Term Insurance Plans
LIC's Yuva Credit Life (877)
Decreasing term cover that helps your family repay an outstanding loan
- Entry age
- 18 years to 45 years (age last birthday); minimum age at maturity 23 years
- Policy term
- Single premium: 5 to 30 years; 5-year PPT: 10 to 30 years; 10-year PPT: 15 to 30 years; 15-year PPT: 25 to 30 years
- Premium paying term
- Single premium, or Limited premium of 5, 10 or 15 years
- Min. sum assured
- ₹50,00,000 (₹20,00,000 for ages 21-45 where cover is based on a sanctioned loan from an approved financial institution/NBFC, e.g. housing loan)
Plan overview
LIC's Yuva Credit Life is a decreasing term assurance plan designed to protect a loan, for people aged 18 to 45 and sold offline through agents and other intermediaries. If the life assured dies during the policy term, the nominee receives the amount shown in the Risk Cover Schedule, which reduces each year based on the chosen interest rate. Cover usually starts at ₹50 lakh (₹20 lakh for eligible housing and similar loans), and there is no maturity benefit.
New to term insurance plans? Read our simple guide: What Is Term Insurance? Pure Protection Explained →Key benefits
- Entry age 18-45; cover can run up to age 75; policy term 5 to 30 years
- Basic Sum Assured ₹50 lakh to ₹5 crore; from ₹20 lakh for approved loans such as housing loans (age 21-45)
- Death cover follows a Risk Cover Schedule that reduces each year, like a loan being repaid
- Choose a schedule interest rate of 6%, 7%, 8%, 9%, 10%, 11% or 12% p.a.
- Pay a single premium or limited premiums for 5, 10 or 15 years
- Special rates for women, non-smoker rates, and a High Sum Assured rebate from ₹1 crore
- Option to surrender or continue the cover if you repay the loan early
- 30-day free-look period and 5-year revival period
Eligibility at a glance
- Plan number
- 877
- UIN
- 512N357V01
- Plan type
- Non-Par, Non-Linked, Life, Individual, Pure Risk Plan
- Entry age
- 18 years to 45 years (age last birthday); minimum age at maturity 23 years
- Maximum maturity age
- 75 years (last birthday)
- Policy term
- Single premium: 5 to 30 years; 5-year PPT: 10 to 30 years; 10-year PPT: 15 to 30 years; 15-year PPT: 25 to 30 years
- Premium paying term
- Single premium, or Limited premium of 5, 10 or 15 years
- Minimum sum assured
- ₹50,00,000 (₹20,00,000 for ages 21-45 where cover is based on a sanctioned loan from an approved financial institution/NBFC, e.g. housing loan)
- Maximum sum assured
- ₹5,00,00,000 (higher amounts considered case by case as per underwriting and reinsurer acceptance)
- Premium payment modes
- Single; Limited premium: Yearly, Half-yearly
How the plan works
LIC's Yuva Credit Life is a non-participating pure risk plan with a decreasing death cover. It does not share in LIC's profits and has no savings element. It is sold offline through licensed agents, corporate agents, brokers and insurance marketing firms.
At the start you choose the Basic Sum Assured, the policy term and an interest rate to suit your loan. LIC prepares a Risk Cover Schedule that shows the death benefit for every policy year. The schedule assumes equated yearly repayment at the chosen rate, whatever your actual loan repayment is, 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., irrespective of the rate charged by your lender. For example, if your loan is at 7.25%, you can pick 7% or 8%.
- In the first year the death cover equals the Basic Sum Assured, and it then reduces as per the schedule.
- Premium can be paid as a single premium or as limited premiums for 5, 10 or 15 years.
Eligibility
| Condition | Limit |
|---|---|
| Age at entry (last birthday) | 18 to 45 years |
| Age at maturity (last birthday) | 23 to 75 years |
| Basic Sum Assured | ₹50 lakh to ₹5 crore (above ₹5 crore case by case, subject to underwriting and reinsurer) |
| Lower minimum for loans | ₹20 lakh for ages 21-45 where the cover is based on a loan sanctioned by an approved financial institution/NBFC for a specified purpose such as a housing loan (separate premium rates apply from ₹20 lakh to ₹35 lakh, in ₹1 lakh steps) |
| Minimum premium | ₹3,000 per instalment (Limited); ₹13,000 (Single). For Basic Sum Assured ₹20 lakh to under ₹50 lakh: ₹2,400 (Limited); ₹8,040 (Single) |
| Premium paying term | Policy term |
|---|---|
| Single premium | 5 to 30 years |
| 5 years | 10 to 30 years |
| 10 years | 15 to 30 years |
| 15 years | 25 to 30 years |
From ₹50 lakh, Basic Sum Assured is chosen in steps: ₹1 lakh steps up to ₹75 lakh, ₹25 lakh steps above ₹75 lakh up to ₹1.5 crore, ₹50 lakh steps above ₹1.5 crore up to ₹4 crore, and ₹1 crore steps above ₹4 crore.
Premium rates
Premiums depend on age at entry, smoking status, policy term, premium paying term, Basic Sum Assured and the interest rate chosen. There are special rates for women, and two rate categories: non-smoker rates (granted on the basis of a urinary cotinine test) and smoker rates (applied in all other cases).
