Life Insurance Corporation of India (LIC) has launched a new term insurance product named LIC Bima Kavach, aimed at providing high life cover at affordable premiums. The plan was officially introduced on December 3, 2025, and is designed to meet the growing need for financial protection in the post-pandemic era.
LIC Bima Kavach is a non-linked pure term insurance plan, meaning it has no connection with the stock market. The policy is available for both smokers and non-smokers, with premium rates varying based on individual risk profiles.
LIC has offered two sum assured options under this plan:
Level Sum Assured: The life cover remains constant throughout the policy term.
Increasing Sum Assured: The sum assured increases by 10% every year from the 6th policy year up to the 15th year, after which it becomes constant. For example, a ₹1 crore cover can increase up to ₹2 crore over time.
A key feature of the plan is the Life Stage Benefit, applicable to policyholders aged below 40 years. Under this benefit, the sum assured can be increased at important life milestones such as marriage and the birth of children, without additional medical tests. Premiums increase only marginally with each enhancement.
Minimum entry age: 18 years
Maximum entry age: 60 years
Policy term: From 10 years up to 82 years of age, depending on the premium payment option chosen.
The plan offers three flexible premium payment modes:
Single Premium: One-time payment at policy inception.
Regular Premium: Premiums payable throughout the policy term (monthly, quarterly, half-yearly, or yearly).
Limited Premium: Premiums payable for 5, 10, or 15 years, while coverage continues for the full policy term.
Minimum basic sum assured: ₹2 crore
Maximum sum assured: No upper limit
For example, a 30-year-old non-smoker opting for a ₹2 crore cover with a 20-year policy term under the regular premium option may pay a monthly premium of approximately ₹1,583 (excluding GST). Premiums vary based on age, term, and selected options.
Premiums paid under LIC Bima Kavach are eligible for tax deductions under Section 80C of the Income Tax Act. In case of the policyholder's death during the policy term-whether natural or accidental-the nominee will receive the full sum assured.
No maturity benefit, as it is a pure term plan
Grace period of 30 days for yearly/half-yearly/quarterly premiums and 15 days for monthly premiums
Surrender value applicable only for single and limited premium options
No loan facility available under the policy
LIC Bima Kavach offers a combination of high life cover, flexible premium options, and increasing coverage features, making it a suitable choice for individuals seeking long-term financial security for their families at a relatively low cost.