Term Insurance Plans
LIC's Bima Kavach (887)
High-value term cover from ₹2 crore with level or increasing protection up to age 100
- Entry age
- 18 years to 65 years (last birthday); entry above 60 considered case by case
- Policy term
- 10 to 82 years (minimum 10 for Single/Regular/5-pay, 15 for 10-pay, 20 for 15-pay)
- Premium paying term
- Single pay; Limited pay 5, 10 or 15 years; Regular: same as policy term
- Min. sum assured
- ₹2,00,00,000
Plan overview
LIC's Bima Kavach is a pure term insurance plan that pays a lump sum (or instalments) to your family if you die during the policy term. You can choose level cover or cover that rises to twice the sum assured, and pay once, for a limited period or throughout the term. It suits earning individuals who need large life cover of ₹2 crore or more at a low cost.
New to term insurance plans? Read our simple guide: What Is Term Insurance? Pure Protection Explained →Key benefits
- Minimum Basic Sum Assured of ₹2 crore with no upper limit (subject to underwriting)
- Choose Level Sum Assured or Increasing Sum Assured (rises up to 2x the Basic Sum Assured)
- Cover can continue up to age 100; policy term 10 to 82 years
- Pay Single, Regular or Limited premium (5, 10 or 15 years)
- Life Stage Option to raise cover on marriage and birth of children
- Death benefit can be paid in instalments over 5, 10 or 15 years
- Special rates for women, non-smoker rates and rebates for online purchase and high cover
Eligibility at a glance
- Plan number
- 887
- UIN
- 512N360V01
- Plan type
- Non-Par, Non-Linked, Life, Individual, Pure Risk Plan
- Entry age
- 18 years to 65 years (last birthday); entry above 60 considered case by case
- Maximum maturity age
- 100 years (last birthday); minimum maturity age 28 years
- Policy term
- 10 to 82 years (minimum 10 for Single/Regular/5-pay, 15 for 10-pay, 20 for 15-pay)
- Premium paying term
- Single pay; Limited pay 5, 10 or 15 years; Regular: same as policy term
- Minimum sum assured
- ₹2,00,00,000
- Maximum sum assured
- No limit (subject to Board approved underwriting policy)
- Premium payment modes
- Single; Regular/Limited: Yearly, Half-yearly
How the plan works
LIC's Bima Kavach is a non-participating pure term plan. It pays only on death during the policy term; there is no bonus and no maturity payout. It can be bought offline through agents, corporate agents, brokers and insurance marketing firms, or online at www.licindia.in.
At the start you choose:
- Death benefit option (cannot be changed later): Option I Level Sum Assured or Option II Increasing Sum Assured.
- Premium payment: Single, Regular (throughout the term) or Limited (5, 10 or 15 years).
- Policy term, with cover available up to age 100.
Premium depends on age, gender, smoking status, policy term, premium paying term and the option chosen. Non-smoker rates apply based on a Urinary Cotinine test; women get special rates.
Eligibility
| Condition | Limit |
|---|---|
| Entry age | 18 to 65 years (last birthday); above 60 on a case-to-case basis |
| Age at maturity | 28 to 100 years (last birthday) |
| Basic Sum Assured | Minimum ₹2,00,00,000; no maximum (subject to underwriting) |
| Sum assured multiples | ₹5,00,000 (₹2 crore to ₹2.75 crore); ₹25,00,000 (above ₹2.75 crore) |
| Premium payment | Minimum policy term | Maximum policy term |
|---|---|---|
| Single premium | 10 years | 82 years |
| Limited 5 years | 10 years | 82 years |
| Limited 10 years | 15 years | 82 years |
| Limited 15 years | 20 years | 82 years |
| Regular | 10 years | 82 years |
The maximum term is also limited by the maximum maturity age of 100.
Death benefit
If the life assured dies during the term while the policy is in force, the Sum Assured on Death is paid:
- Regular / Limited premium: the highest of 7 times the annualised premium, 105% of total premiums paid, or the absolute amount assured on death.
- Single premium: the higher of 125% of the single premium or the absolute amount assured on death.
The absolute amount assured on death depends on the option chosen:
| Option | How cover behaves |
|---|---|
| Option I: Level Sum Assured | Equal to Basic Sum Assured throughout the term (plus any increases under the Life Stage Option) |
| Option II: Increasing Sum Assured | Basic Sum Assured for the first 5 policy years; then rises by 10% of Basic Sum Assured each year from year 6 to year 15; stays at 2x Basic Sum Assured from year 16 onwards |
Maturity benefit
No maturity benefit is payable if the life assured survives to the end of the policy term.
