LIC Launches Protection Plus and Bima Kavach: Key Features Explained

The Life Insurance Corporation of India (LIC) has introduced two new insurance plans called Protection Plus (Plan 886) and Bima Kavach (Plan 887). These plans aim to offer life cover along with financial flexibility, depending on the needs of the policyholder. Here is a simple breakdown of their main features, eligibility, and benefits.

What is LIC’s Protection Plus (Plan 886)?

Protection Plus is a non-participating, linked life insurance plan that combines life cover with savings. Policyholders can choose how much premium they want to pay. Based on that, the basic sum assured will be decided. 

They can also invest in their preferred fund and make top-up premium payments. Partial withdrawals are allowed after five years from the policy start date.

Entry Age and Premium Payment

• Minimum entry age: 18 years
• Maximum entry age: 65 years
• Premium payment options: 5, 7, 10 or 15 years, depending on the policy term
• Policy terms available: 10, 15, 20 and 25 years
• No upper limit on premium, subject to underwriting rules

Sum Assured and Maturity

• Minimum sum assured:
• 7 times the annual premium (below age 50)
• 5 times the annual premium (age 50 and above)
• Maximum maturity age: up to 90 years for a 25-year term
• On maturity, the policyholder receives the unit fund value, which includes both base and top-up fund values.

What is LIC’s Bima Kavach (Plan 887)?

Bima Kavach is a non-linked, non-participating pure risk protection plan. It focuses on providing financial security to the family of the insured in case of their death during the policy term.

Entry Age and Policy Term

• Minimum entry age: 18 years
• Maximum entry age: 65 years, with case-by-case approval for ages 60+
• Minimum maturity age: 28 years
• Maximum maturity age: 100 years
• Policy term varies from 10 to 82 years, depending on premium payment mode

Sum Assured and Premium Options

• Minimum basic sum assured: ₹2 crore
• No upper limit for sum assured
• Premium options: Single, Regular, Limited (5, 10 or 15 years)
• Two death benefit options:
• Level Sum Assured
• Increasing Sum Assured

Read more: LIC Has Invested Nearly ₹50,000 Crore in Adani Group Companies, Says Govt in Winter Session 2025.

Conclusion

Both Protection Plus and Bima Kavach aim to meet different financial needs. While Protection Plus offers life cover with flexible savings and investment choices, Bima Kavach provides strong protection with high sum assured options and long-term coverage. Depending on your goals, you can choose the plan that best suits your financial situation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.