LIC Bima Kavach Calculator: Plan 887 Term Insurance Guide
Providing your family with robust, high-value financial protection against unforeseen life events is the first responsibility of sound financial planning. LIC Bima Kavach (Plan No. 887 / 177) is a non-linked, non-participating pure term life insurance plan offered by the Life Insurance Corporation of India (LIC). Engineered for breadwinners, salaried employees, business owners, and young professionals, it offers substantial life cover starting from **₹25,00,000 (25 Lakhs)** with choices between Level and Increasing Sum Assured, flexible premium payment terms, and attractive discounts for healthy non-smokers and female lives.
Our free online LIC Bima Kavach Calculator empowers policyholders to compute exact annual and monthly term premiums, compare Option I (Level SA) vs Option II (Increasing SA), evaluate non-smoker savings, and analyze effective daily protection costs.
What is LIC Bima Kavach (Plan 887)?
LIC Bima Kavach is a modern term insurance policy offering pure death benefit security:
- High Sum Assured Protection: Minimum Basic Sum Assured starts at ₹25,00,000 (25 Lakhs) with no upper limit, allowing families to secure ₹1 Crore to ₹5 Crore+ life protection.
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Level vs Increasing Coverage:
- Option I (Level SA): Constant death cover throughout the policy term.
- Option II (Increasing SA): Sum Assured increases by 10% each year from Year 6 to Year 10 up to 150% of Basic SA to hedge against inflation.
- Discounted Non-Smoker & Female Rates: Up to 25-30% lower premiums for non-smokers and preferential rate discounts for female policyholders.
- Flexible PPT Options: Choose Regular Pay, Limited Pay (10 or 15 Years), or Single Premium Pay.
Coverage Option Comparison & Death Benefit Schedule
| Coverage Option | Death Cover Years 1-5 | Death Cover Years 6-10 | Death Cover Years 11 to Maturity |
|---|---|---|---|
| Option I: Level Sum Assured | 100% Basic SA | 100% Basic SA (Constant) | 100% Basic SA (Constant) |
| Option II: Increasing Sum Assured | 100% Basic SA | Increases by +10% Basic SA each year (110% to 150%) | 150% Basic SA (Max Inflated Cover) |
Key Policy Parameters & Eligibility Criteria
| Parameter | Official LIC Guidelines (Plan 887) |
|---|---|
| Minimum Entry Age | 18 Years (Completed) |
| Maximum Entry Age | 65 Years (Near Birthday) |
| Maximum Maturity Age | 75 Years |
| Minimum Basic Sum Assured | ₹25,00,000 (25 Lakhs) |
| Maximum Basic Sum Assured | No Upper Ceiling |
| Policy Term Range | 10 Years to 40 Years |
Underwriting Rate Category Discounts
LIC rewards healthy lifestyles and female policyholders with substantial rate discounts:
| Underwriting Category | Premium Rate Advantage |
|---|---|
| Healthy Non-Smoker Male | Base Discounted Term Rate (up to 25% lower than Smoker) |
| Healthy Non-Smoker Female | Maximum Discounted Rate (Special Female Rate Band) |
| Smoker Male / Female | Standard Tabular Smoker Rate |
| High SA Slab (≥ ₹1 Crore) | Additional Subelement High SA Discount per ₹1,000 SA |
How the LIC Bima Kavach Calculator Works
The LIC Bima Kavach Calculator computes term life premiums using exact actuarial parameters:
- Base Rate Lookup: Determines tabular term premium rate based on age (18 to 65 yrs), term (10 to 40 yrs), and gender.
- Smoker Category Adjustment: Applies non-smoker discount rates for healthy applicants.
- Coverage Option Multiplier: Applies Option II multiplier (~1.35x) if Increasing Sum Assured is chosen.
- High SA Rebate: Applies high SA discount per ₹1,000 SA for policies >= ₹50 Lakhs / ₹1 Crore.
- GST Addition: Adds 18% GST on term insurance premiums.
