Life Insurance Corporation of India (LIC) has introduced two new insurance products aimed at providing life cover along with financial flexibility: Protection Plus (Plan 886) and LIC's Bima Kavach (Plan 887). These plans cater to different needs of policyholders, from savings to pure risk protection.
Protection Plus is a non-participating, linked life insurance plan designed for individuals, combining both insurance protection and savings. Along with providing life cover for the entire policy term, it allows policyholders to select their preferred investment fund, adjust the sum assured, and make additional “top-up” premium payments. The plan also permits partial withdrawals after five years from the policy start date.
Under this plan, the proposer can choose the amount of premium they desire to pay based on which, the basic sum assured will be decided. The base premium can be paid as a regular pay or limited pay.
Bima Kavach (Plan 887) is a non-participating, non-linked, individual life insurance plan that offers pure risk protection. It ensures financial security for the family of the insured in the event of their untimely death during the policy term. The plan provides fixed and guaranteed death benefits, irrespective of the policy’s actual performance.
Bima Kavach provides the choice between two types of death benefits: a fixed Level Sum Assured or an Increasing Sum Assured that grows over time. It also gives flexibility in paying premiums, with options for single, limited, or regular payments, reported The Economic Times.