LIC of India
LIC Yuva Credit Life Policy

LIC Yuva Credit Life (Plan No. 877)

Many young people in India are struggling with debt. According to Business Today reports, 40% of retail loan demand comes from younger customers aged 18-30. But what happens if something unexpected occurs? Who will repay the loan?

LIC’s newly launched Yuva Credit Life plan offers a simple solution. It ensures that if you pass away during the policy term, the loan is covered. This plan is a pure risk plan, meaning it only covers the risk of death. It is non-participating, so it doesn’t share in any profits. 

It’s also non-linked, which means its returns are not tied to market investments. The plan is simple and provides peace of mind by securing your family’s financial future.

Eligibility Criteria

ParametersDetails
Minimum Entry Age18 Years
Maximum Entry Age45 Years
Minimum Maturity Age23 Years
Maximum Maturity Age75 Years
Minimum Basic Sum AssuredRs. 50,00,000
Maximum Basic Sum AssuredRs. 5,00,00,000
Premium Payment Term (PPT)
  • Single
  • 5 Years
  • 10 Years
  • 15 Years
Policy Term
  • For Single PPT: 5 to 30 Years
  • For 5 Years PPT: 10 to 30 Years
  • For 10 Years PPT: 15 to 30 Years
  • For 15 Years PPT: 25 to 30 Years

What Are the Key Specifications & Benefits of LIC Yuva Credit Life?

Here are some of the basic features and benefits of the plan:

Death Benefit:

You will get the death benefit, which is the amount paid to your family if you die during the policy term. It is paid if the policy is active and the claim is valid.

For a policy with ‘Limited Premium Payments’, the “Sum Assured on Death” is the higher of:

  • 105% of all premiums paid up to the date of death, or
  • The guaranteed amount assured on death.

For a ‘Single Premium Policy’, the “Sum Assured on Death” is the guaranteed amount assured on death. The single premium is the amount paid, excluding taxes and extra premiums for special conditions.

Early Repayment of Loan Options:

If you pay off your loan early, you have two options with this plan:

  • Option 1: Cancel the Insurance

If you cancel, you may get some money back. This amount is called “Unexpired Risk Premium Value”.

  • Option 2: Keep the Insurance

You can continue the policy until it ends. If you die during the policy term, the death benefit will be paid to your nominee, as per the ‘Risk Cover Schedule’.

Two Premium Payment Options:

You can pay premiums in two ways under this plan:

  • Limited Premium: You pay regularly during a set period of time. Payments can be made half-yearly or yearly.
  • Single Premium: You pay the entire premium at once.

Grace Period:

For Limited Premium Payments, you get 30 days extra to pay if you miss a payment. During this grace period, your policy stays active, and the risk cover continues.

But if you don’t pay within these 30 days, the policy will lapse. After this, all benefits stop, and nothing will be paid.

Free Look Period:

If you are not happy with the policy’s terms and conditions, you can return it within 30 days. This applies from the day you receive the policy, whether electronically or physically, whichever is earlier.

You need to explain your reasons for returning it. Once returned, the company will cancel the policy and refund your premium. However, they will deduct the cost of the risk cover for the time you were covered, medical exam fees, and stamp duty charges.

Higher Sum Assured Rebate:

This policy provides a special discount called a ‘higher sum assured rebate.’ If you choose a higher sum assured, your premium will be reduced.

This means you pay less for more coverage. The higher the sum assured, the bigger the rebate. It’s a way to make higher coverage more affordable.

Special Rates for Women:

The LIC Yuva Credit Life policy offers special rates for women. If you are a female, you can benefit from lower premiums compared to standard rates.

This makes the policy more affordable while still providing the same level of coverage. The special rates are designed to ensure that women can also secure financial protection at a reduced cost.

Sample Premium Illustration of LIC Yuva Credit Life

Here are example premium amounts for a male non-smoker with a policy term of 25 years and a basic sum assured of ₹50 lakh, based on a loan interest rate of 8%.

Age (Last Birthday in Years)Single Premium (In Rs.)

Annual Premium

for Limited Premium

Paying Term of 5 years (In Rs.)

Annual Premium for Limited Premium Paying Term

of 10 years (In Rs.)

