LIC Bima Kavach: Plan Review & Guide

Overview

LIC Bima Kavach (Plan 887) is a non-linked, non-participating, individual pure risk term insurance plan launched on December 3, 2025. Backed by the Life Insurance Corporation of India (LIC), it provides a minimum sum assured of ₹2 crore and flexible premium payment options.

A 30-year-old male non-smoker pays approximately ₹19,000 per year for a ₹2 crore level cover under LIC Bima Kavach with regular premium payment. That said, the plan has its drawbacks, such as limited features or riders, which are readily available in other plans like HDFC Life or Axis Max Life.

This guide is for salaried professionals and business owners who trust LIC's brand and want to know if Bima Kavach suits their needs.

LIC’s online term plans have historically focused on simplicity and trust. LIC Bima Kavach continues that legacy by delivering on the core promise of term insurance: financial protection upon death without investment elements or maturity benefits.

However, buyers today look beyond just “death cover” and expect built-in benefits such as terminal illness payouts, premium protection during disability, faster claim processing, and value-added health services.

This LIC Bima Kavach plan review examines whether the plan meets those expectations.

Life Insurance Corporation of India: Performance Metrics

Metrics (Average of FY 2022-25)	LIC	Industry Average
Claim Settlement Ratio (CSR)	98.35%	98.66%
Amount Settlement Ratio (ASR)	95.48%	94.83%
Annual Business Volume (in Crore)	₹227,169	₹3,411.73 (Median)
Amount Paid in Death Claims (in Crore)	19,017.6	₹195.05 (Median)
Volume of Complaints Per 10,000 Claims (In Crore)	4.57	17.67 (Median)
Solvency Ratio	2.00x	2.04x

Key Insights: LIC is the largest insurer in India and accounts for over 60% of business premiums. The insurer pays out far larger claim amounts and handles significantly higher business volumes than the industry median, while maintaining a strong claim settlement record. Its complaint rate is also substantially lower than the industry average.

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LIC Bima Kavach: Key Details

Parameters	LIC Bima Kavach
Entry Age	18 to 65 Years
Maturity Age	28 to 100 Years
Policy Term	10 to 82 Years
Premium Paying Term (PPT)	Single Pay, Limited Pay (5 / 10 / 15 Years), and Regular Pay
Premium Payment Frequency	Yearly or Half-yearly
Sum Assured	₹2 crore - No limit (Subject to Underwriting)
Death Benefit Payout Options	Lump Sum and Installments
Riders	Accident Benefit Rider

Key Benefits of LIC Bima Kavach

Two Death Benefit Options: Policyholders can choose between Level Sum Assured and Increasing Sum Assured. With the increasing option, cover rises by 10% every year from year 6 to year 15, doubling the initial cover, and then stays fixed for the rest of the policy term.
Life Stage Option: Available only under Level Sum Assured + Regular Pay, if the policyholder is 40 or younger at entry. It lets the policyholder increase the basic sum assured later when major responsibilities arise, such as marriage or the birth of a child, without fresh medical underwriting. The cover can increase by 50% of the base sum assured on marriage, up to ₹2 crore, and by 25% on the birth of the first and second child, up to ₹1 crore each.
Special Premium Rates: Women and non-smokers get special rates. The plan also offers a High Sum Assured Rebate, plus an online rebate of 7.5% for Regular/Limited Pay and 3% for Single Premium policies.

Drawbacks of LIC Bima Kavach

Expensive Premiums: LIC Bima Kavach is one of the costliest term plans. For a 30-year-old buying a ₹2 crore cover, the annual premium is around ₹19,000, much higher than the premiums for plans offered by HDFC Life and Axis Max Life. For more details, check the respective pages for sample premiums.
High Minimum Cover: The plan starts with a minimum sum assured of ₹2 crore, making it unsuitable for buyers who need lower cover, such as ₹75 lakh or ₹1 crore.
Limited Rider Options: It misses useful riders, such as Waiver of Premium and Critical Illness Cover, which many private insurers offer as add-ons.
Lacks Features: The plan lacks built-in features available in most modern term plans, such as health services, instant payout on claims, and auto cover continuance.

Add-ons Offered by LIC Bima Kavach

LIC Bima Kavach offers only one optional rider: Accident Benefit Rider.

The rider pays an additional lump sum if the life assured dies due to an accident, over and above the base term plan’s death benefit.
The maximum aggregate accidental death cover across all LIC policies is capped at ₹1 crore.
It is available only with Regular Pay and Limited Pay options.

Note: While this rider may appear useful for families facing sudden financial disruption due to accidental death, we generally don’t recommend it at Ditto. Accidental deaths are already covered under the base term insurance policy, and adding an accident-specific rider only narrows the scope of protection. In most cases, increasing the overall base sum assured provides broader coverage.

Premium Comparison

Option I: Level Sum Assured (Policy Term: 20 Years)

Age	Regular Annual Premium	Limited Pay 15 Years	Limited Pay 10 Years	Limited Pay 5 Years	Single Premium
20	₹12,600	₹14,800	₹19,200	₹33,000	₹1,34,600
30	₹19,000	₹22,200	₹28,800	₹50,000	₹2,04,800
40	₹43,600	₹50,800	₹66,600	₹1,15,600	₹4,75,800

Option II: Increasing Sum Assured (Policy Term: 20 Years)

Age	Regular Annual Premium	Limited Pay 15 Years	Limited Pay 10 Years	Limited Pay 5 Years	Single Premium
20	₹17,200	₹20,000	₹26,200	₹45,400	₹1,85,600
30	₹28,200	₹33,000	₹43,200	₹75,000	₹3,07,800
40	₹68,600	₹80,200	₹1,05,400	₹1,83,200	₹7,54,800

The illustrative premiums shown are for a basic sum assured of ₹2 crore for a non-smoker male profile. The premiums are taken from the official brochure of LIC Bima Kavach and are exclusive of taxes.

