LIC launches new insurance plans

The public sector life insurance company LIC has launched two new insurance plans. These new plans have been designed according to the needs of policyholders. They have been introduced under the names LIC Protection Plus (Plan 886) and Bheema Kavach (Plan 887). While Protection Plus is a savings plan, Bheema Kavach is a pure risk protection plan.
LIC Protection Plus (Plan 886)

LIC Protection Plus is a non-participating, linked life insurance plan, meaning it is connected to market performance. It combines both insurance and savings. Throughout the policy term, the policyholder gets life protection. The policyholder can choose from various investment funds such as Bond Fund, Secured Fund, Balanced Fund, Growth Fund, Flexi Growth Fund, and Flexi Smart Growth Fund. The sum assured can be adjusted, and top-ups can be added if needed for premium payments. After five years from the start of the policy, partial withdrawals are also allowed. Both Regular Pay and Limited Pay options are available.

1.Minimum and maximum entry age: 18 to 65 years.

2.Premium payment term options: 5, 7, 10, and 15 years.

Policy terms: 10, 15, 20, and 25 years.

3.Premium varies based on the chosen payment period. No upper limit on maximum premium.

4.For those below 50 years, minimum sum assured is 7 times the annual premium; for those above 50, it is 5 times.

5.Maximum sum assured depends on policy tenure, premium, and age.

6.At maturity, the amount payable will be based on the unit fund value.

7.If the policyholder dies during the term, LIC pays either the basic sum assured, the fund value of base premium, or 105% of total premiums paid, whichever is highest.

8.LIC Accidental Death Benefit Rider can be added.

Example: If a 35-year-old person takes a 20-year policy and pays ₹40,000 per year for 15 years, they will get a sum assured of 10 times the annual premium. If invested in a Bond Fund, the maturity amount may be around ₹7.8 lakh at 4% returns, and ₹13.2 lakh at 8% returns. For more details, refer to the LIC policy brochure.

LIC Bheema Kavach (Plan 887)

This is a fully non-participating, non-linked, individual life insurance plan. It is a pure risk protection plan. It is ideal for a family's primary earner who wants to secure financial protection for their dependents. The sum assured can be fixed, or it can be increased every year.

1.Minimum entry age: 18 years; Maximum: 65 years.

2.Minimum maturity age: 28 years; Maximum: 100 years.

3.The policy starts with a minimum insurance coverage of ₹2 crore, and can be increased in multiples of ₹5 lakh. There is no upper limit.

4.Premium can be paid as a single payment, or in 5, 10, 15-year premium terms, or as regular payment.

5.Premium varies according to the chosen premium payment term.

Example: If a 30-year-old person buys a 20-year policy with ₹2 crore coverage, the annual premium will be approximately ₹19,000. For more details, refer to the LIC policy brochure.