Optional riders
- LIC's Accident Benefit Rider (UIN 512B203V03) - available with Regular and Limited premium payment
The rider can be added if at least 5 years of premium paying term remain, before the policy anniversary at which age (nearer birthday) is 65. Cover lasts during the premium paying term or up to the policy anniversary at age 70 (nearest birthday), whichever is earlier. Rider premium cannot exceed 30% of the base premium.
Life Stage Option
Available only with Option I and Regular premium, for entry age up to 40 years (last birthday) and standard lives. On these events you can raise the Basic Sum Assured without further medical underwriting:
| Life event | Increase in Basic Sum Assured |
|---|---|
| Marriage (once) | 50% of original Basic Sum Assured, maximum ₹2 crore |
| Birth of first child | 25% of original Basic Sum Assured, maximum ₹1 crore |
| Birth of second child | 25% of original Basic Sum Assured, maximum ₹1 crore |
The request must be made within 6 months of the event, the policy must be in force, attained age must be 45 or below, and additional premium is charged based on attained age and remaining term.
Death benefit in instalments
The life assured can choose to have all or part of the death benefit paid to the nominee in instalments over 5, 10 or 15 years (monthly, quarterly, half-yearly or yearly). Minimum instalment: ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly.
Loan, surrender & revival
- Policy loan: Not available.
- Paid-up value: Not available.
- Surrender: No surrender value. On surrender, an Unexpired Risk Premium Value (if any) is paid:
- Regular premium: nothing is payable.
- Single premium: payable at any time during the term.
- Limited premium: payable only if full premiums have been paid for at least 2 consecutive years (PPT under 10 years) or 3 consecutive years (PPT of 10 years or more).
- Revival: A lapsed Regular or Limited premium policy can be revived within 5 consecutive complete years from the first unpaid premium (and before maturity) by paying arrears with interest, subject to continued insurability.
Other key terms
- Grace period: 30 days for yearly or half-yearly premiums.
- Free-look period: 30 days from receipt of the policy document.
- Mode loading: Half-yearly premiums carry a 2% premium conversion rate over the annual equivalent; yearly has none.
- Online sale rebate: 7.50% of tabular premium for 5 to 82 years premium paying term and 3.00% for Single premium, when bought online without an agent or intermediary.
- High Sum Assured rebate (% of tabular premium; nil for ₹2 crore to under ₹3 crore):
| Option / age band (LBD) | ₹3 Cr to < ₹5 Cr | ₹5 Cr to < ₹10 Cr | ₹10 Cr and above |
|---|---|---|---|
| Option I, 18 to 35 years | 2.25% | 3.50% | 4.00% |
| Option I, 36 to 55 years | 1.75% | 2.50% | 3.25% |
| Option I, 56 years and above | 1.25% | 2.00% | 2.50% |
| Option II, 18 to 35 years | 2.00% | 3.00% | 3.50% |
| Option II, 36 to 55 years | 1.50% | 2.00% | 2.50% |
| Option II, 56 years and above | 1.00% | 1.50% | 2.00% |
- Suicide exclusion: Within 12 months of risk commencement or revival, 80% of premiums paid (or of the single premium) is payable, provided the policy is in force.
- Taxes: Applicable taxes are charged extra on premiums.
Who should buy LIC's Bima Kavach?
- Earning individuals aged 18 to 65 who need high life cover of ₹2 crore or more
- Young people planning marriage or children who want to increase cover later without fresh medicals
- Families who want cover that grows over time through the Increasing Sum Assured option
- Those who want protection lasting up to age 100
- Buyers who prefer to purchase online and get an online-sale premium rebate
Frequently asked questions
What is the minimum sum assured under LIC Bima Kavach (Plan 887)?
The minimum Basic Sum Assured is ₹2,00,00,000. There is no maximum limit, subject to LIC's Board approved underwriting policy.
What are the entry age and cover age limits?
Entry age is 18 to 65 years (last birthday), with proposals above age 60 considered case by case. Cover can continue up to a maximum maturity age of 100 years.
What is the difference between Level and Increasing Sum Assured?
Under Level Sum Assured, the cover stays equal to the Basic Sum Assured. Under Increasing Sum Assured, cover stays level for 5 years, then rises by 10% of the Basic Sum Assured each year from year 6 to 15, and remains at twice the Basic Sum Assured from year 16.
Can I increase my cover after marriage or having a child?
Yes, if you chose the Life Stage Option with Level Sum Assured and Regular premium at entry age 40 or below. Cover can rise by 50% on marriage (max ₹2 crore) and 25% on the birth of each of the first two children (max ₹1 crore each).
Is there any maturity or surrender value?
No maturity benefit is payable. There is no surrender value; only an Unexpired Risk Premium Value may be paid on surrender for Single and eligible Limited premium policies. Regular premium policies get nothing on surrender.
Is there a discount for buying online?
Yes. Buying online without an agent gives a rebate of 7.50% of tabular premium for regular/limited premium terms and 3.00% for single premium.