Life Insurance Corporation has launched four new insurance plans. These plans are term insurance plans. The names of these plans are LIC Yuva Term, LIC Digi Term, LIC Yuva Credit Life, LIC Digi Credit Life.
Life Insurance Corporation of India (LIC) has launched new term life insurance plans LIC Yuva Term, LIC Digi Term, LIC Yuva Credit Life, LIC Digi Credit Life to provide term insurance and security for loan repayment. These plans are available both online and offline.
LIC has introduced term insurance plans to cover loan liabilities such as housing, education and vehicle to act as a security net for loan repayment to the relatives of the insured.
LIC has launched LIC Yuva Term for offline customers and LIC Digi Term for online customers. LIC Yuva Credit Life for offline customers, LIC Digi Credit Life, which is available online only.
What is LIC Yuva Term/Digi Term?
LIC Yuva Term/Digi Term is a non-par, non-linked, life, individual, pure risk plan that provides financial security to the family of the policyholder in case of unfortunate death of the policyholder during the policy term. It is a non-par product under which the benefit payable on death is guaranteed.
What will be the Basic Sum Assured?
- The Basic Insurance Amount shall be in multiples of the amount specified below:
- Basic Sum Assured Limit Sum Assured Multiple
- Rs. 50,00,000 to Rs. 75,00,000 = Rs. 1,00,000
- Rs. 75,00,000 to Rs. 1,50,00,000 = Rs. 25,00,000
- Rs. 1,50,00,000 to Rs. 4,00,00,000 = Rs. 50,00,000
- Above Rs. 4,00,00,000 = Rs. 1,00,00,000
Premium Payment
Under Single Premium Payment, the death benefit is 125% of the single premium paid or full sum assured paid on death.
Special low premium rates for women
- The amount payable on death of the life insured under regular premium and limited premium payment plans is higher of 7 times the annual premium or 105% of the total premiums paid till the date of death or a fixed amount payable on death.
- A non-par, non-linked, life, individual, pure risk plan which provides financial security to the family of the life insured in case of his/her unfortunate death during the policy term. It is a non-par product under which the death benefit payable is guaranteed.
- The minimum age at entry is 18 years (last birthday). The maximum age at entry is 45 years (last birthday). The minimum age at maturity is 33 years (last birthday) and the maximum age at maturity is 75 years (last birthday).
What is Death and Maturity Benefit
Death Benefit
The death benefit payable on death of the Life Assured during the policy term after the date of commencement of risk but before the date of maturity, provided the policy is in force and the claim is admissible, shall be the “Sum Assured on Death”.
Under Regular Premium and Limited Premium Payment, “Sum Assured on Death” is defined as higher of the following:
- 7 times the annual premium or
- 105% of “total premiums paid” till the date of death or
- Full Sum Assured payable on death.
- Under Single Premium Payment, “Sum Assured on Death” is defined as higher of the following:
- 125% of Single Premium; or
- Full Sum Assured payable on death.
Maturity Benefit: If the Life Assured survives till the end of the policy term, no maturity benefit is payable.
What is LIC’s Yuva Credit Life/Digi Credit Life?
LIC’s Yuva Credit Life/Digi Credit Life is a non-par, non-linked, life, individual, pure risk plan. It is a pure decreasing term insurance plan in which the death benefit will reduce during the policy term.
What is the Basic Sum Assured?
The Basic Sum Assured will be in multiples of the amounts specified below: Basic Sum Assured Limit Basic Sum Assured Multiples 50,00,000 to 75,00,000 = 1,00,000 75,00,000 to 1,50,00,000 = 25,00,000 1,50,00,000 to 4,00,00,000 = 50,00,000 More than 4,00,00,000 = 1,00,00,000. Minimum age at entry is 18 years (last birthday). Maximum age at entry is 45 years (last birthday). Minimum age at maturity is 23 years (last birthday) and maximum age at maturity is 75 years (last birthday).
Special low premium rates for women
- Option of loan interest rate suitable to the policyholder at the inception of the policy
- The amount payable on death of the Life Assured during the policy term provided the policy is in force and claims are admissible shall be the Sum Assured on Death. What is Death and Maturity Benefit
- The death benefit payable on death of the Life Assured during the policy term after the date of commencement of risk but before the stipulated date of maturity, provided the policy is in force and claims are admissible, shall be the “Sum Assured on Death”.
In a limited premium payment policy, “Sum Assured on Death” is defined as:
- 105% of the “total premiums paid” till the date of death; or
- Full Sum Assured payable on death.
- Where, “total premiums paid” means the sum of all premiums paid under the base product,
- excluding any extra premium and taxes,
- if expressly collected.
For Single Premium policies, “Sum Assured on Death” is defined as:
The full sum assured payable on death
Premium Payment
- Where Single Premium shall be the premium amount payable excluding taxes and underwriting extra premiums.
- Maturity Benefit: If the Life Assured survives till the end of the policy term, no maturity benefit is payable.
