LIC’s Yuva Credit Life Plan

LIC’s Yuva Credit Life Plan

(A Non-Par, Non-Linked, Life, Individual, Pure Risk Plan)
LIC’s Yuva Credit Life plan is a Non-Par, Non-Linked, Life, Individual, Pure
Risk plan. This plan provides a safety net against any loan repayment to the
insured’s family in case of his/her unfortunate death during policy term.
This is a Non-par product where policies are not entitled for any share in
surplus (profits) during the term of the policy. This Plan can be purchased
Offline through Licensed agents, Corporate agents, Brokers and Insurance
Marketing Firms.
LIC’s Yuva Credit Life is a pure decreasing Term Assurance plan wherein
the death benefit will reduce over the term of the policy. The Policyholder
shall choose the Basic Sum Assured, Policy Term and Interest rate depending on the terms and conditions of loan. A Risk Cover Schedule shall be
prepared based on the Basic Sum Assured, Policy Term, and Interest rate
chosen by the Policyholder. The available interest rates for Risk Cover
Schedule are 6%, 7%, 8%, 9%,10%,11% and 12%, irrespective of the Interest
rate charged by the Loan provider on the loan availed by the Policyholder.
The Risk Cover Schedule shall show the Sum Assured on Death (i.e. Death
Benefit) for each Policy Year and shall be based on the chosen interest rate
p.a. effective on an equated yearly repayment basis, irrespective of the
actual loan repayment. At the inception, the Sum Assured on Death shall
be equal to the Basic Sum Assured and subsequently at each Policy Year,
Sum Assured on Death shall be as mentioned in the Risk Cover Schedule.
Therefore, death benefit as specified in the Risk Cover Schedule may be
higher or lower than the actual outstanding Loan..

1. Key Features
• Flexibility to
o Choose from Single Premium and Limited Premium Payment
o Choose the Policy Term/Premium Paying Term
• Special rates for women.
• Benefit of attractive High Sum Assured Rebate.
• Two categories of premium rates namely (1) Non-Smoker rates and (2)
Smoker rates. The application of Non-Smoker rates shall be based on the
findings of the Urinary Cotinine test. In all other cases, the Smoker rates
will be applicable.
• Choice of loan interest rate as appropriate to the policyholder at the inception of the policy.
2. Eligibility Conditions and Other Restrictions:
a) Minimum Age at entry : [18] years (Last Birthday)
b) Maximum Age at entry : [45] years (Last Birthday)
c) Minimum Age at Maturity : [23] years (Last Birthday)
d) Maximum age at Maturity : [75] years (Last Birthday)

e) Minimum Basic Sum Assured: ` 50,00,000/-.
(However, for eligible lives in the age group with Age at Entry from 21
years (Last Birthday) to 45 years (Last Birthday), Minimum Basic Sum
Assured shall be ` 20,00,000 where the insurance need is based on
the approved sanctioned loan from approved Financial Institutions/
NBFCs for specified purpose such as housing loan etc. Differential
premium rates shall apply for such age group for Basic Sum Assured from
` 20,00,000 to ` 35,00,000 in multiples of ` 1 lakh forwhich separate
premium rates shall apply.)
f) Maximum Basic Sum Assured: ` 5,00,00,000
Basic Sum Assured above ` 5,00,00,000 may be considered on case to
case basis in accordance with the underwriting decision as per the Board
Approved Underwriting Policy subject to the decision of the Reinsurer on
acceptance/Terms and Conditionsfor acceptance ofsuch cases.
The Basic Sum Assured shall be in multiples of amounts specified below:
Basic Sum Assured Range Basic Sum Assured Multiple
` 50,00,000 to ` 75,00,000 ` 1,00,000/-
Above ` 75,00,000 to ` 1,50,00,000 ` 25,00,000/-
Above ` 1,50,00,000 to ` 4,00,00,000 ` 50,00,000
Above ` 4,00,00,000 ` 1,00,00,000
g) Policy Term & Premium Payment Terms:
Policy Term Premium Payment Term
5 Years to 30 Years Single
10 Years to 30 Years 5 Years
15 Years to 30 Years 10 Years
25 Years to 30 Years 15 Years
h) Minimum Premium : The minimum instalment premium will be ` 3,000/-
for Limited premium policies and ` 13,000/- for Single premium policies.
(However, for Basic Sum Assured ` 20,00,000 to less than ` 50,00,000,
the minimum instalment premium, will be `2,400/- for Limited premium

