A few days ago, LIC launched a new term insurance plan for young people called LIC Yuva Term Plan No 875. This is an offline term insurance plan that has to be purchased through an agent. In this article, LIC Yuva Term Insurance Plan No. 875 We provide details, eligibility criteria, advantages, disadvantages, and a complete review.
LIC Yuva Term Plan No 875 – Key Features
- LIC’s Yuva Term Plan is a non-par, non-linked, individual and pure risk plan.
- This plan provides financial protection to the family of the insured in case of the unfortunate death of the insured during the policy period. In simple terms, like any other term insurance, it provides risk protection in case of the death of the insured.
- This plan also offers a special rate for women.
- Flexibility to choose between two death benefit options: fixed benefit and increased benefit.
- Attractive high guaranteed discount benefits.
- Like some LIC plans, this plan also offers the option to take the death benefit in instalments over a period of 5, 10 or 15 years instead of a lump sum.This option can be exercised during the life of the insured.
- The plans can be purchased offline through licensed agents, corporate agents, brokers and insurance marketing companies.
LIC Yuva Term Plan No 875 – Eligibility
The eligibility criteria to avail this plan are as follows:
- Minimum age for entry – 18 years
- Minimum age for entry – 45 years
- Minimum age of adulthood – 33 years
- Maximum age of adulthood – 75 years
- Minimum Basic Assurance – Rs.50 Lakhs
- Maximum Basic Sum Assured – Rs 5 crore
- Insurance period and premium payment period:
- Premium payment period: Usually, 10-year limited premium, 15-year limited premium, single premium
- Insurance period: 15 to 40 years with 10-year term, lump sum and limited premiums
- Policy period: 20 to 40 years with a 15-year limited premium
- Premium Payment Period (PPT)The plan is offered in Regular Premium, 10 Year Limited Premium, 15 Year Limited Premium and Single Premium.
LIC Yuva Term Plan No 875 – Benefits
This plan offers the following benefits:
#1 – Death Benefit
In the unfortunate event of the insured’s death, the amount indicated in the “Death Benefit” column will be paid.
For ordinary and limited premium payments, the “death benefit” is defined as the greater of:
- 7 times the annualized premium or
- 105% of the total amount of premiums paid up to the date of death
- An absolute amount guaranteed to be paid on death.
In the case of a lump sum payment, the “death benefit” is defined as the greater of the following:
- 125% of the lump sum premium or
- An absolute amount guaranteed to be paid on death.
Various options available
The death benefit is paid based on the option selected by the policyholder.
- Option 1 (Level Guarantee) – With this option, the basic sum assured remains constant throughout the policy term. This amount is paid in the unfortunate event of the insured’s death.
- Option 2 (Increase insured amount) – With this option, your basic sum assured will remain the same until you complete the fifth year.Number After the end of the insurance period, the amount increases by 10% of the basic sum insured each year until the 15th year.Number Once the insurance period expires, the basic sum insured will be doubled.
#2 – Maturity or Surrender Profit
As this is a pure term insurance plan, there is no maturity benefit or surrender value.
LIC Yuva Term Plan No 875 – Sample Premium Illustrated
Sample premiums for both Option I (Fixed Sum Assured) and Option II (Increased Sum Assured) for a basic sum insured of 50 Lakh for a non-smoker, male, standard living individual under different premium payment options are as follows:
LIC Yuva Term Plan No 875 – Positive Factors
- This is a simple term insurance plan with not too complicated features and terms.
- Term insurance is less expensive than other types of life insurance.
- LIC has been a trusted brand for decades.
- This plan offers high deposit rebate/discount on premium.
LIC Yuva Term Plan No 875 – Negative Factors
- This plan has only two options regarding the sum assured – Fixed sum assured and Increasing sum assured. There are several term insurance plans in the market with more than six features that can be considered based on the needs of the policyholder.
- This plan is not available online, you must contact a representative to purchase this plan.
- As they do not offer online plans, the premiums are generally higher. For example, the LIC Tech Term plan for a 30-year-old individual is a 50 Lakhs term plan for 20 years with an annual premium of Rs 5,250. But the same person has to pay Rs 5,950 for this LIC Yuva Term plan. It is easy to understand that such a difference in premiums is mainly due to the commission paid to the LIC agent.
LIC Yuva Term Plan No 875 – Should You Choose It or Avoid It?
- LIC Yuva Term Insurance Plan is a pure term insurance plan with fixed and incremental cover. LIC is a trusted brand for decades. It also offers discounts on high sum assured.
- Meanwhile, this plan is only available offline and you will have to approach a LIC agent or a corporate insurance agent to buy this plan.Also, this plan has a higher premium compared to LIC’s own Tech Term plan and other plans by private insurance companies.
- If you are a fan of LIC and are looking for a term insurance plan, you can consider the LIC Tech Term Plan, which has a lower premium compared to LIC’s Yuva Term Plan. Alternatively, you can also check out term insurance plans from private insurers, which have lower premiums but higher claims processing rates.
This review is LIC Yuva Term Plan Insurance Brochure.
Suresh KP is the Founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and NISM Certified Research Analyst. He has been involved in analyzing financial markets for the last 20 years. He can be reached at suresh@myinvestmentideas.com.
