The LIC Bima Diamond Plan 841 is a popular money-back life insurance plan from the Life Insurance Corporation of India (LIC). It combines savings and protection in a single policy, designed to provide financial security to policyholders and their families. This article aims to explain the plan in simple language and guide users on how to use the LIC Bima Diamond Plan 841 calculator to estimate premiums, benefits, and maturity values.

What is LIC Bima Diamond Plan 841?

The LIC Bima Diamond Plan 841 is a close-ended, non-linked, with-profit money-back life insurance plan. It was launched by LIC to offer policyholders a combination of regular survival benefits and life cover for protection.

• Non-linked means that this plan is not linked to the stock market, so your returns are not affected by market fluctuations.
• A money-back plan means you receive periodic payouts during the policy term as survival benefits.
• It offers limited premium payment terms with policy terms ranging from 16 to 24 years.
• The plan was made available for sale till 31st August 2017 as part of LIC’s Diamond Jubilee Year celebration.

Key Features of LIC Bima Diamond Plan 841

Here are some of the important features of this plan that make it attractive for long-term financial planning:

• Policy Term Options: 16, 20, or 24 years.
• Premium Paying Term: Less than the policy term—options are 10, 12, or 15 years, respectively.
• Minimum Entry Age: 14 years; Maximum Entry Age: varies with policy term (up to 50 years).
• Sum Assured: Minimum ₹1,00,000; Maximum ₹5,00,000 (multiples of ₹10,000).
• Money-Back Benefits: Periodic survival benefits paid every 4 years.
• Maturity Benefit: A lump sum paid at the end of the policy term along with loyalty additions.
• Death Benefit: If the insured dies during the policy term, the nominee gets a lump sum that includes the sum assured plus loyalty additions, generally offering extended risk cover even beyond maturity.
• Loan Facility: Available after 3 years of premiums paid.
• Tax Benefits: Premiums paid under this policy are eligible for tax deductions under section 80C of the Income Tax Act. Maturity proceeds are tax-free under section 10(10D).

How Does the LIC Bima Diamond Plan Work?

The policyholder pays premiums for a limited number of years depending on the selected policy term but enjoys coverage throughout the full term. During the policy term, periodic money-back payments are given to ensure liquidity for the policyholder.

For example, for a 24-year policy term, policyholders receive five survival benefits every 4 years, each constituting 12% of the sum assured. At the end of the policy term, the insured gets the maturity amount, which includes 40% of the sum assured plus loyalty additions.

If the policyholder dies during the policy term, the nominee receives the sum assured on death along with loyalty additions. An important feature is the extended risk coverage after maturity, equal to half the policy term.

Benefits Explained

1. Survival Benefits (Money Back):

You receive part of your sum assured as periodic payouts at fixed intervals, helping you manage your finances better during the policy duration. The frequency and percentage vary as follows:

Policy Term	Survival Benefit Percentage	Number of Pay-outs	Interval (Years)
16 Years	15%	3	4, 8, 12
20 Years	15%	4	4, 8, 12, 16
24 Years	12%	5	4, 8, 12, 16, 20

2. Maturity Benefit:

At the end of the policy term, the policyholder receives a lump sum, which is a percentage of the sum assured plus loyalty additions based on performance.

• For a 16- or 20-year policy, the maturity benefit is usually 55% of the sum assured plus loyalty additions.
• For a 24-year policy, the maturity benefit is 40% of the sum assured plus loyalty additions.

3. Death Benefit:

If the policyholder dies during the term, the nominee gets the sum assured on death along with loyalty additions, ensuring financial security.

4. Extended Risk Coverage:

After maturity, the policyholder is still covered for a period equal to half the policy term, with coverage equal to 50% of the sum assured. This provides an added layer of security.

LIC Bima Diamond Plan 841 Calculator – Why Use It?

