LIC Launches Protection Plus & Bima Kavach: New Life Insurance Plans Explained

LIC has introduced two fresh life-insurance products — Protection Plus (Plan 886) and Bima Kavach (Plan 887) — aiming to provide a broad range of insurance solutions: from market-linked savings to pure risk protection.

While Protection Plus caters to individuals seeking a combination of investment plus life cover, Bima Kavach is designed for those who prefer straightforward, guaranteed protection without any investment component. 

Below is a detailed look at both plans, their features, eligibility, and benefits — without altering the figures or key data you provided.

Protection Plus (Plan 886) — Market-linked savings + life cover

What is Protection Plus?

Protection Plus is a non-participating, linked individual savings plan which offers life insurance cover along with investment potential. Policyholders can select the investment fund, adjust their sum assured during the policy term, and also make “top-up” premium contributions in addition to the base premium.

After five years from policy commencement, the plan also permits partial withdrawals — providing liquidity when needed.

Key Features & Eligibility

• Entry age: 18 to 65 years.

• Premium payment options: Regular pay or limited pay. Premium-paying terms (PPT) available for 5, 7, 10 and 15 years.

• Policy terms: 10, 15, 20 or 25 years.

• Minimum basic sum assured: For entrants below age 50 — 7 times the annualized premium; for those 50 and above — 5 times the annualized premium.

• Maximum maturity age: Up to 90 years (for a 25-year policy term).

• Premium amount: No fixed upper limit — subject to underwriting guidelines and Board-approved policy.

What happens at Maturity / Survival

On survival until maturity, the policyholder receives the unit fund value — which includes both the base premium fund and any top-up fund (if applicable) as on the date of maturity.

Additionally, any mortality charges deducted over the policy term are refunded along with the maturity benefit.

Bima Kavach (Plan 887) — Pure risk cover with flexible options

What is Bima Kavach?

Bima Kavach is a non-participating, non-linked individual pure risk plan, offering a fixed and guaranteed death benefit in the event of the policyholder’s untimely demise during the policy term. The benefit is independent of market performance.

Policyholders can choose between a Level Sum Assured or an Increasing Sum Assured option. Premium payments can be made via single premium, limited premium, or regular premium modes.

The plan also allows benefits to be paid as instalments instead of a lump sum. Under Level Sum Assured (with regular premiums), there is an option for life-stage benefit enhancements — e.g. increasing coverage after events such as marriage or the birth of a child.

Key Features & Eligibility

• Entry age: 18 to 65 years (for those above 60, underwriting/reinsurance norms apply).

• Maturity (cover ceasing) age: 28 to 100 years (last birthday).

• Minimum sum assured: ₹ 2 crore. No fixed upper limit — subject to underwriting.

• Premium payment options: Single premium; Limited premium (5, 10, or 15 years); Regular premium.

• Policy / Coverage Term:

  • For single premium: minimum 10-year coverage.

  • For limited premium (5/10/15 years): coverage terms of 10, 15 and 20 years respectively.

  • For regular premium: minimum 10 years. Maximum policy term can extend up to 82 years — provided maturity age does not exceed 100 years.

• Special rates: The plan offers special premium rates for women and non-smokers.

• High sum assured benefit: Individuals choosing larger coverage amounts benefit from higher sum assured, making it suitable for those seeking substantial protection for their dependents. 

What This Means for Policyholders

• With Protection Plus, you get a dual advantage: life cover plus potential market-linked returns — making it useful for long-term savings, retirement planning or wealth accumulation along with insurance protection.

• Bima Kavach, on the other hand, suits those who prioritise pure life protection — especially for high sum assured needs, or for those wanting a stable safety net for their family, without exposure to market volatility.

• The flexibility (in premium payment, top-ups, withdrawal, adjustable sum assured) under Protection Plus — and flexible benefit structure (lump sum or instalments, level or increasing cover) under Bima Kavach — gives customers the ability to tailor their insurance according to changing life circumstances.

• Special premium rates for women/non-smokers under Bima Kavach may make the plan more attractive to certain demographics.