LIC Yuva Term (Plan No. 875, UIN 512N355V01) is a non‑linked, non‑participating, pure term insurance plan specially designed for young earners. It offers high life cover at relatively low premiums, with flexible premium‑payment options and death‑benefit structures to protect your family during your prime working years.
Key features
- Pure protection (no maturity benefit): Benefits are payable only on death during the policy term; there is no survival or maturity payout.
- Two death benefit options: Level Sum Assured and Increasing Sum Assured, allowing you to choose steady or growing cover.
- Multiple premium‑payment options: Regular premium, Limited premium (10 or 15 years) and Single premium.
- Flexible policy term: 15 to 40 years for Regular, Single and 10‑year Limited premium; 20 to 40 years for 15‑year Limited premium.
- Attractive premium rates for young lives, women and non‑smokers, with rebates for higher sum assured bands as per LIC rules.
- Option to receive death benefit as lump sum or in instalments (monthly/quarterly/half‑yearly/yearly) for 5, 10 or 15 years, subject to minimum instalment criteria.
Eligibility and basic parameters
Typical eligibility conditions as per current product details are:
- Minimum entry age: 18 years (last birthday).
- Maximum entry age: 45 years (last birthday).
- Minimum maturity age: 33 years (last birthday).
- Maximum maturity age: 75 years (last birthday).
- Policy term:
- Minimum Basic Sum Assured: ₹50,00,000.
- Maximum Basic Sum Assured: ₹5,00,00,000 (₹5 crore), subject to underwriting.
- Premium payment term: Regular, Limited 10 years, Limited 15 years, or Single premium.
- Premium modes (where applicable): Yearly, half‑yearly, quarterly, monthly via NACH/auto‑debit as per LIC norms.
Death benefit (how it works)
If the life assured dies during the policy term and all due premiums have been paid, the nominee receives the Sum Assured on Death as per the option and premium pattern chosen, subject to policy conditions.
For Regular and Limited premium options, Sum Assured on Death is defined as the highest of:
- A multiple of annualised premium (for example 7 times),
- 105% of total premiums paid up to date of death (excluding taxes, extra and rider premiums), or
- Absolute amount assured to be paid on death (as per Level or Increasing option).
For Single premium option, Sum Assured on Death is the higher of:
Under the Increasing Sum Assured option, the “absolute amount assured to be paid on death” generally increases by a fixed percentage after a certain policy year and becomes twice the Basic Sum Assured from the 16th policy year onwards, remaining constant thereafter till end of term.
Who should consider LIC Yuva Term?
- Young professionals (typically 20s and early 30s) looking to lock in a large cover at low premiums early in life.
- First‑time earners who want to protect parents, spouse or future dependents while income and responsibilities are expected to grow quickly.
- Individuals planning for inflation‑adjusted protection via Increasing Sum Assured rather than taking a flat cover throughout.
- Customers who like flexibility in paying premiums (single, limited‑pay or regular) and in how their family receives the claim (lump sum vs instalments).
Example: A 25‑year‑old software engineer chooses a ₹1 crore Yuva Term policy for 35 years with increasing cover and 15‑year limited premium, so premiums stop by age 40 but the protection continues till 60, with death benefit growing and then staying at double the Basic Sum Assured after the 15th policy year.
Important points and disclaimers
Tax benefits (for example under sections 80C and 10(10D)) are subject to the Income‑tax Act and may change; investors should consult their tax advisor for personalised guidance.
LIC Yuva Term is a pure risk plan: there is no maturity value if the life assured survives the term, and surrender value is limited as per policy conditions.
Exact premiums, rider availability, medical requirements and underwriting decisions depend on age, sum assured, term, lifestyle and health disclosures.
Clients should refer to the official LIC Yuva Term sales brochure, policy document and Customer Information Sheet for full terms, conditions, exclusions and definitions.