Understanding the exact premiums, benefits, and maturity values can be complex in a money-back policy with multiple payouts. The LIC Bima Diamond Plan 841 calculator is an easy online tool where you enter parameters like

• Age of the policyholder
• Policy term chosen
• Sum assured
• Premium payment mode (yearly, half-yearly, quarterly, monthly)

The calculator then provides you with:

• Exact premium payable per installment (including GST)
• Details of periodic money-back amounts
• Maturity benefit estimate
• Death benefit coverage
• Loan eligibility
• Surrender value (if applicable)

Using this calculator helps users plan finances better by knowing exactly when and how much money they will get, along with insurance coverage details.

How to Use LIC Bima Diamond Plan 841 Calculator?

Using the calculator is straightforward. Most LIC or trusted insurance websites provide this feature. Follow these steps:

1. Enter Basic Details:
   • Age of the policyholder at entry.
   • Choose the policy term (16, 20, or 24 years).
   • Choose the sum assured amount.
   • Select premium payment mode (yearly/half-yearly/quarterly/monthly).
2. View Premiums:
   • View premium amount for the first year and subsequent years, including applicable GST.
3. See Money-Back Payouts:
   • Amount of survival benefits at different intervals (4th, 8th, 12th… year).
4. Calculate Maturity and Death Benefits:
   • Maturity amount including loyalty additions.
   • Sum assured payable on death.
5. Check Loan and Surrender Values:
   • Loan eligibility details after 3 years.
   • Surrender values if you choose to discontinue the policy.
6. Download or Save:
   • Many calculators allow you to save or print the benefit statement for reference.

Sample Calculation Example

Suppose Mr. Aravind, aged 25, chooses a 24-year policy term with a sum assured of ₹5,00,000. His premium paying term will be 15 years.

• He pays a yearly premium of around ₹30,022.
• He gets 12% of the sum assured (= ₹60,000) as money back at the end of the 4th, 8th, 12th, 16th, and 20th years.
• On maturity (end of 24th year), he receives 40% of the sum assured (₹2,00,000) plus loyalty additions.
• If he dies during the policy term, the nominee gets the sum assured plus loyalty additions as a death benefit.
• After the 24 years, he continues to have life coverage equal to half the sum assured for 12 years.

This example demonstrates a practical walk-through of benefits using the LIC Bima Diamond Plan 841 calculator.

Advantages of LIC Bima Diamond Plan 841

• Regular returns through money back benefits: Unlike traditional endowment plans, it gives periodic returns to the policyholder.
• Combination of protection and savings: Provides insurance cover along with disciplined savings.
• Extended risk cover: Additional protection period beyond maturity, a rare feature.
• Tax benefits: premium is tax deductible, and the maturity amount is tax-free.
• Loan facility: Helps in liquidity during emergencies.
• Non-linked plan: Safeguarded from market risks.

Who Should Choose LIC Bima Diamond Plan 841?

• Individuals looking for long-term financial security and regular returns.
• People who want a disciplined saving plan with life cover.
• Those interested in money back plans with guaranteed payouts.
• Policyholders who want extended risk coverage even after maturity.
• Individuals seeking tax benefits on life insurance premiums.
• Suitable for people willing to pay premiums for a limited period but who want benefits for a longer term.

Important Considerations Before Buying

• The plan was available for sale only till 31st August 2017, so new purchases are no longer possible. However, existing policyholders can continue enjoying benefits.
• It is essential to understand the premium payment term and policy term differences.
• Check eligibility criteria, i.e., age limits and minimum sum assured.
• Review your financial goals; money-back plans are best for conservative investors who prefer assured returns over market-linked products.
• Always compare with other LIC plans or private insurer plans for the best fit.
• Use the LIC Bima Diamond Plan 841 calculator to make an informed decision tailored to your age, premium capacity, and sum assured needs.

Frequently Asked Questions

Conclusion

The LIC Bima Diamond Plan 841 is an excellent insurance-cum-savings product offering regular money-back benefits, extended life cover, and assured maturity benefits, ideal for those seeking secure long-term financial planning without stock market risks. Using the LIC Bima Diamond Plan 841 calculator helps prospective and existing policyholders estimate premiums and plan their finances with clarity. This easy-to-use tool enhances understanding of the detailed benefits of this classic LIC plan.