LIC Bima Kavach Term Plan: ₹2 Crore Cover, Premium and Benefits

Most people buy life insurance in round numbers, and ₹1 crore has become the default figure people ask about. LIC Bima Kavach Term Plan is different: it starts where many term plans stop. LIC launched it in December 2025 as a high-cover pure protection plan, and its minimum Basic Sum Assured is ₹2 crore, with no upper limit other than LIC’s underwriting.

This guide explains how the plan works using LIC’s current product documents, including the sales brochure, policy document and Customer Information Sheet for UIN 512N360V01. It then walks through a real premium illustration for ₹2 crore of cover and LIC’s own published sample premiums for regular, limited and single premium payment. You will also find the eligibility rules, the two death benefit options, the Life Stage Option, the rebates on offer, and the questions worth asking before you sign a proposal form.

If you came here looking specifically for a ₹1 crore policy, read the next sections first: Bima Kavach cannot be issued for ₹1 crore, and it is better to know that before you compare quotes.

What Is LIC Bima Kavach Term Plan?

LIC’s Bima Kavach (Plan No. 887, UIN 512N360V01) is a non-participating, non-linked, life, individual, pure risk plan. In plain terms, it pays a death benefit to your nominee if you die during the policy term, and it pays nothing if you survive to the end. There are no bonuses, no investment returns and no maturity value. Every rupee of premium buys protection, which is why a ₹2 crore cover costs far less than the same cover inside a savings plan.

LIC announced Bima Kavach together with LIC’s Protection Plus (Plan 886) in early December 2025. Unlike some LIC term plans that are restricted to one channel, Bima Kavach can be bought offline through LIC agents and other licensed intermediaries, or online on LIC’s website. Online purchase attracts a separate rebate, explained later in this article.

A term plan only does the protection half of financial planning. Savings-oriented plans such as LIC Jeevan Labh or LIC New Endowment Plan combine smaller cover with a maturity payout. Many families keep a large term plan for protection and handle savings separately.

Key Features of LIC Bima Kavach

The table below summarises the product terms published by LIC for UIN 512N360V01.

Can You Get ₹1 Crore Cover Under LIC Bima Kavach?

No. LIC’s brochure sets the minimum Basic Sum Assured for Bima Kavach at ₹2 crore. A proposal for ₹1 crore cannot be issued under this plan. If ₹1 crore is the cover you need, look at LIC term plans with lower minimums, such as LIC Yuva Term Plan 875 (minimum ₹50 lakh) or the plans listed on our term insurance page.

For many households, though, ₹2 crore is not excessive. A sensible way to size cover is to add up what your family would need without your income:

• Outstanding loans, especially a home loan your family would otherwise keep servicing.
• Several years of household expenses for a spouse, children or parents who depend on you.
• Goals that cannot be postponed, such as children’s school and college fees.
• A cushion for inflation and medical costs over the years ahead.

Then subtract what already exists: other life cover, savings, investments and employer group cover, which usually ends when you change jobs. A household with a large home loan and young children can reach ₹2 crore quickly. A single person with no dependants may need far less, and a plan with a lower minimum may suit them better.

LIC Bima Kavach Premium for ₹2 Crore Sum Assured

Two sources of premium figures are used below, and they should not be mixed up. The first is a single LIC Bima Kavach premium illustration dated 13 October 2026 for one applicant profile. The second is the table of sample premiums printed in LIC’s own sales brochure. Neither is a quotation for you.

Regular Premium (illustration: age 35, 10-year term)

The illustration supplied for this article covers regular premium only. Its stated assumptions are shown in full so you can see exactly what the figure applies to.

Two points about the illustration matter. First, it does not state whether non-smoker rates were applied, and it does not state a separate tax component. Second, it carries LIC’s own caution that the premium shown is indicative and the actual premium can vary according to underwriting rules. The half-yearly figure is consistent with LIC’s 2% conversion for half-yearly mode: ₹19,400 ÷ 2 × 1.02 = ₹9,894.

