LIC Bima Kavach Plan No. 887

Complete Guide to LIC's Bima Kavach Plan No. 887

To ensure that your family's standard of living is completely protected no matter what happens, you need a highly adaptable life insurance policy that evolves with your changing needs. Pure protection term plans offer the massive coverage required to secure large liabilities and future family expenses without straining your current monthly budget.

Welcome to Ashuram Insurance Expert. Serving as your trusted local advisor since 1990, we specialize in providing honest, practical, and comprehensive financial protection strategies. Today, we are exploring a pure protection plan that is specifically designed to grow alongside your life’s milestones: the LIC Bima Kavach Plan No. 887.

Read on to discover what makes this term plan uniquely powerful, how its life stage benefits work, and why securing offline guidance is the most responsible step you can take for your family.

What is LIC Bima Kavach Plan 887?

LIC's Bima Kavach (UIN: 512N360V01) is a Non-Participating, Non-linked, Life, Individual, Pure Risk Plan. In simple English, this is a pure term insurance policy.

"Non-Par" (Non-Participating) means the policy does not participate in the yearly profits or bonuses of the corporation. "Non-linked" means your premium money is completely secure and is not invested in the volatile stock market.

The sole objective of this plan is to provide guaranteed, massive financial protection to the insured's family in the case of his or her unfortunate death during the policy term. Because the benefits payable on death are guaranteed and fixed irrespective of actual experience, you gain absolute peace of mind knowing exactly what your family will receive. This plan can be purchased offline through licensed agents, allowing you to sit with an LIC Agent in Bhadra to fully understand the terms before securing your coverage.

Key Features of LIC Bima Kavach 887

This modern term plan is equipped with highly flexible features designed to accommodate your changing financial landscape:

• Lifetime Risk Cover: Coverage is available up to the age of 100 years, ensuring lifelong protection.
• Dual Death Benefit Options: You have the absolute flexibility to choose from two Death Benefit options: Level Sum Assured and Increasing Sum Assured.
• Flexible Premium Payments: You can choose from Single Premium, Regular Premium, and Limited Premium Payment terms of 5, 10, and 15 years.
• Life Stage Option: A unique option to enhance your life cover at defined life stage events (available under specific conditions).
• Instalment Payouts: The option for the payment of the Death Benefit in steady instalments rather than a lump sum.
• Women's Benefit: The plan offers special, lower premium rates for women to encourage financial protection.
• High Sum Assured Rebate: You receive the benefit of an attractive High Sum Assured Rebate, making larger coverage amounts highly cost-effective.
• Health-Based Pricing: There are two categories of premium rates: Non-Smoker rates and Smoker rates. Non-Smoker rates are based on the findings of a Urinary Cotinine test.

Eligibility Conditions for the Policy

To secure this pure protection plan, applicants must meet the following strict criteria established by LIC:

• Minimum Age at Entry: 18 years (last birthday).
• Maximum Age at Entry: 65 years (last birthday). However, proposals for ages above 60 years are considered on a case-to-case basis subject to underwriting policies.
• Minimum Age at Maturity: 28 years (last birthday).
• Maximum Age at Maturity: 100 years (last birthday), meaning your risk cover can last for an entire century.
• Minimum Basic Sum Assured: ₹2,00,00,000 (2 Crore).
• Maximum Basic Sum Assured: There is no limit, subject to the Board Approved Underwriting Policy based on your income.

The policy term varies depending on your premium payment choice, ranging from a minimum of 10 years up to a maximum that aligns with the 100-year maturity age limit.

Death Benefit Explanation

The foundation of the LIC Bima Kavach 887 is the Death Benefit. If the Life Assured passes away during the policy term (after the commencement of risk but before the date of maturity), the policy pays out the "Sum Assured on Death" to the nominee.

The calculation of this amount depends on how you choose to pay your premiums:

For Regular Premium and Limited Premium Payment Policies:

The "Sum Assured on Death" is defined as the highest of the following three amounts:

1. 7 times your Annualised Premium (excluding taxes and rider premiums).
2. 105% of the "Total Premiums Paid" up to the date of death.
3. The Absolute amount assured to be paid on death.

For Single Premium Policies:

The "Sum Assured on Death" is defined as the higher of:

1. 125% of your Single Premium.
2. The Absolute amount assured to be paid on death.

