LIC’s Yuva Term 875

LIC’s Yuva Term 875 is a non-participating, non-linked, individual term life insurance plan designed to provide financial protection to the family in case of the policyholder’s untimely demise during the policy term. This plan is available exclusively through offline channels such as LIC agents, brokers, corporate agents, or Insurance Marketing Firms, making it a convenient option for those who prefer personal assistance in the buying process. Below is a comprehensive 3000+ word article detailing all aspects of LIC’s Yuva Term 875, including eligibility, features, benefits, premium structure, and more.​

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What is LIC’s Yuva Term 875?

LIC’s Yuva Term 875 (UIN: 512N355V01) is a pure risk term insurance plan that provides guaranteed, fixed death benefits and flexibility in premium payments and policy terms. The plan is designed to ensure that the family or nominee does not face financial strain in the event of the policyholder’s death during the policy term.​

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Key Features

• Offline Purchase Only: The plan can be bought through LIC agents, brokers, corporate agents, or Insurance Marketing Firms, making the process convenient for those who prefer personal assistance.​

• Guaranteed Death Benefits: The plan provides guaranteed, fixed death benefits, ensuring financial protection for the family.​

• Flexibility in Premium Payments: Policyholders can choose from single, regular, or limited premium payment options.​

• Two Death Benefit Options:

  • Level Sum Assured: The death benefit remains constant throughout the policy term.​

  • Increasing Sum Assured: The death benefit increases annually for the first 15 years, after which it remains constant at double the basic sum assured.​

• Settlement Option: The death benefit can be received as a lump sum or in installments over 5, 10, or 15 years, providing flexibility to the nominee.​

• High 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.

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Eligibility Criteria

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

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

• Minimum Maturity Age: 33 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: 15 to 40 years for regular, single, or limited premium of 10 years; 20 to 40 years for limited premium of 15 years.​

• Premium Payment Term: Single, regular, limited premium of 10 years, or limited premium of 15 years.​

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Premium Structure

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

• Regular Premium: Paid annually, half-yearly, quarterly, or monthly throughout 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.

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Death Benefit Options

• Level Sum Assured: The death benefit remains the same as the basic sum assured throughout the policy term.​

• Increasing Sum Assured:

  • Years 1 to 5: Death benefit is equal to the basic sum assured.​

  • Years 6 to 15: Death benefit increases by 10% of the basic sum assured each year.​

  • After Year 15: Death benefit remains constant at double the basic sum assured for the rest of the policy term.

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Settlement Option

• Lump Sum: The entire death benefit is paid in one go.​

• Installments: The death benefit can be received in installments over 5, 10, or 15 years, providing regular income to the nominee.​

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High 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.​

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Special Rates for Women

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

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Smoker and Non-Smoker Rates

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

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

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Policy Term and Premium Payment Term

• Policy Term: 15 to 40 years for regular, single, or limited premium of 10 years; 20 to 40 years for limited premium of 15 years.​

• Premium Payment Term: Single, regular, limited premium of 10 years, or limited premium of 15 years.​

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How to Buy LIC’s Yuva Term 875

• Offline Purchase: Visit LIC agents, brokers, corporate agents, or Insurance Marketing Firms to purchase the plan.​

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

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

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Benefits of LIC’s Yuva Term 875

• Guaranteed Death Benefits: Provides financial protection for the family in case of the policyholder’s death.​

• Flexibility in Premium Payments: Multiple premium payment options available.

• Two Death Benefit Options: Level and increasing sum assured options.​

• Settlement Option: Death benefit can be received as a lump sum or in installments.​

• High 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.​

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Comparison with Other Term Plans

• LIC Tech Term: LIC’s Yuva Term 875 offers lower premiums and more flexibility compared to the existing LIC Tech Term plan.​

• Other Term Plans: LIC’s Yuva Term 875 stands out for its offline purchase, high sum assured rebate, and flexible death benefit options.​

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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.​

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Conclusion

LIC’s Yuva Term 875 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 offline purchase and attractive rebates for higher sum assured amounts.