In 2025, the Life Insurance Corporation of India (LIC) has expanded its product line‑up with new term, savings, ULIP and retirement-oriented schemes, responding to changing customer needs and regulatory updates. The flagship additions include a very high‑cover pure term plan, a new unit‑linked savings‑plus‑protection plan, and fresh non‑linked savings and annuity offerings targeted at mass‑market savers and retirees.
This article groups the major 2025 launches into three segments; pure protection, savings/guaranteed, and market‑linked/retirement, and summarises key features and suitability based on LIC press releases, brochures, and mainstream financial coverage as of December 14, 2025.
1. New high-cover term and protection schemes
LIC’s biggest protection highlight of 2025 is a pure term plan aimed at customers who need very high life cover and prefer LIC for their core risk protection.
LIC’s Bima Kavach (Plan 887): High-cover pure term plan up to age 100
Nature and launch
LIC Bima Kavach (Plan 887) is a non‑linked, non‑participating, individual pure risk term insurance plan available with effect from 3 December 2025. It is positioned as a high‑sum‑assured term plan with flexible benefit options and long coverage, including the possibility of cover up to age 100.
Sum assured and death benefit options
- Minimum Basic Sum Assured is ₹2 crore, with no stated upper cap; higher covers are allowed subject to LIC’s underwriting norms.
- Two death benefit structures are available:
- Option I – Level Sum Assured: Cover remains constant throughout the policy term.
- Option II – Increasing Sum Assured: Cover increases over time as per a predefined pattern specified in the brochure, providing some inflation protection and higher protection in later years.
The “Sum Assured on Death” is defined in policy terms and is not less than the regulatory minimum of 105% of total premiums paid; for limited/regular premium policies, it is also tied to multiples of annualised premium, and for single premium policies to a multiple of the single premium.
Eligibility and term flexibility
- Entry age: 18–65 years.
- Maximum maturity age (cover‑ceasing age): up to 100 years.
- Policy term: generally from 10 years upwards, subject to the cap of age 100 at maturity and minimum term rules that vary by premium payment option.
- Premium payment: Single Premium, Limited Premium (e.g., 5/10/15 years) and Regular Premium (for the full term) options.
Life‑Stage Benefit Option
Under specific conditions; Regular Premium, Level Sum Assured option, entry age up to 40, and life accepted at standard rates – Bima Kavach offers a Life‑Stage Benefit Option that allows the policyholder to increase cover on predefined life events (such as marriage and birth of children), within percentage and rupee caps described in the brochure and subject to a time window after each event.
Payout modes and riders
- Death benefit can be taken as a lump sum or in instalments over 5, 10 or 15 years, offering structured income to nominees.
- Optional accident‑related riders (subject to eligibility) can increase the total payout if death is due to an accident.
Who it suits (educational view)
Bima Kavach suits higher‑income earners, professionals, and business owners who need large cover (₹2–10 crore or more) and want long‑term, LIC‑backed term protection rather than smaller retail covers. It is less suitable for those seeking low‑ticket cover or guaranteed maturity benefits.
2. New savings and guaranteed-style plans
Alongside protection, LIC has introduced or refreshed several non‑linked, non‑participating savings plans in 2025, aimed at families who prioritise predictable benefits over market‑linked returns. Exact product names, plan numbers, and benefit rates should always be cross‑verified with the latest brochures; below is a high‑level summary of what this category offers in 2025.
Mass-market protection + savings plans (October 2025 launches)
A LIC press release dated 15 October 2025 confirms the launch of new non‑linked plans effective from that date, focused on protection plus savings for the mass market. Key themes across these launches include:
- Low to moderate minimum sums assured, making them accessible for lower and middle‑income households.
- Limited and regular premium options aimed at disciplined, long‑term savings for goals such as children’s education, milestones, or small corpus creation.
- Benefit structures combining death cover with guaranteed or clearly defined survival/maturity benefits, without market‑linked NAV risk.
Some variants focus more on survival/money‑back benefits; others emphasise lump‑sum maturity plus protection. Details like micro‑insurance thresholds, women‑focused variants, and health riders vary by product and should be taken directly from the respective LIC brochures, not generalised.
Nav Jeevan Shree: regular and single-premium savings plans
From 4 July 2025, LIC introduced Nav Jeevan Shree in regular‑premium and single‑premium formats as non‑linked, non‑participating life insurance savings plans.
