LIC Bima Kavach (Plan 887) is a pure term plan launched on 3 December 2025 for high cover: the minimum basic sum assured is ₹2 crore. Entry age is 18 to 65 and cover can run up to age 100. There is no maturity payout. Our calculator estimates about ₹28,050 a year for a 30-year-old male non-smoker taking ₹2 crore level cover for 30 years.
Bima Kavach 887 Premium Calculator
Your estimate
- Premium per instalment
- ₹28,050
- Works out to per month
- ₹2,338
- Premium paying term
- 30 years
- Total premium paid
- ₹8,41,500
- Highest cover during the term
- ₹2,00,00,000
- Cover till age
- 60 years
- Estimated maturity amountpure term plan, no maturity payout
- ₹0
- Total premium paid₹8,41,5004%
- Life cover₹2,00,00,00096%
Individual life insurance premiums are exempt from GST from 22 September 2025. Figures are estimates based on typical rates and may differ from LIC’s official quote.
What is LIC Bima Kavach Plan 887?
LIC Bima Kavach (Plan 887) is a non-linked, non-participating, pure risk term insurance plan that LIC introduced on 3 December 2025, together with Protection Plus (Plan 886). It is built for one job: pay a large, fixed amount to your family if you die during the policy term.
Two things set it apart from LIC’s other term plans. The minimum basic sum assured is ₹2 crore, and cover can be stretched up to age 100. You can also choose between a level cover and a cover that doubles over time, and pay the premium once, for a few years, or throughout the term.
Bima Kavach 887 at a glance
| Feature | Details |
|---|---|
| Plan number | 887 |
| Plan type | Non-par, non-linked pure term plan |
| Launched | 3 December 2025 |
| Entry age | 18 to 65 years |
| Age at end of cover | 28 to 100 years |
| Policy term | 10 to 82 years |
| Minimum basic sum assured | ₹2 crore (no fixed maximum) |
| Premium payment | Single, limited (5/10/15 years) or regular |
| Death benefit options | Level sum assured or increasing sum assured |
| Maturity benefit | None |
| Special rates | Women and non-smokers |
Eligibility
| Condition | Minimum | Maximum |
|---|---|---|
| Age at entry | 18 years | 65 years |
| Age at the end of the term | 28 years | 100 years |
| Policy term | 10 years | 82 years (within the age-100 limit) |
| Basic sum assured | ₹2,00,00,000 | Subject to underwriting |
Applicants above 60 face closer medical and financial underwriting, and the final premium always depends on LIC’s assessment of your health and income.
How the premium is calculated
A term premium reflects the chance of a claim during the years you are covered. Our calculator reproduces the sample premiums in LIC’s Bima Kavach sales brochure exactly: ₹2 crore of cover for a male non-smoker, 20-year term, at ages 20, 30 and 40, for regular, limited (15, 10 or 5 years) and single pay, level and increasing cover. For example, LIC quotes ₹19,000 a year at age 30 for level cover, and so does the calculator. A mortality model fitted to those points fills in other ages and terms, and adjusts for:
- Age and term: older entry and longer terms cost more because the cover runs into higher-risk years.
- Gender and smoking: LIC has special rates for women and smokers but publishes no samples, so we rate women as three years younger and charge smokers 1.6 times (our estimates).
- Payment term: limited and single pay collect the same risk cost over fewer instalments.
- Cover option: increasing cover costs more because the payout doubles by year 15.
- Rebates: LIC’s high sum assured rebate starts at ₹3 crore (2.25% of the tabular premium up to age 35 for level cover, rising to 4% from ₹10 crore), and buying online without an agent cuts 7.5% (3% for single premium). Half-yearly instalments carry a 2% loading. Online, our 30-year-old’s 30-year premium falls to about ₹25,947.
Worked example. A 30-year-old male non-smoker takes ₹2 crore of level cover and pays every year:
| Choice | Yearly premium (estimate) |
|---|---|
| 20-year term | ₹19,000 |
| 30-year term | ₹28,050 (about ₹2,338 a month) |
| 30-year term, woman | ₹22,179 |
| 30-year term, smoker | ₹44,881 |
| 30-year term, increasing cover | ₹47,204 |
| 30-year term, limited pay 10 years | ₹50,780 for 10 years |
| 30-year term, single premium | ₹3,61,100 once |
There is no GST on these premiums. Individual life policies have been GST-exempt since 22 September 2025, so the figure shown is what you pay.
Tip: compare total outgo, not just the yearly figure. Over 30 years, regular pay at ₹28,050 adds up to ₹8,41,500, while the single premium is ₹3,61,100 upfront. Single pay costs less in total but locks up money today.
