LIC Term Plan
Category
: Life Insurance
Company
: LIC
Entry Age
: 18 Years and Above
Rating
:
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Product Summary : Yuva Term (875)
YUVA TERM plan number 875 a Non-Linked, Non-Par, Pure Risk Plan with two Death Benefit options. Level SA, Increasing SA. Proposer must choose the option at proposal stage itself and cannot be altered subsequently.
Premium Payment Mode:
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Yearly
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Half Yearly
Terms:
15 - 40 Years
Income Tax Benefit:
-
Premium paid under this plan is eligible for TAX rebate under section 80c.
Minimum Entry Age :
18 Year Completed
Maximum Entry Age :
45 Year (Nearest Birthday)
Minimum Sum Assured :
50,00,000
Maximum Maturity Age :
75 Year
Maximum Sum Assured :
5.00 Cr (Above ₹5.00 Cr may be considered on case-to-case basis)
Policy Benefits On Death :
On death of the Life Assured during the policy term Sum Assured on Death shall be payable.
For Regular premium and Limited premium payment policy, Sum Assured on Death is defined as the highest of:
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7 times of annualised premium
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105% of all the premiums paid as on the date of death
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Absolute amount assured to be paid on death.
For Single premium policy, Sum Assured on Death is defined as the higher of:
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125% of Single Premium.
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Absolute amount assured to be paid on death.
Absolute amount assured to be paid on death shall depend on Death Benefit Option chosen at the time of taking this policy and is as under:
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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.
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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.
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The option once chosen cannot be altered subsequently.
On Survival :
On survival to the end of the policy term,no benefits shall be payable.
Surrendered Value :
No surrender value will be available under this plan. However on surrender of policy in the following cases (for both Level Sum Assured (Option I) as well as Increasing Sum Assured (Option II) options), an amount shall be refunded as per underwriting terms. (For more details contact branch office.)
Loan :
No loan will be granted under this plan.
Proposal Form :
300 and 340 shall be used under this plan.
Conclusion :
LIC Yuva Term (875) is built for one purpose: maximum life cover at the lowest possible cost. As a pure risk, non-participating plan, it doesn't build any cash value or pay out on survival — every rupee you pay goes toward securing a high sum assured for your family in case something happens to you. With sum assured starting from ₹50,00,000 and going up to ₹5.00 Cr (and beyond on a case-to-case basis), it's designed for young earners and breadwinners who want substantial protection during their prime working years without the higher premiums of a savings-linked plan.
The choice between Level Sum Assured and Increasing Sum Assured is an important one to get right, since it cannot be changed once the policy is issued. If your liabilities (like a home loan) are expected to stay steady, Level Sum Assured works well; if you expect your responsibilities to grow over time, Increasing Sum Assured offers built-in protection against that. Since this plan has no maturity benefit, no surrender value in the usual sense, and no loan facility, it's best suited as a pure protection layer alongside any savings or investment plans you may already have. Talk to our Policylane advisors to figure out the right sum assured and death benefit option for your stage of life.
LIC Yuva Term is a Non-Linked, Non-Participating, Pure Risk premium life insurance plan. It offers a high life cover at an affordable premium but does not provide any maturity or survival benefit — it pays out only in the event of the policyholder's death during the policy term.
You can choose between Option I (Level Sum Assured), where the death benefit stays constant throughout the policy term, and Option II (Increasing Sum Assured), where the death benefit increases by 10% of the Basic Sum Assured each year from the 6th to the 15th policy year, eventually doubling, and then remains constant till the end of the term.
No. The Death Benefit Option must be selected at the proposal stage itself and cannot be changed afterward, so it's worth deciding carefully based on your future financial needs.
The minimum entry age is 18 years (completed), and the maximum entry age is 45 years (nearest birthday).