LIC Bima Kavach 887 Plan 2 Crore Term Insurance: Best Protection for Your Family

LIC’s Bima Kavach (Plan 887) is a non-participating, non-linked life insurance policy tailored to provide maximum financial protection to your family in case of unforeseen events. It is designed primarily for individuals seeking substantial coverage without the complexities of savings or investment components, focusing solely on pure risk coverage.

The plan emphasizes high-value, long-term protection, ensuring that your family receives guaranteed death benefits without the complexity of investment-linked returns. Its unique features include options for increasing coverage and life stage-based enhancements, making it adaptable to evolving financial needs.

To ensure your coverage keeps pace with inflation and rising responsibilities, LIC offers two key options:

• Option II (Increasing Sum Assured): Automatically increases coverage by 10% annually after the 5th year, reaching double the Basic Sum Assured by the 15th year.
• Life Stage Option: Allows proactive increase in Sum Assured upon life events like marriage or childbirth, with predefined maximum limits.

The plan provides options for lump sum or installment payments during claim settlement, with flexible installment periods of 5, 10, or 15 years. Special rates are available for non-smokers, and online policy purchase offers additional discounts, reducing premiums by up to 7.5%.

Q1: Will I get any money back if I surrender or the policy lapses?

Generally, no. There is no surrender value under this plan. If premiums are unpaid beyond the grace period, benefits cease, and no amount is payable unless specific URPV conditions are met. Single Premium policies may pay URPV upon surrender, but Regular or Limited Premium policies typically do not.

Q3: Are there age restrictions for the Life Stage Option?

Yes. The Life Stage Option requires the policyholder to have chosen Level Sum Assured and Regular Premium at inception. The Life Assured’s age at entry must be ≤ 40 years, and the additional cover becomes effective before age 45. Requests must be submitted within 6 months of the event.

Q5: What is the maximum accident benefit coverage?

The maximum aggregate limit for Accident Benefit across all LIC policies is ₹100 lakhs. It is only available with Regular and Limited Premium modes, up to the policy anniversary when the age nearest birthday reaches 70 years or the end of the Premium Paying Term.

Q7: How does the Suicide Exclusion clause affect claims?

If the Life Assured commits suicide within 12 months of risk commencement or revival, the claim is reduced to 80% of premiums paid (excluding extras and taxes). No benefit is payable if the policy lapses or if death occurs after 12 months.

Q9: What is the policy's Free Look Period and cancellation process?

Policyholders can cancel within 30 days of receipt of policy documents. Premium refunds are made after deducting risk premiums, medical expenses, and stamp duty charges.

LIC’s Bima Kavach offers a robust, high-value protection solution tailored to secure your family’s future against unforeseen risks. Its guaranteed benefits, flexible options for increasing coverage, and cost-effective premium rates make it an ideal choice for individuals seeking dependable life insurance coverage without the complexities of savings plans. Whether you are planning for long-term protection or want to ensure your responsibilities are covered as they grow, this plan adapts seamlessly to your evolving needs, providing peace of mind for you and your loved ones.