Term Insurance Plans
LIC's Yuva Term (875)
Pure term cover with a choice of level or increasing sum assured
- Entry age
- 18 years to 45 years (age last birthday); minimum age at maturity 33 years
- Policy term
- 15 to 40 years (minimum 20 years with 15-year limited premium); maximum term is capped by maturity age 75 and, under Increasing Sum Assured, by age and sum assured band
- Premium paying term
- Regular (throughout the policy term), Limited Premium of 10 or 15 years, or Single Premium
- Min. sum assured
- ₹50,00,000
Plan overview
LIC's Yuva Term is a pure term insurance plan for people aged 18 to 45, sold offline through agents and other intermediaries. If the life assured dies during the policy term, the family receives a fixed death benefit. Cover starts at ₹50 lakh and can stay level or rise to twice the Basic Sum Assured, with single, regular or 10/15-year limited premiums. Women and non-smokers get special rates, 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 15 to 40 years
- Basic Sum Assured from ₹50 lakh to ₹5 crore (higher amounts considered case by case)
- Option I Level Sum Assured or Option II Increasing Sum Assured (rises to 2 times Basic Sum Assured)
- Pay by Single Premium, Regular Premium, or Limited Premium for 10 or 15 years
- Special premium rates for women, and non-smoker rates based on a urinary cotinine test
- High Sum Assured rebate on cover of ₹1 crore and above
- Death benefit is at least 105% of total premiums paid (regular/limited premium)
- Nominee can receive the death benefit in instalments over 5, 10 or 15 years
Eligibility at a glance
- Plan number
- 875
- UIN
- 512N355V02
- 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 33 years
- Maximum maturity age
- 75 years (last birthday)
- Policy term
- 15 to 40 years (minimum 20 years with 15-year limited premium); maximum term is capped by maturity age 75 and, under Increasing Sum Assured, by age and sum assured band
- Premium paying term
- Regular (throughout the policy term), Limited Premium of 10 or 15 years, or Single Premium
- Minimum sum assured
- ₹50,00,000
- Maximum sum assured
- ₹5,00,00,000 (higher amounts considered case by case as per underwriting and reinsurer acceptance)
- Premium payment modes
- Yearly, Half-yearly (Regular/Limited Premium); Single Premium
How the plan works
Yuva Term is a pure risk (term) plan. You choose the Basic Sum Assured, policy term, premium payment type (Single, Regular or Limited) and a death benefit option. If the life assured dies during the term while the policy is in force, the nominee receives the death benefit. If the life assured survives the term, nothing is paid. As a non-par plan, the benefits are fixed and the policy does not get bonuses or a share in profits.
The plan is sold offline through licensed agents, corporate agents, brokers and insurance marketing firms.
Eligibility
| Condition | Limit |
|---|---|
| Age at entry (last birthday) | 18 to 45 years |
| Age at maturity (last birthday) | 33 to 75 years |
| Basic Sum Assured | ₹50 lakh to ₹5 crore (above ₹5 crore case by case, subject to underwriting and reinsurer) |
| Premium payment | Regular, Limited (10 or 15 years) or Single |
| Minimum policy term | 15 years (Regular, Single, 10-year Limited); 20 years (15-year Limited) |
| Maximum policy term | Level Sum Assured: 40 years; Increasing Sum Assured: depends on age and sum assured (see below); always within maturity age 75 |
| Minimum premium | ₹3,000 per instalment (Regular/Limited); ₹30,000 (Single) |
Basic Sum Assured is chosen in steps: ₹1 lakh steps from ₹50 lakh 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.
Maximum policy term under Increasing Sum Assured (Option II)
Regular / Limited premium
| Basic Sum Assured | Age at entry and maximum term |
|---|---|
| ₹50 lakh to under ₹1 crore | 18-21: 40 yrs; 22-24: 36; 25-28: 31; 29-35: 28; 36-45: 26 |
| ₹1 crore to under ₹2.5 crore | 18-19: 40 yrs; 20-21: 36; 22-26: 30; 27-28: 28; 29-32: 25; 33-39: 22; 40-45: 21 |
| ₹2.5 crore to under ₹5 crore | 18-24: 40 yrs; 25-28: 35; 29-45: 30 |
| ₹5 crore and above | 18-45: 40 yrs, subject to maturity age 75 |
Single premium
| Basic Sum Assured | Age at entry and maximum term |
|---|---|
| ₹50 lakh to under ₹1 crore | 18-22: 40 yrs; 23-25: 35; 26-29: 30; 30-36: 28; 37-45: 27 |
| ₹1 crore to under ₹2.5 crore | 18-21: 40 yrs; 22-24: 35; 25-28: 30; 29-33: 28; 34-45: 25 |
| ₹2.5 crore and above | 18-45: 40 yrs, subject to maturity age 75 |
Premium rates
Premiums depend on age at entry, gender, smoking status, policy term, premium paying term and the death benefit option. 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, Basic Sum Assured ₹50 lakh, policy term 20 years (in ₹, excluding taxes):
| Age | Option | Regular (yearly) | Limited 15 yrs (yearly) | Limited 10 yrs (yearly) | Single |
|---|---|---|---|---|---|
| 20 | Level | 4,550 | 5,250 | 6,600 | 44,350 |
| 30 | Level | 5,950 | 6,850 | 8,750 | 59,550 |
| 40 | Level | 11,700 | 13,600 | 17,500 | 1,21,900 |
| 20 | Increasing | 5,850 | 6,750 | 8,550 | 58,400 |
| 30 | Increasing | 8,250 | 9,600 | 12,250 | 84,950 |
| 40 | Increasing | 17,850 | 20,850 | 26,850 | 1,88,950 |
High Sum Assured rebate (% of tabular premium)
| Option / payment | Age band | ₹50 lakh to under ₹1 crore | ₹1 crore to under ₹2 crore | ₹2 crore to under ₹5 crore | ₹5 crore and above |
|---|---|---|---|---|---|
| Level, Regular/Limited | Up to 30 | Nil | 18% | 33% | 40% |
| Level, Regular/Limited | 31 to 45 | Nil | 16% | 31% | 37% |
| Level, Single | Up to 30 | Nil | 17% | 30% | 35% |
| Level, Single | 31 to 45 | Nil | 15% | 28% | 32% |
| Increasing, Regular/Limited | Up to 30 | Nil | 16% | 29% | 36% |
| Increasing, Regular/Limited | 31 and above | Nil | 14% | 27% | 33% |
| Increasing, Single | Up to 30 | Nil | 15% | 28% | 33% |
| Increasing, Single | 31 to 45 | Nil | 14% | 27% | 31% |
Half-yearly mode: the annual premium is increased by 2% and then divided into two instalments. There is no loading for yearly mode.
