LIC Bima Kavach Plan 887 Calculator
Premium & Benefit Illustration
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LIC Bima Kavach Plan 887 Overview
LIC Bima Kavach Plan 887 is a pure term insurance plan designed to provide substantial financial protection through a high sum assured at affordable premium rates. Since it is a pure protection plan, it does not offer maturity benefits or savings components and focuses solely on providing life cover during the policy term.
What is LIC Bima Kavach Plan 887?
LIC Bima Kavach Plan 887 (UIN: 512N207V01) is a non-linked, non-participating term insurance policy that offers financial security to the nominee in the event of the life assured's death during the policy term.
The plan provides coverage up to age 100 years and starts with a minimum Basic Sum Assured of ₹2 crore, making it suitable for individuals seeking large insurance protection. Premium rates are generally lower for women and non-smokers, while additional rider benefits can be chosen for enhanced protection.
Key Features of LIC Bima Kavach Plan 887
Death Benefit Options
The plan offers two death benefit structures:
- Option I (Level Sum Assured): The death benefit remains constant throughout the policy term.
- Option II (Increasing Sum Assured): The death benefit increases by 10% annually from the 6th policy year to the 15th policy year and thereafter becomes twice the Basic Sum Assured.
Life Stage Benefit
Policyholders can increase their life cover during important life events such as marriage or the birth of a child without undergoing fresh medical examinations. A maximum of two cover increases are permitted, subject to specified limits.
Premium Payment Flexibility
The policy provides multiple premium payment choices:
- Single Premium
- Regular Premium
- Limited Premium (5 Years, 10 Years, or 15 Years)
Instalment Benefit Option
Instead of receiving the entire death claim amount as a lump sum, nominees can choose to receive the benefit in yearly instalments over 5, 10, or 15 years.
High Sum Assured Rebate
The plan offers premium discounts for higher coverage amounts, helping policyholders obtain substantial life cover at comparatively lower premium rates.
Plan Highlights
| Feature | Details |
|---|---|
| Entry Age | 18 to 65 Years |
| Maximum Maturity Age | Up to 100 Years |
| Minimum Sum Assured | ₹2 Crore |
| Policy Term | 10 to 82 Years |
| Premium Payment Options | Single, Limited Pay, Regular Pay |
| Death Benefit Options | Level or Increasing Sum Assured |
| Special Rates | Available for Women and Non-Smokers |
| Life Stage Benefit | Available |
| Tax Benefits | Eligible under applicable tax laws |
LIC Bima Kavach Plan 887 Calculator
The LIC Bima Kavach Plan 887 Calculator helps estimate:
- Premium payable
- Sum assured coverage
- Death benefit projections
- Premium discounts applicable under high sum assured categories
- Benefits under Level and Increasing Sum Assured options
The calculator typically requires details such as:
- Age of the life assured
- Gender
- Smoking status
- Sum assured amount
- Policy term
- Premium payment option
- Death benefit option selected
Based on these inputs, it provides an estimated premium along with coverage details under the selected plan configuration.
Additional Plan Details
LIC Bima Kavach Plan 887 does not provide maturity benefits, loan facilities, or surrender value under normal circumstances. However, under certain Single Premium and Limited Premium variants, a portion of the unexpired premium may be payable as per policy provisions.
Eligibility Criteria
The plan is available to individuals between 18 and 65 years of age. The maximum age at the end of the policy term can extend up to 100 years.
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age | 18 Years | 65 Years |
| Policy Term | 10 Years | Up to Age 100 |
| Basic Sum Assured | ₹2 Crore | No Upper Limit (Subject to Underwriting) |
| Premium Payment Term | Single Pay / 5 Years | Up to Policy Term |
Premium rates vary depending on age, health condition, gender, and smoking status. Women and non-smokers are generally eligible for lower premium rates.
Premium Payment Choices
The plan offers multiple premium payment options to suit different financial requirements.
Regular Premium
Premiums are paid throughout the policy term. This option is suitable for individuals with a steady long-term income.
Limited Premium
Premiums are payable only for a selected period such as 5, 10, or 15 years, while insurance coverage continues for the full policy term.
Single Premium
A one-time premium payment is made at policy inception, and no further premiums are required thereafter.
A grace period of 30 days is available for premium payments, and lapsed policies may generally be revived within the revival period as per LIC rules.
Death Benefit Structure
The plan provides a death benefit if the life assured dies during the policy term.
Option I – Level Sum Assured
The Basic Sum Assured remains unchanged throughout the policy duration, subject to any approved Life Stage Benefit increases.
Option II – Increasing Sum Assured
The death benefit remains unchanged during the first five policy years. From the sixth year onwards, it increases by 10% of the Basic Sum Assured every year until the fifteenth year, after which it becomes twice the original Basic Sum Assured and remains at that level.
The Death Sum Assured is generally determined as the highest of:
- Seven times the annualized premium,
- 105% of total premiums paid up to the date of death,
- The applicable Sum Assured on Death.
There is no maturity benefit payable on survival till the end of the policy term.
Under the suicide clause, if death occurs due to suicide within 12 months from commencement or revival of the policy, the claim is settled according to the applicable policy provisions.
Life Stage Benefit
The plan allows policyholders to increase their insurance cover during major life events without undergoing fresh medical underwriting.
Marriage Benefit
Coverage can be increased by up to 25% of the Basic Sum Assured, subject to a maximum increase of ₹50 lakh.
Child Birth Benefit
An additional increase of up to 25% of the Basic Sum Assured can be availed on the birth of a child, subject to plan conditions.
