The Life Insurance Corporation of India (LIC) has launched new term life insurance plans LIC’s Yuva Term, LIC’s Digi Term, LIC’s Yuva Credit Life, LIC’s Digi Credit Life to provide term insurance and security for loan repayment. These plans are available both online and offline.
LIC has introduced a term insurance plan to cover loan liabilities such as housing, education, and vehicle, so as to act as a security net to repay the loan to the insured’s relatives. LIC has launched LIC’s Yuva Term for offline customers and LIC’s Digi Term for online customers. LIC’s Yuva Credit Life for offline customers, LIC’s Digi Credit Life, which is available online only.
What is LIC’s Youth Term/Digi Term?
LIC’s Yuva Term/Digi Term is a non-par, non-linked, life, individual, pure risk plan, which provides financial security to the family in the event of the insured’s unfortunate death during the policy term. It is a non-par product under which the benefit payable on death is guaranteed.
Basic Sum Assured Limit and Sum Assured Multiplier
– From Rs. 50,00,000 to Rs. 75,00,000 = Rs. 1,00,000
– From Rs. 75,00,000 to Rs. 1,50,00,000 = Rs. 25,00,000
– From Rs. 1,50,00,000 to Rs. 4,00,00,000 = Rs. 50,00,000
– Above Rs. 4,00,00,000 = Rs. 1,00,00,000
Premium Payment Options
For Single Premium Payment, the death benefit consists of either the single premium amount or 125% of the total sum assured, payable upon death.
Special Low Premium Rates for Female Policyholders
In the case of Regular Premium and Limited Premium Payment, the death benefit is determined as either 7 times the annual premium, 105% of the total premiums paid up to the date of death, or a predetermined fixed amount payable upon death. This plan is an unmatched, non-linked, life insurance product that offers pure risk coverage, ensuring financial protection for the insured’s family in the event of an untimely death during the policy term. The benefits payable upon death are guaranteed under this non-equal product.
Eligibility Criteria
The minimum entry age is 18 years (as of the last birthday), while the maximum entry age is 45 years (as of the last birthday). The minimum age at maturity is 33 years (as of the last birthday), and the maximum age at maturity is 75 years (as of the last birthday).
Understanding Death and Maturity Benefits
Death Benefit
The death benefit is payable upon the death of the Life Assured during the policy term, following the commencement of risk but prior to maturity, provided the policy remains active and the claim is valid. This benefit is referred to as the “Sum Assured on Death.”
For Regular Premium and Limited Premium Payment, the “Sum Assured on Death” is defined as the highest of the following options:
– 7 times the Annualized Premium
– 105% of the “Total Premiums Paid” as of the date of death
– The full sum assured payable upon death
For Single Premium Payment, the “Sum Assured on Death” is defined as the greater of the following:
– 125% of the Single Premium
– The full sum assured payable upon death
Maturity Benefit: In case of survival of the life assured till the end of the policy term, no maturity benefit is payable.