Level vs Increasing Sum Assured

When purchasing this policy, you must choose how your "Absolute amount assured" behaves over the years. Please note that the Death Benefit Option once chosen cannot be changed later.

Option I: Level Sum Assured
Under this option, the Absolute amount assured to be paid on death shall be an amount equal to the Basic Sum Assured, which shall remain exactly the same throughout the entire policy term. (Exceptions apply if you opt for the Life Stage Option, explained below).

Option II: Increasing Sum Assured
This option acts as a powerful shield against inflation. The Absolute amount assured to be paid on death remains equal to the Basic Sum Assured until the completion of the fifth policy year. Thereafter, it automatically increases by 10% of the Basic Sum Assured each year from the sixth policy year until the fifteenth policy year, until it becomes exactly twice (2X) the Basic Sum Assured.

From the sixteenth policy year and onwards, the amount remains constant at twice the Basic Sum Assured until the policy term ends. For example, a ₹2 Crore cover will grow by ₹20 Lakhs every year starting in the 6th year, reaching ₹4 Crores in the 15th year, and staying at ₹4 Crores for the remainder of the policy.

Premium Options and Optional Rider

You can structure your premium payments based on your financial comfort:

1. Single Premium: A one-time lump sum payment.
2. Regular Premium: Paying premiums every year for the entire policy term.
3. Limited Premium Payment: Finishing your premium payments early in 5, 10, or 15 years.

Accident Benefit Rider:
You can significantly enhance your family's protection. The policyholder has an option of availing LIC's Accident Benefit Rider under Regular and Limited Premium payment modes. If opted for, in case of accidental death, the Accident Benefit Rider Sum Assured will be payable as an additional lump sum along with the main death benefit.

Instalment Option for Claimants

Managing a massive lump sum payout can be difficult for a grieving family. LIC provides an option to receive Death Benefits in instalments over a chosen period of 5, 10, or 15 years instead of a lump sum amount.

This option can be exercised by the Life Assured during their lifetime. The instalments can be paid monthly, quarterly, half-yearly, or yearly, with minimum amounts set at ₹5,000, ₹15,000, ₹25,000, and ₹50,000 respectively. Once the Life Assured chooses this, no alteration whatsoever shall be allowed to be made by the nominee.

Important Rules: Grace Period, Revival, Surrender, and Loans

Understanding the operational rules of your policy ensures your family's coverage remains completely secure.

• Grace Period: A grace period of 30 days shall be allowed for the payment of yearly or half-yearly premiums. During this time, the policy remains fully in-force.
• Revival: A lapsed policy can be revived within a period of 5 consecutive complete years from the date of the First Unpaid Premium, subject to continued insurability and payment of arrears with interest.
• Surrender: No standard surrender value is available under this Plan. However, an "Unexpired Risk Premium Value" may be payable upon surrender for Single Premium and Limited Premium policies if specific payment conditions have been met. Nothing is payable upon the surrender of a Regular Premium policy.
• Policy Loan: Absolutely no loan will be available under this plan.

Who Should Buy This Plan?

The LIC Bima Kavach Plan 887 is an excellent foundational policy for:

1. Young professionals in Bhadra looking to secure lifelong protection (up to age 100) while their premiums are exceptionally low.
2. Newly married individuals who want to utilize the Life Stage Option to automatically increase their massive ₹2 Crore+ coverage as their family grows.
3. Breadwinners who want to combat the rising cost of living by utilizing the Increasing Sum Assured option for high-net-worth protection.

Local Service Section: Protecting Our Wider Community

While our primary office is centrally located near the Main Bus Stand Road in Bhadra (335501), Ashuram Insurance Expert proudly extends its dedicated advisory services across the entire local region. We understand the specific financial challenges faced by agricultural and business families throughout our district. If you are reviewing your LIC policy in areas such as Suratpura (Surat Pura) or Gadhra, we provide dedicated door-to-door support. Policyholders in nearby areas like Dabri and Bhirani often need clarity about complex insurance paperwork, and we are here to help.

Whether you need to secure a new pure protection term plan to safeguard your generational farmlands from debt in Sagra, or you need assistance submitting Life Stage Option documents after the birth of a child in Sherda, we travel the extra mile to provide personalized, localized support. We bring complete transparency and professional advice directly to your doorstep. To discover more about how we can assist you, explore our comprehensive LIC services in Bhadra.

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