LIC of India has launched 4 new plans for providing Term insurance and cover against loan repayments. The plans are namely:
- LIC Yuva Term
- LIC Digi Term
- LIC Yuva Credit Life
- LIC Digi Credit Life
Let’s see these policies in detail now.
LIC Yuva Term / LIC Digi Term Plan
LIC’s Yuva Term / Digi Term is a Non-Par, Non-Linked, Life, Individual, Pure Risk Plan, which provides financial protection to the insured’s family in case of his/her unfortunate death during the policy term. This is a non-par product under which benefits payable on death are guaranteed.
These two policies are the same but available via different modes. While LIC’s Yuva Term is available offline through LIC agents, the other plan namely LIC Digi Term is only available online via the LIC website.
- Minimum Age at Entry is 18 year
- Maximum Age at Entry is 45 years
- Minimum Age at maturity is 33 years
- Maximum Age at maturity is 75 years
- Minimum Basic Sum Assured is Rs 50 lakh
- Maximum Basic Sum Assured is Rs 5 Crore
The Amount payable on death of Life Assured under Regular premium and Limited premium payment is 7 times of Annualised Premium or 105% of Total Premiums paid up to the date of death or Absolute amount assured to be paid on death. Under Single premium payment, the death benefit is 125% of the Single Premium or Absolute amount assured to be paid on death.
The purpose of these products is to cater to youngsters who wish to take Term insurance in the initial stages of life and give them a wider choice to buy offline or online.
LIC Yuva Credit Life / LIC Digi Credit Plan
LIC’s Yuva Credit Life / Digi Credit Life (Plan No. 512N357V01) is a Non-Par, Non-Linked, Life, Individual, Pure Risk Plan. It is a pure decreasing Term Assurance plan wherein the death benefit will be reduced over the term of the policy. This is a product to cover the loan liabilities (like housing/education/vehicle etc) through term insurance. So in this policy, there will be a pure decreasing Term Assurance plan wherein
the death benefit will reduce over the term of the policy.
These two policies are the same but available via different modes. While LIC’s Yuva Credit Life is available offline through LIC agents, the other plan namely LIC Digi Credit Plan is only available online via the LIC website.
- Minimum Age at Entry is 18 year
- Maximum Age at Entry is 45 years
- Minimum Age at maturity is 23 years
- Maximum Age at maturity is 75 years
- Minimum Basic Sum Assured is Rs 50 lakh
- Maximum Basic Sum Assured is Rs 5 Crore
This is a product to cover the loan liabilities (like housing/education/vehicle etc) through term insurance.