Life Insurance Corporation of India (LIC) has recently launched a new insurance product named Bima Kavach on December 3, 2025. This plan is designed to offer pure risk life insurance coverage (Term insurance plan) for individuals seeking affordable yet high-value financial protection for their families without any investment or market-linked risks.
LIC’s latest plan (Plan 887, UIN: 512N360V01) – Bima Kavach is a non-participating, non-linked, individual pure risk insurance plan focusing solely on life cover during the policy term, with no maturity benefits or bonuses.
(Read : Different types of Traditional Life Insurance Plans | Which one should you buy?)
Key Features of LIC Bima Kavach Plan
- Pure Term Plan : Bima Kavach offers pure life insurance protection, which means the benefit paid out is the sum assured in case of the insured’s death during the policy term. There are no maturity payouts or bonus additions involved. Only Death benefit is payable to nominee on policyholder’s untimely demise.
- Age : Minimum entry age is 18 years, and maximum entry age is 65 years.
- Minimum Sum Assured : LIC’s Bima Kavach offers a minimum Basic Sum Assured of Rs 2 crore, with no upper limit
- Flexible Death Benefit Options: The policyholder can choose between two death benefit options — Level Sum Assured (fixed amount) or Increasing Sum Assured. Increasing Sum Assured (starts at Basic SA, rises 10% yearly from year 6th to 15th policy year-without any medical tests, then remains constant).​
- ​Life Stage Benefits:
- The product allows policyholders to increase the sum assured on important life events like marriage, childbirth, or home purchase without additional medical tests, enhancing coverage with changing life needs.
- Life Stage Option allows increases like 50% of initial Basic SA on marriage (max Rs. 2 crore), 25% on first/second child birth (max Rs. 1 crore each), without medicals.
- But, this option is available under level sum assured, with regular premium and for individuals who are less than or equal to 40 years of age only.
- Premium Payment Options: Customers can opt for multiple premium payment modes — Regular Pay, Limited Pay (5, 10, or 15 years), or Single Premium. This flexibility caters to different financial planning preferences.
- Affordable Premiums: Special premium rates are available for women and non-smokers, making the product accessible to a broader audience with more affordable pricing.​
- No Investment Risk: Since it is a non-linked, non-par plan, there is no risk linked to market fluctuations, making it a straightforward protection plan.
- This plan is available both offline and digitally through LIC’s ANANDA platform (online portal).
Comparison of LIC’s Online Term Life Insurance Plans
LIC Digi Term (Plan 876), LIC New Tech-Term (Plan 954) and the latest LIC Bima Kavach (Plan 887) are all non-linked, non-participating pure term assurance plans offering death benefits without maturity payouts. They differ in minimum sum assured, entry age limits, premium rates, and features like life-stage increases.
| Feature | LIC New Tech-Term (954) | LIC Digi Term (876) | LIC Bima Kavach (887) (NEW PLAN) |
|---|---|---|---|
| Minimum Sum Assured (SA) | Rs 50 lakh (no upper limit) | Rs 50 lakh (max Rs 50 crore) | Rs 2 crore (no upper limit) |
| Entry Age | 18-65 years | 18-45 years | 18-65 years |
| Policy Term | 10-40 years (max maturity 80) | 15-40 years | 10-82 years (max maturity 100) |
| Premium Payment | Single, Regular, Limited (5/10/15 yrs) | Single, Regular, Limited (10/15 yrs) | Single, Regular, Limited (5/10/15 yrs) |
| Death Benefit Options | Level or Increasing SA | Level or Increasing SA (10% yearly from yr 6, doubles by yr 15) | Level or Increasing SA |
| Special Features | Accident rider, installment payout | Installment payout (5/10/15 yrs), high SA rebate up to 30%, women/non-smoker rates | Life-stage increases (marriage/childbirth), digital via ANANDA |
| Target Profile | Broad age range, flexible terms | Young buyers (under 45), affordable high cover up to Rs 50 Cr | High-cover needs (Rs 2 Cr min), flexible life events |
LIC Bima Kavach – Premium rate comparison
Let’s now compare LIC’s Bhima Kavach premium rate with their other offerings.
Below are the premium rates for a 30 year male, non-smoker; regular premium payment term of 20 years and for basic sum assured of Rs 2 crore.
I have checked the premium illustrations on LIC’s official portal. The premium quote offered by LIC for Bima Kavach plan is Rs 17,575 p.a.
The premium quote offered by LIC for New Tech Term life insurance plan is Rs 16,380 p.a.
The premium quote offered by LIC on Digi Term plan is Rs 13,160 pa.
So, Digi Term plan offers the cheapest premium quote and followed by LIC New tech term plan. LIC Digi Term is almost 35% cheaper for this profile, making it ideal for young tech savy individuals. Bima Kavach suits those wanting broader entry age (up to 65), but term insurance plan at that age may not be required.
LIC Digi Term offers the most affordable premiums among the three for this profile due to discounts for high sum assured and younger age. New Tech-Term is priced moderately higher with added rider benefits and more flexible terms. Bima Kavach is the costliest but targets high cover with features like life-stage sum assured increases and greater entry age limits
(LIC New Jeevan Amar is an offline pure term assurance plan, similar to Digi Term, New Tech-Term and Bima Kavach in providing only death benefits without maturity payouts. However, it differs in sales channel (offline via agents), minimum sum assured, and slightly higher premiums compared to online variants.)
Which Term plan from LIC is right for you?
- For the lowest premium: If your priority is securing the highest coverage for the lowest premium, LIC’s Digi Term is the clear winner. The online-only nature of the product eliminates agent commissions, leading to lower costs for the policyholder.
- For agent assistance: If you prefer face-to-face assistance from an agent during the purchase process and are willing to pay a higher premium for that service, LIC’s New Jeevan Amar can ne the suitable choice.
Practical thumb rule;
For a typical, healthy, 25–40-year, non-smoking, tech-comfortable individual needing Rs 1–5 crore:
- 1st preference: LIC Digi Term, if age ≤ 45 and comfortable online (cheapest).
- 2nd preference: LIC New Tech-Term, if Digi Term not suitable or you need riders/longer flexibility.
- Consider Bima Kavach only if you specifically want the Rs 2 crore+ high floor + life-stage top-up design, and are okay paying more.
- Choose Jeevan Amar if you insist on agent-led, offline purchase.
| Recommended LIC Term Plan | Reason |
| LIC Digi Term | Cheapest online term plan |
| LIC New Tech-Term | If you need to add riders |
| LIC Bima Kavach | Need High sum assured / Increasing Sum Assured option |
| LIC New Jeevan Amar | If you want to buy through an Agent |
Choosing the right term insurance plan is the first step towards securing your family’s financial future. Once you have identified the plan that best fits your needs, don’t wait to protect your loved ones—buy your term insurance today and build a safety net that lasts a lifetime.
If you are planning to buy a term plan, don’t postpone it. You can buy a pure, basic term plan from any life insurer of your choice. However, make sure to disclose your personal details and records honestly and accurately. Also, remember to declare any existing life insurance policies you may have. Stay adequately protected and stay responsible.
Related article :
- Term Insurance : Is it just a waste of your money?
- LIC Bima Kavach Term Insurance Plan | Unbiased Review
- LIC Fixed Deposit Scheme? Awareness Post
(Post first published on : 04-Dec-2025)
(Please note that this article is based on the limited available information and will be edited/updated, if required)
Join our channels
