LIC Yuva Term Plan No 875 – Eligibility, Benefits and Review
Few days back, LIC has launched a new term insurance plan named LIC Yuva Term Plan No 875 which aims for youngsters. This is an offline term insurance which should be purchased through agents. In this article we would provide LIC Yuva Term Insurance Plan No. 875 details, eligibility criteria, benefits, negative factors and provide a complete review.
LIC Yuva Term Plan No 875 – Key Features
LIC’s Yuva Term Plan is a Non-Par, Non-Linked, Life, Individual, Pure Risk Plan.
This plan provides financial protection to the insured’s family in case of unfortunate death of the life insured during the policy term. In simple terms like any other term plan, it provides risk protection in case of death of the life insured.
This plan lso comes with special rates for women.
Flexibility to choose from two Death Benefit options: Level Sum Assured and Increasing Sum Assured.
Benefit of attractive High Sum Assured Rebate.
Like some of the LIC plans, even this plan provides an option to receive death benefits in instalments over a period of 5 or 10 or 15 years instead of a lump sum amount. This option can be exercised by Life Assured during his/her lifetime;
This Plan can be purchased Offline through Licensed agents, Corporate agents, Brokers and Insurance Marketing Firms.
LIC Yuva Term Plan No 875 – Eligibility
Below is the eligibility criteria to take this plan.
Minimum Age of entry – 18 years
Maximum Age of entry – 45 years
Minimum Age at Maturity – 33 years
Maximum age at Maturity – 75 years
Minimum Basic Sum Assured – Rs.50 Lakhs
Maximum Basic Sum Assured – Rs.5 Crores
Policy Term and Premium Payment Term:
Premium Payment Term: Regular, Limited Premium of 10 years, Limited Premium of 15 years, Single Premium
Policy Term: 15 to 40 years under Regular/Single/Limited Premium of 10 years
Policy Term: 20 to 40 years under Limited Premium of 15 years
Premium Payment Term (PPT) This plan is offered in regular premium, Limited Premium of 10 years, Limited Premium of 15 years and Single Premium.
LIC Yuva Term Plan No 875 – Benefits
This plan offers following benefits:
#1 – Death Benefit
An amount indicated under “Sum Assured on Death” is paid in case of unfortunate death of the life insured.
For Regular Premium and Limited premium payment, “Sum Assured on Death” is defined as the highest of:
7 times of Annualised Premium or
105% of total premiums paid till the date of death or
Absolute amount assured to be paid on death.
Under Single premium payment, “Sum Assured on Death” is defined as the higher of:
125% of Single Premium or
Absolute amount assured to be paid on death.
Various Options available
Death benefit is paid based on the option chosen the policy holder.
Option 1 (Level Sum Assured) – Under this option, Basic Sum assured will remain the same throughout the policy period. This amount is paid in case of unfortunate death of the life insured.
Option 2 ( Increasing Sum Assured) – Under this option, the basic sum assured remains same till the completion of the 5th policy year. After that, it increases every year by 10% of the Basic Sum Assured till the 15th policy year till it becomes twice the Basic Sum Assured.
#2 – Maturity or Surrender Benefit
There is no maturity benefit or surrender benefit available as this is pure term insurance plan.
LIC Yuva Term Plan No 875 – Sample Illustration of Premium
The sample illustrative premiums for both Option I (Level Sum Assured) and Option II (Increasing Sum Assured) for Basic Sum Assured of Rs 50 Lakh for Non-Smoker, Male, Standard lives under different Premium Payment options are as under:
LIC Yuva Term Plan No 875 – Positive Factors
This is simple term insurance plan without much complication in features nor terms and conditions.
Term insurance plans are cheaper compared to other life insurance policies.
LIC is trusted brand for over several decades.
This plan offers high sum assured rebate / discount on the premiums.
LIC Yuva Term Plan No 875 – Negative Factors
This plan comes with only 2 options on sum assured i.e. Level Sum assured and Increasing sum assured. There are several term insurance plans in the market that comes with over half a dozen of features which can be considered based on the need of the policy holder.
This plan is not available online. One should purchase this plan by approaching an agents.
Since it does not offer online plan, the premiums are generally higher. As an example, LIC Tech Term plan for 30 years old individual for 20 years term plan for Rs 50 Lakhs comes for Rs 5,250 premium per annum. However the same person need to pay Rs 5,950 under this LIC Yuva Term Plan. One can easily understand that such differnce in premium is majorly due to commissions to be paid to LIC agents.
LIC Yuva Term Plan No 875 – Should you opt or avoid?
LIC Yuva Term Insurance Plan is a pure term insurance plan that comes with level sum assured and increasing sum assured. LIC is a trusted brand for over decades. It provides high sum assured rebate too.
On the other side, this plan is offered offline only and one need to approach LIC agents / Corporate insurance agents to purchase this plan. Also this plan comes with higher premiums compared to LIC’s own Tech Term Plan while there are other plans too from private insurance companies.
If you are fan of LIC and looking for term insurance plan, you can review LIC Tech Term Plan which comes with lower premium compared to Yuva Term Plan from LIC. Alternatively you can check for other term insurance plans from private insurance companies too that comes with lower premiums, however has high claim settlement ratio.
This review is done based on the LIC Yuva Term Plan Policy Brochure.
Suresh KP is the Founder of Myinvestmentideas. He is NISM Certified – Investment Adviser and NISM Certified – Research Analyst. He has been analyzing financial markets in the last 20 years.He can be reached at suresh@myinvestmentideas.com Latest posts by Suresh KP (see all)
