LIC Bima Kavach Plan 887

Read on to know more about the Bima Kavach LIC 887 plan details.  

About LIC Bima Kavach

LIC Bima Kavach plan is a pure protection term insurance policy by LIC of India. It is a newly launched plan that provides risk coverage till 100 years of age. It is a Non-Participating, non-linked life insurance plan, which means the final payout is fixed and guaranteed, with no variable elements involved. There are no bonuses that apply because of LIC’s market performance in the form of bonuses. The LIC Bima Kavach plan policyholder can choose from 2 options of death benefit, Level Sum Assured and Increasing Sum Assured. Once this option is selected at policy commencement, it cannot be changed later. Under this LIC term insurance plan, policyholders can choose the Life Stage option under both the death benefit options to increase the basic sum assured. 

Key Features of Bima Kavach LIC Plan 887

• LIC Bima Kavach 887 is a pure protection plan that can be updated with your life’s milestones. 

• In this LIC term insurance plan, policyholders can choose to pay premiums in Single, Limited, or Regular payment modes.

• The LIC plan 887 provides the flexibility to choose from Level Sum Assured and Increasing Sum Assured death benefit options.

• Option to enhance the life cover at defined life stage events with the Life Stage option.

• There are special rates for women in this LIC plan 887 term insurance.

• Benefit of attractive High Sum Assured Rebate in this LIC term plan.

• This term insurance by LIC also offers two categories of premium rates, namely Non-Smoker rates and Smoker rates. Policyholders can use the LIC Bima Kavach premium calculator to compute premium amounts for any of these categories.  

Benefits of LIC Bima Kavach Plan

Death Benefit: 

Regular Premium Payment

• 7 times of Annualised Premium

• 105% of “Total Premiums Paid” up to the date of death;
  
  

Single Premium Payment

• 125% of Single Premium

Secure Your Family Future Today

₹1 CRORE

Term Plan Starting @

Get an online discount of upto 15%^#

Compare 40+ plans from 15 Insurers

View Plan

⁺Standard T&C Applied

Option to Take Death Benefit in Instalments

This is an option to receive Death Benefits in instalments over a chosen period of 5 or 10 or 15 years instead of lump sum amount under an in-force policy. This option can be exercised by Life Assured during his/her lifetime; for full or part of Death benefits payable under the policy. The amount opted by the Life Assured (i.e. Net Claim Amount) can be either in absolute value or as a percentage of the total claim proceeds payable.

Life Stage Option

The Life Stage Option of the LIC Bima Kavach plan allows the Life Assured to increase the Basic Sum Assured at key life events during the policy term. This option is available under the following conditions:

• The policy must have Option I (Level Sum Assured) and Regular Premium Payment.

• The Life Assured must be 40 years or younger at policy entry.

• The Life Assured must be underwritten as a standard life.

The increases are available at the following life stages:

Marriage:

The Basic Sum Assured increases by 50% of the original sum, up to ₹2 crore (only once during the policy term).

First Child’s Birth:

The Basic Sum Assured increases by 25% of the original sum, up to ₹1 crore.

Second Child’s Birth:

The Basic Sum Assured increases by 25% of the original sum, up to ₹1 crore.

Points to Remember:

• The increase can only be exercised within 6 months of the event.

• In case of multiple births (e.g., twins or triplets), the increase can only apply to the first two children.

• The policy must be in force, and the Life Assured must be 45 years or younger when the increase takes effect.

• Once the Basic Sum Assured is increased, it cannot be reduced during the policy term. The increase is effective after payment of additional premiums, based on the Life Assured’s age and the remaining policy term.

Optional Rider: LIC’s Accident Benefit Rider

The LIC plan 887 policyholder can choose LIC’s Accident Benefit Rider with Regular or Limited Premium payment modes by paying an extra premium. The rider can be added if the outstanding premium payment term for both the base plan and rider is at least 5 years, and before the Life Assured's age reaches 65. The cover is available during the Premium Paying Term or up to age 70, whichever is earlier. In case of accidental death, the rider sum assured is paid along with the base plan’s death benefit. The total accident benefit across all policies cannot exceed Rs. 100 lakhs.

Eligibility Criteria of LIC Bima Kavach Plan 887

Sample Illustration of LIC Bima Kavach Plan 887

Here are the sample premiums of LIC Bima Kavach plan 887 for Option I (Level Sum Assured) and Option II (Increasing Sum Assured) with a Basic Sum Assured of ₹2 crore for a Non-Smoker, Male, Standard Life under different premium payment options:

Option I (Level Sum Assured)

Option II (Increasing Sum Assured)

Note: Policyholders can use the Bima Kavach LIC calculator to calculate their premium amounts for the Bima Kavach plan. The calculator is available on the official LIC website.

Bima Kavach LIC 887 Plan Details

Grace Period

LIC Bima Kavach 887 offers a 30-day grace period if the policyholder misses a premium payment. During this period, the policy remains active, and the coverage continues. If the premiums are not paid during the grace period, the policy lapses

Free-look Period

After purchasing the LIC Bima Kavach plan, if the policyholder is not completely satisfied with its terms and conditions, they can return the policy within a 30-day period, known as the Free-Look period. LIC will cancel the policy and return the amount paid after deducting pro-rata risk cover, stamp duty, administrative costs and medical exam charges, if any.

Policy Surrender 

If this LIC term insurance plan is surrendered:

• Regular Premium policies: No payment is made.

• Single Premium policies: The Unexpired Risk Premium Value is payable at any time during the policy term.

• Limited Premium policies: The Unexpired Risk Premium Value is payable if full premiums have been paid for 2 consecutive years (if the premium paying term is less than 10 years) or 3 consecutive years (if the premium paying term is 10 years or more).

Policy Revival

If premiums are not paid within the grace period of this LIC term insurance plan, the policy will lapse. It can be revived within 5 years from the date of the first unpaid premium, before the maturity date. The revival of this LIC term plan requires paying all due premiums with interest (compounded half-yearly). g all due premiums with interest (compounded half-yearly).

Rebates

The following rebates shall be applicable in the LIC Bima Kavach Policy:

High Sum Assured Rebate (Applicable for Regular, Limited & Single Premium payment)

Under Option I: Level Sum Assured: 1.25% - 4.00%

Under Option II: Increasing Sum Assured: 1% - 3.50%

Rebate on Tabular Premium under Online Sale 

5 years to 82 years: 7.50%

Single Premium: 3.00%

Exclusions

Suicide is the only exclusion under the LIC Bima Kavach 887 plan.

Under Regular/Limited Premium Payment:

• If the Life Assured (whether sane or insane) dies by suicide within 12 months of the policy start or revival date, the nominee will receive 80% of the premiums paid (excluding extra premiums, rider premiums, and taxes) as long as the policy is active.

• This does not apply if the policy has lapsed, as nothing is payable in that case.

Under Single Premium Payment:

• If the Life Assured (whether sane or insane) dies by suicide within 12 months of the policy start date, the nominee will receive 80% of the single premium paid (excluding extra premiums, rider premiums, and taxes).