The Life Insurance Corporation of India (LIC) recently launched two unique plans, LIC Protection Plus (Plan 886) and LIC Bima Kavach (Plan 887). These plans are designed to address different financial goals. One plan combines insurance with savings and investment, while the other provides pure, guaranteed life cover for your family.
LIC Protection Plus
LIC Protection Plus is a non-participating, linked life insurance plan, which means it offers both life cover and an unprecedented investment opportunity. The unique feature of this plan is that policyholders can choose their preferred investment fund, adjust the Basic Sum Assured according to their needs, and pay additional top-up premiums. Additionally, partial withdrawals are available after five years of policy inception, making it easier to withdraw funds when needed.
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Policy Rules for Protection Plus
The minimum entry age for this plan is 18 years, and the maximum age is 65 years. The policy term can be chosen from 10, 15, 20, or 25 years, and the premium payment term (PPT) can also vary accordingly. The maximum premium limit depends on LIC’s underwriting policy, but there is no fixed maximum. The sum assured also depends on age; it starts at 7 times the annual premium for those under 50 years of age and 5 times for those 50 years or older. The maturity amount is equal to the value of your unit fund, which includes both base and top-up funds.
LIC Bima Kavach
LIC Bima Kavach (Plan 887) is a non-linked and non-participating plan, which means the risk cover is completely fixed and guaranteed. This plan is specifically designed for those who simply want to ensure their family’s safety without the hassle of investing heavily. Policyholders can choose between a fixed sum assured for the entire term or an increasing sum assured over time.
Policy Rules for Bima Kavach
The minimum entry age for Bima Kavach is 18 years, and the maximum age is 65 years. The maturity age of this policy can go up to 100 years, making it highly suitable for those seeking long-term protection. The minimum sum assured in this plan is ₹2 crore, which puts it in the high coverage category. Premium payment options are also quite flexible, including Single Premium, Limited Payment (5, 10, or 15 years), and Regular Pay. The policy term depends on the premium payment method and can range from 10 years to 82 years.
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