LIC Yuva Term Plan 875 - Life Insurance Corporation of India (LIC) has launched a new term plan named LIC Yuva Term Policy Table Number- 875. 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.

This is a non-par product under which benefits payable on death are guaranteed and fixed irrespective of actual experience. Hence the policy is not entitled to any discretionary benefits like bonus etc.

"LIC’s Yuva Term 875 is a non-linked, non-participating, individual, pure term insurance plan,” Under LIC Yuva Term Plan 875,  LIC of India has launched this scheme on 6th, August 2024.  

Key features LIC Yuva Term Plan 875

• Flexibility to choose from 3 benefit options: Single Premium, Limited Premium and Regular Premium
• Flexibility to choose from two Death Benefit options: Level Sum Assured
  and Increasing Sum Assured
• Settlement option on maturity or 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

• Special rates for women.

Eligibility Conditions and Other Restrictions:

Rebates:

The following rebates shall be applicable:

(i) High Sum Assured Rebate (Applicable for Regular, Limited & Single Premium
payment:

The rebates for High Basic Sum Assured (BSA) as a percentage of tabular Annual/
Single Premium are as under:

(a) Under Option I: Level Sum Assured
Regular/ Limited Premium:

Single Premium:

(b) Under Option II: Increasing Sum Assured
Regular/ Limited Premium:

Single Premium:

Mode Rebate:

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 but before the date of maturity

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

• 7 times of Annualized Premium; or
• 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:

• 125% of Single Premium; or
• Basic Sum Assured on Death

Maturity Benefit:

No maturity benefits under this plan

How Does LIC Yuva Term Policy 875 Work? With example

Let's understand how LIC Yuva Term Policy 875 with return of premium works:

Mr. Mohan is a 30 years old man buy this plan to secure their family, Mohan is healthy, and active without any history of medical problems or smoking habits. He buys LIC's term insurance plan 875 choose a sum assured amount of Rs. 50 Lakhs.

The yearly premium that is payable for the plan is Rs. 5950 for a tenure of 20 years. If Mr. Mohan died within the policy term, the individual within the policy term, the beneficiary/nominee will receive the sum assured amount of Rs. 50 Lakhs.

Option I: Level Sum Assured
Absolute amount assured to be paid on death shall be an amount equal to Basic Sum Assured, which shall remain the same throughout the policy term.

Option II: Increasing Sum Assured
Absolute amount assured to be paid on death shall remain equal to Basic Sum Assured till completion of fifth policy year. Thereafter, it increases by 10% of Basic Sum Assured each year from the sixth policy year till fifteenth policy year till it becomes twice the Basic Sum Assured.

This increase will continue under an inforce policy till the end of policy term; or till the Date of Death; or till the fifteenth policy year, whichever is earlier. From sixteenth policy year and onwards, the Absolute amount assured to be paid on death remains constant i.e. twice the Basic Sum Assured till the policy term ends.

Sample Illustrative Premium:

The sample illustrative premiums for both Option I (Level Sum Assured) and Option II (Increasing Sum Assured) for Basic Sum Assured of ` 50 Lakh for Non-Smoker, Male, Standard lives under different Premium Payment options are as under:

Option I (Level Sum Assured):

The above premiums are exclusive of taxes.

Option II (Increasing Sum Assured):

The above premiums are exclusive of taxes.   

LIC Yuva Term Policy 875 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/Limited 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: Regular Premium Payment policies - Nothing shall be payable.

Single Premium Payment Policies: The applicable Unexpired Risk Premium Value, if any, shall be payable anytime during the Policy Term.

The applicable Unexpired Risk Premium Value, if any, shall only be payable if full premiums have been paid for at least three consecutive years. In case of a lapsed policy, on surrender of policy during the revival period, applicable Unexpired Risk Premium Value, if any, shall be payable.

However, on expiry of revival period, the policy shall terminate and Unexpired Risk Premium Value, if any shall be paid to the policyholder. In case of death of the life Assured under a lapsed policy, during the revival period, applicable Unexpired Risk Premium Value, if any, shall be payable.

Policy Loan: No Loan will be available under this plan.

Suicide Clause: If The Life Assured (whether sane or insane) commits suicide at any time within 12 months from the date of commencement of risk. In that case, the nominee or beneficiary of the Life Assured shall be entitled to 80% of the total premiums paid, excluding any taxes, extra premiums and rider premiums, if any, provided the policy is in force.

Try Our Financial calculators

Click Here