Broad characteristics:
- Insurance‑cum‑savings design: death benefit provides life cover, while survival to maturity provides a lump‑sum benefit enhanced by guaranteed additions/benefit enhancements as defined in the policy.
- Regular‑premium variant: short‑to‑medium premium‑paying terms with somewhat longer policy terms, suitable for building a corpus over 10–20 years.
- Single‑premium variant: one‑time investment for those who have surplus funds and want both protection and predictable future payouts.
Who these savings plans suit
These non‑linked savings plans are best suited to conservative savers and families who:
- Want simple, goal‑oriented savings (education, milestones, small legacy) with embedded life cover.
- Prefer LIC’s guarantees and are comfortable with potentially lower, but more stable, returns compared to market‑linked products.
3. New market-linked and ULIP-style offerings
LIC’s Protection Plus (Plan 886): ULIP offering life cover plus fund-based growth
LIC Protection Plus (Plan 886) is a non‑participating, unit‑linked, individual savings-and-protection plan launched effective 3 December 2025. It is positioned as a new‑age ULIP that blends insurance and investment.
Fund and investment structure
- Range of six funds, typically including debt‑oriented, balanced, and equity/index‑linked options (Bond, Secured, Balanced, Growth, and Nifty‑linked Flexi Growth and Flexi Smart Growth funds).
- Policyholders can choose funds based on risk appetite and switch between them, with a limited number of free switches per year and a small charge beyond that.
Benefits and charges (high‑level)
- Death benefit (Base Policy): highest of Basic Sum Assured (adjusted for recent withdrawals), unit fund value (Base Premium Fund), or 105% of total base premiums paid; top‑up premiums create a separate top‑up benefit.
- Maturity benefit: on survival with all premiums paid and policy in force, the insured receives the full fund value (base + top‑up) plus refund of mortality charges deducted for life cover (excluding extra loadings and GST), a distinctive feature versus many ULIPs.
- Key charges: premium allocation charges (lower online than offline), Fund Management Charge within regulatory caps, mortality charge, policy administration charge, partial‑withdrawal and discontinuance charges, and per‑switch charges beyond free limits.
- Flexibilities: top‑ups (except in last 5 years), partial withdrawals after 5‑year lock‑in, and sum‑assured alteration options under specified conditions, plus optional accident benefit rider.
Who it suits
Protection Plus can suit investors who:
- Want life cover plus ULIP‑style market participation in a single LIC product.
- Understand that investment risk is entirely with the policyholder and are prepared for long‑term (10–25 years) investing with regular monitoring of NAV and charges.
Risk‑averse investors or those who prefer term insurance plus mutual funds separately may find this structure less suitable.
4. Retirement-focused additions
In 2025, LIC has also publicised updates and enhancements to its pension and annuity offerings, such as deferred and immediate annuity plans (e.g., New Jeevan Shanti and other pension products), with:
- Options for single or joint life, with or without return of purchase price.
- Multiple annuity modes (monthly, quarterly, half‑yearly, yearly).
- Different deferment choices for deferred annuities.
These products are aimed at near‑retirees and retirees seeking guaranteed lifelong income, not capital growth.
5. Integrating these launches into real-life planning
Viewed together, LIC’s 2025 launches allow a layered approach:
- Big protection gaps: use a large‑cover term plan like Bima Kavach for income replacement and high liabilities (loans, education, lifestyle protection).
- Low‑risk savings goals: rely on non‑linked savings plans (Nav Jeevan Shree and the October 2025 launches) where you want predictable, guaranteed‑style payouts with embedded life cover.
- Balanced growth with flexibility: consider Protection Plus only if you are comfortable with ULIP risk, understand charges, and are investing for 10–25 years.
- Retirement income: use annuity products once you approach or enter retirement and need guaranteed cash flows.
This article is for educational purposes only and is not a personal recommendation or solicitation. Always:
- Read the latest brochures and policy documents from licindia.in for exact features, conditions, and charges.
- Use LIC and third‑party calculators to see projections for your age, term and premium.
- Consult a licensed insurance advisor or financial planner to assess which of the 2025 LIC schemes, if any, fit your financial goals, risk profile, and tax situation, or discuss your queries on life insurance and LIC plans at +91‑7832933580.
