LIC’s Yuva Credit Life Term Insurance Plan: Different premium payment options

LIC’s Yuva Credit Life plan is a non-par, non-linked, life, individual, pure risk plan. This plan provides a safety net against any loan repayment to the insured’s family in case of his/her unfortunate death during policy term.

This is a non-par product where policies are not entitled for any share in surplus (profits) during the term of the policy.

This Plan can be purchased Offline through Licensed agents, Corporate agents, Brokers and Insurance Marketing Firms.

The Yuva Credit Life plan from LIC is a pure reducing term assurance plan, meaning that as the policy's term lengthens, the death benefit would decrease.

Depending on the terms and conditions of the loan, the policyholder will select the Basic Sum Assured, Policy Term, and Interest rate. Based on the Basic Sum Assured, Policy Term, and Interest rate selected by the Policyholder, a Risk Cover Schedule will be created. Regardless of the interest rate applied by the loan provider to the policyholder's loan, the available interest rates for the Risk Cover Schedule are 6%, 7%, 8%, 9%, 10%, 11%, and 12%.

Eligibility Conditions and Other Restrictions

a) Minimum Age at entry: [18] years (Last Birthday)

b) Maximum Age at entry: [45] years (Last Birthday)

c) Minimum Age at Maturity: [23] years (Last Birthday)

d) Maximum age at Maturity: [75] years (Last Birthday)

The minimum instalment premium will be Rs 3,000/- for Limited premium policies and Rs 13,000/- for Single premium policies. (However, for Basic Sum Assured Rs 20,00,000 to less than Rs 50,00,000, the minimum instalment premium, will be Rs 2,400/- for Limited premium policies and Rs 8,040/- for Single premium policies.)

The benefits payable under an in-force policy are as under

Death benefit, payable on death of the Life Assured during the policy term after the date of commencement of risk but before the stipulated Date of Maturity, provided the policy is in-force and claim is admissible shall be “Sum Assured on Death”.

For Limited premium payment policy, “Sum Assured on Death” is defined as the higher of: • 105% of “Total Premiums Paid” up to the date of death; or • Absolute amount assured to be paid on death. Where, “Total Premiums Paid” means the total of all premiums paid under the base product, excluding any extra premium and taxes, if collected explicitly.

For Single premium policy, “Sum Assured on Death” is defined as, Absolute amount assured to be paid on death Where Single Premium shall be the premium amount payable excluding taxes and underwriting extra premiums.

Maturity Benefit: On survival of the life assured to the end of the policy term, no maturity benefit is payable.

If a Life Assured repays the outstanding loan before the end of the policy term, he/she shall have the following two options:

To surrender his/her insurance cover: On such cancellation, an amount equal to Unexpired Risk Premium Value, if any, as specified will be payable.

To continue the policy till the end of the Policy Term: In case of death of the Life Assured during the policy term, the death benefit shall be payable to the nominee as per Risk Cover Schedule.

Premiums can be paid either under Limited Premium or Single Premium payment options under this plan. In case of Limited Premium payment, the premium can be paid regularly during the Premium Paying Term with modes of premium payment yearly or half-yearly.



The amount of the premium will vary depending on the following factors: smoking status, policy term, premium payment term, Basic Sum Assured, age at entry into the life to be insured, and interest rate selected. For instance, if the life insured has taken out a loan at 7.25%, he or she may select an interest rate of 7% or 8% in order to create a risk cover schedule.

The minimum premium for single premiums is Rs 13,000. Under Limited Premium mode, the minimum instalment premium is Rs 3,000.


(For Basic Sum Assured Rs 20,00,000 to less than Rs 50,00,000, the minimum instalment premium is Rs 2,400/- for Limited premium plans and Rs 8,040/- for Single premium policies).