Term Insurance Plans
LIC's Digi Credit Life (878)
Online decreasing term cover that protects your family from an outstanding loan
- Entry age
- 18 years to 45 years (last birthday)
- Policy term
- 5 to 30 years (depends on premium paying term)
- Premium paying term
- Single premium (term 5-30 yrs); or Limited: 5 yrs (term 10-30), 10 yrs (term 15-30), 15 yrs (term 25-30)
- Min. sum assured
- ₹50,00,000
Plan overview
LIC's Digi Credit Life is an online-only decreasing term plan meant to cover a loan you have taken. If you die during the policy term, your family receives the death benefit shown in the Risk Cover Schedule, which reduces each year in line with the chosen loan interest rate. There is no maturity benefit, so it suits borrowers who want low-cost protection for a home or other large loan.
New to term insurance plans? Read our simple guide: What Is Term Insurance? Pure Protection Explained →Key benefits
- Death cover reduces year by year as per a Risk Cover Schedule, like a loan being repaid
- Choose a schedule interest rate from 6% to 12% p.a. to match your loan
- Pay once (Single premium) or for 5, 10 or 15 years (Limited premium)
- Basic Sum Assured from ₹50,00,000 up to ₹5,00,00,000
- Special premium rates for women and lower Non-Smoker rates
- High Sum Assured rebate for cover of ₹1 crore and above
- Available only online at www.licindia.in
Eligibility at a glance
- Plan number
- 878
- UIN
- 512N358V01
- Plan type
- Non-Par, Non-Linked, Life, Individual, Pure Risk Plan
- Entry age
- 18 years to 45 years (last birthday)
- Maximum maturity age
- 75 years (last birthday); minimum maturity age 23 years
- Policy term
- 5 to 30 years (depends on premium paying term)
- Premium paying term
- Single premium (term 5-30 yrs); or Limited: 5 yrs (term 10-30), 10 yrs (term 15-30), 15 yrs (term 25-30)
- Minimum sum assured
- ₹50,00,000
- Maximum sum assured
- ₹5,00,00,000 (higher cover considered case by case, subject to underwriting and reinsurer)
- Premium payment modes
- Single; Limited premium: Yearly, Half-yearly
How the plan works
LIC's Digi Credit Life is a pure decreasing term assurance plan sold only online through www.licindia.in. It is a non-participating plan, so it does not share in LIC's profits.
When you buy the policy, you choose the Basic Sum Assured, the policy term and an interest rate that reflects your loan. LIC then prepares a Risk Cover Schedule showing the death benefit for each policy year. The schedule assumes equated yearly repayment at the chosen rate, regardless of how you actually repay your loan, so the cover may be higher or lower than the loan actually outstanding.
- Interest rates available for the schedule: 6%, 7%, 8%, 9%, 10%, 11% and 12% p.a. (you choose the one closest to your loan rate; for example, a 7.25% loan could use 7% or 8%).
- In the first year the death cover equals the Basic Sum Assured; it then reduces year by year as per the schedule.
- Premiums depend on age, smoking status (Non-Smoker rates need a Urinary Cotinine test), policy term, premium paying term, sum assured and the interest rate chosen. Women get special rates.
Eligibility
| Condition | Limit |
|---|---|
| Entry age | 18 to 45 years (last birthday) |
| Age at maturity | 23 to 75 years (last birthday) |
| Basic Sum Assured | ₹50,00,000 to ₹5,00,00,000 (higher on a case-to-case basis) |
| Minimum premium | ₹11,000 (Single); ₹3,000 per instalment (Limited) |
| Premium paying term | Policy term allowed |
|---|---|
| Single premium | 5 to 30 years |
| 5 years | 10 to 30 years |
| 10 years | 15 to 30 years |
| 15 years | 25 to 30 years |
Basic Sum Assured must be in multiples of ₹1,00,000 (₹50 lakh to ₹75 lakh), ₹25,00,000 (above ₹75 lakh to ₹1.5 crore), ₹50,00,000 (above ₹1.5 crore to ₹4 crore) and ₹1,00,00,000 (above ₹4 crore).
