New LIC Schemes: What Is LIC Protection Plus and LIC Bima Kavach Plan? All You Need To Know

New LIC Schemes: The Life Insurance Corporation has recently launched two life insurance plans to offer better features and facilities to its customers. Protection Plus and Bima Kavach are the two LIC Plans that focus on large, fixed death cover. Both products target individuals looking for structured long-term security and different premium payment choices.

If you are looking to buy an LIC life insurance plan and are interested in knowing more about the two plans, here are all the details you need to know.

LIC Protection Plus: Unit-linked, Non-Participating Plan

LIC Protection Plus focuses on a unit-linked, non-participating plan. Here, policyholders bear investment risk in the chosen funds. As per the LIC's press release, policyholders can pick investment funds, vary the basic sum assured within rules, and add "top-up" premiums to raise the fund value. Partial withdrawals from the unit fund become available after 5 years from the policy start date, subject to policy conditions.

LIC Bima Kavach Plan

Whereas the LIC Bima Kavach Plan is a non-participating, non-linked individual plan that delivers pure risk protection without any market-linked component. The plan will help in designing to secure the financial position of the insured policy holder's family in case of death during the policy term. Death benefits under Bima Kavach are fixed and guaranteed as per the chosen option, regardless of investment market movements or company performance.

Protection Plus, Bima Kawach Eligibility

Individuals can purchase the LIC life insurance policies at a minimum age of 18 years and at a maximum age of 65 years. The policy terms may range from 10 to 25 years.
The Protection Plus policy allows policyholders to decide the premium first, followed by the calculation of the basic sum assured based on that choice. The base premium may be paid either as a regular pay option or under a limited premium term.

For Protection Plus, the maximum age at maturity depends on the chosen policy term and can reach 90 years when the term is 25 years. The plan defines the minimum basic sum assured as 7 times the annualised premium for entry age below 50 years, and 5 times the annualised premium for entry age of 50 years and above. The upper limit of basic sum assured varies with age at entry and premium paying term.

Maturity Benefit Details

Protection Plus provides premium paying terms of 5, 7, 10 and 15 years, matched against policy terms of 10, 15, 20 and 25 years. Minimum premium levels depend on both premium paying term and mode of payment. There is no fixed ceiling on the maximum premium; however, LIC will decide the maximum amount for each individual as per the Board Approved Underwriting Policy and underwriting assessment.
On survival of the life assured till the date of maturity under Protection Plus, LIC pays an amount equal to the unit fund value. This unit fund value is the total of the base premium fund value and any top-up premium fund value on that maturity date. The benefit depends on market-linked unit values and is therefore separate from guaranteed death cover frameworks used in traditional plans.