LIC’s Yuva Term: A Comprehensive Guide to a Pure Risk Life Insurance Plan

Introduction

Life Insurance Corporation of India (LIC) introduces Yuva Term (UIN: 512N355V01), a Non-Participating, Non-Linked, Pure Risk Plan designed to provide robust financial protection to the insured’s family in case of their unfortunate death during the policy term. This plan ensures guaranteed and fixed death benefits, making it a reliable choice for securing your family’s financial future.

Key Features

• Death Benefit Options: Choose between Level Sum Assured and Increasing Sum Assured.
• Premium Flexibility: Options for Single Premium, Regular Premium, and Limited Premium Payment.
• Policy Customization: Choose the Policy Term and Premium Paying Term, with an option for benefit payment in instalments.
• Special Benefits for Women: Attractive premium rates for women.
• High Sum Assured Rebate: Avail discounts on high sum assured amounts.
• Non-Smoker & Smoker Rates: Premium rates categorized based on smoking habits, determined by the Urinary Cotinine test.

Eligibility Conditions and Restrictions

• Minimum Age at Entry: 18 years
• Maximum Age at Entry: 45 years
• Minimum Age at Maturity: 33 years
• Maximum Age at Maturity: 75 years
• Sum Assured: Minimum ₹50,00,000, maximum ₹5,00,00,000 (with consideration for higher amounts based on underwriting decisions)

Policy Terms and Premium Payment Options

• Premium Payment Term: Regular, Limited (10 or 15 years), Single
• Policy Term: 15 to 40 years for Regular, Single, and Limited (10 years); 20 to 40 years for Limited (15 years)
• Minimum Premium: ₹3,000 for Regular/Limited, ₹30,000 for Single

Benefits

Death Benefit

• Regular and Limited Premium: Highest of 7 times the Annualized Premium, 105% of Total Premiums Paid, or Absolute amount assured.
• Single Premium: Higher of 125% of Single Premium or Absolute amount assured.

Absolute Amount Assured depends on the chosen Death Benefit Option:

• Option I: Level Sum Assured: Basic Sum Assured remains constant.
• Option II: Increasing Sum Assured: Basic Sum Assured increases by 10% each year from the sixth to fifteenth policy year, doubling by the end of the fifteenth year.

Maturity Benefit

• No maturity benefit is payable.

Options Available

Death Benefit in Instalments

• Receive Death Benefits in instalments over 5, 10, or 15 years instead of a lump sum.
• Instalments paid in advance at intervals (monthly, quarterly, half-yearly, yearly) with specified minimum amounts.

Premium Payment

• Modes: Yearly or Half-Yearly for Regular and Limited; Single Premium
• Factors: Premium depends on age at entry, smoking status, gender, policy term, Premium Paying Term, and Death Benefit Option.

Grace Period

• 30 days for payment of yearly or half-yearly premiums from the First Unpaid Premium date, with continuous risk cover.

Sample Premiums

For a Basic Sum Assured of ₹50 Lakh, Non-Smoker, Male, Standard lives:

Option I: Level Sum Assured

• Age 20, Policy Term 20: Regular – ₹4,550, Limited (15 years) – ₹5,250, Limited (10 years) – ₹6,600, Single – ₹44,350
• Age 30, Policy Term 20: Regular – ₹5,950, Limited (15 years) – ₹6,850, Limited (10 years) – ₹8,750, Single – ₹59,550

Option II: Increasing Sum Assured

• Age 20, Policy Term 20: Regular – ₹5,850, Limited (15 years) – ₹6,750, Limited (10 years) – ₹8,550, Single – ₹58,400
• Age 30, Policy Term 20: Regular – ₹8,250, Limited (15 years) – ₹9,600, Limited (10 years) – ₹12,250, Single – ₹84,950

Rebates and Revival

• High Sum Assured Rebate: Discounts based on Sum Assured and age.
• Revival: Lapsed policy can be revived within 5 years with payment of arrears and interest, subject to underwriting.

Other Key Points

• No Paid-Up Value: The plan does not offer a paid-up value.
• Surrender Value: Available under specific conditions for Single and Limited Premium policies.
• No Loan Facility: No loan available against this policy.
• Free Look Period: 30 days to review the policy and return if not satisfied.
• Suicide Clause: Limited benefits payable if the insured commits suicide within 12 months.

Conclusion

LIC’s Yuva Term is a comprehensive term insurance plan offering substantial financial protection with flexible premium and policy terms. With special rates for non-smokers and women, and the option to increase the sum assured over time, this plan caters to a wide range of needs. Secure your family’s future with LIC’s Yuva Term and ensure their financial stability even in your absence.