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LIC Bima Diamond, the best LIC policy ever

LIC has been reinventing itself and offering a variety of products to cater multiple sections of customers. In their effort to boast the portfolio, LIC has already introduced three policies in this calendar year 2016. 


Bima Diamond was the fourth plan launched this year on 01st September. This is named as Diamond on the occasion of LIC’s Diamond jubilee .The product is available for sale only till August 31st 2017, only in its Diamond jubilee year. LIC created this product to make its Diamond Jubilee year a revamp for their success story and the response was huge as expected.

What so special?
LIC creates policies based on target segments like Jeevan Tarun for children, Jeevan Akshay for pension seekers and Money back plan for immediate payment seekers. But, for the first time in LIC history, they have introduced a plan which can cater all section of customers.

How?
A Plan which gives extended life cover, limited payment period, money back and extended lapse period.

Extended life cover:
No other policy except Jeevan Anand has extended life cover in LIC. Jeevan Anand’s only USP is it’s extended life cover and has de-merits with low return as premium payment cover 125% of sum assured ,while other plans will have 85-100% based on policyholders age.

Bima Diamond gives 50% Extra life cover on policy term. It provides 36 years life cover for 24 year policy term (24 years* 1.5 times= 36 years). Similarly 20 years policy will have 30 years life cover and 16 year policy will have 24 years life cover.

Limited payment period:
Most of the people want to invest for few years and get the benefits later, Bima Diamond is perfect fit for people like them. In this plan payment term is only 60% of the policy term.

S.No

Policy Term (Years)

Premium payment term (Years)

Life Cover (Years)

1

16

10

24

2

20

12

30

3

24

15

36

 

Money Backs:

This policy provides money back for every 4 years till policy term ends. Given below the tabular representation of money backs for different policy terms with money back.

S.No

Policy term (Years)

Money Back years

% of Sum Assured to be paid

1

16

4th,8th,12th

15%

2

20

4th,8th,12th ,16th

15%

3

24

4th,8th,12th ,16th,20th

12%

 

Extended Lapse period:

All the LIC policies have a default lapse period of 6 months. Let us understand with an example. Consider Ram’s payment is due for 30th October 2016.If Ram didn’t pay his premium in the next 6 months ie., before April 30th his policy will get lapsed and his life cover ceases. If he wants to revive the policy he need to provide fresh set of documents and undergo whole process again to continue the policy.

But in Bima Diamond lapse period is for 2 years. So, taking the above example, Ram can get life cover till 30th October 2018, even when his due date is 30th October 2016.

All these features make Bima diamond one of the best policies ever launched by LIC.



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