The Life Insurance Corporation of India (LIC) has introduced two new insurance plans called Protection Plus (Plan 886) and Bima Kavach (Plan 887). The announcement was made by LIC’s CEO and MD, Shri R. Doraiswamy. These plans have been released with their unique identification numbers: Protection Plus (UIN: 512L361V01) and Bima Kavach (UIN: 512N360V01).
LIC’s Protection Plus (Plan 886)
Protection Plus is a Non-Par, Linked, Life, Individual Savings Plan. It offers life insurance coverage along with savings benefits throughout the duration of the policy. The plan allows the policyholder to choose an investment fund, change the sum assured, and make extra payments known as “top-up” premiums. Partial withdrawals are allowed after five years.
The policyholder can decide how much premium to pay. Based on the premium, the Basic Sum Assured is calculated. Premiums can be paid in two methods: Regular Pay or Limited Pay.
Key Features:
- Minimum entry age: 18 years
- Maximum entry age: 65 years
- Premium Paying Term (PPT): 5, 7, 10, or 15 years
- Available policy terms: 10, 15, 20, and 25 years
- No fixed limit on maximum premium (as per underwriting rules)
- Minimum Basic Sum Assured:
- 7 times of annual premium for age up to 50 years
- 5 times of annual premium for age 50 years and above
- Policy can provide coverage up to 90 years for a 25-year policy term
- Option to increase or decrease sum assured during the policy term (with conditions)
- Policyholder can also pay extra premium as “top-up”
- At maturity, the amount equal to the fund value (base premium fund value + top-up value) will be paid
- Mortality charges collected during the term will be refunded at maturity
LIC’s Bima Kavach (Plan 887)
Bima Kavach is a Non-Par, Non-Linked, Life, Individual, Pure Risk Plan. It offers full financial protection to the family of the insured person in case of death during the term of the policy. Death benefits are fixed and guaranteed.
The plan gives two death benefit choices:
- Level Sum Assured
- Increasing Sum Assured
Premium payment options include Single, Limited, or Regular. The policy term can go up to 100 years, giving long-term protection. The insured can also choose to take benefits in installments. The plan also allows the insured to increase life cover at important life stages such as marriage or the birth of a child (available under Level Sum Assured option with regular premium).
Key Features:
- Minimum entry age: 18 years
- Maximum entry age: 65 years (age 60 and above may require special approval)
- Minimum maturity age: 28 years
- Maximum maturity age: 100 years
- Minimum Basic Sum Assured: ₹2 crore
- No limit on maximum Sum Assured (subject to underwriting approval)
- Premium payment options: Single, Limited (5, 10, and 15 years), and Regular
- Minimum policy term depends on premium payment selection
- Maximum policy term: 82 years (up to maturity age of 100 years)
- Special lower premium rates for women and non-smokers
- Plan offers higher life cover value through high Sum Assured benefits
For death benefit:
- Option I: Level Sum Assured
- Option II: Increasing Sum Assured
Policy term:
- Single Premium: 10 years
- Limited Premium: 10, 15, and 20 years
- Regular Premium: 10 years
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