LIC Bima Diamond Money Back Policy – Who can invest?
LIC has launched a new policy, LIC Bima Diamond Money Back Policy on its 60th birthday (Jubilee year). It is non linked traditional insurance plan with money back policy. It launched this plan with a tag line “Its thrice as nice”, means, it offers 3 features. It offers 3 options to choose a plan. What are the 3 Key Features offered in this plan? What are various options available in the LIC Bima Diamond Plan? Who can invest in LIC Bima Diamond Money Back Policy?
Also Read: Top Health Insurance Plans for Senior Citizens
Background of LIC for launching this plan
Now LIC is celebrating a Jubilee Year (60th birthday). Many were expecting that LIC would launch some attractive insurance plans. On its 60th birthday, it announced that it is launching LIC Bima Diamond Money Back Policy, indicating “Its thrice as nice” and indicating the key features of this plan. While it is yet to provide complete brochure, these key benefits are attractive several investors as of now.
Key Features of LIC Bima Diamond Money Back Policy
Moneyback: LIC Bima Diamond insurance plan provides money back every 4 years of the term of the policy.
Auto Coverage: This plan provides auto coverage for 2 years even if the premium is not paid. Generally LIC offers 30-45 days grace period for any policy to lapse if premium is not paid. However in this plan, it provides coverage for 2 years even if premiums are not paid.
Extended Insurance Coverage: After the premium payment term is completed, half of the policy term is extended without any additional premiums.
Other details of LIC Bima Diamond Money Back Policy
The minimum sum assured is Rs 1 Lakh
The maximum sum assured is Rs 5 Lakh
Minimum age of entry – 14 years
What are various options available in this plan?
This plan is available in 3 options.
Option – I
- Premium payment term is 10 years
- Policy term is 16 years
- Extended life insurance coverage is for 8 years (half of the policy term)
- Total life insurance coverage would be for 16+8=24 years
- Money back for every 4 years for 4 times, i.e. end of 4th year, end of 8th year, end of 12th year and end of 16th year. However, with extended life insurance coverage, risk cover would be there till 24 years.
Option – II
- Premium payment term is 12 years
- Policy term is 20 years
- Extended life insurance coverage is for 10 years (half of the policy term)
- Total life insurance coverage would be for 20+10=30 years
- Money back for every 4 years for 5 times, i.e. end of 4th year, end of 8th year, end of 12th year, end of 16th year and end of 20th year. However, with extended life insurance coverage, risk cover would be there till 30 years.
Option – III
- Premium payment term is 15 years
- Policy term is 24 years
- Extended life insurance coverage is for 12 years (half of the policy term)
- Total life insurance coverage would be for 24+12=36 years
- Money back for every 4 years for 6 times, i.e. end of 4th year, end of 8th year, end of 12th year, end of 16th year, end of 20th year and end of 24th year. However, with extended life insurance coverage, risk cover would be there till 36 years.
Also Read: Max Life Launches Online Term Insurance Plan – Should you consider this plan?
Who can invest in LIC Bima Diamond Money Back Policy?
LIC is trusted brand in the insurance industry. Though many private insurance providers are trying to attract policy holders with low premiums, still many believe that one should go for insurance protection with LIC. These LIC money back policies would give anywhere between 5% to 7% returns considering bonus which would be announced year on year and not guaranteed. Like I keep indicated earlier, one should take a good term insurance plan for risk coverage and balance save in other investment options like mutual funds, NCD’s, bank FD’s etc., However, if you are low risk investor and want to save your money through insurance, you can consider these plans. These 3 key features indicated are attractive, hence, low risk investors can consider this under insurance cum investment plan.
If you enjoyed this article, share it with your friends and colleagues through Face book and Twitter.
Suresh
LIC Bima Diamond Money Back Policy Review
Please can you give an example for money back.
Hi, Its nice article to follow. Please could you explain citing an example. This will make it easy to understand and can help to financial planning.