policies and ` 8,040/- for Single premium policies.)
3. Benefits:
The benefits payable under an in-force policy are as under:
A. Death Benefit:
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 claim is admissible shall be
“Sum Assured on Death”.
For Limited premium payment policy, “Sum Assured on Death” is defined
as the higher of:
• 105% of “Total Premiums Paid” up to the date of death; or
• Absolute amount assured to be paid on death.
Where, “Total Premiums Paid” means the total of all premiums paid
under the base product, excluding any extra premium and taxes,
if collected explicitly. 

For Single premium policy, “Sum Assured on Death” is defined as :
• Absolute amount assured to be paid on death
Where Single Premium shall be the premium amount payable
excluding taxes and underwriting extra premiums.

Absolute amount assured to be paid on death shall be as specified in the Risk
Cover Schedule.
The Risk Cover Schedule shall show the Sum Assured on Death for each
Policy Year and shall be based on the chosen interest rate p.a. effective
on an equated yearly repayment basis, irrespective of the actual loan
repayment. At the inception, the Sum Assured on Death shall be equal to
the Basic Sum Assured and subsequently at each Policy Year, Sum Assured
on Death shall be as mentioned in the Risk Cover Schedule. Death Benefit
as specified in the Risk Cover Schedule may be higher or lower than the
actual outstanding loan.
B. Maturity Benefit:
On survival of the life assured to the end of the policy term, no maturity
benefit is payable.
4. Options Available Under The Plan ( In Case Of Early
Repayment of Loan):

If a Life Assured repays the outstanding loan before the end of the policy
term, he/she shall have the following two options:
• To surrender his/her insurance cover.
On such cancellation, an amount equal to Unexpired Risk Premium Value,
if any, as specified in Para 11 below shall be payable.
• To continue the policy till the end of the Policy Term.
In case of death of the Life Assured during the policy term, the death benefit
shall be payable to the nominee as per Risk Cover Schedule.

5. Payment of Premiums:
Premiums can be paid either under Limited Premium or Single Premium
payment options under this plan. In case of Limited Premium payment, the
premium can be paid regularly during the Premium Paying Term with modes of
premium payment yearly or half-yearly.
The premium payable will depend on the age at entry of the life to be assured,
smoking status, policy term, premium paying term, Basic Sum Assured and
interest rate chosen. For example, if loan has been taken by the Life Assured at
7.25 %, he/she can choose the rate of interest either 7% or 8% for the purpose of
preparation of Risk Cover Schedule.
Under Single premium, minimum premium shall be ` 13,000. Under Limited
Premium mode the minimum instalment premium shall be ` 3,000.
(However, for Basic Sum Assured ` 20,00,000 to less than ` 50,00,000,
the minimum instalment premium, will be ` 2,400/- for Limited premium policies
and ` 8,040/- for Single premium policies.)

6. Grace Period (Applicable For Limited Premium Payment):
A grace period of 30 days shall be allowed for payment of yearly or half-yearly
premiums from the date of First Unpaid Premium. During this period, the policy
shall be considered inforce with the risk cover without any interruption as per the
terms of the policy. If the premium is not paid before the expiry of the days of
grace, the Policy lapses.
All the benefits shall cease after the expiry of grace period from the date of First
Unpaid Premium under such policies and nothing shall be payable.
7. Sample Illustrative Premium:
The sample illustrative premiums for Male, Non-Smoker, Policy Term 25 years,
Basic Sum Assured of ` 50 Lakh for loan interest rate 8% are as under:
Age (Last
Birthday in
years)
Single
Premium
(in `)
Annual Premium
for Limited
Premium
Paying Term of 5
years (in `)
Annual
Premium
for Limited
Premium
Paying Term
of 10 years
(in `)
Annual
Premium
for Limited
Premium
Paying Term
of 15 years
(in `)
20 40,900 10,100 6,100 4,850
30 53,550 13,150 7,900 6,200
40 1,03,450 25,100 14,900 11,650
The above premiums are exclusive of taxes.
The sample Risk Cover Schedule for Policy Term 25 years and loan interest rate

