LIC has created a buzz in the insurance market with the launch of two new schemes Bima Kavach and Protection Plus on 3 December 2025. These plans give customers the option of pure life cover or life cover with savings and investment growth, depending on their financial goals.
This move strengthens LIC’s product lineup, catering to both traditional insurance seekers and those looking for long-term wealth creation.
Explaining LIC’s New Launch
Launching two plans at the same time is rare for LIC. Here’s why it is significant:
- Bima Kavach is designed for people who want high-value, simple life insurance without investment components.
- Protection Plus is meant for those who want life cover along with potential savings growth.
This strategy ensures LIC can serve a wide range of customer needs, from pure protection to wealth-building solutions.
Bima Kavach – Pure Life Cover
Bima Kavach is a non-linked, non-participating term plan, meaning it provides life insurance only no savings or investment component is included.
Key Features
- Guaranteed Death Benefit: Nominees receive the sum assured in case of the insured’s demise during the policy term.
- Level or Increasing Sum Assured: Choose fixed coverage or coverage that grows over time.
- Flexible Premium Options: Pay once (single premium), for a limited term, or regularly.
- Long-Term Protection: Policy terms extend to high ages for long-term security.
- Optional Life-Stage Enhancements: Some options allow coverage increases during major life events like marriage or childbirth.
Who Should Choose Bima Kavach
Ideal for those seeking high-value protection for their family without worrying about market risks or investment returns.
Protection Plus – Life Cover with Savings Potential
Protection Plus is a linked, savings-cum-insurance plan. A part of the premium is invested in market-linked funds, offering potential growth while providing life cover.
Key Features
- Life Cover + Investment: Provides insurance protection and potential fund growth.
- Flexible Premium & Sum Assured Options: Choose amounts that suit your financial capacity.
- Top-Up Premiums Allowed: Additional contributions increase the investment portion.
- Partial Withdrawals: Allowed after 5 years, providing liquidity if needed.
- Maturity Benefit: Based on accumulated fund value at maturity. Mortality charges are refunded at maturity.
Who Should Choose Protection Plus
Best suited for those who want insurance protection along with long-term wealth creation. Works well for long-term goals like children’s education, retirement, or building a corpus, provided you are comfortable with market fluctuations.
Bima Kavach vs Protection Plus
| Feature | Bima Kavach | Protection Plus |
|---|---|---|
| Plan Type | Pure protection (non-linked) | Linked protection + savings |
| Market Risk | None | Moderate (fund value depends on market) |
| Death Benefit | Guaranteed sum assured | Sum assured + fund value rules |
| Maturity Benefit | None | Fund value at maturity |
| Premium Options | Single / Limited / Regular | Flexible + top-ups allowed |
| Flexibility | Low | High (withdrawals, top-ups, fund growth) |
| Best For | High-value family protection | Insurance + long-term savings |
How to Decide Which Plan Suits You
Choose Bima Kavach if:
- You want simple, high-value life cover.
- You prefer no market risk.
- You want protection for family security without investment features.
Choose Protection Plus if:
- You want insurance + potential investment growth.
- You are comfortable with long-term market exposure.
- You need flexibility like withdrawals or top-up premiums.
Common Mistakes to Avoid
- Choosing Protection Plus without considering market risk tolerance.
- Underestimating premium affordability, especially for higher coverage.
- Ignoring fund management and mortality charges in linked plans.
- Selecting short-term policies for long-term financial goals.
Final Thoughts
LIC’s launch of Bima Kavach and Protection Plus provides customers with modern, flexible options:
- Bima Kavach for straightforward protection.
- Protection Plus for protection with growth potential.
Both plans help policyholders plan for family security and long-term financial goals, depending on their priorities and risk appetite.
FAQ
When were Bima Kavach and Protection Plus launched?
Both schemes were launched on 3 December 2025.
What is the main difference between the two plans?
Bima Kavach is pure life cover, while Protection Plus combines life cover with savings and investment growth.
Who should choose Bima Kavach?
Anyone seeking high-value life cover without exposure to market risks.