A detailed LIC Bima Kavach review with features, premiums, pros, cons, and comparison with LIC Digi Term & LIC New Tech-Term. Find the best LIC term plan for you.
LIC has launched its latest pure term insurance plan, Bima Kavach (Plan 887), on 3rd December 2025. Whenever LIC releases a new product, it creates curiosity—and rightly so. Many ask:
- How does it differ from existing LIC term plans like Digi Term and New Tech-Term?
- Is it worth buying for young professionals or high-income earners?
- Are premiums affordable compared to other LIC plans?
This comprehensive LIC Bima Kavach Review answers all of these in simple, practical language.
LIC Bima Kavach Review: New Term Plan Compared with Digi & Tech-Term
What is LIC Bima Kavach?
LIC Bima Kavach is a pure term insurance plan:
- Provides only death benefit
- No maturity payouts, bonuses, or market-linked returns
- Offers high-value coverage, starting at Rs.2 crore, with no upper limit
Unlike investment-oriented plans, Bima Kavach focuses entirely on protection, making it ideal for individuals looking to financially secure their family.
Key Features of LIC Bima Kavach
1. High Minimum Sum Assured (Rs.2 Crore)
Unlike other LIC term plans (e.g., Digi Term starts at Rs.50 lakh), Bima Kavach targets high-income earners who require significant life coverage. Hence, obviously this product is not meant for all and only for those whose need is more than Rs.2 Crore can look into this product.
2. Broad Entry Age (18–65 Years)
LIC allows individuals up to 65 years to enter.
Tip: Buying term insurance at older ages increases premium; it’s generally ideal for ages 25–50.
3. Death Benefit Options
- Level Sum Assured: Fixed coverage throughout policy term
- Increasing Sum Assured: Coverage increases 10% per year from year 6 to 15, then remains constant
This is useful for those whose financial responsibilities grow over time.
4. Life Stage Benefit
You can increase coverage during:
- Marriage
- Birth of first child
- Birth of second child
- Buying a home
No medical tests required, but conditions apply:
- Only for Level Sum Assured
- Only under regular premium
- Only if age ?40
Example:
A Rs.2 crore policy at age 30 could increase to Rs.4 crore over life events.
5. Flexible Premium Payment
- Regular Pay
- Limited Pay (5/10/15 years)
- Single Premium
6. Lower Premiums for Women & Non-Smokers
Special rates make this plan more accessible.
7. Coverage up to 100 years!!
Do you need term life insurance coverage up to 100 years of age? NO. It seems the product is launched to compete with private life insurers who are offering the term insurance up to 100 years of your age. Term Life Insurance is waste product once you turn financially independent or no one is financially dependent on you. Hence, to the max buying up to your 65 years of age is enough (which is already available with existing online term plans of LICs like Digi Term and New Tech Term).
Special rates make this plan more accessible.
8. Online & Offline Availability
Purchase through:
- LIC ANANDA portal (digital)
- LIC agents or branches (offline)
Comparison of LIC Bima Kavach (Plan 887) Vs LIC Digi Term (Plan 876) Vs LIC New Tech-Term (Plan 954)
LIC Digi Term (Plan 876)
LIC New Tech-Term (Plan 954)
LIC Bima Kavach (Plan 887)
- Minimum SA: Rs.2 crore | Max SA: No limit
- Entry Age: 18–65
- Life Stage Benefit for coverage increase
- Max maturity age: 100 years
- Highest premium
- Best for high-income individuals needing large cover
Premium Comparison (Illustration)
Profile: 30-year-old male, non-smoker, Rs.2 crore, 20-year term, regular premium
| Plan | Annual Premium |
| LIC Digi Term | Rs.13,160 |
| LIC New Tech-Term | Rs.16,380 |
| LIC Bima Kavach | Rs.17,575 |
Observation: Digi Term is the cheapest (~35% lower than Bima Kavach), making it ideal for cost-conscious young buyers.
Who Should Buy LIC Bima Kavach?
- High-income earners wanting minimum Rs.2 crore cover
- Individuals planning life-stage coverage increases
- Buyers needing coverage up to age 100 (NOT REQUIRED. It is just a gimmick)
- People comfortable paying slightly higher premium for flexibility
If your goal is lowest premium – choose Digi Term.
If you want riders – choose New Tech-Term.
Quick Decision Guide
| Priority | Recommended Plan | Why |
| Lowest premium | LIC Digi Term | Cheapest online plan |
| Riders & flexibility | LIC New Tech-Term | Accidental/Critical illness riders |
| High cover + life-stage benefit | LIC Bima Kavach | Coverage increases without medicals |
| Offline purchase | LIC New Jeevan Amar | Agent-led guidance |
FAQs — LIC Bima Kavach Review
1) What is LIC Bima Kavach?
A pure term insurance plan (Plan 887) offering death benefit only, starting at Rs.2 crore.
2) Is LIC Bima Kavach better than Digi Term?
Depends on your need: Digi Term is cheaper; Bima Kavach is better for high cover and life-stage benefit.
3) What is the premium for Rs.2 crore cover?
Approx. Rs.17,575 per year for a 30-year-old male non-smoker.
4) Who should buy LIC Bima Kavach?
High-income earners needing large coverage or planning life-stage coverage increases.
5) Can coverage be increased later?
Yes, via the Life Stage Benefit during marriage, childbirth, or home purchase.
6) Maximum maturity age?
Up to 100 years, the longest among LIC term plans.
7) Online/offline purchase available?
Yes, via LIC ANANDA portal or LIC agents/branches.
8) Does it offer maturity benefits?
No. It is a pure protection plan.
Final Verdict
LIC Bima Kavach is a strong addition to LIC’s term insurance portfolio.
- It’s ideal for high-income earners needing minimum Rs.2 crore cover
- Life-stage benefit is a unique advantage
- Premium is higher than Digi Term
For most young professionals, Digi Term remains the most cost-effective option. Choose a plan based on your age, premium affordability, and coverage needs. And remember—buying term insurance today secures your family’s financial future tomorrow. It seems that this product is launched to compete with private life insurers who are offering the term life insurance for up to 100 years of age. Hence, as you don’t need the coverage up to 100 years of your age and premium is also high in this product, just dumping this and going with the Digi Term is far superior.