LIC to Launch Two New Protection Schemes, Bima Kavach & Protection Plus: What Policyholders Need to Know

LIC to Launch Two New Protection Schemes, Bima Kavach & Protection Plus : What Policyholders Need to Know

 

LIC Launches Bima Kavach & Protection Plus

Life Insurance Corporation of India (LIC) will launch two new protection-oriented schemes—Bima Kavach and Protection Plus—from December 3, 2025, targeting domestic customers with pure risk coverage and linked savings options amid rising demand for tailored life insurance. These non-participating plans expand LIC's portfolio beyond recent launches like Jan Suraksha, focusing on financial security without bonuses or market-linked risks in one case.​

Bima Kavach Details

Bima Kavach is a non-participating, non-linked, individual pure risk life insurance plan emphasizing death benefit protection during the policy term, with no maturity payout or bonuses. If the policyholder dies within the term, nominees receive the sum assured, providing straightforward family security without investment components or market exposure. Full details like premium bands, entry age, and term options emerge post-launch, but it suits low-cost protection seekers.​

Protection Plus Details

Protection Plus offers a non-participating, linked individual savings plan blending life cover with market-linked investment growth, where returns depend on fund performance. It combines death benefits with potential maturity value from units, appealing to those balancing protection and wealth accumulation despite investment risks. Like Bima Kavach, specifics on funds, charges, and eligibility await official brochures.​

Plan	Category	Key Benefit	Risk Exposure ​
Bima Kavach	Non-Par, Non-Linked, Pure Risk	Death Sum Assured	None (Guaranteed)
Protection Plus	Non-Par, Linked, Savings	Death Benefit + Fund Value	Market-Linked

Policyholders should review UINs, tax benefits under Section 80C/10(10D), and riders post-launch via LIC branches; these plans align with IRDAI's push for simplified products. Availability starts December 3—assess needs with advisors.

Here is a comparison of key benefits and exclusions between LIC's Bima Kavach and Protection Plus schemes:

Aspect	Bima Kavach	Protection Plus
Type of Plan	Non-participating, pure risk life insurance	Non-participating, linked savings & protection plan
Primary Benefit	Death sum assured payout to nominee if policyholder dies during term	Death benefit plus maturity linked to market performance
Maturity Benefit	No maturity benefit; pure protection plan	Market-linked fund value at maturity
Risk Exposure	No investment risk, guaranteed death benefit	Market risk on savings portion
Premiums	Fixed premiums based on sum assured	Premiums linked to fund choices and charges
Payout Trigger	Death during policy term	Death or maturity of the policy
Exclusions	Standard life insurance exclusions (suicide within specified period, fraud, etc.)	Same exclusions plus market-related risks impact savings value
Tax Benefits	Eligible under Sec 80C for premiums & Sec 10(10D) for death benefit	Same tax advantages applicable
Suitability	Individuals seeking low-cost, simple death protection	Investors wanting protection with potential wealth growth

Overall, Bima Kavach suits buyers wanting affordable, straightforward life cover with no investment risk, while Protection Plus caters to those balancing insurance protection with investment-linked returns, accepting market volatility.