Annual Premium for Limited Premium Paying Term

of 10 years (In Rs.)

2040,90010,1006,1004,850
3053,55013,1507,9006,200
401,03,45025,10014,90011,650

How Does LIC Yuva Credit Life Function?

Let’s understand how LIC’s Yuva Credit Life works with an example.

Mohan is a 30-year-old non-smoker male. He decides to take a loan and buys an LIC Yuva Credit Life policy to protect his family. He unfortunately dies during the policy term.

Policy Details

  • Sum Assured: ₹50 lakh
  • Premiums Paid: ₹2 lakh by the time of death

Scenario 1: Limited Premium Payments

If Mohan dies during the policy term, his family will receive a death benefit. The “Sum Assured on Death” is calculated as the higher of:

  • 105% of all premiums paid up to the date of death:
    105% of ₹2 lakh = ₹2.1 lakh
  • Guaranteed Sum Assured on Death:
    ₹50 lakh

Since ₹50 lakh is higher, his family will receive ₹50 lakh.

Scenario 2: Single Premium Policy

If Mohan had chosen a single premium policy, and he paid a one-time premium, the death benefit would simply be the guaranteed sum assured of ₹50 lakh.

In both scenarios, if Mohan dies during the policy term, his family would receive ₹50 lakh as the death benefit, ensuring they are financially protected.

How To Purchase LIC Yuva Credit Life Plan?

Currently, this LIC plan is not available for online purchase. To buy this plan, you need to visit licensed agents, corporate agents, brokers, or insurance marketing firms. 

These representatives will help you understand the plan details and assist with the purchase. However, here are the general steps to buy LIC Yuva Credit Life insurance offline:

Step 1: Find An Agent or Broker

Start by finding a licensed LIC agent, corporate agent, broker, or insurance marketing firm. You can ask friends, family, or look online to find a trusted representative near you.

Step 2: Schedule A Meeting

Contact the agent or broker to schedule a meeting. They will help you understand the details of the LIC Yuva Credit Life policy and answer any questions you have.

Step 3: Discuss Your Needs

During the meeting, explain your needs and financial goals. Let the agent know that you are interested in the LIC Yuva Credit Life policy. They will explain how the policy works, including coverage details, premium payments, and benefits.

Step 4: Provide Information

You will need to provide personal details such as your age, health status, and loan information. The agent will guide you through the necessary documents, such as identification and address proof.

Step 5: Complete the Application & Submit Documents

Fill out the application form provided by the agent. Ensure all details are accurate. The agent will assist you in completing this form.

After that, submit the required documents to the agent. These may include a photo ID, address proof, and any other documents requested.

Step 6: Pay the Premium Amount

Pay the first premium amount as instructed by the agent. The payment methods can vary, including cash, cheque, or bank transfer.

Step 7: Receive Policy Documents

After processing, you will receive the LIC Yuva Credit Life policy document. Check the document to ensure all details are correct.

Suicide Exclusion Under LIC Yuva Credit Life

Here are the terms and conditions for suicide exclusions under the plan:

For Limited Premium Policy

  • If the person insured (whether sane or not) dies by suicide within 12 months of starting the policy or reviving it, the nominee gets 80% of the total premiums paid.
  • This does not include any extra premiums or taxes paid.
  • This rule does not apply if the policy has lapsed; nothing will be paid in that case.

For Single Premium Policy

  • If the insured person (whether sane or not) commits suicide within 12 months of starting the policy, the nominee gets 80% of the single premium paid.
  • This does not include extra premiums or taxes paid.

Frequently Asked Questions

It shows how the death benefit changes each year based on the chosen interest rate.

Available rates are 6%, 7%, 8%, 9%, 10%, 11%, and 12%.

No, the Risk Cover Schedule rates are set by the policy, not by your loan’s interest rate.

The death benefit will not match the schedule, which may be different from your actual loan balance.

No. The plan does not offer any maturity benefit.

If you miss paying premiums within the grace period, your policy will lapse. But you can revive it within 5 years from the date of the first missed premium, as long as it’s before the policy’s maturity date.

To revive a lapsed policy, you must pay all missed premiums with interest and provide proof of continued insurability. This includes any documents or information required by LIC at the time of revival.

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