8% is as under:
Policy
Year
Sum Assured
on Death for
the respective
policy year
Policy
Year
Sum Assured
on Death for
the respective
policy year
Policy
Year
Sum Assured
on Death for
the respective
policy year
1 1000.00 11 801.84 21 374.03
2 986.32 12 772.31 22 310.28
3 971.55 13 740.42 23 241.42
4 955.59 14 705.97 24 167.05
5 938.36 15 668.77 25 86.74
6 919.75 16 628.59
7 899.65 17 585.20
8 877.95 18 538.34
9 854.50 19 487.73
10 829.19 20 433.07
58. Rebates/Loadings:
The rebates / loadings for Base Plan are as under:
(i) High Sum Assured Rebate :The rebates applicable for both the premium
payments i.e. Limited Premium and Single Premium are as under:
Limited Premium:
Age Band
(LBD)
High SA rebate as a % of Tabular Annual Premium for
different Basic Sum Assured bands
` 20 Lakh to
less than
` 1 Crore
` 1 Crore to
less than
` 2 Crore
` 2 Crore to
less than
` 5 Crore
` 5 Crore and
above
Up to
30 years
Nil 17% 27% 37%
31 to 45
years
Nil 15% 25% 35%
Single Premium:
Age Band
(LBD)
High SA rebate as a % of Tabular Single Premium for different
Basic Sum Assured bands
` 20 Lakh to
less than
` 1 Crore
` 1 Crore to
less than
` 2 Crore
` 2 Crore to
less than
` 5 Crore
` 5 Crore and
above
Up to
30 years
Nil 15% 25% 33%
31 to 45
years
Nil 14% 24% 31%
(ii) Premium Conversion Factors (applicable for Limited Premium payment):
Mode Premium Conversion Factor
Yearly 1
Half-Yearly 0.51
9. Revival: (applicable for Limited Premium Payment)
If the premiums are not paid within the grace period, then the policy will
lapse. A lapsed policy can be revived during the life time of the Life Assured
but within a period of 5 consecutive complete years from the date of First
Unpaid Premium and before the date of maturity as the case may be. The
revivalshall be effected on payment of all the arrears of premium(s) together
with interest (compounding half yearly) at such rate as may be fixed by the
Corporation from time to time and on satisfaction of Continued Insurability of the Life Assured on the basis of information, documents and reports
that are already available and any additional information in this regard if
and as may be required in accordance with the Underwriting Policy of the
Corporation at the time of revival, being furnished by the Policyholder/Life
Assured.
The Corporation, however, reserves the right to accept at original terms,
accept with modified terms or decline the revival of a discontinued policy.
The revival of the discontinued policy shall take effect only after the same is
approved, accepted and revival receipt is issued by the Corporation
7
The rate of interest applicable for revival under this product for every 12
months’ period from 1st May to 30th Aprilshall not exceed 10 year G-Sec yield
p.a. compounding half yearly as at the last trading day of previous financial year
plus3%ortheyieldearnedontheCorporation’sNon-LinkedNon-Participating
Fund plus 1% whichever is higher. For the 12 month’s period commencing from
1st May, 2024 to 30th April, 2025, the applicable interest rate shall be 9.50%
p.a. compounding half yearly. The basis for determination of interest rate for
policy revival is subject to change.
If a lapsed policy is not revived within the revival period but before the Date

c) The date of maturity; or
d) On expiry of Revival Period, if the policy has not been revived within
the revival period; or
e) On payment of free look cancellation amount;or
f) In the event of forfeiture as specified in Para 13 above
15. Taxes:
Statutory Taxes, if any, imposed on such insurance plans by the Government of
India or any other constitutional Tax Authority of India shall be as per the Tax laws
and the rate of tax as applicable from time to time.
The amount of any applicable taxes, as per the prevailing rates, shall be payable
by the policyholder on premium(s) including extra premiums, if any) which shall
be collected separately over and above in addition to the premium(s) payable
by the policyholder. The amount of Tax paid shall not be considered for the
calculation of benefits payable under the plan.
Regarding Income tax benefits/implications on premium(s) paid and benefits
payable under this plan, please consult your tax advisor for details.
16. Free Look Period:
If the Policyholder is not satisfied with the “Terms and Conditions” of the policy,
the policy may be returned to the Corporation within 30 days from the date of
receipt of the electronic or physical mode of the Policy Document , whichever
is earlier, stating the reasons for objections. On receipt of the same, the Corporation shall cancel the policy and return the amount of premium deposited
after deducting the proportionate risk premium for the period of cover, expenses
incurred on medical examination (including special reports, if any) and stamp
duty charges.

