LIC of India
LIC Yuva Term Plan

LIC Yuva Term Policy

LIC’s Yuva Term (Plan No. 875, UIN No. 512N355V01) is a newly launched insurance policy designed to provide financial security for your loved ones. This plan offers pure life coverage, meaning it protects your family with a fixed amount if something happens to you during the policy term.

It is a non-participating plan, which means the benefits are guaranteed and set regardless of how the insurance company performs. Unlike other policies, it doesn’t include extra benefits like bonuses or a share in company profits.

Eligibility Conditions Of LIC Yuva Term Plan

ParametersDetails
Minimum Entry Age18 Years (Last Birthday)
Maximum Entry Age45 Years (Last Birthday)
Minimum Maturity Age33 Years (Last Birthday)
Maximum Maturity Age75 Years (Last Birthday)
Minimum Basic Sum AssuredRs. 50,00,000/-
Maximum Basic Sum AssuredRs. 5,00,00,000/-
Premium Payment TermRegular, Limited Premium of 10 Years, Limited Premium of 15 Years, Single Premium
Policy Term
  • Under Regular/Single/Limited Premium of 10 Years: 15 to 40 Years
  • Under Limited Premium of 15 Years: 20 to 40 Years

Key Features & Benefits Of LIC Yuva Term Plan

Here are some of the most important key features and benefits of the plan:

Death Benefits:

If the person insured under the LIC Yuva Term Plan passes away during the policy term, their family will receive a fixed amount known as the “Sum Assured on Death”, as long as the policy is active and the claim is valid.

Here’s how this amount is calculated:

  • For Regular and Limited Premium Payments, it’s the highest of:
  • 7 times the yearly premium you pay
  • 105% of all the premiums you have paid up to the time of death
  • A fixed amount stated in the policy
  • For Single Premium Payment, it’s higher of:
  • 125% of the single premium you paid
  • A fixed amount stated in the policy

The amount your family will get if you pass away depends on the choice you make when you get the policy. There are 2 options:

Option 1: Level Sum Assured

Your family will get a fixed amount that stays the same throughout the policy. This amount is called the ‘Basic Sum Assured’ and won’t change.

Option 2: Increasing Sum Assured

Your family will get the Basic Assured Amount for the first five years. After that, the amount increases by 10% each year until it reaches twice the Basic Sum Assured by the end of the 15th year.

Option To Receive Death Benefits In Installments:

You can choose to receive the ‘Death Benefit’ in regular payments instead of one large sum. You can spread these payouts over 5, 10, or 15 years.

Here’s how it works:

  • You can choose to get all or part of the ‘Death Benefit’ in payments.
  • You can decide the payment amount or a percentage of the total benefit.
  • Payments can be made yearly, every 6 months, every 3 months, or monthly.

The minimum installment amounts are as follows:

Mode of Installment PaymentMinimum Installment Amount
MonthlyRs. 5,000
QuarterlyRs. 15,000
Half-YearlyRs. 25,000
YearlyRs. 50,000

Option To Choose Premium Payments:

You can choose how to pay for this plan in different ways:

  • Regular Premium Payment: Pay every year or every 6 months.
  • Limited Premium Payment: Pay for a set number of years.
  • Single Premium Payment: Pay all at once.

The amount you pay depends on your age, whether you smoke, your gender, the length of the policy, how long you will pay premiums, and the ‘Death Benefit’ option you choose.

  • For Single Premium Payment, the minimum amount you need to pay is Rs. 30,000.
  • For Regular and Limited Premium Payments, the minimum amount you need to pay each time is Rs. 3,000.

Grace Period:

The plan has a grace period, which is applicable only for Regular and Limited Premium Payments. If you miss a premium payment, you have an extra 30 days to pay it. During these 30 days, your policy is still active and covers you as usual.

  • If you pay within these 30 days, everything stays as it is.
  • If you don’t pay within these 30 days, your policy will end.

Attractive High Sum Assured Rebates:

The plan also offers a special discount known as the ‘High Sum Assured Rebate”. This is available if you choose a higher amount of coverage. The more coverage you select, the bigger the rebate you get.

This means you can save money while securing a larger amount of protection for yourself and your family. For more information on rebates under the LIC Yuva Term Plan, you can refer to the policy’s brochure available on the official website.

Free Look Period:

If you don’t like the policy after you get it, you can return it within 30 days. This applies to both electronic and paper versions of the policy. It’s also important to tell the company why you are not satisfied with the policy.

When LIC gets your return, they will cancel the policy and give you most of your money back. They will keep a small amount for the time you were covered, any medical exam costs, and stamp duty fees.

Special Rates For Women:

LIC understands that women have unique needs when it comes to insurance. That’s why this plan offers special rates for women. This means that if you are a woman, you might pay less for your insurance compared to men.