Death benefit
If the life assured dies during the term, the nominee receives the sum assured on death:
- Level option: the basic sum assured throughout the term.
- Increasing option: the basic sum assured for years 1 to 5, then 10% of it added each year from year 6 to year 15, reaching twice the basic cover. It stays at 2× until the policy ends.
For regular and limited pay, the payout is never less than 7 times the annualised premium or 105% of premiums paid. The nominee can take the claim as a lump sum or, if chosen, in instalments over a few years, which suits families who prefer a steady income.
Other features
- Life stage benefit: policyholders with level cover and regular pay, who joined young, can raise cover at marriage or the birth of a child without a fresh medical test, within the limits set in the policy.
- Accident benefit rider: an optional rider adds an extra payout on accidental death.
- No maturity or loan value: like all pure term plans, there is no payout on survival and no policy loan. Regular-pay policies have no surrender value.
- Grace period and revival: a lapsed policy can usually be revived within five years by paying the arrears and proving continued good health.
Tax benefits
Premiums qualify for deduction under Section 123 of the Income-tax Act, 2025 (earlier Section 80C) in the old tax regime, up to the overall ₹1.5 lakh limit. The death benefit paid to the nominee is tax-free under Section 11 read with Schedule II of the Income-tax Act, 2025 (earlier Section 10(10D)).
Who should consider Bima Kavach?
- Earners with large loans or dependants who need ₹2 crore or more of cover.
- Buyers who want the security of an LIC policy and are willing to pay somewhat more than private online term plans.
- People worried about inflation, who can pick the increasing option so the cover doubles in the first 15 years.
It is less suited to someone who needs only ₹50 lakh to ₹1 crore of cover. LIC’s other term plans, such as Digi Term 876 or Yuva Term 875, start at lower sums assured.
Bima Kavach vs Protection Plus and Digi Term
Bima Kavach was launched on the same day as Protection Plus 886, which adds a savings element to protection. Bima Kavach stays a pure risk plan and is aimed at high covers. Compared with Digi Term, its main differences are the ₹2 crore minimum, the option to cover you up to age 100 and a choice of payment terms that includes single premium.
How to use this calculator
- Pick your gender and smoking habit, and enter your age.
- Enter the policy term; the form stops you going past age 100.
- Set the sum assured (₹2 crore or more).
- Choose regular, limited or single pay, and level or increasing cover.
- Read the yearly premium, the per-instalment amount, total premium and the highest cover. For a general comparison across LIC’s term plans, try the term plan calculator.
All premiums here are estimates. Your actual premium depends on underwriting and should be confirmed with LIC before you buy.
Frequently asked questions
What is the minimum sum assured in LIC Bima Kavach 887?
The minimum basic sum assured is ₹2 crore and there is no fixed upper limit; larger covers depend on LIC's underwriting of your income and health. This makes Bima Kavach a plan for people who need high cover, not a small starter policy.
What is the premium for ₹2 crore cover in Bima Kavach?
Our estimate for a 30-year-old male non-smoker is about ₹19,000 a year for a 20-year term and ₹28,050 a year for a 30-year term, with level cover and regular pay. A woman of the same age pays about ₹22,179 for the 30-year term. Treat these as indicative figures.
How does the increasing sum assured option work?
For the first five years the cover equals the basic sum assured. From the 6th to the 15th policy year it rises by 10% of the basic sum assured each year, so it doubles by year 15 and stays at twice the original cover for the rest of the term.
Does Bima Kavach pay anything at maturity?
No. It is a pure protection plan, so nothing is paid if you survive the term. The trade-off is a much lower premium than an endowment or return-of-premium plan for the same cover.
Is GST charged on the Bima Kavach premium?
No. Individual life insurance premiums, including term plans, have been exempt from GST since 22 September 2025. Bima Kavach launched after that date, so the premium quoted is the full amount you pay.
Can I pay the Bima Kavach premium only once?
Yes. You can pay a single premium, pay for a limited 5, 10 or 15 years, or pay every year of the term. For a 30-year-old man taking ₹2 crore for 30 years, the single premium estimate is about ₹3,61,100.
What is the maximum age for Bima Kavach?
You can enter at up to 65 years (last birthday) and cover can continue until age 100. The minimum age at the end of the policy is 28, so an 18-year-old must choose a term of at least 10 years.
Disclaimer: LIC Premium Calculators is an independent website. We are not affiliated with, endorsed by or connected to Life Insurance Corporation of India. All figures are estimates for illustration; confirm exact premiums and benefits with LIC or a licensed agent before buying.