy after the expiry of Auto Cover Period shall be as follows:

On death during the policy term: Sum Assured on Death under a paid-up policy shall be reduced to such an amount, called "Death Paid-up Sum Assured" and shall be equal to [Sum Assured on Death * (Number of premiums paid / Total number of premiums payable)]

On maturity: The Sum Assured on Maturity under paid-up policy shall be altered to such an amount called "Maturity Paid-up Sum Assured" which shall be payable on Life Assured surviving to the end of the policy term. The "Maturity Paid-up Sum Assured" shall be equal to [(Number of premiums paid/Total Number of premiums payable) x (Sum Assured on Maturity plus Total Survival Benefits payable under the policy)] less Total amount of Survival Benefits already paid under the policy. In addition to “Maturity Paid-up Sum Assured” the surrender value of the proportionate premiums charged towards risk cover during the extended cover period shall also be payable and the policy will terminate.

The survival benefits having already been incorporated in the calculation of Maturity Paid-up Sum Assured, future survival benefits shall not be payable separately. The extended term cover shall also not be available in case of paid-up policies.

Rider(s) shall not acquire any paid-up value and the rider benefits cease to apply, if policy is in lapsed condition.