Note too that this is a 10-year policy ending at age 45. That is the shortest term LIC allows for regular premium. It suits someone who needs cover for a defined period, such as the remaining years of a loan, but it leaves no cover beyond 45. A longer term costs more each year.

Limited Premium (LIC brochure sample)

No limited premium illustration was supplied for the age-35 profile, so the figures below are LIC’s own sample annual premiums from the Bima Kavach brochure. They assume ₹2 crore Basic Sum Assured, a 20-year policy term, a male non-smoker, standard life and Option I (Level), and they exclude taxes.

Limited pay compresses the premium into fewer years. At age 30, paying for 5 years means ₹50,000 a year (₹2,50,000 in all), compared with ₹19,000 a year for 20 years (₹3,80,000 in all). You pay less in total, but more per year and earlier.

Single Premium (LIC brochure sample)

No single premium illustration was supplied either. LIC’s brochure shows these sample single premiums on the same basis (₹2 crore, 20-year term, male non-smoker, Option I, excluding taxes):

A single premium removes the risk of a lapse from missed payments, but it ties up a large sum at the start. For single premium policies the sum assured on death is the higher of 125% of the single premium and the absolute amount assured.

Premium Comparison at a Glance

Putting LIC’s brochure samples side by side for a 30-year-old (₹2 crore, 20-year term, Option I, male non-smoker, excluding taxes) shows how the payment choice changes the cash outflow:

These totals ignore the time value of money. A rupee paid in year 20 is cheaper in real terms than a rupee paid today, so the lowest total is not automatically the best choice. Pick the pattern your budget can sustain without strain.

Regular vs Limited vs Single Premium

Regular premium keeps the yearly cost lowest and spreads it across your working life. Limited premium suits people who want to finish paying before retirement while keeping cover beyond it. Single premium suits someone with a lump sum, for example from a bonus or maturing investment, who wants no future payment obligation.

Level Sum Assured vs Increasing Sum Assured

Bima Kavach offers two death benefit options. The choice is made at the start and cannot be changed later.

• Option I – Level Sum Assured: the Basic Sum Assured stays the same throughout the policy term, plus any increase taken under the Life Stage Option.
• Option II – Increasing Sum Assured: the cover equals the Basic Sum Assured for the first five policy years. From the sixth year to the fifteenth, it rises by 10% of the Basic Sum Assured each year, reaching twice the Basic Sum Assured, and then stays at that level for the rest of the term.

Increasing cover offsets some of the effect of inflation, but it costs noticeably more. LIC’s brochure samples show the gap clearly (₹2 crore, 20-year term, male non-smoker, excluding taxes):

Option II pays off mainly over long terms. On a 10-year policy, the increase only runs from year six to year ten, so the cover never reaches the full doubling.

Life Stage Benefit Option

The Life Stage Option lets you increase cover after major life events without a fresh medical examination. It must be chosen when the policy is bought, and it is available only if all of these apply at inception:

• Death benefit Option I (Level Sum Assured) with regular premium payment.
• Age at entry of 40 years or less (last birthday).
• The life assured is accepted as a standard life.

To exercise the option, the request must reach LIC within six months of the event, the policy must be in force, the life assured’s attained age must be 45 or less, and the outstanding policy term must be at least the minimum term allowed for regular premium (10 years). Extra premium is charged for the added cover at the attained age, LIC may decline a request, and an increase cannot be reversed later.

That outstanding-term condition matters for short policies. On a 10-year policy like the one in the illustration above, the outstanding term falls below 10 years after the first year, so in practice the option may not be usable. Check this with LIC before relying on it.

Eligibility Conditions

Underwriting decides the final terms. For a cover of ₹2 crore or more, expect medical tests and income documentation, and disclose your health history, habits and existing insurance fully on the proposal form.

Death Benefit

If the life assured dies during the policy term while the policy is in force, LIC pays the Sum Assured on Death to the nominee:

• Regular and limited premium: the highest of 7 times the annualised premium, 105% of total premiums paid up to the date of death, or the absolute amount assured to be paid on death.
• Single premium: the higher of 125% of the single premium or the absolute amount assured to be paid on death.

