Life Insurance Corporation of India (LIC) has launched two new insurance plans, Protection Plus (Plan 886) and Bima Kavach (Plan 887) designed to offer both security and smart financial planning. Whether you are looking for savings-based coverage or a pure protection plan, these new products aim to meet different needs of policyholders. From eligibility rules and entry age to minimum sum assured, premium details and unique benefits, here’s a simple breakdown of what these plans offer and how they can support your financial future.
What is LIC’s Protection Plus (Plan 886)?
LIC’s Protection Plus (Plan 886) is a unit-linked, non-participating life insurance plan that offers a combination of life cover and investment opportunities. It ensures financial protection throughout the policy term while giving policyholders the flexibility to choose their preferred investment fund, increase coverage when needed, and even make additional top-up premium payments. After completing five policy years, customers can also make partial withdrawals based on their requirements.
In this plan, the policyholder decides how much premium they want to pay, and the basic sum assured is calculated accordingly. The premium can be paid either regularly or for a limited period, depending on one’s convenience.
Key Features of LIC’s Protection Plus
LIC’s Protection Plus comes with flexible entry requirements and payment options to suit different age groups and financial plans. Anyone between 18 and 65 years can apply for this policy.
When it comes to premium payments, policyholders can choose from premium paying terms of 5, 7, 10 or 15 years, depending on the selected policy term of 10, 15, 20 or 25 years. While the minimum premium amount varies based on the chosen payment term and mode of payment, there is no upper limit on the maximum premium. However, the maximum premium is subject to LIC’s underwriting rules and approval.
Sum Assured & Maturity Rules for LIC’s Protection Plus
Under LIC’s Protection Plus, the sum assured is linked to the annual premium and the age of the policyholder. For individuals below 50 years, the minimum basic sum assured is 7 times the annual premium, while for those 50 years and above, it is 5 times the annual premium. The maximum sum assured varies based on age at entry and the premium paying term chosen.
The maximum age at maturity is determined by the policy term and can go up to 90 years for a 25-year policy, giving long-term financial protection and flexibility.
Survival Benefits Under LIC’s Protection Plus
If the policyholder survives till the end of the policy term, they will receive the total fund value accumulated in their account. This includes the value built from the base premiums as well as any top-up premiums invested over time. The final amount payable on maturity is based on the unit fund value on the maturity date.
What is LIC’s Bima Kavach (Plan 887)?
LIC’s Bima Kavach (Plan 887) is a pure protection life insurance plan designed to provide financial support to your family in case of an unfortunate event. This non-participating, non-linked plan focuses solely on risk coverage and offers guaranteed death benefits that do not depend on market performance.
Policyholders can choose between two benefit options: a Level Sum Assured, which stays constant throughout the policy term, or an Increasing Sum Assured, which grows gradually over the years. The plan also provides flexible premium payment choices including single pay, limited pay, or regular pay, making it suitable for different financial preferences.
Key Features of LIC’s Bima Kavach (Plan 887)
LIC’s Bima Kavach offers wide flexibility in entry and maturity ages. Anyone aged 18 to 65 years can apply for the plan, although applications from those 60 years and above may require additional underwriting checks and approvals. The policy can continue until a maximum maturity age of 100 years, ensuring long-term protection.
When it comes to coverage, the plan provides strong financial security with a minimum sum assured of Rs 2 crore. There is no upper limit on the maximum sum assured, allowing individuals to choose coverage based on their needs and financial capacity.
Premium Payment Options & Policy Term for Bima Kavach
LIC’s Bima Kavach provides multiple premium payment choices to suit different financial preferences. Policyholders can choose to pay a single premium, limited premiums for 5, 10 or 15 years, or regular premiums throughout the policy term. The plan also offers two types of death benefit options—Level Sum Assured, which remains the same throughout the policy period, and Increasing Sum Assured, which gradually rises over time.
The policy term is determined by the premium payment option selected. For single premium, the minimum term is 10 years. For limited premium payments, the minimum terms are 5, 10 or 15 years, and for regular payment, it is 10 years. The plan allows a maximum policy term of up to 82 years, subject to the maximum maturity age of 100 years.
