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LIC Bima Diamond Plan (841) details with example

LIC Bima Diamond Policy (Table No: 841) is a non-linked ( Not dependent on share market) limited premium paying Money Back plan which means premium paying term is less than policy term, for example, if policy term 24 has been selected then premium will be paid for 15 years only. The money back will be provided at end of every 4 years and maturity at the end of policy term. This policy has unique feature of extended risk cover after policy term. As this is a close ended plan and available for sale up to 31-08-2017.

Key Features

  • Money Back Plan
  • Extended Risk cover Benefit After Maturity
  • Premiums need to be paid for less number of years than Maturity year
  • Options to avail accidental benefit and term riders
  • Paid premiums are exempted from income tax under 80C
  • Maturity amount is tax free under 10 (10D)

Plan Parameters

Minimum Age at Entry 14 Years (Completed)
Maximum Age at Entry 50 Years for 16 Year Term
45 Years for 20 Year Term
40 Years for 24 Year Term
Calculate Age
Premium Paying Mode Yearly, Half Yearly, Quarterly, Monthly (ECS Only)
Calculate Your Premium
Policy Term (Premium Payment Term) 16(10), 20(12), 24(15)
Basic Sum Assured Minimum 1,00,000 and Maximum 5,00,000 (in multiple of 10,000)
Premium Payment Mode rebate 2% on yearly, 1% on Half Yearly, Nil on Quarterly & Monthly
Rebate on High Sum Assured
(Per 1000 of Sum Assured)
0% up to 1,80,000
2.5% for 2,00,000 to 4,80,000
3% for 5,00,000
Loan After 3 years
Surrender After 3 years of full premium payment

Survival and Maturity benefits

  • For 16 year Policy: 15% of Sum Assured on completion of 4th, 8th and 12th policy years and on completion of 16th year(maturity), 55% of sum assured + Loyalty Addition.
  • For 20 year Policy: 15% of Sum Assured on completion of 4th, 8th, 12th and 16th policy years and on completion of 20th year(maturity), 40% of sum assured + Loyalty Addition.
  • For 24 year Policy: 12% of Sum assured on completion of 4th, 8th, 12th, 16th and 20th year and on completion of 24th year(maturity), 40% of sum assured + Loyalty Addition.

Death Claim Benefits

  • In case of death during First Five Years of the policy:
    • If Death happens before completion of 5 years, then sum assured will paid as death claim.
  • In case of death during after 5 years of the policy:
    • Death Claim will be Sum Assured + Loyalty Addition.
  • In case of death after maturity (Extended cover period - Half of the Policy term):
    • 50% of Basic sum assured as death claim.

Optional Rider

Following Optional riders are avail with this plan.

  • Accidental Death and Disability Benefit Rider
  • Term Rider

Bima Diamond Plan (841) with Example

Mr. Aravind purchases Bima Diamond Policy with following details.

Sum Assured (Rs.)5,00,000
Age (Years)25
Policy Term(Years)24
Premium Paying Term(Years) 15
Purchase Year2016
Yearly Premium (Rs.)30,022
Total Paid Premium (Approx)(Rs.)4,42,442

Go to Premium and Maturity Calculator

There are two possibilities, either Mr. Aravind Survives 24 years or unfortunate death happens before completion of 24 years. Benefits of both the cases have been explained below.

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Case:1 (Money Back & Maturity Details)

If Mr. Aravind survives 24 years, then Five Money Backs each equals to 12% of Sum Assured at the end 4th, 8th, 12th, 16th & 20th years and on completion of 24th year (maturity), 40% of Sum Assured along with Loyalty Addition.

At the end of Year Age Return Remarks
4th Year 2020 29 60000 Money Back: 1 (12% of SA)
8th Year 2024 33 60000 Money Back: 2 (12% of SA)
12th Year 2028 37 60000 Money Back: 3 (12% of SA)
16th Year 2032 41 60000 Money Back: 4 (12% of SA)
20th Year 2036 45 60000 Money Back: 5 (12% of SA)
24th Year 2040 49 200000 +LA Maturity (40% of SA + Loyalty Addition)
Total 500000 Money Back + Maturity

As, this plan comes with extended life cover feature, so Mr Aravind will have life cover equal to half of the Sum Assured. The duration of this extended life cover is equals to half of the policy term starting from year of maturity. Following table describes this feature under this example.

Extended Term (in Years) Form Age to Age From Year to Year Risk Cover Amount
12 49-61 2040-2052 250000

Case:2 (Death Claim Details)

In the second possibility case, if Mr. Aravind does not survive the policy term (i.e. 24 years) then Year-wise and age wise death claim will be as under.


How to Understand Following Table

Suppose if, unfortunate death of Mr. Aravind happens in year 2025 (at age 34), then by the time death total paid premium will be Rs. 2,95,142 and his nominee will get death claim as Rs. 5,00,000 + Loyalty Addition (LA) in case of normal death or Rs. 10,00,000 + Loyalty Addition (LA) as accidental death claim and policy will stop.

