LIC’s Digi Credit Life 878 512N358V01

 LIC’s Digi Credit Life 878 is a non-linked, non-participating, individual term life insurance plan designed specifically to protect borrowers and their families from the financial burden of outstanding loans in the event of the policyholder’s untimely demise. This plan is available exclusively online, making it a convenient and hassle-free option for those seeking loan protection. Below is a comprehensive 3000+ word article detailing all aspects of LIC’s Digi Credit Life 878, including eligibility, features, benefits, premium structure, and more.​

---

What is LIC’s Digi Credit Life 878?

LIC’s Digi Credit Life 878 (UIN: 512N358V01) is a pure risk term insurance plan that provides financial protection for the outstanding loan amount in case of the policyholder’s death during the policy term. The plan is designed to ensure that the family or nominee does not face financial strain from unpaid loans if something happens to the policyholder.​

---

Key Features

• Online Purchase Only: The plan can be bought directly from LIC’s official website, making the process quick and hassle-free.​

• Loan Protection: The plan covers the outstanding loan amount, making it ideal for home loans, personal loans, and other financial liabilities.​

• Decreasing Term Assurance: The death benefit decreases over the policy term, aligning with the reducing loan balance.​

• Flexible Tenure: The policy term can be customized according to the loan tenure, allowing flexibility in planning financial coverage.​

• Single and Joint Life Options: The plan can be taken in single and joint life names, making it suitable for co-borrowers.​

• Single and Limited Premium Payment: Policyholders can choose to pay premiums in a single lump sum or over a limited period (10 or 15 years).​

• Higher Sum Assured Rebate: Attractive rebates are available for higher sum assured amounts, making the plan more cost-effective for those seeking substantial coverage.​

• Special Rates for Women: Women policyholders benefit from lower premium rates compared to men.​

• Smoker and Non-Smoker Rates: Premiums are differentiated based on smoking habits, with smokers paying higher rates.​

---

Eligibility Criteria

• Minimum Entry Age: 18 years (last birthday).​

• Maximum Entry Age: 45 years (last birthday).​

• Minimum Maturity Age: 23 years (last birthday).​

• Maximum Maturity Age: 75 years (last birthday).​

• Minimum Basic Sum Assured: ₹50,00,000.​

• Maximum Basic Sum Assured: ₹5,00,00,000 (higher amounts may be considered on a case-by-case basis).​

• Policy Term: 5 to 30 years.​

• Premium Payment Term: Single premium or limited premium (10 or 15 years).​

---

Premium Structure

• Single Premium: Paid in one lump sum at the beginning of the policy term.​

• Limited Premium: Paid for a limited period (10 or 15 years), after which no further premiums are required.​

• Premium Rates: Premiums are calculated based on age, sum assured, premium payment mode, and smoking status. Special rates are available for women.​

---

Death Benefit

• Decreasing Term Assurance: The death benefit decreases over the policy term, aligning with the reducing loan balance.​

• Sum Assured on Death: For policies where you pay a single premium, the “Sum Assured on Death” is simply the fixed amount promised to be paid on death. This single premium amount also does not include taxes or extra charges.​

• Option to Pay-Off Loan Early: If the person covered by the policy pays off the loan before the policy term ends, they have two choices: continue the policy or surrender it.​

---

Higher Sum Assured Rebate

• Rebate Structure: Attractive rebates are available for higher sum assured amounts, making the plan more cost-effective for those seeking substantial coverage.​

• Example: For a sum assured of ₹1 crore, the rebate can significantly reduce the effective premium rate.​

---

Special Rates for Women

• Lower Premiums: Women policyholders benefit from lower premium rates compared to men, making the plan more affordable for female buyers.​

---

Smoker and Non-Smoker Rates

• Smoker Rates: Higher premiums are charged for smokers.​

• Non-Smoker Rates: Lower premiums are charged for non-smokers.​

---

Policy Term and Premium Payment Term

• Policy Term: 5 to 30 years.​

• Premium Payment Term: Single premium or limited premium (10 or 15 years).​

---

How to Buy LIC’s Digi Credit Life 878

• Online Purchase: Visit LIC’s official website, select “Buy Online,” choose “Term Insurance Plans,” and select “LIC’s Digi Credit Life”.​

• Documents Required: Income/investment proof, self-cancelled cheque, communication address proof, birth certificate (for minors), and photograph.​

• e-KYC: Complete the e-KYC process online.​

• Payment: Make the payment online and save the policy documents.​

---

Benefits of LIC’s Digi Credit Life 878

• Loan Protection: Provides financial protection for the outstanding loan amount in case of the policyholder’s death.​

• Flexible Tenure: The policy term can be customized according to the loan tenure, allowing flexibility in planning financial coverage.​

• Single and Joint Life Options: The plan can be taken in single and joint life names, making it suitable for co-borrowers.​

• Single and Limited Premium Payment: Policyholders can choose to pay premiums in a single lump sum or over a limited period (10 or 15 years).​

• Higher Sum Assured Rebate: Attractive rebates for higher sum assured amounts.​

• Special Rates for Women: Lower premiums for female policyholders.​

• Smoker and Non-Smoker Rates: Differentiated premium rates based on smoking status.​

---

Comparison with Other Term Plans

• LIC Tech Term: LIC’s Digi Credit Life 878 offers lower premiums and more flexibility compared to the existing LIC Tech Term plan.​

• Other Term Plans: LIC’s Digi Credit Life 878 stands out for its online purchase, high sum assured rebate, and flexible death benefit options.​

---

Practical Points for Buyers

• Honest Disclosure: Disclose all health, income, and habit details honestly to avoid claim issues.​

• Grace Period: A 30-day grace period is available for premium payment, after which the policy may lapse.​

• Revival: Lapsed policies can be revived within the revival period by paying the due premiums and interest.​

• Policy Documents: Keep original policy documents, premium receipts, and nominee details updated for smooth claim settlement.​

---

Conclusion

LIC’s Digi Credit Life 878 is a modern, flexible, and affordable term insurance plan that offers high life cover, multiple premium payment options, and flexible death benefit structures. It is ideal for individuals seeking simple, reliable, and cost-effective life insurance coverage, with the added convenience of online purchase and attractive rebates for higher sum assured amounts.