LIC has recently launched 4 new plans. In this article, we are discussing one of those namely the LIC Yuva Term Plan. This article gives you complete information on the plan and finally the LIC Yuva Plan calculator that helps you calculate easily.
The LIC Yuva Term Plan 875 guarantees peace of mind. This plan is designed for young people and offers flexible premium payment options and special rates for non-smokers and women. It’s a great choice for protecting your loved ones’ future.
We know people interested in this Plan, need help with calculations, that’s why we have included the LIC Yuva Term Plan calculator for you. Before you could use that calculator, it is a good idea to have a basic understanding of the plan. You can know everything about the plan in the following sections. However, if you want to skip to the Calculator directly, CLICK HERE
What is LIC Yuva Term Policy?
The Yuva Term Plan is a term insurance policy by Life Insurance Corporation, designed to provide financial protection to your family in case of your untimely death. It is a pure risk cover plan, meaning it focuses solely on providing a death benefit without any maturity benefits or savings components.
Key Features
- Affordable Premiums: The plan offers high coverage at low premiums, making it accessible to young individuals looking to secure their family’s financial future.
- Sum Assured Options: You can choose between a Level Sum Assured, which remains constant throughout the policy term, or an Increasing Sum Assured, which grows annually to account for inflation and changing needs.
- Flexible Payment Options: You can pay premiums regularly, for a limited period (10 or 15 years), or as a single one-time payment.
- Optional Riders: You can enhance your coverage with additional riders, like the Accidental Death and Disability Benefit, which provides extra financial support in case of accidents.
With a starting sum assured of ₹50,00,000 and the ability to scale up your coverage, the LIC Yuva Term Plan 875 is both flexible and powerful. Plus, with attractive rebates for higher sums and special rates for non-smokers and women, it provides great value for money.
LIC Yuva Term Plan 875 : Information Chart
We have curated this table/Chart for you to understand every aspect of the LIC Yuva Term Plan.
| Feature | Details |
|---|---|
| Plan Type | Non-Participating, Non-Linked, Individual Pure Risk Plan |
| Death Benefit Options | ➡️ Level Sum Assured: Fixed throughout the policy term ➡️ Increasing Sum Assured: Increases by 10% each year from 6th to 15th policy year, doubling by the 15th year |
| Premium Payment Options | ➡️ Single Premium ➡️ Regular Premium ➡️ Limited Premium Payment (10 or 15 years) |
| Minimum Age at Entry | 18 years |
| Maximum Age at Entry | 45 years |
| Minimum Basic Sum Assured | ₹50,00,000 (Rs. 50 Lakhs) |
| Maximum Basic Sum Assured | ₹5,00,00,000 (Rs. 5 Crore) |
| Policy Term | ➡️ 15 to 40 years (Regular/Single/Limited Premium of 10 years) ➡️ 20 to 40 years (Limited Premium of 15 years) |
| Special Rates | Reduced premiums for women and non-smokers |
| High Sum Assured Rebate | Discounts available for higher sum assured |
| Grace Period | 30 days for payment of premiums |
| Revival Period | 5 years from the date of First Unpaid Premium |
| Surrender Value | No surrender value (except under certain conditions for Single and Limited Premium Payment options) |
| Loan Availability | No loans available under this plan |
| Maturity Benefit | No maturity benefit |
| Instalment Payment Option | Death benefits can be taken in Instalments over 5, 10, or 15 years |
| Interest Rate for Instalments | Based on 10-year semi-annual G-Sec yield minus 2% (5.07% effective rate for 2024-2025) |
| Interest Rate for Policy Revival | 9.50% per annum, compounded half-yearly (for 2024-2025) |
| Free Look Period | 30 days |
| Suicide Clause | ➡️ Regular/Limited Premium: 80% of total premiums paid if suicide occurs within 12 months from the start or revival of the policy ➡️ Single Premium: 80% of Single Premium paid if suicide occurs within 12 months from the start of the policy |
| Termination Conditions | Policy terminates on death benefit payment, maturity, surrender, lapse without revival, or forfeiture. |
LIC Yuva Term Plan Calculator
1. How to Calculate Premium?
To calculate the premium for the LIC Yuva Term Plan 875, you’ll need to consider the following:
- Age of the Policyholder: Younger policyholders generally pay lower premiums.
- Sum Assured: The amount of coverage you choose directly affects the premium.
- Premium Payment Option: Regular, Limited (10 or 15 years), or Single Premium.
- Sum Assured Option: Whether you choose Level or Increasing Sum Assured.
- Optional Riders: Adding riders like the Accidental Death and Disability Benefit increases the premium.