Year of Death Age at Death Total Paid Premium Normal Death Claim Accidental Death Claim
2016
25
30002
500000
1000000
2017
26
59462
500000
1000000
2018
27
88922
500000
1000000
2019
28
118382
500000
1000000
2020
29
147842
500000
1000000
2021
30
177302
500000 + LA
1000000 + LA
2022
31
206762
500000 + LA
1000000 + LA
2023
32
236222
500000 + LA
1000000 + LA
2024
33
265682
500000 + LA
1000000 + LA
2025
34
295142
500000 + LA
1000000 + LA
2026
35
324602
500000 + LA
1000000 + LA
2027
36
354062
500000 + LA
1000000 + LA
2028
37
383522
500000 + LA
1000000 + LA
2029
38
412982
500000 + LA
1000000 + LA
2030
39
442442
500000 + LA
1000000 + LA
2031
40
500000 + LA
1000000 + LA
2032
41
500000 + LA
1000000 + LA
2033
42
500000 + LA
1000000 + LA
2034
43
500000 + LA
1000000 + LA
2035
44
500000 + LA
1000000 + LA
2036
45
500000 + LA
1000000 + LA
2037
46
500000 + LA
1000000 + LA
2038
47
500000 + LA
1000000 + LA
2039
48
500000 + LA
1000000 + LA
2040
49
500000 + LA
1000000 + LA

Above illustration has been prepared for illustration purpose only, for More details, please refer to LIC Website and in case of any query please write your comment below.

Comments & Reviews

Wrote : 07-04-2017 21:22:21

If policy is purchased by parent on life of minor at age 14 or above, and proposer dies after one or two years, what will be the fate of the policy - since minor cannot pay the premium?

Replied : 08-04-2017 08:29:09
This policy does not have premium waiver option, so premium will not be waived in case of proposer's death, that is, policyholder will have to pay specified premium otherwise policy will lapse.

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Wrote : 27-03-2017 07:37:02

Is extended cover period same for all time period plans (16yrs,20yrs,24yrs), What is that time cover period? If not same, give me details

Replied : 27-03-2017 08:01:56
It will be half of policy term e.g. 8 year in case of 16 year policy term.

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Wrote : 03-03-2017 12:57:59

Do we get Maturity Bonus in this plan. And what is the rate of LA in this plan?

Replied : 03-03-2017 14:17:15
Maturity will be Sum Assured + Loyalty Addition (LA) not bonus.

Wrote : 03-03-2017 14:21:25

As per your reply maturity is sum assured, but as per above calculator, maturity is 40% of Sum assured. Please let me know will i get 100% sum assured or 40%?

Replied : 03-03-2017 14:25:42
Apologies, I forgot to mention 40% of SA. I just wanted to convey that this policy does not attract bonus as in the case of endowment policies, like jeevan anand.

Wrote : 03-03-2017 14:30:05

Thanks for your revert.. Just wanted to know, normally how is loyalty addition calculated. In the above scenario, what should be the minimum LA amount ?

Replied : 03-03-2017 14:37:56
Loyalty Addition is applicable to year of death or maturity and that too after completion of 5 years of policy. This policy is launched in 2016, so I don't have fair idea about LA. As soon as I get any info on it, will let you know.

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Wrote : 21-02-2017 11:39:22

I got a gujarati version of this plan, but it is plan 3. What is the plan 3? Can I suggest this child of, 9 yrs and father of 43 yrs. Pls inform thanx. Ramadad rsp

Replied : 21-02-2017 15:02:25
There are 3 possible policy terms (16,20,24) under this plan. I guess it is 24 year policy term in your case.

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Wrote : 17-02-2017 19:49:15

can i sell this plan of nepalese peoples or nepalese i.d.

Replied : 17-02-2017 20:06:13
Yes, You can sold.

Wrote : 18-02-2017 08:09:09

But banch said no .they have no any circular

Replied : 18-02-2017 09:19:31
If branch is saying no then I dont have anything to say as I do not know more than a branch. But as far as I know, person from this country on certain employment in india are eligible for insurance plans. But do not have complete info on it.

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Wrote : 12-02-2017 10:43:32

Really its nice plan and its copy of bima gold but some confusion in L.A. otherwise nice plan

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Wrote : 01-02-2017 20:55:29

It is copy of BHIMA GOLD it is just cheating plan the loyalty addition is nothing maximum of 8% it must to be less than that.

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Wrote : 01-02-2017 20:05:10

Plz clarify as in the example case shown here after 24 year complication return 200000 is only or it's 200000 + LA. Plz clarify

Replied : 01-02-2017 20:52:07
It is 200000+ Loyalty Addition.

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Wrote : 01-02-2017 14:47:12

superb plan

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Wrote : 24-01-2017 17:45:38

Its a very nice plan.

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Wrote : 22-01-2017 12:01:44

Its a really good policy plan--841 for youngsters.

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Wrote : 20-01-2017 11:41:39

EXTENDED PERIOD IN EXAMPLE 40-61 YEAR 2040-2072, THERE IS A MISTAKE IT SHOULD BE 2040-2052.

Replied : 20-01-2017 12:12:17
Thanks for your support. The typing error has been corrected.

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Wrote : 14-01-2017 15:03:02

Its really good plan

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Wrote : 11-01-2017 12:00:51

Can anyone tell me that what will be minimum value of loyality addition for 500000 S.A. I want to go for this policy but I have some confusion for Loyality Addition amount. Please clear me about loyality addition amount.

Replied : 11-01-2017 13:14:28
I am not sure about LA related to this plan as this is a new plan of its kind. As soon as I get any info, then, the same will be shared here.

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Wrote : 03-01-2017 21:29:19

It's best plan, three different features in built . It's much better if it is buy in 3 terms .

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Wrote : 29-10-2016 09:27:49

Bima diamond is a nice plan of lic of india.

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Wrote : 23-10-2016 13:19:52

Nice plan bima dimond lic of India. ....

Wrote : 24-10-2016 16:22:09

good insurance plan no.841

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Wrote : 23-10-2016 03:07:14

Good plan for different need

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Wrote : 22-10-2016 16:21:13

Best Plan forever

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Wrote : 02-10-2016 16:07:58

Its a very nice plan

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Wrote : 30-09-2016 19:29:37

Waste plan. They are just doing business with our money.

Wrote : 26-01-2017 18:33:32

Why this plan is waste? What is wrong/waste?

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