If you are planning to buy a life insurance cover for yourself with tax saving benefits its just about the right time. Life Insurance Corporation of India recently launched a moneyback plan 'Bima Gold' with minimum sum assured of Rs 40,000.

The plan will close by the end of this financial year as was specially designed for the celebration of the 50th anniversary of the insurance behemoth.

You must know the fact that insurance should be taken when you are healthy because in case of an unfortunate event like an illness or accident, the absence of an insurance cover can create a problem for your family.

Bima Gold offers regular instalment returns equipping you financially to handle the contingencies that come your way.

It also offers a unique auto-cover feature, which ensures that policy does not lapse even if the premiums are not paid for two years. Currently the average age of life insured is about 50 years in the country, which highlights the low penetration of insurers.

Bima Gold, available in 12-year, 16-year and 20-year terms, will offer 15 per cent of the sum assured under basic plan at the end of each 4th and 8th policy year; 15 per cent at the end of each 4th, 8th and 12th year; and 10 per cent at the end of each 4th, 8th, 12th & 16th year.

For example, a 35-year-old woman, who avails of a Rs 100,000 cover for a term of 12 years under Bima Gold, will pay a annual premium of Rs 6,193 which is a normal amount for a simple money back plan.

On the survival of life assured to the end of the term plan, payment of total amount of premiums paid (excluding extra/optional rider premiums, if any) plus loyalty additions, if any, less the amount of survival benefits will be paid to the insured.

The payment of an amount equal to sum assured under the basic plan will be paid immediately on death of the life assured during the term of the policy provided the life cover is in force.

The plan guarantees surrender value, which will be available after completion of at least three policy years and at least three full year premiums have been paid.

The guaranteed surrender value is equal to 30 per cent of the total amount of premiums paid excluding the premiums for the first policy year, all extra premiums paid, the premiums paid for accident benefit rider and the amount of survival benefits paid earlier.

The accident benefit rider will cease to apply if the policy is in lapsed condition. During the auto cover period, the accident benefit rider shall not be available.

Accident benefit rider shall be available as an optional benefit for a premium at the rate of Rs 1 per thousand accident benefit rider sum assured.

Accident benefit rider shall be available for an amount not exceeding the sum assured under the basic plan, subject to overall limit of Rs 50 lakh (Rs 5 million) taking all existing policies of the life assured under individual as well as group schemes including policies with in built accident benefit taken with LIC [Get Quote] and other insurance companies and the accident benefit rider sum assured under the new proposal into consideration.

On death arising as a result of accident an additional amount equal to the accident benefit rider sum assured is payable. On total and permanent disability arising due to accident (within 180 days from the date of accident) an amount equal to the accident benefit rider sum assured will be paid over a period of 10 years in monthly instalments.

You will get the loan facility available in this plan after the policy acquires paid-up value. The rate of interest to be charged for loans would be determined from time to time by the corporation. At present, the rate of interest is 9 per cent per annum payable half-yearly.

A grace period of one month but not less than 30 days will be allowed for payment of yearly, half-yearly or quarterly premiums and 15 days for monthly premiums.

If you are not satisfied with the terms and conditions of the policy you may return the policy to the corporation within 15 days.

The policy will be void if the life assured commits suicide at anytime on or after the date on which the risk of the policy has commenced but before the expiry of one year from the date of commencement of risk under the policy.