17. Suicide Exclusion:
i) Under Limited Premium Policy:
If the Life Assured (whether sane or insane) commits suicide at any time within
12 months from the date of commencement of risk under the policy or from
the date of revival of the policy as applicable, the nominee or beneficiary of the
Life Assured shall be entitled to 80% of the total premiums paid (excluding any
extra premium and taxes if collected explicitly) till the date of death, provided
the policy is in force..
This clause shall not be applicable for a lapsed policy as nothing is payable under
such policies.
ii) Under Single Premium Policy:
If the Life assured (whether sane or insane) commits suicide at any time within
12 months from the date of commencement of risk under the policy, the Nominee or beneficiary of the Life Assured shall be entitled to 80% of the Single
Premium paid excluding any extra premium and taxes ,if collected explicitly.
18. Grievance Redressal Mechanism:
Of the Corporation:
The Corporation has Grievance Redressal Officers (GROs) at Branch/Divisional/
Zonal/Central Office to redress grievances of customers. The customers can
visitourwebsite (https://licindia.in/web/guest/grievances)fornames andcontact
details of the GROs and other information related to grievances.

For ensuring quick redressal of customer grievances the Corporation has
introduced Customer friendly Integrated Complaint Management
System through our Customer Portal (website) http://www.licindia.in, where a
registered policy holder can directly register complaint/ grievance and track its
status. Customers can also contact at e-mail id co_complaints@ licindia.com
for redressal of any grievances.
Claimants not satisfied with the decision of death claim repudiation have the
option of referring their cases for review to Zonal Office Claims Dispute Redressal
Committee or Central Office Claims Dispute Redressal Committee. A retired High
Court/ District Court Judge is member of each of the Claims Dispute Redressal
Committees.
Of IRDAI:
In case the customer is not satisfied with the response or do not receive
the response from us within 15 days, then the customer may approach the
Policyholder’s Protection and Grievance Redressal Department through any of
the following modes:
i) Calling Toll Free Number 155255/18004254732(i.e. IRDAI Grievance Call
Centre-(BIMA BHAROSA SHIKAYAT NIVARAN KENDRA))
ii) Sending an email to complaints@irdai.gov.in
iii) Register the complaint online at https://bimabharosa.irdai.gov.in
iv) Address for sending the complaint through courier/letter: General
Manager, Policyholders Protection and Grievance Redressal Department,
Insurance Regulatory and Development Authority of India, SurveyNo.
115/1, Financial District, Nanakramguda, Gachibowli, Hyderabad-500032,
Telangana
Of Ombudsman:
For redressal of Claims related grievances, claimants can also approach Insurance
Ombudsman who provides for low cost and speedy arbitration to customers.

SECTION 45 OF THE INSURANCE ACT, 1938:
The provision of Section 45 of the Insurance Act, 1938 as amended from
time to time shall be applicable. The current provision is as under:
(1) No policy of life insurance shall be called in question on any ground
whatsoever after the expiry of three years from the date of the policy, i.e.
from the date of issuance of the policy or the date of commencement of
risk or the date of revival of the policy or the date of the rider to the policy,
whichever is later.
(2) A policy of life insurance may be called in question at any time within three
years from the date of issuance of the policy or the date of commencement
of risk or the date of revival of the policy or the date of the rider to the
policy, whichever is later on the ground of fraud:
Provided that the insurer shall have to communicate in writing to the
insured or the legal representatives or nominees or assignees of the
insured the grounds and materials on which such decision is based.
Explanation I- For the purposes of this sub-section, the expression “fraud”
means any of the following acts committed by the insured or by his agent,
with the intent to deceive the insurer or to induce the insurer to issue a life
insurance policy:-

