A Comprehensive Protection Plan for Young India: LIC’s Yuva Term Plan 875 is a specially designed term insurance plan targeted at young working individuals who have family responsibilities — such as dependent parents or children. This plan provides large life cover at very low premiums and also offers flexibility in choosing payment options and death benefit structures.
Launched on: 6th August 2024
Type: Non-Linked, Non-Participating, Individual Pure Term Insurance Plan
Unlike traditional life insurance plans, this policy does not offer maturity benefit or any bonus. It is a protection-focused plan that ensures your family’s financial security in your absence.
✅ Key Features of LIC Yuva Term Plan 875
- 🔹 Three Premium Payment Options:
Regular, Limited (10 or 15 years), or Single Premium - 🔹 Two Death Benefit Options:
- Level Sum Assured – Fixed sum throughout policy term
- Increasing Sum Assured – Sum increases annually up to double
- 🔹 High Sum Assured Rebate – Attractive discounts for higher cover amounts
- 🔹 Premium Rate Categories:
- Smoker and Non-Smoker
- Special Rates for Women
- 🔹 Flexible Policy Terms – From 15 to 40 years
- 🔹 Settlement Option – Claim payouts can be taken in installments (5/10/15 years)
- 🔹 Online Purchase Available – Pay via UPI, net banking, credit/debit card
📋 Eligibility Criteria & Plan Details
| Parameter | Details |
|---|---|
| Entry Age | 18 years (Min) – 45 years (Max) |
| Maturity Age | 33 years (Min) – 75 years (Max) |
| Policy Term | 10 to 40 years |
| Sum Assured | ₹50 Lakhs to ₹5 Crores |
| Premium Payment Options | Single / Regular / Limited (10 or 15 years) |
| Minimum Premium | ₹3,000 (Regular/Limited) / ₹30,000 (Single) |
| Premium Modes | Single, Yearly, Half-Yearly |
💰 Death Benefit Options
🅰️ Option I – Level Sum Assured
- The death benefit remains constant throughout the policy term.
- Beneficiary receives Basic Sum Assured in case of death.
🅱️ Option II – Increasing Sum Assured
- Year 1–5: Death benefit = Basic Sum Assured
- Year 6–15: Sum increases by 10% of Basic Sum Assured each year
- From Year 16: Sum remains fixed at 200% of Basic Sum Assured
💸 Death Benefit Payable (In-Force Policy)
🔹 For Regular & Limited Premium:
Highest of:
- 7 times Annualized Premium
- 105% of Total Premiums Paid
- Basic Sum Assured
🔹 For Single Premium:
Higher of:
- 125% of Single Premium
- Basic Sum Assured
🚫 No Maturity Benefit
This is a pure term insurance plan. No benefit is paid if the policyholder survives the policy term.
📊 Example: How LIC Yuva Term Plan 875 Works
Let’s understand with an example:
👤 Mr. Mohan (Non-Smoker, Male)
| Details | Values |
|---|---|
| Age | 30 years |
| Policy Term | 20 years |
| Basic Sum Assured | ₹50,00,000 |
| Premium Payment | Regular (Annual) |
| Premium (Level Option) | ₹5,950/year (excl. GST) |
| Premium (Increasing Option) | ₹8,250/year (excl. GST) |
If Mr. Mohan Dies During Term:
- His nominee receives ₹50 Lakhs (or more under increasing option)
If Mr. Mohan Survives:
- No maturity amount is payable.
📉 Sample Premium Chart (Basic Sum Assured: ₹50 Lakhs)
Option I – Level Sum Assured
| Age | Policy Term | Regular Annual | 10-Year Limited | 15-Year Limited | Single Premium |
|---|---|---|---|---|---|
| 20 | 20 years | ₹4,550 | ₹6,600 | ₹5,250 | ₹44,350 |
| 30 | 20 years | ₹5,950 | ₹8,750 | ₹6,850 | ₹59,550 |
| 40 | 20 years | ₹11,700 | ₹17,500 | ₹13,600 | ₹1,21,900 |
Option II – Increasing Sum Assured
| Age | Policy Term | Regular Annual | 10-Year Limited | 15-Year Limited | Single Premium |
|---|---|---|---|---|---|
| 20 | 20 years | ₹5,850 | ₹8,550 | ₹6,750 | ₹58,400 |
| 30 | 20 years | ₹8,250 | ₹12,250 | ₹9,600 | ₹84,950 |
| 40 | 20 years | ₹17,850 | ₹26,850 | ₹20,850 | ₹1,88,950 |
Above premiums are exclusive of taxes.
🎁 Rebates & Discounts
✅ High Sum Assured Rebate
Discounts increase as sum assured increases and vary by age, gender, and type of sum assured (Level or Increasing).
✅ Mode Rebate
| Mode | Rebate |
|---|---|
| Yearly | NIL |
| Half-Yearly | 2% loading |
📌 Additional Policy Features
| Feature | Details |
|---|---|
| Tax Benefits | Sec. 80C for premium & 10(10D) for death benefit (as per current laws) |
| Grace Period | 30 days for yearly/half-yearly premium payments |
| Free Look Period | 15 days from receipt of policy to cancel if unsatisfied |
| Policy Revival | Can revive lapsed policy within 5 years from first unpaid premium |
| Loan Facility | Not available |
| Suicide Clause | 80% of premiums (excluding taxes) returned if death occurs within 12 months |
🔁 Surrender Benefit
| Payment Type | Surrender Value |
|---|---|
| Regular Premium | No surrender value is payable |
| Single Premium | Unexpired Risk Premium Value (available anytime during the policy term) |
| Limited Premium | Surrender possible after 3 full years’ premium payment (URPV if applicable) |
🧾 Why Choose LIC Yuva Term Plan 875?
✅ Low Premiums for High Coverage
✅ Options for Fixed or Increasing Death Benefits
✅ Flexible Premium Payment Methods
✅ Special Rates for Women and Non-Smokers
✅ Digital Purchase & Convenient Claim Payouts
