LIC Launches New Term Insurance Plans For Youth: Here's All You Need To Know

Life Insurance Corp. of India has introduced new products designed to offer insurance coverage and financial security against loan repayments.

The term insurance plans named LIC Yuva Term (plan no. 875), LIC Digi Term (plan no. 876), LIC Yuva Credit Life (plan no. 877), and LIC Digi Credit Life (plan no. 878), will be available for sale from Aug. 6.

These plans have been designed to cater to the needs of the youth, who want to purchase insurance plans early in life. The LIC Yuva Term plan will be accessible offline through intermediaries, while the LIC Digi Term plan will be available exclusively online via the company's website.  

LIC Chief Executive Officer and Managing Director, Siddhartha Mohanty, launched the insurance plans on Aug. 5. Each plan aims to offer tailored coverage options for the youth.

With the youngsters increasingly availing loans for various purposes, these plans are designed to offer coverage for various borrowings such as home loan, education loan, and car loan.

LIC’s Yuva Term and Digi Term are non-participating, non-linked life insurance plans that offer pure risk coverage. These plans provide financial protection by ensuring benefits payable upon the insured’s death during the policy term. The minimum entry age is 18 years, and the maximum is 45 years. These policies mature between ages 33 and 75. The minimum basic sum assured is Rs 50 lakh, with a maximum of Rs 5 crore. However, the sum assured above Rs 5 crore may be considered based on underwriting decisions.

LIC’s Yuva Credit Life and Digi Credit Life are also non-participating, non-linked, individual life plans but operate as decreasing term assurance plans. In these plans, the death benefit decreases over the policy term. The minimum entry age is 18 years, and the maximum is 45 years, with policies maturing between ages 23 and 75.

The minimum basic sum assured is Rs 50 lakh, and the maximum is Rs 5 crore. These plans offer high sum assured rebates and lower premium rates for women, with the added benefit of selecting a loan interest rate suitable to the policyholder at policy inception.