LIC Yuva Credit Life Plan 877 - Life Insurance Corporation of India (LIC) has launched a new term plan named LIC Yuva Credit Life Plan Table Number- 877. This is a term insurance plan best suited for working individuals who have dependent children and parents. This plan provides family protection against death due to uncertainties of the policy holder at a very low premium.

"LIC’s Yuva Credit Life Policy 877 is a Non-participating, Non-Linked, Life, Individual, Pure Risk plan,” This plan provides a safety net against any loan repayment to the insured’s family in case of his/her unfortunate death during policy term. LIC of India has launched this scheme on 06th, August 2024.

LIC’s Yuva Credit Life Plan 877 is a pure decreasing Term Assurance plan wherein the death benefit will reduce over the term of the policy. The Policyholder shall choose the Basic Sum Assured, Policy Term and Interest rate depending on the terms and conditions of loan.

A Risk Cover Schedule shall be prepared based on the Basic Sum Assured, Policy Term, and Interest rate chosen by the Policyholder. The available interest rates for Risk Cover Schedule are 6%, 7%, 8%, 9%,10%,11% and 12%, irrespective of the Interest rate charged by the Loan provider on the loan availed by the Policyholder.

The Risk Cover Schedule shall show the Sum Assured on Death (i.e. Death Benefit) for each Policy Year and shall be based on the chosen interest rate p.a. effective on an equated yearly repayment basis, irrespective of the actual loan repayment.

At the inception, the Sum Assured on Death shall be equal to the Basic Sum Assured and subsequently at each Policy Year, Sum Assured on Death shall be as mentioned in the Risk Cover Schedule. Therefore, death benefit as specified in the Risk Cover Schedule may be higher or lower than the actual outstanding Loan..

Key features LIC Yuva Credit Life Plan 877

Flexibility to choose from two benefit options: Single Premium and Limited Premium

• Choose from Single Premium and Limited Premium Payment.
• settlement option on death available for 5, 10 and 15 years installments.
• Choose the period for which protection is required.
• Benefit of attractive High Sum Assured Rebate.
• categories of premium rates namely

• (1) Non-Smoker rates and

• (2) Smoker rates

Benefits:

Benefits payable under an in-force policy shall be as under:

Death Benefit:

Death benefit payable on death of the Life Assured during the policy
term after the date of commencement of risk.

provided the policy is in force and claim is admissible shall be “Sum Assured on Death”.
For Limited premium payment policy, “Sum Assured on Death” is defined as the highest of:

• 105% of “Total Premiums Paid” up to the date of death or
• Basic Sum Assured

For Single premium policy, “Sum Assured on Death” is defined as the higher of:

• Basic Sum Assured on Death

Maturity Benefit:

No maturity benefits under this plan.

How Does LIC Term insurance Policy 877 Work? With example

Let's understand how LIC Yuva Credit Life Policy 877 works:

Mr. shyam is a 30 years old man buy this plan to secure their family, Shyam is healthy, and active without any history of medical problems or smoking habits. He buys LIC's term insurance plan 877 choose a sum assured amount of Rs. 50 Lakhs.

LIC Yuva Credit Life Plan 877 Other Information

Tax Benefits - This plan will have benefits under Section 80C and Section 10 (10D). 
Policy revival- within 5 years of FUP.
Free look Period - if the policyholder is not convinced with the terms and conditions of the policy, she/he can cancel the policy within 15 days from the receipt of the policy document.

GRACE PERIOD (APPLICABLE FOR REGULAR PREMIUM PAYMENT): A grace period of 30 days will be allowed for payment of yearly or half-yearly premiums from the date of First Unpaid Premium during this period.

The policy shall be considered inforce with the risk cover without any interruption as per the terms of the policy, If the premium is not paid before the expiry of the days of grace, the Policy lapses

SURRENDER: Only Under Single Premium payment, the policy can be surrendered by the policyholder at any time during the policy term.

The Surrender Value payable shall be higher of Guaranteed Surrender value (GSV) and Special Surrender Value (SSV).

POLICY LOAN: No Loan will be available under this plan.

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