LIC’s New Power Duo: Protection Plus (ULIP) vs. Bima Kavach (Term)
The Life Insurance Corporation of India (LIC) has launched Protection Plus (Plan 886) and Bima Kavach (Plan 887). They are totally different beasts. Here’s the reporter’s field notes on what they are and who they’re for.
Also Read |EPFO Alert: You Could Get ₹28,000. Check Your PF Balance Now
1. Protection Plus (Plan 886): The Investor’s Choice
This is a Unit-Linked, Non-Participating Life Insurance Plan (ULIP). Let’s be real, this is insurance with a strong side of market investment.
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The Vibe: Life cover plus investment. You choose the fund; the return is tied to the market. High risk, high potential reward.
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The Flex: You decide the premium amount. You can pay regularly or for a limited period. Here’s the kicker: you can also pay top-up premiums to boost your investment and make partial withdrawals after five years for that emergency cash.
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The Coverage:
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Entry Age: 18 to 65 years.
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Sum Assured: Linked to premium and age (7x annual premium for under 50; 5x for 50+).
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Maturity: You get the total unit fund value (base + top-up funds). This is a survival benefit—you get back the investment portion.
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Also Read |EPFO Alert: You Could Get ₹28,000. Check Your PF Balance Now
2. Bima Kavach (Plan 887): Pure Protection
This is a Non-Linked, Non-Participating, Pure Protection Plan (Term Plan). This is insurance in its rawest form: guaranteed payout if you die, no market risk, and no investment return if you survive.
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The Vibe: Financial support for your family. The benefits are fixed and guaranteed; they don’t depend on market performance, or nothing.
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The Muscle: The minimum cover is a whopping ₹2 Crore. There is no upper limit on the maximum sum assured, allowing individuals to secure massive coverage.
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The Flex: You choose the death benefit:
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Level Sum Assured: Stays constant throughout the policy.
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Increasing Sum Assured: Grows gradually over the years to keep up with inflation.
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The Coverage:
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Entry Age: 18 to 65 years.
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Maturity Age: Protection can run until a maximum age of 100 years, giving truly long-term security.
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Survival Benefit: None. This is pure term insurance.
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The Key Difference (For Financial Planning)
| Feature | Protection Plus (886) – ULIP | Bima Kavach (887) – Term |
| Risk/Return | Linked to Market (Higher Risk/Higher Potential Return) | Guaranteed & Fixed (No Market Risk/No Return) |
| Focus | Insurance + Savings/Investment | Pure Protection (Death Benefit Only) |
| Liquidity | Partial withdrawals allowed after 5 years. | Generally no withdrawal/survival benefit. |
| Maturity Payout | Unit Fund Value (Fund + Earnings) | None (It’s a pure risk cover) |
| Min. Sum Assured | Linked to Premium (e.g., 7x Annual Premium) | ₹2 Crore |
Ultimately, Protection Plus is for those who want to save long-term and are fine with market fluctuations. Bima Kavach is for those who want the maximum, guaranteed safety net for their family, simple as that.
Also Read |EPFO Alert: You Could Get ₹28,000. Check Your PF Balance Now
Disclaimer: This information is based on LIC’s public plan documents. Always read the full sales brochure and consult a financial advisor before purchasing any insurance plan.