The absolute amount is the Basic Sum Assured under Option I (plus any Life Stage increases), or the applicable increasing amount under Option II. In the age-35 illustration, 7 times the yearly premium is ₹1,35,800, far below ₹2 crore, so the death benefit is simply ₹2 crore.

Death benefit in instalments

Instead of a lump sum, the life assured can choose to have the death benefit paid in instalments over 5, 10 or 15 years, monthly, quarterly, half-yearly or yearly. The minimum instalment is ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly or ₹50,000 yearly. LIC sets the interest rate used to work out instalments each year; the brochure shows 4.62% for 1 May 2025 to 30 April 2026. Instalments help when a nominee would struggle to manage a large lump sum.

Maturity Benefit

There is no maturity benefit. If the life assured survives the full policy term, the policy ends and nothing is paid. This is normal for a pure term plan and is the reason its premium is low. People who want money back at the end usually look at other LIC term plans or savings plans, accepting the higher cost.

Premium Rebates and Factors Affecting Premium

LIC offers a High Sum Assured rebate on the tabular premium once the Basic Sum Assured reaches ₹3 crore. At ₹2 crore to just under ₹3 crore, there is no rebate. The rebate depends on age and death benefit option:

Other factors that change the premium:

• Online purchase: a rebate of 7.5% of the tabular premium for regular and limited premium, and 3% for single premium, when bought online on LIC’s website.
• Gender: LIC uses special rates for women.
• Smoking status: non-smoker rates apply only if a urinary cotinine test supports them.
• Age and term: premium rises with entry age and with longer terms.
• Death benefit option and payment mode: Option II costs more; half-yearly mode costs slightly more over the year than yearly.
• Underwriting: health, occupation and lifestyle findings can lead to extra premium or other terms.

On tax: GST on individual life insurance premiums has been exempt since 22 September 2025, but always check the final figure on your official quotation. Tax treatment of premiums and claims depends on your circumstances and the tax regime you choose.

Advantages and Limitations

Advantages

• Large cover from LIC with no upper limit on sum assured, subject to underwriting.
• Cover can run up to age 100.
• Flexible payment: regular, limited (5, 10 or 15 years) or single premium.
• Choice of level or increasing cover.
• Life Stage Option to raise cover after marriage or childbirth without new medicals, if eligible.
• High Sum Assured rebates from ₹3 crore, plus an online rebate.
• Death benefit can be paid in instalments to help the nominee.
• Optional Accident Benefit Rider for regular and limited premium.

Limitations

• Minimum cover of ₹2 crore, so it is not available to someone who needs only ₹1 crore.
• No maturity benefit, surrender value or loan.
• The death benefit option cannot be changed after purchase.
• The Life Stage Option has tight conditions and may not be usable on short policies.
• Non-smoker rates depend on a cotinine test, and large covers need fuller underwriting.

Who Should Consider LIC Bima Kavach?

• Earners with large responsibilities, such as a home loan and young children, whose need is ₹2 crore or more.
• People who prefer cover from LIC and want flexibility in how long they pay.
• Young, newly married people who expect their needs to grow and can use the Life Stage Option.
• Business owners and professionals who need high cover, with sums of ₹3 crore and above earning a rebate.
• Anyone who wants protection to last into their seventies or later.

It is less suitable for someone whose cover need is well below ₹2 crore, or who expects money back at the end of the term.

Frequently Asked Questions

What is LIC Bima Kavach Term Plan?

It is LIC’s non-participating, non-linked, individual, pure risk life insurance plan (Plan 887, UIN 512N360V01). It pays a death benefit if the life assured dies during the policy term and has no maturity benefit.

Can I obtain ₹1 crore cover under LIC Bima Kavach?

No. The minimum Basic Sum Assured is ₹2 crore. For ₹1 crore, consider an LIC term plan with a lower minimum, such as LIC Yuva Term 875.

What is the minimum sum assured under LIC Bima Kavach?

