Photo Credit: Life Insurance Corporation of India logo is seen displayed in this illustration. (Photo: Reuters/Dado Ruvic)
Here are the details of the non-linked, money back plan by LIC
The Bima Diamond insurance plan from LIC combines savings and safety. This plan provides financial support to the family in the event of the death of the policyholder, both during the policy term and throughout the extended cover period after the policy term.
In the event that the policyholder passes away while the policy is in force, the beneficiaries will receive a death benefit.
The policy offers a survival benefit if the assured individual lives for an amount of time specified in the policy document. The policyholder will receive a fixed portion of the base sum assured in such a situation.
If the life insured lives until the plan's maturity date, the policy offers a maturity benefit. The life insured will get the sum assured on maturity as well as any loyalty additions at maturity.
Photo Credit: rawpixel.com on Freepik
The option to cancel the plan is available to the policyholder at any moment. The only condition for surrendering an insurance is that the premiums have been paid for at least three consecutive policy years.
Photo Credit: Freepik
The policyholder still has the option to reinstate the plan during the grace period if the policy lapses because of failure to pay the premium. The renewal request must be submitted to the insurance provider within two years of the initial unpaid premium.
According to Sections 80C and 10(10D) of the Income Tax Act, 1961, the benefits received and the premiums paid for the policy are both eligible for tax benefits.