The request must generally be submitted within the prescribed period after the qualifying event, and an additional premium is payable for the enhanced cover.
Optional Rider Benefit
Policyholders may choose additional protection through available rider options, such as accident-related coverage, by paying an extra premium as permitted under LIC guidelines.
LIC Bima Kavach Plan 887 Calculator
The LIC Bima Kavach Calculator helps estimate premiums and coverage based on selected policy details.
Information Required
- Age of the life assured
- Gender
- Smoking status
- Basic Sum Assured
- Policy term
- Premium payment option
- Death benefit option (Level or Increasing)
Calculation Process
- Enter age at entry.
- Select Level or Increasing Sum Assured option.
- Choose the desired Basic Sum Assured.
- Select policy term and premium payment term.
- Provide smoking status and gender details.
- Generate the premium estimate.
The calculator then displays the estimated premium payable along with coverage details based on the selected configuration.
Illustrative Premium Examples
For a 35-year-old non-smoking individual opting for ₹2 crore coverage with a 30-year policy term, premium estimates may vary depending on the chosen option and payment mode.
| Option | Premium Mode | Approximate Annual Premium |
|---|---|---|
| Level Sum Assured | Regular Pay | ₹18,500 |
| Level Sum Assured | 10-Year Limited Pay | ₹22,000 |
| Increasing Sum Assured | Regular Pay | ₹21,000 |
| Level Sum Assured (Female) | Regular Pay | ₹14,500 |
Actual premiums may vary based on underwriting, health condition, age, occupation, and prevailing LIC rates. Higher Sum Assured levels may also qualify for premium rebates under the plan.
Tax Benefits
LIC Bima Kavach Plan 887 offers tax advantages under the prevailing provisions of the Income Tax Act. Premiums paid towards the policy may qualify for deduction under Section 80C, subject to applicable limits. In addition, death benefits received by the nominee are generally exempt from tax under Section 10(10D), subject to prevailing tax regulations.
Policyholders should consult a qualified tax professional for guidance based on their individual financial circumstances.
How to Purchase LIC Bima Kavach Plan 887
The plan can be purchased through LIC’s official channels and authorized representatives.
The process generally involves:
- Visiting an LIC branch or the official LIC portal.
- Completing the proposal form.
- Submitting identity, age, and health-related documents.
- Undergoing medical examination, if required.
- Paying the applicable premium.
- Receiving the policy document upon acceptance.
A free-look period is available, allowing the policyholder to review the policy terms and cancel the policy within the prescribed period if not satisfied.
Claim Settlement Process
In the event of a claim, the nominee is required to submit the necessary documents, including:
- Death Certificate
- Original Policy Document
- Identity Proof
- Bank Account Details
- Other documents as requested by LIC
Once all required documents are received, LIC processes the claim according to its claim settlement procedures. Cases requiring additional investigation may take longer depending on the circumstances.
Who May Consider LIC Bima Kavach Plan 887?
The plan may be suitable for:
- Individuals seeking high-value life insurance protection.
- Young professionals looking for affordable long-term coverage.
- Families requiring financial security against income loss.
- Parents planning future financial protection for dependents.
- Individuals seeking coverage extending into advanced age.
Policy Renewal and Revival
Premiums should be paid within the due dates to keep the policy active.
If the policy lapses due to non-payment of premiums, revival may be available within the specified revival period, subject to payment of outstanding premiums, interest, and any required medical evidence.
The plan does not provide a paid-up value facility.
Why Choose LIC Bima Kavach Plan 887?
Some of the major advantages include:
- High life cover starting from ₹2 Crore.
- Coverage extending up to age 100.
- Choice between Level and Increasing Sum Assured options.
- Life Stage Benefit for additional coverage during major life events.
- Flexible premium payment options.
- Premium concessions for women and non-smokers.
- Backing of LIC’s established claim settlement framework.
Useful Tips Before Buying
- Purchase early to lock in lower premium rates.
- Consider the Increasing Sum Assured option if long-term inflation protection is important.
- Periodically review coverage requirements as financial responsibilities change.
- Use a premium calculator to compare different coverage and payment options.
- Evaluate rider options for additional protection.
Frequently Asked Questions
What is LIC Bima Kavach Plan 887?
LIC Bima Kavach Plan 887 is a pure term insurance policy that provides high-value life cover without any maturity benefit. The plan starts with a minimum sum assured of ₹2 crore.
Who is eligible for this plan?
Individuals between 18 and 65 years of age can apply, subject to underwriting requirements and policy conditions.
How is the death benefit calculated?
The death benefit is determined according to the selected option and is generally payable as the highest of the applicable Sum Assured on Death, a multiple of annual premium, or a percentage of premiums paid, subject to policy terms.
What is the Increasing Sum Assured option?
Under Option II, the sum assured increases annually from the sixth policy year up to the fifteenth policy year and subsequently remains at the enhanced level for the rest of the policy term.
Can coverage be increased without medical examination?
Yes. The Life Stage Benefit allows eligible policyholders to increase coverage upon specified life events such as marriage or childbirth, subject to plan conditions.
What premium payment options are available?
The plan offers Single Premium, Limited Premium, and Regular Premium payment options.
How can a claim be filed?
Claims can be submitted through LIC branches or designated claim channels by providing the required documents and completing the claim formalities.
Conclusion
LIC Bima Kavach Plan 887 is a high-value term insurance solution designed to provide substantial financial protection through flexible coverage options and premium payment choices. With benefits such as coverage up to age 100, Life Stage Benefit, and the option of increasing life cover, the plan is structured to meet the long-term protection needs of individuals and families while maintaining the simplicity of a pure term insurance policy.
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