Worked Financial Example & Family Protection Milestone
Consider a 30-year-old non-smoker male securing **₹1,00,00,000 (1 Crore) Basic Sum Assured** under **Option I (Level SA)** for a **30-Year Policy Term**:
| Protection Milestone / Component | Financial Details & Premium Outflow |
|---|---|
| Basic Sum Assured (Life Cover) | ₹1,00,00,000 (1 Crore Level Cover) |
| Policy Term | 30 Years (Covered from Age 30 to Age 60) |
| Premium Paying Term | 30 Years (Regular Pay) |
| Annual Term Premium (incl. 18% GST) | ~₹11,200 / year |
| Monthly Equivalent Premium | ~₹950 / month |
| Effective Daily Protection Cost | ₹30.60 / day (Less than a cup of coffee!) |
| Tax-Free Death Benefit Protection to Family | ₹1,00,00,000 (100% Tax-Free under Sec 10(10D)) |
Strategic Comparison: LIC Bima Kavach (887) vs LIC New Jeevan Amar (855)
| Comparison Parameter | LIC Bima Kavach (Plan 887) | LIC New Jeevan Amar (Plan 855) |
|---|---|---|
| Minimum Sum Assured | ₹25,00,000 (25 Lakhs) | ₹25,00,000 (25 Lakhs) |
| Increasing Cover Option | +10%/yr up to 150% SA (Option II) | Increasing SA Option Available |
| Smoker/Non-Smoker Differentiation | Distinct Rates for Both Categories | Distinct Rates for Both Categories |
| Maximum Maturity Age | 75 Years | 75 Years |
Tax Exemptions under Section 80C & Section 10(10D)
- Section 80C Tax Deduction: Term insurance premiums paid qualify for income tax deduction up to ₹1,50,000 per financial year.
- Section 10(10D) Tax-Free Death Claim: The entire ₹1 Crore+ death claim lump sum received by nominees is 100% tax-free.
How to Use the LIC Bima Kavach Calculator
- Select Coverage Option: Pick Option I (Level SA) or Option II (Increasing SA).
- Select Payment Mode: Choose Regular Pay, Limited Pay (10/15 Yrs), or Single Pay.
- Select Policy Term: Pick a term from 10 to 40 years.
- Set Entry Age & Gender: Input age (18 to 65 yrs), gender, and smoker status.
- Enter Basic Sum Assured: Specify sum assured (min ₹25,00,000).
Frequently Asked Questions (FAQs)
What is LIC Bima Kavach Plan 887?
LIC Bima Kavach (Plan 887) is a non-linked, non-participating term life insurance plan. Designed to offer high sum assured pure protection starting from ₹25 Lakhs, it features Level vs Increasing Sum Assured coverage options, flexible PPTs, and competitive non-smoker and female rate discounts.
What is the difference between Option I (Level SA) and Option II (Increasing SA)?
Option I maintains a constant Level Sum Assured throughout the policy term. Option II increases the death benefit by 10% of Basic Sum Assured each year from Year 6 to Year 10, reaching a maximum of 150% of Basic Sum Assured to hedge against inflation.
What Premium Payment Term (PPT) options are available?
Policyholders can choose Regular Pay (PPT equal to Policy Term), Limited Pay (short 5, 10, 15 years or Term minus 5 years), or Single Premium Pay.
What is the Minimum Sum Assured and Entry Age?
Minimum Basic Sum Assured is ₹25,00,000 (25 Lakhs) with no upper ceiling. Entry age ranges from 18 to 65 years, with maximum maturity age of 75 years.
Do non-smokers and women get lower premium rates?
Yes, LIC Bima Kavach offers special discounted premium rates for healthy non-smokers (up to 25-30% lower) and additional rate discounts for female lives.
Are death claim proceeds tax-free under Plan 887?
Yes, 100% of the death benefit lump sum paid to nominees is completely tax-free under Section 10(10D). Annual term premiums qualify for tax deductions under Section 80C.