LIC Yuva Credit Life Plan
What Is LIC’s Yuva Credit Life Plan?
LIC’s Yuva Credit Life is a non-participating, non-linked, pure risk decreasing term insurance specifically designed to protect outstanding loans in the event of the policyholder’s death during the policy term LIC India+15LIC India+15Probus Insurance+15.
The death benefit decreases over time following a Risk Cover Schedule that mirrors standard loan amortization
Available through LIC agents, brokers, and offline channels
Launched on 06 August 2024
Key Features
Pure risk protection covering outstanding loan liabilities
Premium options:
Single premium at inception
Limited premium paid over 5, 10, or 15 yearsCustomizable Risk Cover Schedule with interest rates selectable from 6 % to 12 %, regardless of loan provider’s rate Offers non-smoker and smoker rates (cotine-tested), plus special female rates and high sum-assured rebates
Eligibility Criteria
| Criteria | Minimum | Maximum |
|---|---|---|
| Entry Age | 18 years | 45 years |
| Maturity Age | 23 years | 75 years |
| Basic Sum Assured (BSA) | ₹50 Lakh | ₹5 Crore (higher on case-to-case) |
Minimum BSA may be ₹20 Lakh for loan-based coverage ages 21–45
Policy terms range between 5–30 years, with premium terms of 5, 10, or 15 years .
Instalment premium minimum: ₹3,000 (limited), ₹13,000 (single); for ₹20–50 Lakh BSAs: ₹2,400/₹8,040
Benefits
1. Death Benefit
Paid if you die during the policy term, amounting to the “Sum Assured on Death” per Risk Cover Schedule
Limited Premium: Higher of (a) 105% of premiums paid or (b) BSA amount
Single Premium: Absolute specified sum under Risk Cover Schedule
2. No Maturity Benefit
No payout at policy maturity — plan is solely designed for loan protection
3. Early Loan Repayment Options
Option to surrender cover and receive Unexpired Risk Premium Value, or
Continue policy until end of term for death benefits as per schedule
4. Surrender and Paid-Up Value
No traditional surrender or paid-up values.
Unexpired Risk Premium Value payable for:
Single premium anytime;
Limited premium after 2 years (5-year PPT) or 3 years (10/15-year PPT)
5. Grace Period & Revival
30-day grace for instalment payment without coverage lapse .
Revival interest aligned with 10-year G-Sec; unpaid risks refundable during revival
6. Suicide Clause
Limited Premium: 80% refund of premiums paid (excluding tax/extras) if suicide occurs within 12 months .
Single Premium: 80% of premium if suicide within 12 months .
Additional Details
Policy Termination upon death payout, policy maturity, surrender, revival expiry, free-look cancellation, or policy forfeiture under Section 45
Taxes (e.g. GST) applicable separately on premiums .
Free-look period: 30 days from receipt + medical cost & stamp duty deductions
Grievance Redressal per LIC internal mechanisms and IRDAI guidelines with escalation to Ombudsman after 15 days
Summary
LIC’s Yuva Credit Life Plan (877) is a flexible, loan-aligned, pure risk term cover ideal for borrowers aged 18–45. You select BSA, policy term (5–30 yrs), payment scheme, and interest rate. There’s no maturity payout, and death benefits decline yearly to match loan repayment. It includes valuable features like early surrender, premium refund options, and smoker/non-smoker/female rate distinctions.
