Insurance News Details

LIC unveils its four new term & credit life insurance policies

(07-Aug-24   11:09)

Life Insurance Corporation of India (LIC) has announced the launch of four new policies namely 'Yuva Term, Digi Term, Yuva Credit Life , and Digi Credit Life' are effective from August 5, 2024, which provides a comprehensive term insurance, and financial protection against loan repayments. The plans are available online and offline.

'LIC's Yuva Term is available offline through our intermediaries and LIC's Digi Term is available online only through our website. The purpose of these products is to cater to youngsters who wish to take Term insurance in initial stages of life and give them a wider choice to buy offline or online,' said the company in a press release.

Due to the fact that more individuals are using loan facilities for a variety of reasons, LIC has introduced a term insurance plan to cover loan liabilities such as housing, education, and vehicles in order to act as a safety net against loans reimbursements to the insured's relatives, according a press release issued by LIC.

LIC's Yuva Term / Digi Term is a Non-Par, Non-Linked, Life, Individual, Pure Risk Plan, which provides financial protection to the insured's family in case of his/her unfortunate death during the policy term.

This is a non-par product under which benefits payable on death are guaranteed. Benefit of attractive High Sum Assured Rebate.

Eligibility: Minimum entry age of 18 years and maximum entry age of 45 years. Maturity age ranges from 33 to 75 years.

Sum assured: Minimum of Rs 50 lakh and a maximum of Rs 5 crore Higher sums assured may be considered in some cases.

The Basic Sum Assured shall be in multiples of amount specified below:

Basic Sum Assured range Sum Assured Multiple

From Rs 50,00,000 to Rs 75,00,000 = Rs 1,00,000

Above Rs 75,00,000 to Rs 1,50,00,000 = Rs 25,00,000

Above Rs 1,50,00,000 to Rs 4,00,00,000 =Rs 50,00,000

Above Rs 4,00,00,000 =Rs 1,00,00,000

Premium rebate: Attractive rebates for high sums assured and lower premium rates for women.

Death benefit: For regular and limited premium payments, the benefit is seven times the annualised premium or 105 per cent of total premiums paid, or the absolute amount assured. For single premium payment, the benefit is 125 per cent of the single premium or the absolute amount assured.

Under Single premium payment, death benefit is 125% of Single Premium or Absolute amount assured to be paid on death.

Maturity Benefit: On survival of the life assured to the end of the policy term, no maturity benefit is payable.

LIC's Yuva Credit Life / Digi Credit Life

LIC's Yuva Credit Life/ Digi Credit Life is a non-par, non linked, Life, individual, pure risk plan. It is a pure decreasing term assurance plan wherein the death benefit will reduce over the term of the policy.

Eligibility: Minimum entry age of 18 years and maximum entry age of 45 years. Maturity age ranges from 23 to 75 years.

Sum assured: Minimum of Rs 50 lakh and a maximum of Rs 5 crore

The Basic Sum Assured shall be in multiples of amounts specified below:

Basic Sum Assured Range Basic Sum Assured Multiple

Rs 50,00,000 to Rs75,00,000 = Rs 1,00,000

Above Rs 75,00,000 to Rs 1,50,00,000 = Rs 25,00,000

Above Rs 1,50,00,000 to Rs 4,00,00,000 = Rs 50,00,000

Above Rs 4,00,00,000 = Rs 1,00,00,000.

Premium: Attractive rebates for high sums assured and lower premium rates for women.

Loan interest rate choice: Policyholders can select the loan interest rate at policy inception.

Death benefit: Amount payable on death of Life Assured during the policy term provided policy is in force and the claim admissible shall be Sum Assured on Death.

For Limited premium payment policy, 'Sum Assured on Death' is defined as the higher of: i) 105% of 'Total Premiums Paid' up to the date of death; or ii) 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.

Maturity Benefit: On survival of the life assured to the end of the policy term, no maturity benefit is payable.

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