Inclusions and Exclusions of LIC Bima Kavach

Inclusions	Exclusions
Death benefit if the life insured dies during the policy term.	No maturity benefit if the policyholder survives the term.
Option to choose level or increasing life cover.	Suicide within 12 months is covered only as per LIC’s limited payout rules.
The increasing cover option increases the cover after the 5th policy year.	No surrender value for regular premium policies.

For more details on other relevant exclusions, refer to our guide on What Are the Terms and Conditions of Term Insurance.

Who Should Buy LIC Bima Kavach?

You should consider buying LIC Bima Kavach if:

You are seeking a basic, no-frills term plan.
You are a high-income earner or business owner who needs ₹2 crore or more in pure life cover and specifically values LIC's institutional credibility and government-backed claim-paying ability.

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Conclusion

LIC Bima Kavach’s biggest strengths are its scale, brand trust, and ability to offer high cover amounts starting from ₹2 crore. For buyers who specifically want a term plan from India’s largest life insurer, the plan delivers solid core protection backed by LIC’s long-standing claim-paying capacity and institutional stability.

That said, the plan is not the most feature-rich option in the market. Premiums are usually higher, rider choices are limited, and it misses some of the modern features available with our top term insurance recommendations.

If you need a lower cover at a lower cost, LIC Digi Term may be a better option. However, in the ₹2 crore+ segment, Bima Kavach remains LIC’s most robust offering.

If LIC Bima Kavach feels limited in terms of features, you can refer to our guide on the best term insurance plans for more comprehensive options.

Frequently Asked Questions

Is LIC Bima Kavach worth buying?

If you prioritize brand trust over cost, LIC Bima Kavach is a decent choice for high-cover needs. It offers a minimum sum assured of ₹2 crore, which is significantly higher than most entry-level plans. While the insurer boasts a strong 3-year average claim settlement ratio of 98.35%, the premiums are on the higher side. For instance, a 30-year-old male might pay ₹19,000 annually for a level cover. Check out our detailed guide to term insurance to see if these costs align with your financial goals.

How does the LIC Bima Kavach premium calculator work?

The LIC Bima Kavach premium calculator estimates your costs based on age, lifestyle, and sum assured. For a ₹2 crore level cover (20-year term), a 20-year-old pays roughly ₹12,600 annually, while a 40-year-old pays ₹43,600. If you opt for the increasing sum assured, the premium for a 30-year-old jumps to ₹28,200. Additionally, women and non-smokers get special lower rates. If you want to see how these prices stack up against competitors, compare term insurance policies on Ditto’s official website.

What are the LIC Protection Plus Bima Kavach benefits?

This plan provides pure risk protection with two death benefit options: level or increasing. In the increasing sum assured version, your cover grows by 10% every year from the 6th to the 15th policy year, effectively doubling your initial protection. Additionally, the life-stage option allows you to increase your cover by ₹50 lakh (up to 50%) upon marriage without requiring new medical tests. Since this is a pure term insurance plan, it does not offer any maturity benefit if you survive the policy term.

Can I buy Bima Kavach LIC online?

Like most modern term plans, LIC Bima Kavach is primarily intended to be purchased online through the insurer's official website. It also offers an online discount of 7.5% for regular and limited pay policies, where applicable, to incentivize the digital process. If you prefer a fully digital journey with lower premiums, you might also want to look into LIC Digi Term or other private insurers such as HDFC Life that allow end-to-end online issuance. The best thing to do is to seek advice from an IRDAI-certified advisor to decide which plan suits your requirements.

Is there any maturity benefit in LIC Bima Kavach?

No, LIC Bima Kavach is a pure risk term insurance plan. This means there is zero maturity benefit if you survive the policy term. All premiums paid are solely for the death benefit coverage. If you are looking for a plan that returns your money at the end of the term, you should look for a Return of Premium (ROP) variant. You can also read Ditto’s guide on term insurance with return of premium to see if it's a better fit.

What riders can I add to LIC Bima Kavach?

The rider options in LIC Bima Kavach are quite limited compared to those offered by private players. You can only add the accident benefit rider, which pays an additional lump sum (capped at ₹1 crore) if death occurs due to an accident. It lacks other critical add-ons, such as a waiver of premium or critical illness cover. Since the base plan already covers accidental deaths, at Ditto, we often suggest checking whether comprehensive riders in term insurance from other insurers offer better value.

What is the minimum sum assured for LIC Bima Kavach?

The minimum entry barrier for this plan is quite high, starting at a sum assured of ₹2 crore. There is no upper limit, subject to your income and underwriting. If you only need a cover of ₹50 lakh or ₹1 crore, this specific plan won't be available to you. It is more suitable for people who need high-value term cover and have an income profile that justifies a sum assured of ₹2 crore or higher. For those seeking lower coverage amounts, it is better to explore other LIC term insurance plans or private insurers such as HDFC Life or Axis Max Life that offer coverage starting at ₹50 lakh.

Does LIC Bima Kavach cover suicide?

Yes, LIC Bima Kavach covers death by suicide, but only under specific conditions. If death by suicide occurs within 12 months of policy issuance or revival, LIC generally pays 80% of the eligible premiums paid, excluding taxes, extra premiums, and rider premiums, instead of the full sum assured. After the first policy year, suicide is usually covered like any other death claim. However, this applies only if the policy is active and all policy terms and claim requirements are met.

Last updated on: 1 Jun, 2026