In the unfortunate event that you pass away during the policy term, your family will be financially protected by LIC’s Yuva Term Plan (UIN: 512N355V02), a non-participating, non-linked, individual, pure risk plan. There are two options for death benefits under this plan:
- Option I: Level Sum Assured – For the duration of the policy, the death benefit stays the same.
- Option II: Increasing Sum Assured – Beginning in the sixth policy year, the death benefit rises by 10% annually, reaching twice the basic sum assured by the fifteenth policy year. The death benefit stays at twice the basic sum assured starting in the sixteenth policy year.
LIC Yuva Term Plan 875
Plan No. 875 (UIN: 512N355V02) – Estimate Your Term Insurance Premium
Key Features
- Flexible Premium Payment Options: Choose from Single Premium, Regular Premium, or Limited Premium Payment.
- Policy Term Flexibility: Select a policy term that suits your financial goals.
- Death Benefit Options: Choose between Level Sum Assured or Increasing Sum Assured.
- No Maturity Benefit: This is a pure risk plan; no maturity benefit is payable.
- No Surrender Value: There is no surrender value in the plan. However, upon surrender, a sum equal to the Unexpired Risk Premium Value, if any, will be due under a Single Premium and Limited Premium payment policy.
- Instalment Option: Instead of receiving the death benefit all at once, choose to receive it in installments over a period of 5, 10, or 15 years.
Real-World Example
Examine a 30-year-old who chooses Option II (Increasing Sum Assured) and a Regular Premium payment plan with a Basic Sum Assured of ₹50 lakh. Beginning in the sixth policy year, the death benefit will rise by 10% annually of the basic sum assured. The death benefit will increase to ₹1 crore (double the basic sum assured) by the fifteenth policy year. The death benefit stays at ₹1 crore starting in the sixteenth policy year.
Why Choose LIC’s Yuva Term Plan?
- Affordable Premiums: It is a cost-effective choice for young people looking for financial security due to its competitive premium rates.
- Reputable Insurer: Backed by LIC, a trusted name in the Indian insurance industry.
- Flexible Options: Tailored to meet diverse financial needs and preferences.
Frequently Asked Questions (FAQs)
No, during the policy’s term, the death benefit option selected at the time of purchase cannot be altered.
According to current tax laws, the death benefit may be tax-free under Section 10(10D) and the premiums paid may be eligible for tax deductions under Section 80C of the Income Tax Act.
No, loans are not available against this policy.
There is a grace period for premium payments. The policy may lapse and all benefits will stop if premiums are not paid within the grace period
Expert Opinion
“LIC’s Yuva Term Plan is a great option for young people who want to affordably secure their family’s financial future. By keeping up with inflation, the increasing sum assured option guarantees complete protection. Delhi-based financial advisor