This LIC scheme will provide coverage for 100 years, and you'll get the opportunity to increase your coverage as soon as you have children.
In the insurance sector, Life Insurance Corporation of India (LIC) has long been a trusted name in the country. The biggest reason for this is its ability to design policies that cater to people's needs. In this vein, the insurance giant recently unveiled a new policy, 'Bima Kavach', which addresses the diverse needs of salaried individuals and the general public. These needs range from savings to pure risk protection.
What is the Bima Kavach plan?
Bima Kavach is a non-linked, non-participating pure risk plan designed to provide a fixed and guaranteed death benefit. It offers two benefit structures: Level Sum Assured and Increasing Sum Assured. The plan also offers flexibility through single, limited, and regular premium payment options. The benefits can be received in installments instead of a lump sum.
This plan also provides the facility to increase the life-stage benefit under the Level Sum Assured option with regular premiums. This allows policyholders to increase their coverage after marriage or the birth of a child.
Policy Features
The key features of Bima Kavach include:
Age
The minimum age for purchasing Bima Kavach is 18 years, and the maximum age is 65 years. However, entry for individuals aged 60 years and above will be considered on a case-by-case basis, depending on various factors, including the board-approved underwriting policy and reinsurance acceptance. The minimum age at maturity is 28 years, and the maximum is 100 years.
Sum Assured
The minimum basic sum assured for the plan is ₹2,00,00,000, while there is no limit on the maximum basic sum assured. Payment Options
Premium payment options include Single Premium, Limited Premium Payment (i.e., 5, 10, and 15 years), and Regular Premium Payment.
Death Benefits
Two death benefit options are available:
Option i: Level Sum Assured
Option ii: Increasing Sum Assured.
Policy Term Details
The minimum policy tenure depends on the premium payment option chosen. For Single Premium, it is 10 years; for Limited Premium, it is 5, 10, and 15 years; and for Regular Premium Payment, it is 10 years. The maximum policy period is 82 years, provided the maximum age at maturity (i.e., age at the end of coverage) is 100 years.
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