LIC’s Yuva Term 875
LIC’s Yuva Term is a Non-Par, Non-Linked, Individual Life Insurance plan that provides financial protection to the insured’s family in case of their unfortunate death during the policy term.
As a non-participating product, the benefits payable on death are guaranteed and fixed, regardless of actual experience. Therefore, the policy does not offer any discretionary benefits, such as bonuses or a share in the surplus.
You can purchase this plan offline through licensed agents, corporate agents, brokers, and insurance marketing firms.
Description
Key Features:
- Death Benefit Options: Choose between two options for the death benefit: Level Sum Assured or Increasing Sum Assured.
- Flexible Premium Payment Options:
- Select from Single Premium, Regular Premium, or Limited Premium Payment.
- Choose your preferred Policy Term and Premium Paying Term.
- Opt to receive the benefit in instalments.
- Special Benefits:
- Enjoy special rates for women.
- Benefit from an attractive High Sum Assured Rebate.
- Premium Categories:
- Two premium categories are available:
- Non-Smoker rates, based on the findings of the Urinary Cotinine test.
- Smoker rates apply in all other cases.
- Two premium categories are available:
Eligibility Conditions and Other Restrictions:
| Eligibility Criteria | Details |
|---|---|
| Minimum Age at Entry | 18 years (Last Birthday) |
| Maximum Age at Entry | 45 years (Last Birthday) |
| Minimum Age at Maturity | 33 years (Last Birthday) |
| Maximum Age at Maturity | 75 years (Last Birthday) |
| Minimum Basic Sum Assured | ₹50,00,000/- |
| Maximum Basic Sum Assured | ₹5,00,00,000/- (Basic Sum Assured above ₹5,00,00,000 may be considered on a case-by-case basis, subject to underwriting decision and reinsurer’s approval.) |
| Basic Sum Assured Multiples | – ₹50,00,000 to ₹75,00,000: ₹1,00,000/- – ₹75,00,000 to ₹1,50,00,000: ₹25,00,000/- – ₹1,50,00,000 to ₹4,00,00,000: ₹50,00,000/- – Above ₹4,00,00,000: ₹1,00,00,000/- |
| Policy Term and Premium Payment Term | – Premium Payment Term: Regular, Limited Premium (10 years), Limited Premium (15 years), Single Premium – Policy Term: 15 to 40 years (Regular/Single/Limited Premium of 10 years) – Policy Term: 20 to 40 years (Limited Premium of 15 years) |
| Minimum Premium | ₹3,000 for Regular/Limited Premium policies ₹30,000 for Single Premium policies |
3. Benefits
The benefits payable under an in-force policy are as follows:
A. Death Benefit:
The Death Benefit is payable upon the death of the Life Assured during the policy term, after the commencement of risk but before the maturity date, provided the policy is in-force and the claim is admissible. The Sum Assured on Death will be determined as follows:
- For Regular Premium and Limited Premium Payment Policies: The Sum Assured on Death will be the highest of:
- 7 times the Annualised Premium, or
- 105% of the Total Premiums Paid up to the date of death, or
- The Absolute Amount Assured to be paid on death.
- For Single Premium Payment Policies: The Sum Assured on Death will be the higher of:
- 125% of the Single Premium, or
- The Absolute Amount Assured to be paid on death.
Where:
- Annualised Premium refers to the premium amount payable in a year, excluding taxes, rider premiums, extra underwriting premiums, and modal premium loadings.
- Total Premiums Paid means the sum of all premiums paid under the base product, excluding any extra premiums and taxes.
- Single Premium refers to the premium amount payable, excluding taxes, rider premiums, and underwriting extra premiums.
The Absolute Amount Assured on death depends on the chosen Death Benefit Option at the time of policy purchase:
- Option I: Level Sum Assured: The amount assured to be paid on death will equal the Basic Sum Assured, which remains the same throughout the policy term.
- Option II: Increasing Sum Assured:
- The Sum Assured will remain equal to the Basic Sum Assured until the end of the fifth policy year.
- From the sixth policy year onwards, it will increase by 10% of the Basic Sum Assured each year, until it doubles by the fifteenth policy year.
- This increase will continue under an in-force policy until the end of the policy term, or until the date of death, or until the fifteenth policy year (whichever comes first).
- From the sixteenth policy year onwards, the Sum Assured will remain fixed at twice the Basic Sum Assured.
For example: If the Basic Sum Assured is Rs. X, the Sum Assured on Death will be Rs. X until the fifth policy year, Rs. 1.1X in the sixth year, Rs. 1.2X in the seventh year, and so on, until it reaches 2X in the fifteenth year. From the sixteenth year onwards, the Sum Assured on Death will remain at 2X.
Note: Once the Death Benefit Option is chosen, it cannot be changed later.
B. Maturity Benefit:
No Maturity Benefit is payable if the Life Assured survives to the end of the policy term.
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