Death benefit
On death during the policy term (after risk commences and before maturity) under an in-force policy, the Sum Assured on Death is paid:
- Regular/Limited premium: the highest of 7 times the annualised premium, 105% of total premiums paid up to death, or the absolute amount assured on death.
- Single premium: the higher of 125% of the single premium or the absolute amount assured on death.
| Death benefit option | Absolute amount assured on death |
|---|---|
| Option I – Level Sum Assured | Equal to the Basic Sum Assured for the whole term |
| Option II – Increasing Sum Assured | Basic Sum Assured for the first 5 policy years; then increases by 10% of Basic Sum Assured each year from year 6 to year 15 until it reaches 2 times Basic Sum Assured; stays at 2 times from year 16 onwards |
The option chosen at the start cannot be changed later. For non-yearly modes, any balance premiums due before the next policy anniversary are deducted from the claim.
Maturity benefit
No maturity benefit is payable if the life assured survives to the end of the policy term.
Loan, surrender & revival
- Loan: Not available.
- Paid-up value: Not available.
- Surrender: No surrender value. An Unexpired Risk Premium Value, if any, may be paid on surrender: nothing for Regular premium policies; at any time during the term for Single premium policies; and for Limited premium policies only if full premiums have been paid for at least 3 consecutive years.
- Revival: A lapsed Regular/Limited premium policy can be revived within 5 consecutive complete years from the first unpaid premium and before maturity, by paying arrears with interest (9.50% p.a. compounding half-yearly for 1 May 2024 to 30 April 2025), subject to continued insurability. If not revived, a Regular premium policy ends with nothing payable, while a Limited premium policy pays the Unexpired Risk Premium Value, if any.
Other key terms
- Grace period: 30 days for yearly or half-yearly premiums.
- Free-look period: 30 days from receipt of the policy document.
- Death benefit in instalments: The life assured can choose for all or part of the death benefit to be paid over 5, 10 or 15 years. Minimum instalment: ₹5,000 monthly, ₹15,000 quarterly, ₹25,000 half-yearly, ₹50,000 yearly. The instalment interest rate for 1 May 2024 to 30 April 2025 is 5.07% p.a. effective.
- Suicide exclusion: Within 12 months of risk commencement (or revival for Regular/Limited premium), 80% of premiums paid is payable instead of the death benefit.
- 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 Term?
- Earning individuals whose family depends on their income
- People with loans or liabilities that their family would otherwise need to repay
- Those who want high life cover for a low premium without a savings component
- Buyers who want the cover to grow over time (Increasing Sum Assured option)
Frequently asked questions
What type of plan is LIC Yuva Term (875)?
It is a Non-Par, Non-Linked, Life, Individual, Pure Risk Plan. It pays a death benefit if the life assured dies during the policy term and has no maturity benefit.
Who can buy LIC Yuva Term?
People aged 18 to 45 years (last birthday) can buy it. The policy must end between ages 33 and 75, and the policy term ranges from 15 to 40 years depending on the options chosen.
What is the minimum and maximum sum assured?
The minimum Basic Sum Assured is ₹50 lakh and the maximum is ₹5 crore. Amounts above ₹5 crore may be considered case by case, subject to underwriting and reinsurer acceptance.
What are the death benefit options?
Option I (Level Sum Assured) keeps cover equal to the Basic Sum Assured throughout. Option II (Increasing Sum Assured) keeps it level for 5 years, then raises it by 10% of Basic Sum Assured each year from year 6 to 15 until it doubles.
How can premiums be paid?
You can pay a single premium, regular premiums for the whole term, or limited premiums for 10 or 15 years. Regular and limited premiums can be paid yearly or half-yearly. The minimum premium is ₹3,000 per instalment or ₹30,000 for single premium.
Are there lower rates for women or non-smokers?
Yes. The plan has special rates for women, and non-smoker rates apply where a urinary cotinine test supports it. Cover of ₹1 crore and above also gets a High Sum Assured rebate.
Do I get money back if I survive the policy term?
No. No maturity benefit is payable on survival to the end of the policy term.
Can I take a loan or surrender the policy?
No loan or surrender value is available. However, an Unexpired Risk Premium Value may be paid on surrender for Single premium policies, and for Limited premium policies after at least 3 consecutive years' full premiums.
Can my nominee receive the claim in instalments?
Yes. The life assured can opt for the death benefit to be paid in instalments over 5, 10 or 15 years, subject to minimum instalment amounts.