(a) the suggestion, as a fact of that which is not true and which the in
sured does not believe to be true;
(b) the active concealment of a fact by the insured having knowledge or
belief of the fact;
(c) any other act fitted to deceive; and
(d) any such act or omission as the law specially declares to be fraudulent.
Explanation II- Mere silence as to facts likely to affect the assessment of
the risk by the insurer is not fraud, unless the circumstances of the case
are such that regard being had to them, it is the duty of the insured or his
agent, keeping silence to speak, or unless his silence is, in itself, equivalent
to speak.
(3) Notwithstanding anything contained in subsection (2), no insurer shall
repudiate a life insurance policy on the ground of fraud if the insured can
prove that the misstatement of or suppression of a material fact was true
to the best of his knowledge and belief or that there was no deliberate
intention to suppress the fact or that such misstatement of or suppression
of a material fact are within the knowledge of the insurer:
Provided that in case of fraud, the onus of disproving lies upon the
beneficiaries, in case the policyholder is not alive.
Explanation – A person who solicits and negotiates a contract of insurance
shall be deemed for the purpose of the formation of the contract, to be the
agent of the insurer.
(4) A policy of life insurance may be called in question at any time within
three years from the date of issuance of the policy or the date of
commencement of risk or the date of revival of the policy or the date of
the rider to the policy, whichever is later, on the ground that any statement
of or suppression of a fact material to the expectancy of the life of the
insured was incorrectly made in the proposal or other document on the
basis of which the policy was issued or revived or rider issued:
Provided that the insurer shall have to communicate in writing to the
insured or the legal representatives or nominees or assignees of the
insured the grounds and materials on which such decision to repudiate the
policy of life insurance is based:
Provided further that in case of repudiation of the policy on the ground
of misstatement or suppression of a 0
(a) the suggestion, as a fact of that which is not true and which the in
sured does not believe to be true;
(b) the active concealment of a fact by the insured having knowledge or
belief of the fact;
(c) any other act fitted to deceive; and
(d) any such act or omission as the law specially declares to be fraudulent.
Explanation II- Mere silence as to facts likely to affect the assessment of
the risk by the insurer is not fraud, unless the circumstances of the case
are such that regard being had to them, it is the duty of the insured or his
agent, keeping silence to speak, or unless his silence is, in itself, equivalent
to speak.
(3) Notwithstanding anything contained in subsection (2), no insurer shall
repudiate a life insurance policy on the ground of fraud if the insured can
prove that the misstatement of or suppression of a material fact was true
to the best of his knowledge and belief or that there was no deliberate
intention to suppress the fact or that such misstatement of or suppression
of a material fact are within the knowledge of the insurer:
Provided that in case of fraud, the onus of disproving lies upon the
beneficiaries, in case the policyholder is not alive.
Explanation – A person who solicits and negotiates a contract of insurance
shall be deemed for the purpose of the formation of the contract, to be the
agent of the insurer.
(4) A policy of life insurance may be called in question at any time within
three years from the date of issuance of the policy or the date of
commencement of risk or the date of revival of the policy or the date of
the rider to the policy, whichever is later, on the ground that any statement
of or suppression of a fact material to the expectancy of the life of the
insured was incorrectly made in the proposal or other document on the
basis of which the policy was issued or revived or rider issued:
Provided that the insurer shall have to communicate in writing to the
insured or the legal representatives or nominees or assignees of the
insured the grounds and materials on which such decision to repudiate the
policy of life insurance is based:
Provided further that in case of repudiation of the policy on the ground
of misstatement or suppression of a Prohibition of Rebates (Section 41 of the Insurance Act, 1938)
1) No person shall allow or offer to allow, either directly or indirectly, as an
inducement to any person to take out or renew or continue an insurance
in respect of any kind of risk relating to lives or property in India, any
rebate of the whole or part of the commission payable or any rebate of the
premium shown on the policy, nor shall any person taking out or renewing
or continuing a policy accept any rebate, except such rebate as may be
allowed in accordance with the published prospectuses or tables of the
insurer.