LIC’s Yuva Credit Life 877
LIC’s Yuva Credit Life is a Non-Par, Non-Linked, Individual Life Insurance plan offering pure risk coverage. It provides a safety net for the insured’s family, covering loan repayments in case of the insured’s death during the policy term.
This is a **pure decreasing term assurance** plan, where the death benefit decreases over time. The policyholder selects the Basic Sum Assured, Policy Term, and Interest Rate based on the loan’s terms. A **Risk Cover Schedule** is created, showing the Sum Assured on Death (Death Benefit) for each policy year, based on the selected interest rate.
The available interest rates for the schedule are 6%, 7%, 8%, 9%, 10%, 11%, and 12%, regardless of the loan provider’s rate. The death benefit starts as the Basic Sum Assured and decreases according to the **Risk Cover Schedule**, which may be higher or lower than the actual outstanding loan.
Description
Key Features:
- Flexible Payment Options:
- Choose between Single Premium or Limited Premium Payment.
- Select the Policy Term and Premium Paying Term based on your preferences.
- Special Benefits:
- Special rates for women.
- Attractive High Sum Assured Rebate.
- Premium Categories:
- Non-Smoker Rates: Based on the Urinary Cotinine test.
- Smoker Rates: Apply in all other cases.
- Loan Interest Rate:
- Choose an appropriate loan interest rate at the inception of the policy.
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 | 23 years (Last Birthday) |
| Maximum Age at Maturity | 75 years (Last Birthday) |
| Minimum Basic Sum Assured | Rs. 50,00,000/- |
| For eligible lives (21–45 years), minimum sum assured is Rs. 20,00,000 for loans like housing, with differential premium rates for sums between Rs. 20,00,000 and Rs. 35,00,000. | |
| Maximum Basic Sum Assured | Rs. 5,00,00,000/- |
| Policy Term & Premium Payment Terms | – Policy Term: 5 to 30 years (Single Premium) – Policy Term: 10 to 30 years (5-Year Premium) – Policy Term: 15 to 30 years (10-Year Premium) – Policy Term: 25 to 30 years (15-Year Premium) |
| Minimum Premium | Rs. 3,000/- for Limited Premium policies Rs. 13,000/- for Single Premium policies For sums Rs. 20,00,000 to < Rs. 50,00,000: Rs. 2,400/- (Limited) and Rs. 8,040/- (Single Premium). |
Benefits:
A. Death Benefit:
The Sum Assured on Death is payable if the Life Assured dies during the policy term, after the commencement of risk but before the Date of Maturity, provided the policy is in force and the claim is admissible.
- For Limited Premium Payment Policies, the “Sum Assured on Death” is the higher of:
- 105% of the Total Premiums Paid up to the date of death, or
- The absolute amount assured to be paid on death.
Note: Total Premiums Paid excludes extra premiums and taxes (if explicitly collected).
- For Single Premium Policies, the “Sum Assured on Death” is:
- The absolute amount assured to be paid on death.
The Risk Cover Schedule specifies the Sum Assured on Death for each policy year, calculated using an equated yearly repayment method, based on the selected interest rate, regardless of actual loan repayments. At inception, the death benefit equals the Basic Sum Assured, and it decreases over time as outlined in the schedule. The death benefit may be higher or lower than the actual outstanding loan.
B. Maturity Benefit:
No maturity benefit is payable if the Life Assured survives to the end of the policy term.
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