Death benefit
If the life assured dies during the term while the policy is in force, the nominee receives the Sum Assured on Death:
- Single premium: the amount shown in the Risk Cover Schedule for that policy year.
- Limited premium: the higher of the Risk Cover Schedule amount or 105% of total premiums paid up to the date of death (excluding extra premiums and taxes).
Maturity benefit
No maturity benefit is payable if the life assured survives to the end of the policy term. This is a pure protection plan.
If you repay the loan early
You can either surrender the cover and receive the Unexpired Risk Premium Value (if any), or keep the policy running until the end of the term, with the death benefit still paid as per the Risk Cover Schedule.
Loan, surrender & revival
- Policy loan: Not available.
- Paid-up value: Not available.
- Surrender: No surrender value as such. On surrender, the Unexpired Risk Premium Value (if any) is paid:
- Single premium: at any time during the term.
- Limited premium: only if full premiums have been paid for at least 2 consecutive years (5-year PPT) or 3 consecutive years (10- and 15-year PPT).
- Revival: A lapsed limited-premium policy can be revived within 5 consecutive years from the first unpaid premium (and before maturity) by paying arrears with interest, subject to continued insurability. If not revived within this period, the policy ends and any Unexpired Risk Premium Value is paid.
Other key terms
- Grace period: 30 days for yearly or half-yearly premiums (limited premium policies). Cover continues during grace; the policy lapses if premium is not paid by then.
- Free-look period: 30 days from receipt of the policy document to return it if you are not satisfied; premium is refunded after deducting proportionate risk premium, medical examination costs and stamp duty.
- High Sum Assured rebate: No rebate for ₹50 lakh to under ₹1 crore. For higher cover, the rebate is a percentage of the tabular premium:
| Age band (LBD) | ₹1 Cr to < ₹2 Cr | ₹2 Cr to < ₹5 Cr | ₹5 Cr and above |
|---|---|---|---|
| Limited premium, up to 30 years | 15% | 26% | 33% |
| Limited premium, 31 to 45 years | 14% | 25% | 32% |
| Single premium, up to 30 years | 15% | 27% | 34% |
| Single premium, 31 to 45 years | 14% | 25% | 33% |
- Mode factor: Half-yearly premium = 0.51 times the yearly premium.
- Suicide exclusion: Within 12 months of risk commencement (or revival, for limited premium), 80% of premiums paid (or of the single premium) is payable, provided the policy is in force.
- Taxes: Applicable taxes are charged extra on premiums.
Who should buy LIC's Digi Credit Life?
- Home loan or other large loan borrowers who want their family to be able to repay the loan
- People aged 18 to 45 looking for low-cost pure protection linked to a loan
- Those comfortable buying a policy online directly from LIC's website
- Borrowers who prefer to pay the premium once or over a short period
Frequently asked questions
Is there any maturity benefit under LIC Digi Credit Life (Plan 878)?
No. It is a pure decreasing term plan. Nothing is paid if the life assured survives to the end of the policy term.
How is the death benefit decided?
LIC prepares a Risk Cover Schedule based on your Basic Sum Assured, policy term and chosen interest rate (6% to 12% p.a.). The death benefit for each policy year is as shown in this schedule. For limited premium policies it is never less than 105% of total premiums paid.
What are the age limits and minimum cover?
Entry age is 18 to 45 years (last birthday), maximum maturity age is 75 years, and the minimum Basic Sum Assured is ₹50,00,000, with a maximum of ₹5,00,00,000 (higher considered case by case).
What happens if I repay my loan early?
You can surrender the policy and receive the Unexpired Risk Premium Value, if any, or continue the policy till the end of the term with cover as per the Risk Cover Schedule.
Can I take a loan against this policy or get a surrender value?
No policy loan is available and there is no surrender or paid-up value. Only the Unexpired Risk Premium Value, if any, is paid on surrender, subject to conditions for limited premium policies.
Where can I buy this plan?
LIC's Digi Credit Life is available online only and can be bought directly through www.licindia.in.