The premium is calculated by applying the base rate to the sum assured, adjusted for age and any selected riders.
2. How to Calculate Total Premium Amount Paid?
To calculate the total premium amount paid over the policy term:
- Regular Premium: Multiply the annual premium by the total number of years in the policy term.
- Limited Premium (10/15 years): Multiply the annual premium by 10 or 15 years, depending on your chosen option.
- Single Premium: The total premium is paid upfront as a lump sum.
3. How to Calculate Final Applicable Coverage Amount?
The final applicable coverage amount is determined by:
- Base Sum Assured: This is the primary coverage provided by the policy.
- Accidental Death Benefit: If the rider is selected, an additional amount equal to the base sum assured is added to the coverage in case of accidental death.
- Total Benefit: Add the base sum assured to the accidental death benefit (if applicable) to get the total coverage amount.
For example, if your base sum assured is ₹25,00,000 and you add the Accidental Death Benefit rider, the total coverage would be ₹50,00,000 in case of accidental death.
Understand These Before using Yuva Term Plan Calculator
Sum Assured Options
Information for you before using the Calculator –
The Level Sum Assured option provides a fixed coverage amount throughout the entire policy term. This means that the sum assured (the amount paid to your beneficiaries in case of an unfortunate event) remains constant and does not change over time. It’s ideal for individuals who want stable, predictable coverage without any fluctuations.
The Increasing Sum Assured option starts with a basic coverage amount, which increases by 10% of the original sum assured every year starting from the 6th policy year until the 15th year. By the 15th year, the coverage amount can double from the original sum assured. This option is suitable for those who want their coverage to keep pace with inflation or growing financial responsibilities over time.
Premium Payment Options
| Premium Payment Option | Description |
|---|---|
| Regular Premium | What It Is: The Regular Premium option requires the policyholder to pay premiums continuously throughout the entire policy term. Premium payments are typically made annually, semi-annually, quarterly, or monthly, depending on the policyholder’s preference. Example: If you choose a 20-year policy term, you’ll pay the premium every year (or according to your chosen payment frequency) for the full 20 years. Who It’s For: Ideal for individuals who prefer spreading out their premium payments over the entire duration of the policy and want to keep the annual cost relatively low. Key Benefit: Lower annual premium payments compared to single or limited premium options because the payments are spread out over a longer period. |
| Limited Premium (10 years) | What It Is: With the Limited Premium option, you only pay premiums for a shorter, specified period (in this case, 10 years), but the coverage continues for the full policy term. Example: If you select a 20-year policy term with a 10-year limited premium option, you’ll pay premiums only for the first 10 years. After that, no more premiums are required, but you’ll still have coverage for the remaining 10 years. Who It’s For: Suitable for individuals who anticipate a higher income or financial resources in the near future and want to finish paying off their premiums earlier. Key Benefit: Pay off your premiums sooner while still enjoying coverage for the entire policy term. However, the annual premium will be higher than the regular premium option because the payments are concentrated in fewer years. |
| Limited Premium (15 years) | What It Is: Similar to the 10-year option, but in this case, you pay premiums for 15 years, and coverage continues for the full policy term. Example: If you choose a 25-year policy term with a 15-year limited premium option, you’ll pay premiums only for the first 15 years. After that, the policy continues to cover you for the remaining 10 years without further payments. Who It’s For: A middle ground between regular and single premium payments, suitable for those who want to finish their payments earlier but prefer not to pay them all at once. Key Benefit: Allows you to complete your payments earlier with a slightly higher annual premium than the regular option, while still maintaining full-term coverage. |
| Single Premium | What It Is: The Single Premium option requires the policyholder to make a one-time lump-sum payment at the beginning of the policy. After this payment, no further premiums are due, but coverage continues for the entire policy term. Example: If you choose a 20-year policy term with a single premium option, you’ll pay the full premium amount upfront when the policy starts. After that, you have coverage for the entire 20 years without any additional payments. Who It’s For: Ideal for individuals who have sufficient funds available upfront and prefer not to deal with periodic payments. It’s also useful for those who want to simplify their financial planning by paying for the policy all at once. Key Benefit: No need to worry about future premium payments. This option often comes with a lower total cost compared to paying premiums regularly over many years. |
LIC Yuva Term Plan 875 – Premium & Death Benefit Calculator
Your Estimated Annual Premium: ₹
Total Premium Paid Over Policy Term: ₹0
Base Coverage Amount (Death Benefit): ₹0
Accidental Death Benefit: ₹0
Total Benefit Amount: ₹0
Yuva Term Plan FAQs
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