Sample premiums for a male non-smoker, policy term 25 years, Basic Sum Assured ₹50 lakh, interest rate 8% (in ₹, excluding taxes):
| Age | Single premium | Limited 5 yrs (yearly) | Limited 10 yrs (yearly) | Limited 15 yrs (yearly) |
|---|---|---|---|---|
| 20 | 40,900 | 10,100 | 6,100 | 4,850 |
| 30 | 53,550 | 13,150 | 7,900 | 6,200 |
| 40 | 1,03,450 | 25,100 | 14,900 | 11,650 |
Sample Risk Cover Schedule (25-year term, 8% interest)
Death cover for each policy year, shown for a Basic Sum Assured of 1,000:
| Year | Cover | Year | Cover | Year | Cover |
|---|---|---|---|---|---|
| 1 | 1,000.00 | 10 | 829.19 | 19 | 487.73 |
| 2 | 986.32 | 11 | 801.84 | 20 | 433.07 |
| 3 | 971.55 | 12 | 772.31 | 21 | 374.03 |
| 4 | 955.59 | 13 | 740.42 | 22 | 310.28 |
| 5 | 938.36 | 14 | 705.97 | 23 | 241.42 |
| 6 | 919.75 | 15 | 668.77 | 24 | 167.05 |
| 7 | 899.65 | 16 | 628.59 | 25 | 86.74 |
| 8 | 877.95 | 17 | 585.20 | ||
| 9 | 854.50 | 18 | 538.34 |
High Sum Assured rebate (% of tabular premium)
| Payment | Age band | ₹20 lakh to under ₹1 crore | ₹1 crore to under ₹2 crore | ₹2 crore to under ₹5 crore | ₹5 crore and above |
|---|---|---|---|---|---|
| Limited premium | Up to 30 | Nil | 17% | 27% | 37% |
| Limited premium | 31 to 45 | Nil | 15% | 25% | 35% |
| Single premium | Up to 30 | Nil | 15% | 25% | 33% |
| Single premium | 31 to 45 | Nil | 14% | 24% | 31% |
Half-yearly mode: each half-yearly instalment is 0.51 times the yearly premium.
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 policy: the amount shown in the Risk Cover Schedule for that policy year.
- Limited premium policy: 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).
For non-yearly modes, any balance premiums due before the next policy anniversary are deducted from the claim.
Maturity benefit
Nothing is paid if the life assured survives to the date of maturity. 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 continue the policy till the end of the term, with death benefit payable as per the Risk Cover Schedule.
Loan, surrender & revival
- Policy loan: Not available.
- Paid-up value: Not available.
- Surrender: There is no surrender value, but on surrender an Unexpired Risk Premium Value (if any) is paid:
- Single premium: at any time during the policy 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).
- Lapsed policy: The Unexpired Risk Premium Value, if any, is paid on death or surrender during the revival period, or when the revival period expires without revival.
- Revival: A lapsed limited-premium policy can be revived during the lifetime of the life assured within 5 consecutive complete years from the first unpaid premium (and before maturity) by paying all arrears with interest compounded half-yearly (9.50% p.a. for 1 May 2024 to 30 April 2025), subject to continued insurability. LIC may accept, modify or decline the revival.
Other key terms
- Grace period: 30 days for yearly or half-yearly premiums. If death occurs within the grace period, the claim is paid after deducting the unpaid premium.
- Free-look period: 30 days from receipt of the policy document. The premium is refunded after deducting proportionate risk premium, medical examination costs and stamp duty.
- 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.
- Assignment and nomination: Allowed as per Sections 38 and 39 of the Insurance Act, 1938.
- Taxes: Applicable taxes are charged extra on premiums.
Who should buy LIC's Yuva Credit Life?
- Borrowers with a home, education or other loan who want their family protected from repayment burden
- People who want low-cost pure protection without a savings element
- Those who prefer to pay the premium once or over a short limited period
- Policyholders who may prepay their loan and want the option to exit or continue cover
Frequently asked questions
What is LIC Yuva Credit Life (Plan 877)?
It is a non-participating, pure risk decreasing term plan. The death benefit follows a Risk Cover Schedule that reduces each year, making it suitable for protecting an outstanding loan.
Who can buy LIC Yuva Credit Life?
People aged 18 to 45 years (last birthday). The policy must end between ages 23 and 75, and the policy term can be 5 to 30 years depending on the premium paying term.
What is the minimum and maximum sum assured?
Normally ₹50 lakh to ₹5 crore. For ages 21 to 45, cover can start at ₹20 lakh if it is based on a loan sanctioned by an approved financial institution or NBFC, such as a housing loan. Amounts above ₹5 crore are considered case by case.
Is any amount paid at maturity?
No. No maturity benefit is payable if the life assured survives to the end of the policy term.
What interest rates can I choose for the Risk Cover Schedule?
You can choose 6%, 7%, 8%, 9%, 10%, 11% or 12% p.a., irrespective of the interest rate your lender charges. For a loan at 7.25%, for example, you could choose 7% or 8%.
How can I pay the premium?
You can pay a single premium, or limited premiums over 5, 10 or 15 years in yearly or half-yearly mode. The minimum is ₹3,000 per instalment or ₹13,000 single premium (lower for cover under ₹50 lakh).
Are there lower rates for women or non-smokers?
Yes. The plan offers special rates for women and non-smoker rates based on a urinary cotinine test. Cover of ₹1 crore and above also gets a High Sum Assured rebate.
What happens if I repay my loan before the term ends?
You can surrender the cover 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?
No. Policy loans are not available under this plan, and there is no surrender or paid-up value apart from the Unexpired Risk Premium Value.