LIC’s Yuva Term – Term Plan Features Benefits & Options

LIC’s Yuva Term is a pure-term plan that is non-participating, non-linked, and designed for individual pure-risk coverage. This plan offers monetary security to the insured’s loved ones if he or she passes away unexpectedly within the policy period. This plan provides flexibility to choose from two benefit options level sum assured and the increasing sum assured. This plan can be purchased online as well as offline. Key features and benefit details of this plan are given below.

LIC’s Yuva Term Plan

Key Features

• Flexibility to choose from two Death Benefit options: Level Sum Assured and Increasing Sum Assured
• Option to choose from Single Premium, Regular Premium, and Limited Premium options
• Option to select policy term/premium paying term
• Option for payment of benefits in installments
• Special rates for women
• The benefit of an attractive High Sum Assured Rebate
• Two categories of premium rates namely – (1) Non-Smoker rates and (2) Smoker rates

Eligibility Conditions

• Minimum Age at Entry – 18 years (Last Birthday)
• Maximum Age at Entry – 45 years (Last Birthday)
• Minimum Age at Maturity – 33 years (Last Birthday)
• Maximum age at Maturity – 75 years (Last Birthday)
• Minimum Basic Sum Assured – ₹ 50 Lakh
• Maximum Basic Sum Assured – ₹ 5 Cr (Based on Approval)

The basic sum assured shall be in multiples of the amount specified below –

Premium Payment Term – Regular, Limited Premium of 10 years, Limited Premium of 15 years, Single Premium 

Policy Term – 15 to 40 years under Regular/Single/Limited Premium of 10 years, 20 to 40 years under Limited Premium of 15 years

LIC Yuva Term Benefits

Death Benefit 

The amount of money to be paid out in the event of the Life Assured’s death during the policy term between the date when the risk began and the date of maturity, will be the “Sum Assured on Death” as long as the policy is active and the claim is valid.

In Regular premium and Limited premium payment modes, the “Sum Assured on Death” is the amount equal to the highest of –

• 7 times of Annualised Premium (excluding the taxes, rider premiums) or

• 105% of “Total Premiums Paid” till death (excluding any extra premium, and taxes) or

• Absolute amount assured to be paid on death

In the case of a Single premium payment, the “Sum Assured on Death” is the amount equal to the highest of –

• 125% of Single Premium (excluding the taxes, rider premiums) or

• Absolute amount assured to be paid on death.

The absolute amount assured to be paid on death shall depend on the Death Benefit Option chosen at the time of taking this policy and is as under:

Option I: Level Sum Assured

The absolute amount assured to be paid on death shall be an amount equal to Basic Sum Assured, which shall remain the same throughout the policy term.

Option II: Increasing Sum Assured

The absolute amount assured to be paid on death shall remain equal to the Basic Sum Assured till the completion of the fifth policy year. Thereafter, it increases by 10% of the Basic Sum Assured each year from the sixth policy year till the fifteenth policy year till it becomes twice the Basic Sum Assured. This increase will continue under an enforced policy till the end of the policy term; or till the Date of Death; or till the fifteenth policy year, whichever is earlier. From the sixteenth policy year and onwards, the absolute amount assured to be paid on death remains constant. 

Maturity Benefit 

If the life assured survives until the policy term ends, no maturity benefit will be paid.

Options for Death Benefits

LIC’s Yuva Term offers the option to take Death Benefits in installments. This is a choice to get Death Benefits in payments over a duration of 5, 10 or 15 years rather than a one-time payment under a policy that is still in effect. The Life Assured has the choice to use this option at any point during their life, whether it be for the entirety or only a portion of the Death benefits provided by the policy. The Life Assured can choose to receive the Net Claim Amount in either a specific amount or a percentage of the total claim proceeds.

Payment must be made in advance either yearly, half-yearly, quarterly, or monthly, as preferred, with a minimum amount required for each payment option. Details are given below.

If the Net Claim Amount is below the necessary amount to cover the minimum installment required based on the chosen option by the Life assured, the claim will be paid all at once.

LIC Yuva Term Premium illustration

The example premium rates for Option I (Level Sum Assured) and Option II (Increasing Sum Assured) for a Basic Sum Assured of ₹ 50 Lakh for Non-Smoker, Male, and Standard individuals with various Premium Payment options are provided below:

Option I Level Sum Assured –

The above premiums are exclusive of taxes.

Option II Increasing Sum Assured –

Conclusion

LIC Yuva Term Plan is a very good policy that offers higher coverage at an affordable premium rate. This plan also offers flexibility to choose between level sum assured and increasing sum assured. If you are not covered with a term plan you should evaluate the LIC Yuva Term Policy as an option.