Life Insurance Corporation (LIC) regularly introduces new insurance plans. Most recently, the company launched new policies that provide death benefits to the family upon the policyholder’s passing.
Nowadays, people take out loans for various needs, such as home Loans, Education Loans, Vehicle Loans, etc. If something suddenly happens to the borrower, the family members become responsible for the loan, which becomes a huge burden. The new term plans brought by LIC will protect the family members from the burden of debt obligations.
This helps protect the family from any debts incurred by the policyholder. Siddharth Mohanty, the CEO and MD of LIC, unveiled these new plans, which are available both online and offline. The newly introduced policies include Yuva Term, Digi Term, Yuva Credit Life, and Digi Credit Life.
Regarding the ‘Yuva Term’ and ‘Digi Term’ policies, LIC pays the policyholders’ families upon their death. While these non-participating policies may not generate substantial profits, the family is assured of receiving the amount paid by the policyholder.
The Yuva Term policy can be acquired through an agent, while the Digi Term policy is exclusively available on LIC’s website.
The ‘Yuva Credit Life’ and ‘Digi Credit Life’ policies offer protection against loan repayments. It is common to take out loans for various reasons, such as purchasing a home, obtaining an education, or buying a car.
This credit life policy ensures that if the policyholder dies without having fully repaid the loan, their family will not be responsible for the remaining debt.
LIC Information
However, these policies’ death benefits diminish over time. This means that if the policyholder passes away after a few years, the family will receive less money than they would have earlier on.
A ‘Yuva Credit Life’ plan can be obtained through any agent, while the ‘Digi Credit Life’ scheme is available exclusively through LIC’s website.
Key features of the policies:
- LIC’s new insurance policies are available to individuals aged 18 to 45.
- The minimum sum assured for the Yuva and Digi term plans is Rs.50 lakh, with a maximum coverage of up to Rs. 5 crore.
- The minimum age required to close the policy is 33, and it can be continued until the age of 75.
- Discounts are offered for higher coverage amounts, and women benefit from lower premiums.
- For ‘Yuva Credit Life’ and ‘Digi Credit Life’, the minimum maturity age is 23, and the policies can continue until the age of 75. Additionally, the interest rate on the loan can be chosen when applying for these schemes.
LIC Yuva Term / LIC Digi Term Plan
It is a non-par, non-linked, life, individual, pure-risk plan. If the policyholder dies during the policy term, the insured provides financial protection to the family. Death benefits are guaranteed.
a) What is the Basic Sum Assured?
- Rs. 50,00,000 to Rs. 75,00,000 = Rs. 1,00,000
- Rs. 75,00,000 to Rs. 1,50,00,000 = Rs. 25,00,000
- Rs. 1,50,00,000 to Rs. 4,00,00,000 = Rs. 50,00,000
- Rs. 4,00,00,000 above = Rs. 1,00,00,000
Payment of premium: When the single premium payment option is selected, if the policyholder dies during the policy term, LIC pays 125% of the single premium or the pre-assured amount as a death benefit.
b) Features
- Lower premium rates for women
- Regular Premium, Limited Premium Payment Options
- Death Benefit – 7 times the annual premium or 105% of the total premium paid up to the date of death or the sum assured in advance.
- The minimum age for death benefit is 18 years – Maximum age is 45 years
- The minimum age for Maturity Benefit is 33 years – Maximum age is 75 years
LIC Yuva Credit Life/ LIC Digi Credit Life
It is a non-par, non-linked, life, individual, pure-risk plan. The death benefit decreases over the policy period.
a) What is the Basic Sum Assured?
- Rs. 50,00,000 to Rs. 75,00,000 = Rs. 1,00,000
- Rs. 75,00,000 to Rs. 1,50,00,000 = Rs. 25,00,000
- Rs. 1,50,00,000 to Rs. 4,00,00,000 = Rs. 50,00,000
- Rs. 4,00,00,000 above = Rs. 1,00,00,000.
b) Features
- Specially low premium rates for women
- Regular Premium, Limited Premium Payment Options
- Death Benefit – 7 times the annual premium or 105% of the total premium paid up to the date of death or the sum assured in advance.
- The minimum age for death benefit is 18 years – Maximum age is 45 years
- The minimum age for Maturity Benefit is 23 years – Maximum age is 75 years
- Attractive Sum Assured Rebate Benefit
- Lower premium rates for women
- Option to choose the loan interest rate at the inception of the policy
Payment of premium: The amount payable, excluding taxes and additional premiums, is calculated as a single premium.
For further details about these new policies, visit LIC’s website or consult with an agent to address any questions or concerns.