LIC Bima Kavach (Plan 887) is LIC’s latest pure‑protection term insurance plan, launched on 3 December 2025, designed for individuals who require substantial life cover with the flexibility to stay insured up to age 100. Unlike endowment or ULIP products, this non‑linked, non‑participating plan offers no maturity or survival benefits; its sole purpose is to provide high death‑benefit protection at competitive pricing.
Key Features and Eligibility
The plan’s standout feature is its ₹2 crore minimum sum assured, significantly higher than most term plans. It is designed for high‑income professionals, business owners, and HNIs who require meaningful financial protection.
Eligibility parameters include:
- Entry Age: 18–65 years
- Policy Term: 10–82 years
- Maximum Maturity Age: 100 years (minimum maturity age 28)
- Premium Payment Modes: Single premium, limited premium (5/10/15 years), or regular premium
Preferential rates apply for women, non‑smokers, and higher sum assured brackets, making the plan more cost‑efficient for low‑risk profiles.
Level vs. Increasing Cover Options
LIC Bima Kavach offers two coverage structures:
Option I – Level Sum Assured
Coverage remains constant throughout the policy term.
Best for: Individuals whose liabilities reduce over time (e.g., home loans).
Option II – Increasing Sum Assured
Provides built‑in inflation protection, with the death benefit typically increasing by 10% annually from the 6th to the 15th policy year, subject to caps.
Best for: Long‑term planners concerned about inflation eroding purchasing power.
This choice must be made at policy inception and cannot be changed later.
Life‑Stage Benefit Option
One of the plan’s most valuable features is the Life‑Stage Benefit Option, available only if:
- Regular premium mode is chosen
- Option I (Level Sum Assured) is selected
- Entry age is 40 or below
- Policy is issued at standard rates
This option allows coverage increases without medical underwriting within 6 months of major life events:
- Marriage: +50% (up to ₹2 crore additional)
- First two children: +25% each (up to ₹1 crore each)
Total life‑stage increases can reach 100% of the original sum assured, eliminating the need for multiple policies as responsibilities grow.
Benefits and Payout Flexibility
If the life assured passes away during the policy term, the nominee receives the full applicable sum assured; level, increasing, or life‑stage‑enhanced.
Nominees can choose:
- Lump‑sum payout, or
- Instalments over 5, 10, or 15 years (minimum ₹5,000 per month)
Optional riders such as Accidental Death Benefit can further enhance protection.
As a pure term plan, no maturity or survival benefit is payable if the policyholder outlives the term.
Who Should Consider This Plan?
LIC Bima Kavach is well‑suited for:
- High‑income earners needing ₹2 crore+ coverage
- Young professionals (25–40) planning marriage, children, or home purchase
- Families preferring LIC’s government backing and high claim‑settlement ratio
- Individuals seeking age‑100 coverage for estate planning and liquidity
It may not suit:
- Those wanting guaranteed maturity returns
- Individuals needing coverage below ₹2 crore
- Buyers prioritising the lowest premium (private insurers may be cheaper)
Important Considerations
This article is for educational purposes only. Before purchasing:
- Review the official LIC brochure and policy document on the official website of LIC
- Compare premiums and features across insurers
- Understand exclusions (including suicide clause)
- Ensure long‑term premium affordability
- Consult licensed advisors if needed
LIC Bima Kavach is a modern, high‑coverage protection plan backed by LIC’s institutional stability – worth evaluating for those seeking lifelong, substantial family protection.
To understand how LIC Bima Kavach’s age‑100 cover, level/increasing sum assured, and life‑stage benefits can be aligned with your family’s long‑term security plan, connect with the Life Insurance Advisor at +91‑7832933580.