These lower rates can make the plans more affordable and accessible, giving you better value for your money. It’s part of LIC’s commitment to providing fair and supportive insurance options.

Two Categories For Premium Rates:

This plan has two different categories for setting premium rates. They are as follows:

  • Non-Smoker Rates: If you don’t smoke, you qualify for ‘Non-Smoker Rates’. This means you will pay less for your plan compared to smokers.

To get this rate, you need to pass a test called the ‘Urinary Cotinine’ test. This test checks if you have nicotine in your system. If the test shows you don’t smoke, you get the rates.

  • Smoker Rates: If you smoke or if you don’t take the test, you will be given ‘Smoker Rates’. These rates are higher because smoking is linked to more health risks, which increases the cost of insurance.

Sample Premium Illustrations Of LIC Yuva Term Plan

Here are the examples of premiums for two options with a Basic Sum Assured of Rs. 50 lakhs for a healthy, non-smoking male:

Option 1: (Level Sum Assured)

Age (Last Birthday)

Policy Term

(In Years)

Regular Annual Premium (In Rs.)

Annual Premium for Limited Premium Paying Term of 15 Years

(In Rs.)

Annual Premium for Limited Premium Paying Term of 10 Years

(In Rs.)

Single Premium (In Rs.)
20204,5505,2506,60044,350
30205,9506,8508,75059,550
402011,70013,60017,5001,21,900

Option 2: (Increasing Sum Assured)

Age (Last Birthday)

Policy Term

(In Years)

Regular Annual Premium (In Rs.)

Annual Premium for Limited Premium Paying Term of 15 Years

(In Rs.)

Annual Premium for Limited Premium Paying Term of 10 Years

(In Rs.)

Single Premium (In Rs.)
20204,5505,2506,60044,350
30205,9506,8508,75059,550
402011,70013,60017,5001,21,900

How Does LIC Yuva Term Plan Work?

Let’s see how the LIC Yuva Term Policy works for Mr. Singh!

Mr. Singh is a 30-year-old man who decided to buy this plan to protect his family. He is healthy and does not smoke. He chooses a sum assured of Rs. 50 lakhs. He pays a yearly premium of Rs. 5950 for 20 years.

Here are the two options for the death benefit:

Option 1: Level Sum Assured

  • If Mr. Singh passes away during the policy period, his beneficiary will receive a fixed amount of Rs. 50 lakhs, which will remain the same throughout the policy.

Option 2: Increasing Sum Assured

  • If he passes away during the policy period, his beneficiary will receive Rs. 50 lakhs for the first 5 years.
  • After the 5th year, the amount increases by 10% each year. By the end of the 15th year, the amount will be double the Basic Sum Assured, which is Rs. 1 crore (Rs. 50 lakhs X 2).
  • This increased amount will stay the same for the rest of the policy team or until Mr. Singh passes away, whichever comes first.

How To Purchase LIC Yuva Term Plan?

Currently, the LIC Yuva Term Plan is not available for online purchase. So, you can only buy it through an LIC office or agent. To buy the policy, follow the below-mentioned steps:

  • Visit An LIC Office: Go to your nearest LIC branch office. You can find the address on the LIC website or by asking locally.
  • Meet an LIC Agent: Visit the office to talk to an LIC agent. They will explain the details of the plan and help you understand the options.
  • Fill Out The Application Form: Complete the application form provided by the agent. You will need to provide personal information and choose the plan details.
  • Submit Required Documents: Provide necessary documents, such as identification proof, address proof, and any other documents required by LIC.
  • Make Payment: Pay the premium amount as discussed with the agent.
  • Receive Policy Documents: Once everything is processed, you will receive your policy document. Keep it safe, as it contains important information about your coverage.

Suicide Exclusions Under LIC Yuva Term Plan

Here are the exclusions under the policy:

For Regular/Limited Premium Policy

  • If the person covered by the policy (whether they are mentally well or not) dies by suicide within 12 months of starting the policy or restarting it, the beneficiary will get back 80% of the total premiums paid. This does not include extra charges, extra coverage costs, or taxes.
  • This rule does not apply if the policy has ended because no benefits are paid for lapsed policies.

For Single Premium Policy

  • If the person covered by the policy dies by suicide within 12 months of starting the policy, the beneficiary will get back 80% of the single premium paid. This does not include extra charges or taxes.

Frequently Asked Questions

No. Unfortunately, the plan does offer a maturity benefit.

No loan facility is available under the plan.

No. There is no paid-up value under the LIC Yuva Term Policy.

If you don’t pay your premiums during the 30-day grace period, your policy will end. This is called a lapsed policy.

Yes, you can restart your lapsed policy within 5 years from the date you first missed a premium. You need to pay all missed premiums plus any interest, and you may need to provide health information or documents.

If you do not revive your policy within the allowed revival period, the policy will automatically terminate.

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