LIC Yuva Term 875
LIC Yuva Term 875 is a non-participating, non-linked, and regular premium payment term insurance policy that provides financial protection to your family in case something happens to you during the period of your policy. The plan provides premium payment flexibilities, two death benefit options, and competitive non-smoker and women rates. This Plan can be purchased Offline through Licensed agents and Corporate agent.
Benefits of LIC Yuva Term 875
- Flexible Premium Payment Modes: Options include Single Premium (one-time payment), Regular Premium (periodic payments), and Limited Premium (pay for a shorter term with longer coverage).
- Two Death Benefit Options: Choose between Level Sum Assured (constant coverage) or Increasing Sum Assured (coverage that grows over time).
- High Sum Assured Rebate: Attractive rebates on premiums for higher sum assured amounts, providing financial incentives for larger coverage.
- Non-Smoker and Smoker Rates: Premiums are categorized into Non-Smoker and Smoker rates, with non-smokers benefiting from lower rates based on the results of a Urinary Cotinine Test.
- Special Rates for Women: Women enjoy lower premium rates, offering cost-effective coverage.
Eligibility and Features of LIC Yuva Term 875
| Feature | Details |
|---|---|
| Plan Type | Pure Risk Term Insurance Plan |
| Entry Age | Minimum: 18 years; Maximum: 45 years |
| Maximum Age of Maturity | 75 years |
| Policy Term |
- 15 to 40 years for Regular Premium, Single Premium, and Limited Premium of 10 years - 20 to 40 years for Limited Premium of 15 years |
| Premium Payment Term | Regular Premium, Limited Premium (10 or 15 years), Single Premium |
| Minimum Premium | ₹3,000 for Regular/Limited Premium; ₹30,000 for Single Premium |
| Sum Assured | Minimum: ₹50 Lakh; Maximum: ₹5 Crore (subject to underwriting) |
| Death Benefit | Level or Increasing Sum Assured |
| Maturity Benefit | None (pure risk cover) |
| Bonuses | No bonuses or profits payable |
| Premium Payment Modes | Yearly, Half-Yearly, Single Premium |
| Loan Facility | Not available |
| Grace Period | 30 days for Regular and Limited Premium policies |
| Surrender Value | Available for Single and Limited Premium policies |
| Tax Benefits | Premiums eligible under Section 80C |
| Policy Revival | Within 5 years of the first unpaid premium |
| Free Look Period | 30 days from policy receipt |
| Riders Available | Not applicable |
Rebates on LIC Yuva Term 875
The following rebates shall be applicable:
(i) High Sum Assured Rebate for Regular, Limited & Single Premium
payment:
Regular/Limited Premium: High SA Rebate (Option I: Level Sum Assured)
| Age (Last Birthday) | ₹50 Lakh to < ₹1 Crore | ₹1 Crore to < ₹2 Crore | ₹2 Crore to < ₹5 Crore | ₹5 Crore and above |
|---|---|---|---|---|
| Up to 30 years | Nil | 18% | 33% | 40% |
| 31 to 45 years | Nil | 16% | 31% | 37% |
Single Premium: High SA Rebate (Option I: Level Sum Assured)
| Age (Last Birthday) | ₹50 Lakh to < ₹1 Crore | ₹1 Crore to < ₹2 Crore | ₹2 Crore to < ₹5 Crore | ₹5 Crore and above |
|---|---|---|---|---|
| Up to 30 years | Nil | 17% | 30% | 35% |
| 31 to 45 years | Nil | 15% | 28% | 32% |
Regular/Limited Premium: High SA Rebate (Option II: Increasing Sum Assured)
| Age (Last Birthday) | ₹50 Lakh to < ₹1 Crore | ₹1 Crore to < ₹2 Crore | ₹2 Crore to < ₹5 Crore | ₹5 Crore and above |
|---|---|---|---|---|
| Up to 30 years | Nil | 16% | 29% | 36% |
| 31 to 50 years | Nil | 14% | 27% | 33% |
Single Premium: High SA Rebate (Option II: Increasing Sum Assured)
| Age (Last Birthday) | ₹50 Lakh to < ₹1 Crore | ₹1 Crore to < ₹2 Crore | ₹2 Crore to < ₹5 Crore | ₹5 Crore and above |
|---|---|---|---|---|
| Up to 30 years | Nil | 15% | 28% | 33% |
| 31 to 45 years | Nil | 14% | 27% | 31% |
LIC Yuva Term 875 Premium Calculation
Lets take detailed premium payment information for Option I (Level Sum Assured) and Option II (Increasing Sum Assured) for a Non-Smoker Male with a Basic Sum Assured of ₹50 Lakh, considering policy terms of 20, 30, and 40 years under different premium payment options.
