LIC Bima Kavach (Plan No. 887, UIN 512N360V01) is a non‑linked, non‑participating, individual pure risk term insurance plan. It provides high life cover at relatively affordable premiums, with options for level or increasing sum assured and coverage potentially up to age 100.
Key features
- Pure protection term plan: No maturity value or savings component; benefit is payable only on death during the policy term.
- Long cover up to age 100: Policy term can go up to 82 years, subject to maximum maturity age (cover‑ceasing age) of 100 years.
- Sum assured options: Choice of Level Sum Assured (constant cover) or Increasing Sum Assured (cover increases over time) as per policy rules.
- Multiple PPT options: Single‑pay, Limited‑pay (5 / 10 / 15 years) and Regular‑pay options available.
- High Sum Assured design: Minimum cover typically from ₹2 crore with no stated maximum, subject to underwriting – positioned for higher cover needs.
- Life Stage option: Facility to enhance life cover once at key life events (marriage, child birth/adoption, home loan etc.), subject to conditions.
- Preferential pricing: Special premium rates for non‑smokers and women, plus high sum assured rebates.
Eligibility and basic parameters
From current LIC communication and independent summaries:
- Entry age: 18 to 65 years.
- Maturity (cover‑ceasing) age: 28 to 100 years.
- Policy term: 10 to 82 years, such that maturity age does not exceed 100.
- Premium Paying Term (PPT):
- Basic Sum Assured (indicative):
- Premium rates: Separate tables for smoker/non‑smoker, and male/female; rebates for higher sum assured slabs and certain term/PPT combinations.
You can lift the exact eligibility and premium‑band table from LIC’s Sales Brochure and CIS when publishing.
Death benefit
If the life assured dies during the policy term while the policy is in force, the nominee receives the Sum Assured on Death according to the chosen option (Level or Increasing), subject to plan conditions.
Key points highlighted in early descriptions:
- Bima Kavach is a pure risk plan: no maturity value; on survival till end of term, no benefit is payable.
- Minimum Basic Sum Assured is defined in relation to annualised premium (for example, at least 7 times annualised premium for entry age below 50 and 5 times for age 50 and above, aligning with tax norms).
- Regulatory minimum: Death benefit is at least 105% of total premiums paid (excluding taxes, extra premiums and rider premiums) up to date of death.
Exact death‑benefit formula for each combination of option/PPT must be taken from LIC’s official brochure and policy document.
Who should consider LIC Bima Kavach?
- Individuals seeking high‑value term cover (₹2 crore and above) backed by LIC, with the option of cover till very advanced ages.
- Working professionals and business owners who want flexibility in how they pay premiums (single, limited, or regular) and in how their cover grows (level vs increasing).
- Clients looking to align cover increases with life events via the Life Stage option instead of taking multiple separate policies over time.
Example: A 30‑year‑old non‑smoker chooses Bima Kavach with ₹3 crore cover to age 70 on Limited‑pay 15‑year PPT; she pays higher premiums only till age 45, keeps a large cover for 40 years, and can increase the sum assured once at a life event like buying a house or having a child, as per plan rules.
Important points and disclaimers
- LIC Bima Kavach is non‑participating and non‑linked; no bonuses or market returns apply, so payouts are fixed and guaranteed as per contract.
- It is a pure term plan with no survival or maturity benefit; if the life assured survives the policy term, nothing is payable except any rider benefits triggered earlier.
- Exact eligibility conditions, Life Stage increase rules, premium rate categories, rider options and death‑benefit formulas must be taken from LIC’s official Bima Kavach Sales Brochure, CIS and policy document.
- Tax treatment of premiums and payouts (for example under sections 80C and 10(10D) of the Income‑tax Act) depends on sum‑assured multiples and prevailing law; clients should seek personalised tax advice.