LIC’s Bima Diamond – Name is Diamond but benefits are Bronze

Before reading this article I need to ask one question that is - why you want to take this policy?. Your answer may be - investment or Risk coverage. My advise you to take pure term insurance plan for the purpose of Risk coverage and invest in PPF, Mutual Funds, properties, gold etc. for the purpose of saving and better return. After investing in these avenues, if you have any surplus amount then you may invest in this policy that will only show you benefits like diamond but you will receive only bronze kind of benefits.

 

About the plan : India most trusted brand launched new A non-linked, with-profit, limited premium payment money back life insurance plan i.e. LIC’s Bima Diamond (With Profits) UIN: 512N307V01. This is the close ended plan and available for sale up to 31^st August 2017. LIC of India launched this product on special occasion of his Diamond Jubilee Year. This is the money back endowment plan that will provide you benefits in the form of money back on prefixed policy years and at the time of maturity gives you remaining sum assured (after minus of money back amount) plus loyalty addition if any.

 

Why you need to take this Plan :

 

Available of the Plan - Plan is available for limited period i.e. till 31^st August 2017.

 

Risk Coverage/ Special advantages of the plan - The plan design to 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).  

 

Survival payments- following will be payable in the form of survival/money back benefits.

 

Policy Term	Money Back	At the end of
16	15% of Sum Assured	4th, 8th, and 12th Policy Years
20	15% of Sum Assured	4th, 8th, and 12th and 16th Policy Years
24	12% of Sum Assured	4th, 8th, and 12th 16th  and 20th Policy Years

Maturity Benefits - in the form of maturity benefits you will be received remaining sum assured of money back plus loyalty addition i.e. 55% of Basic Sum Assured for policy term 16 years and 40% of Basic Sum Assured for policy terms 20 and 24 years.

 

Death Benefit - During the first five years - “Sum Assured on Death” are payable and after five policy years but before the date of maturity Sum Assured and Loyalty Addition will be payable to nominee.

 

Loan - Policy holder may take Loan in this policy during policy term if policy is enforced.

 

Premium payment options – policy holder can choose payments mode from regularly at yearly, half-yearly, quarterly or monthly.

 

What happen if you will stop paying premium – policy will stand Paid-up - If less than three years’ premiums have been paid and any subsequent premium be not duly paid, all the benefits under the policy shall cease after the expiry of grace period and nothing shall be payable and after three annual premium payment policy stand in the form of paid-up and paid-up benefits will payable.

 

Additional Advantages - 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 Risk Cover Period of six months shall be available. 2. If at least five full years’ premiums have been paid under a policy and any subsequent premium is not duly paid Auto Risk Cover Period of two years shall be available.

 

Why you not need to take this Plan :

 

Loyalty addition not fixed.

Lic will not give you Bonus in the plan.

Nominal maturity returns benefits.

Returns of the plan even less than 3 % if you calculate over all return including service tax paid by you.

Plan is not suitable for those who are looking for good return.

LIC only focused risk cover in this plan not in the returns.

After maturity half of the policy year you will cover risk cover of half of your sum assured. This is not attractive option for investment.

In compare to this plan more attractive plans available in life insurance industry which will gives you tremendous benefits and will fulfill your goal.

High premium in the plan.

 

Conclusion - This is neither pure risk coverage plan nor returns providing plan. This is the just combination of both and LIC focused only on providing extra risk coverage that is increase premium of the customers. If you have a lot of money for investment purpose and you already invested in all available investment venues then you may invest your surplus amount in this policy which only gives you attraction and your objective towards returns will not be fulfilled.