₹2 crore. Above that there is no fixed maximum, subject to underwriting. Sum assured goes up in steps of ₹5 lakh up to ₹2.75 crore and ₹25 lakh after that.

What is the premium for ₹2 crore cover?

It depends on age, term, option and underwriting. One illustration for a 35-year-old man, 10-year regular premium, shows ₹19,400 a year. LIC’s brochure sample for a 30-year-old male non-smoker, 20-year term, Option I, is ₹19,000 a year excluding taxes. Neither is a quotation for you.

Can I choose limited premium payment?

Yes. You can pay for 5, 10 or 15 years, with minimum policy terms of 10, 15 and 20 years respectively.

Is a single premium option available?

Yes. You can pay once, with a policy term of 10 to 82 years, subject to the maximum maturity age of 100.

What is the difference between Level and Increasing Sum Assured?

Level cover stays the same throughout. Increasing cover stays at the Basic Sum Assured for five years, then rises by 10% of it each year from year six to fifteen, reaching double, and costs more. The option cannot be changed later.

What is the Life Stage Benefit Option?

It lets you increase cover by 50% on marriage and 25% on each of the first two children’s births, within caps, without new medicals. It is available only with Level cover, regular premium and entry age up to 40, and must be chosen at inception.

Is there a maturity benefit?

No. Nothing is paid if the life assured survives the policy term.

What is the minimum and maximum entry age?

Minimum 18 and maximum 65 (age last birthday). Entry above 60 is considered case by case.

What is the maximum maturity age?

100 years. The minimum age at maturity is 28.

Can the death benefit be paid in instalments?

Yes. It can be paid over 5, 10 or 15 years in monthly, quarterly, half-yearly or yearly instalments, subject to minimum instalment amounts.

Are rebates available for higher sums assured?

Yes, from ₹3 crore upwards. The rebate ranges from 1% to 4% of the tabular premium depending on age, option and sum assured band. There is no rebate between ₹2 crore and ₹3 crore.

Can I buy LIC Bima Kavach online?

Yes. It is sold both offline through intermediaries and online on LIC’s website, and online purchase gets a 7.5% rebate (3% for single premium).

Does LIC offer lower premiums for women and non-smokers?

Yes. Women get special rates, and non-smoker rates apply where a urinary cotinine test supports them.

Can I surrender the policy or take a loan?

No surrender value or loan is available. For single premium, and for limited premium after the required years, an Unexpired Risk Premium Value may be payable on surrender.

How can I get a personalised premium quotation?

Ask an LIC agent or authorised intermediary for an official benefit illustration for your age, term and option, use LIC’s online channel, or contact us to request one.

Final Thoughts

LIC Bima Kavach is built for people who need serious cover: ₹2 crore at minimum, no fixed upper limit, protection up to age 100, and a choice of how long to pay. Its extras, the increasing cover option, the Life Stage Option and instalment payouts, are useful, but each has conditions worth reading closely.

The figures in this article show the range. A 10-year, ₹2 crore policy for a 35-year-old is illustrated at ₹19,400 a year, while LIC’s brochure samples for a 30-year-old on a 20-year term run from ₹19,000 a year (regular) to ₹2,04,800 once (single). Size the cover to your family’s real obligations, choose a payment pattern you can sustain, and read the policy wording before you sign. If you would like an official illustration for your own age and needs, you can request a personalised quotation.

Official Sources

• LIC’s Bima Kavach – product page on LIC’s website
• LIC’s Bima Kavach sales brochure (UIN 512N360V01)
• LIC’s Bima Kavach policy document
• LIC’s Bima Kavach Customer Information Sheet
• LIC term assurance plans

Disclaimer: This article is for general information and is not financial or tax advice. Product details are summarised from LIC’s published documents for UIN 512N360V01. Premium figures are either from a benefit illustration for one applicant profile, which LIC describes as indicative, or from sample premiums in LIC’s sales brochure; they are not a quotation for you. Benefits, terms and conditions are governed by the policy contract. Insurance is the subject matter of solicitation. LicAgent.co.in is not LIC’s official website.