Bima Kavach and Protection Plus: LIC rolls out to offer enhanced cover and payment flexibility

The Life Insurance Corporation of India (LIC) has rolled out two new insurance offerings, Protection Plus and Bima Kavach, aimed at giving policyholders greater flexibility in how they plan protection and savings. 

Protection Plus is designed as a unit-linked life insurance plan that combines insurance cover with investment opportunities. It allows policyholders to choose their preferred investment fund, adjust the sum assured over time and make additional “top-up” premium payments to enhance their savings. The plan offers regular and limited premium payment options, giving customers the freedom to align contributions with their income patterns. Partial withdrawals are permitted after five years, subject to conditions, making the product suitable for those seeking both liquidity and long-term wealth creation.

The minimum entry age for Protection Plus is 18 years, while the maximum is capped at 65. The sum assured is fixed at a multiple of the annualised premium—five or seven times, depending on the age at entry. There is no upper limit on the premium amount, although the final value is subject to underwriting. On maturity, policyholders receive the accumulated value of the unit fund, linking returns directly to market performance.

In contrast, Bima Kavach focuses entirely on risk protection. It is a non-linked, non-participating individual life insurance plan that offers financial security to families in the event of the policyholder’s death during the policy term. The plan allows customers to choose between a fixed Level Sum Assured or an Increasing Sum Assured, ensuring coverage can either remain constant or rise over time. The minimum entry age is 18, with the maximum at 65, though applicants above 60 are assessed on a case-by-case basis. The minimum sum assured is set at Rs 2 crore, with no upper limit, subject to underwriting.

Both plans provide multiple premium payment structures, including single, limited and regular payment options. Protection Plus allows premium terms of 5, 7, 10 or 15 years for policy durations ranging from 10 to 25 years. Bima Kavach offers similar flexibility, with limited payment options of 5, 10 and 15 years alongside single and regular premiums. This structure enables policyholders to integrate insurance planning with broader financial goals.

With these launches, LIC is signalling a shift towards more adaptable and customer-centric products. While Protection Plus appeals to those seeking a blend of protection and investment, Bima Kavach caters to individuals focused purely on securing their family’s financial future. Together, the two plans underline LIC’s strategy of offering differentiated solutions that respond to changing life stages, income patterns and risk appetites of India’s growing base of insurance consumers.