LIC Protection Plus 886
LIC Protection Plus Plan 886 – Benefits, Features, Premium, Eligibility & Complete Guide (2025)
Introduction
LIC Protection Plus Plan 886 is a newly introduced life insurance plan designed to provide pure protection at an affordable premium. In today’s world, where financial security is shifting rapidly and unexpected life events can break a family emotionally and financially, having a strong protection plan is not a luxury—it is a necessity. LIC, India’s most trusted insurance institution, created Protection Plus 886 to fill a very important gap in the market: to offer high life cover at low premium with simple eligibility rules and flexible customization options.
This article explains every detail of LIC Protection Plus Plan 886 in simple, clear, and user-friendly language. Whether you are a new policy buyer or an insurance advisor looking to understand the technical aspects, this guide will help you understand the plan structure, features, eligibility, benefit calculation, claim process, riders, and real-life scenarios.
1. What is LIC Protection Plus ULIP Plan 886?
LIC Protection Plus Plan 886 is a pure risk protection plan. That means it does not offer maturity benefit. The purpose of this plan is to provide a financial safety net to your family in case of your unfortunate death during the policy term.
This plan is ideal for:
- Young individuals with dependents
- People looking for high coverage at low premium
- Families wanting long-term financial protection
- First-time insurance buyers
- People who want a simple, transparent and low-cost LIC policy
Since it is purely a life cover plan, the entire premium focuses on risk protection, keeping costs low while maximizing the sum assured.
2. Key Features
✔ Pure Protection Plan
No maturity benefit is payable. Death benefit only.
✔ Very Low Premium
Compared to traditional LIC policies, this plan offers one of the lowest cost structures.
✔ Flexible Policy Term
You can choose the duration as per your financial planning goals.
✔ High Coverage
Sum assured options are suitable for financial security of families.
✔ Rider Options Available
Accident benefit and disability benefit may be available depending on policy structure.
✔ Simple and Hassle-Free
Easy to purchase, minimal documentation, and straightforward benefits.
3. Eligibility/Parameters Conditions
Below is a simple eligibility overview for LIC Protection Plus 886:
| Category | Details |
|---|---|
| Minimum Entry Age | 18 years |
| Maximum Entry Age | As specified by LIC (generally around 50–60 depending on variant) |
| Policy Term | Flexible – varies as per age and premium pattern |
| Minimum Sum Assured | As per LIC rules (usually starting from ₹1,00,000) |
| Maximum Sum Assured | No upper limit (subject to underwriting) |
| Premium Modes | Yearly, Half-Yearly, Quarterly, Monthly, NACH/Online |
Since LIC periodically updates limits, premium tables may vary across age groups.
4. Benefits of LIC Protection Plus Plan 886
4.1 Death Benefit
If the life assured dies during the policy term, the nominee receives the Sum Assured on Death, which helps:
- Maintain family lifestyle
- Clear outstanding loans
- Support children’s education
- Provide financial stability
The death benefit is tax-free under Section 10(10D) (as per current tax laws).
4.2 No Maturity Benefit (NIL Return on Survival)
Since this is a pure protection plan, no money is returned if the policyholder survives the policy term.
This helps LIC offer very high coverage at very low cost, making it ideal for people seeking maximum financial protection.
4.3 Rider Benefits
LIC may allow optional riders such as:
- Accidental Death Benefit Rider
- Disability Benefit Rider
- Term Assurance Rider
These riders enhance protection in specific circumstances.
5. Why Choose LIC Protection Plus Plan 886?
⭐ 1. Affordable and Powerful Protection
The primary advantage is high cover at low cost. Even if you are buying insurance on a tight budget, this plan ensures your family is protected.
⭐ 2. Flexible Policy Structure
You can choose a term based on income level, financial responsibilities, and long-term planning.
⭐ 3. Reliable Claim Settlement
LIC’s strong claim settlement record offers peace of mind.
⭐ 4. Suitable for First-Time Insurance Buyers
Simple structure, no investment confusion, and no hidden terms.
⭐ 5. Easy Online Accessibility
LIC continues expanding online policy servicing, making management easy.
6. Who Should Buy LIC Protection Plus Plan 886?
✔ Young Professionals
Low premium + high coverage + long-term security.
✔ Parents
Ensures family’s financial safety during crucial years.
✔ Individuals with Loans
Home loan, education loan, business loan—coverage ensures liabilities don’t fall on the family.
✔ Single Breadwinners
Provides essential stability to dependents.
7. Premium Calculation (General Explanation)
Premium depends on:
- Age
- Sum assured
- Policy term
- Health and lifestyle
- Optional riders
Younger individuals benefit from lower premiums due to lower risk factors.
Example (Illustration only):
A 30-year-old male may pay a small yearly premium for a ₹10 lakh coverage for 20 years depending on the plan variant.
8. Real-Life Example Scenarios
Scenario 1: A Young Father (Age 28)
He buys a ₹25 lakh policy for 25 years.
If something happens to him in year 10, his family receives ₹25 lakh, covering education, living expenses & financial stability.
Scenario 2: A Businessman with a Loan
A 35-year-old with a home loan protects his family from liabilities.
In case of his death, the benefit supports loan repayment.
Scenario 3: A Single Working Woman
She chooses a protection plan to secure her parents financially.
9. Exclusions
Typical exclusions include:
- Death due to suicide within 12 months*
- Fraud or misrepresentation
- Risky activities (if excluded in policy wording)
(Always read LIC’s official brochure for updated exclusions.)
10. Tax Benefits
Section 80C – Premium paid is eligible for tax deduction
Section 10(10D) – Death benefit is tax-free
Tax rules may change as per government notifications.
11. Advantages & Disadvantages
Advantages
- Very affordable
- Pure protection
- Ideal for people with dependents
- Simple to understand
- Flexible premium and policy term
Disadvantages
- No maturity benefit
- No survival benefit
- Premium forfeited if no claim occurs
12. Common Misconceptions About Protection Plans
❌ “There is no return, so it is a waste.”
✔ Protection plans are financial shields, not investments.
❌ “Only old people need insurance.”
✔ Younger age = lowest premium + highest benefit.
❌ “Term plans are complicated.”
✔ LIC Protection Plus is one of the simplest protection plans.
13. Claim Process of LIC Protection Plus 886
Step-by-Step:
- Inform LIC branch/online portal
- Submit death certificate
- Provide policy documents
- Submit KYC & bank details
- LIC verifies claim
- Nominee receives settlement directly in bank account
LIC’s smooth claim process makes this plan reliable.
14. Final Summary
LIC Protection Plus Plan 886 is an excellent policy for anyone seeking:
- High sum assured
- Low premium
- Pure protection
- Long-term financial safety for family
This is not an investment plan but a powerful protection tool that safeguards your family’s financial future.
If your priority is to protect your loved ones economically, LIC Protection Plus 886 is undoubtedly a strong and trustworthy choice.
