Yuva Term, Digi Term, Yuva Credit Life, Digi Credit Life: 4 New LIC Insurance Policies. Is It Worth Investing?

State-owned Life Insurance Corporation of India (LIC) has launched four term life insurance plans tailored to the needs of the new generation, offering term insurance and loan repayment protection – Yuva Term by LIC, Digi Term by LIC, Yuva Credit Life by LIC, Digi Credit Life by LIC.

These plans, which are available online and offline, have been introduced to cover loan obligations for housing, education and vehicles. This plan serves as a safety net against loan repayments for the relatives of the insured. The introduction of this plan is in response to the growing trend of people availing loan facilities for various purposes, a press release issued by LIC said.

Yuva term and Digi term by LIC

Yuva Term and Digi Term from LIC are individual, unrelated life plans that provide financial protection to the family of the insured in case of his/her accidental death during the policy period.

This is a non-par product, under which benefits are guaranteed to be paid in the event of death. Benefit from an attractive High Sum Assured Rebate. A non-product or non-participating insurance plan is a special type of insurance policy characterized by the absence of dividends or bonuses linked to the profits of the insurance company. Unlike participating plans, non-par products provide fixed benefits at the expiry of the policy or in the event of the death of the insured, along with promised bonuses contingent on full payment of premiums.

Plan Features

> Special lower premium rates for women
> The amount payable in the event of death of the life insured with regular and limited premiums is seven times the annual premium or 105% of the total amount of premiums paid to the date of death, or the absolute amount of the insurance that will be paid in the event of death.
> Minimum age at the time of entry is 18 years (last birthday). Maximum age at the time of entry is 45 years (last birthday)
> The minimum age of maturity is 33 years (last birthday) and the maximum age of maturity is 75 years (last birthday).
> In the case of a lump sum premium, the death benefit is 125% of the lump sum premium or the total guaranteed amount that will be paid in the event of death.
> If the insured person survives until the end of the policy period, the lifetime pension benefit is not paid.

Basic insurance amount

Here is the calculation of the Basic Insurance Sum, which will be a multiple of the following amounts:

Basic scope of the insurance sum Insurance sum multiple

From 50,00,000 rupees to 75,00,000 rupees = 1,00,000 rupees
Above 75,00,000 rupees up to 1,50,00,000 rupees = 25,00,000 rupees
Above 1,50,00,000 rupees up to 4,00,00,000 rupees = 50,00,000 rupees
Above 4,00,00,000 rupees = 1,00,00,000 rupees

Death benefit

The death benefit that is paid if the Insured dies during the policy period after the risk commences but before the expiry date will be the ‘Death Benefit’. This benefit will be provided only if the policy is active, valid and the claim is considered acceptable.

In the case of regular premium and limited premium, the “death insurance sum” is defined as the highest of the following amounts:

• 7 times the annual premium; or
• 105% of the “Total Premiums Paid” until the date of death; or
• The total guaranteed amount that will be paid in the event of death.

Yuva Credit Life and Digi Credit Life

Yuva Credit Life/Digi Credit Life by LIC is a Non-Par, Non Linked, Life, Individual, Pure Risk Plan. It is a pure decreasing Term Assurance plan where the death benefit will decrease during the policy tenure.

Basic insurance amount

The basic insurance sum will be a multiple of the amounts specified below:
Basic insurance sum scope Basic insurance sum multiple

From 50,00,000 to 75,00,000 rupees = 1,00,000 rupees
Above 75,00,000 rupees up to 1,50,00,000 rupees = 25,00,000 rupees
Above 1,50,00,000 rupees up to 4,00,00,000 rupees = 50,00,000 rupees
Above 4,00,00,000 rupees = 1,00,00,000 rupees.

Basic functions

> Special lower premium rates for women
> Minimum age at the time of entry is 18 years (last birthday). Maximum age at the time of entry is 45 years (last birthday)
> The minimum age of maturity is 23 years (last birthday) and the maximum age of maturity is 75 years (last birthday).
> Benefit from an attractive, guaranteed high-amount discount.
> Choosing the loan interest rate that will be appropriate for the insured at the time of taking out the policy
> The amount payable in the event of the death of the insured under regular contribution plans and limited contribution plans is calculated as follows:
7 times the annual premium or
105% of the total amount of premiums paid until the date of death or
The total guaranteed amount that will be paid in the event of death.
> If the insured person survives until the end of the policy period, the lifetime pension benefit is not paid.

Death benefit

Death benefit is paid in the event of the death of the insured person during the policy period after the risk commences but before the maturity date, provided the policy is active and the claim is considered acceptable. The amount paid in such case will be the “Death Sum Insured”.

For regular premiums and limited premiums, the term “death benefit” refers to the highest of the following amounts:

Seven times the annual premium; or
105% of the “Total Premiums Paid” until the date of death; or
The total amount that will be provided in the event of death.