A Comprehensive Protection Plan for Young India
Launched on: 6th August 2024
Type: Non-Linked, Non-Participating, Individual Pure Term Insurance Plan
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.
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
