LIC Yuva Term Plan

Read on to learn more about the LIC Yuva Term Plan.

LIC Yuva Term Plan- An Overview

LIC Yuva Term Insurance Plan is a non-participating, non-linked term insurance plan offered by the LIC of India. The LIC Yuva Term plan is designed to provide financial security to the insured’s family in the event of their untimely death. It offers flexible premium payment options (single, regular, or limited), two death benefit options (Level or Increasing Sum Assured), and attractive rates based on smoking status. Coverage is available for a range of basic sums assured, with maturity benefits dependent on policy duration and terms. The Yuva term plan 875 provides guaranteed death benefits with no bonuses or surplus sharing and is accessible through various offline sales channels, including agents and brokers.

Key Features of LIC Yuva Term Plan

• The LIC Yuva Term plan provides flexible death benefit options such as Level or Increasing Sum Assured.

• You can choose the Premium payment options including Single, Regular, or Limited Premium.

• Special rates are available for women and non-smokers.

• Discounts are offered for higher sums assured.

• Death benefits can be received in installments if chosen.

Eligibility Criteria of LIC Yuva Term Plan-875

Benefits of LIC Yuva Term Plan

Below are the benefits of the LIC Yuva Term plan (875) that the nominee will receive after the policyholder's unfortunate demise.

1. Death Benefit: 

   The nominee will receive the death benefit if the policyholder dies during the policy term. Under Regular Premium and Limited premium payment, “Sum Assured on Death” is defined as the highest of:

   • 7 times the annualised premium, 

   • 105% of total premiums paid, 

   • or the absolute amount assured

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

   • 125% of Single Premium; 

   • or • Absolute amount assured to be paid on death.

2. Maturity Benefit: 

   As a pure term insurance plan, LIC Yuva provides no maturity benefit if the life assured survives to the end of the policy term.

3. Option to Take Death Benefit in Installments: 

   Death benefits can be received in installments over 5, 10, or 15 years, with monthly, quarterly, half-yearly, or yearly payments available if the total claim amount meets the minimum installment requirements.

   Mode of Instalment Payment	Minimum Instalment amount (Rs)
   Monthly	5,000
   Quarterly	15,000
   Half-Yearly	25,000
   Yearly	50,000

Sample Premium Illustration of LIC Yuva Term Plan

The sample illustrative premiums for LIC Yuva Term plan’s Option I (Level Sum Assured) and Option II (Increasing Sum Assured) for Basic Sum Assured of Rs 50 Lakh for Non-Smoker, Male, Standard lives under different Premium Payment options are as under:

Option I (Level Sum Assured):

Option II (Increasing Sum Assured):

LIC Yuva Term Plan Details

1. Grace Period

   A grace period of 30 days is given for yearly or half-yearly premium payments. During this time, the policy stays active with full risk cover. If the premium isn't paid within this period, the policy will lapse and all benefits will stop.

2. Rebates

   The following rebates shall be applicable:

   Basic Sum Assured	Rebates Under Option I: Level Sum Assured		Rebates Under Option II: Increasing Sum Assured
   	Regular/ Limited Premium	Single Premium	Regular/ Limited Premium	Single Premium
   50 Lakh to less than 1 Crore	Nil	Nil	Nil	Nil
   1 Crore to less than 2 Crore	18%	17%	16%	15%
   2 Crore to less than 5 Crore	33%	30%	29%	28%
   5 Crore and above	40%	35%	36%	33%

3. Revival

   You can revive a lapsed policy within 5 years from the first unpaid premium, before maturity, by paying all due premiums with interest and fulfilling health requirements. LIC may accept, modify, or reject the revival. If not revived within this time, the policy ends with no benefit, except limited plans may get a small amount back.

4. Free-Look Period

   If you're unsatisfied with the policy terms and conditions, you can return the policy within 30 days of receiving it (physical or electronic copy, whichever is earlier). LIC will cancel the policy and refund the premium paid after deducting charges for risk cover, medical tests (if any), and stamp duty.

What is Not Covered in the LIC Yuva Term Plan?

Suicide within 12 Months: If the life assured commits suicide within 12 months from the date of commencement of risk or the date of policy revival (for Regular/Limited Premium Policies), or within 12 months from the commencement of risk (for Single Premium Policies), only 80% of the total premiums paid (excluding extra premiums, rider premiums, and taxes) will be refunded. 

Note: You should also check the term insurance benefits if you are planning to purchase the term insurance plan.

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