Premium Details for Option I (Level Sum Assured)
| Age (Last Birthday) | Policy Term | Regular Annual Premium (₹) | Annual Premium for Limited Premium Paying Term of 15 Years (₹) | Annual Premium for Limited Premium Paying Term of 10 Years (₹) | Single Premium (₹) |
|---|---|---|---|---|---|
| 20 | 20 | 4,550 | 5,250 | 6,600 | 44,350 |
| 30 | 20 | 5,950 | 6,850 | 8,750 | 59,550 |
| 40 | 20 | 11,700 | 13,600 | 17,500 | 1,21,900 |
Premium Details for Option II (Increasing Sum Assured)
| Age (Last Birthday) | Policy Term | Regular Annual Premium (₹) | Annual Premium for Limited Premium Paying Term of 15 Years (₹) | Annual Premium for Limited Premium Paying Term of 10 Years (₹) | Single Premium (₹) |
|---|---|---|---|---|---|
| 20 | 20 | 5,850 | 6,750 | 8,550 | 58,400 |
| 30 | 20 | 8,250 | 9,600 | 12,250 | 84,950 |
| 40 | 20 | 17,850 | 20,850 | 26,850 | 1,88,950 |
Note: The above premiums are without GST.
Frequently Asked Question (FAQs) on LIC Yuva Term 875
Q1: What is LIC Yuva Term 875?
LIC Yuva Term 875 is a non-participating, non-linked, pure risk insurance plan that provides financial protection to your family in the event of your untimely death during the policy term.
Q2: What are the available premium payment options under LIC Yuva Term 875?
LIC Yuva Term 875 offers Regular Premium, Limited Premium (10 or 15 years), and Single Premium payment options.
Q3: Are there any maturity benefits in LIC Yuva Term 875?
No, LIC Yuva Term 875 is a pure term insurance plan. It does not provide any maturity benefits, as it is designed solely for death cover during the policy term.
Q4: How does the Increasing Sum Assured option work in LIC Yuva Term 875?
Under the Increasing Sum Assured option, the sum assured increases by 10% every year starting from the 6th policy year until it becomes double the original sum assured by the 15th year. After that, it remains constant for the remainder of the policy term.
Q5: Can I surrender my policy under LIC Yuva Term 875?
Yes, surrender value is available under the Single Premium and Limited Premium payment options. The surrender value is calculated based on the Unexpired Risk Premium Value.
Q6: Is there any rebate for higher sums assured in LIC Yuva Term 875?
Yes, high sum assured rebates are available. The percentage of rebate increases as the sum assured increases, offering a discount on the premium for higher coverage.
Q7: What is the maximum age of maturity for LIC Yuva Term 875?
The maximum age of maturity for LIC Yuva Term 875 is 75 years.
Q8: What happens if I miss a premium payment?
A grace period of 30 days is provided for Regular and Limited Premium policies. If the premium is not paid within the grace period, the policy will lapse. However, the policy can be revived within 5 years.
Q9: Can I revive a lapsed policy?
Yes, you can revive a lapsed policy within 5 years of the first unpaid premium by paying all arrears along with applicable interest and undergoing underwriting procedures.
Q10: Are lower premium rates available for non-smokers?
Yes, LIC Yuva Term 875 offers lower premium rates for non-smokers based on a medical test (Urinary Cotinine test) to verify the smoking status.
Q11: Is there a loan facility available under LIC Yuva Term 875?
No, loans are not available under LIC Yuva Term 875, as it is a pure risk term insurance plan.
Q12: Can I choose to receive the death benefit in instalments?
Yes, the death benefit can be received in instalments over 5, 10, or 15 years instead of a lump sum, based on the policyholder’s choice.
Q13: What happens if the policyholder commits suicide?
If the policyholder commits suicide within 12 months from the policy start or revival date, the nominee will receive 80% of the total premiums paid (excluding taxes and extra premiums). For Single Premium policies, 80% of the single premium will be paid.
Q14: What are the eligibility criteria for LIC Yuva Term 875?
The minimum age of entry is 18 years, and the maximum age of entry is 45 years. The policy term ranges from 15 to 40 years, depending on the chosen premium payment term.
Q15: Can I change my Death Benefit option from Level Sum Assured to Increasing Sum Assured after purchasing the policy?
No, once the Death Benefit option (Level or Increasing Sum Assured) is selected at the time of policy purchase, it cannot be changed later.
Q16: Is there any free look period under LIC Yuva Term 875?
Yes, there is a free look period of 30 days from the receipt of the policy document, during which the policyholder can cancel the policy if they are not satisfied with the terms and conditions.
Q17: Can I take multiple LIC Yuva Term 875 policies for higher coverage?
Yes, multiple policies can be taken, subject to underwriting approval and the maximum sum assured limit of ₹5 crore (or more, based on individual underwriting and reinsurer approval).
Q18: Are there any riders available with LIC Yuva Term 875?
No, LIC Yuva Term 875 does not offer any additional riders such as accidental death or disability riders. It is a pure risk cover term plan.