Yuva Term, Digi Term, Yuva Credit Life, Digi Credit Life: 4 new LIC insurance polices. Should you invest?

State-led Life Insurance Corporation of India (LIC) has launched four term life insurance plans fit for the new generation to offer term insurance and safety net against loan repayments – LIC's Yuva Term, LIC's Digi Term, LIC's Yuva Credit Life, LIC's Digi Credit Life. 

These plans, which are available online and offline, have been introduced to cover loan liabilities for housing, education, and vehicles. This plan serves as a safety net against loan reimbursements to the insured's relatives. The introduction of this plan is in response to the increasing trend of individuals utilising loan facilities for various purposes, as stated in a press release issued by LIC.

LIC’s Yuva Term and Digi Term

LIC’s Yuva Term and Digi Term are Non-Par, Non-Linked, Life, Individual, Pure Risk Plan, which would provide financial protection to the insured’s family in case of his/her unfortunate death during the policy term.

This is a non-par product under which benefits payable on death are guaranteed. Benefit of attractive High Sum Assured Rebate. A non-product or non-participating insurance plan is a specific type of insurance policy characterised by the absence of dividends or bonuses tied to the insurance company's earnings. Unlike participating plans, non-par products ensure fixed benefits at the policy's maturity or in the event of the policyholder's passing, along with promised bonuses contingent upon the full payment of premiums.

Plan features

> Special lower premium rates for women
> Amount payable on death of Life Assured under Regular premium and Limited premium payment is 7 times of Annualised Premium or 105% of Total Premiums paid up to the date of death or Absolute amount assured to be paid on death.
> Minimum Age at Entry is 18 year (Last Birthday). Maximum Age at Entry is 45 years (Last Birthday)
> Minimum Age at maturity is 33 years (Last Birthday) and Maximum Age at maturity is 75 years (last Birthday).
> Under Single premium payment, death benefit is 125% of Single Premium or Absolute amount assured to be paid on death.
> On survival of the life assured to the end of the policy term, no maturity benefit is payable.

Basic sum assured

Here's the calculation for Basic Sum Assured, which will be in multiples of amounts:

Basic Sum Assured range Sum Assured Multiple

From Rs 50,00,000 to Rs 75,00,000 = Rs 1,00,000
Above Rs 75,00,000 to Rs 1,50,00,000 = Rs 25,00,000
Above Rs 1,50,00,000 to Rs 4,00,00,000 =Rs 50,00,000
Above Rs 4,00,00,000 =Rs 1,00,00,000

Death Benefit

The death benefit, which is payable when the Life Assured passes away during the policy term after the commencement of risk but before the maturity date, will be the "Sum Assured on Death". This benefit will only be provided if the policy is active, in force, and the claim is deemed admissible.

Under Regular premium and Limited premium payment, “Sum Assured on Death” is defined as the highest of:

• 7 times of Annualised Premium; or
• 105% of “Total Premiums Paid” up to the date of death; or
• Absolute amount assured to be paid on death.

Yuva Credit Life and Digi Credit Life

LIC’s Yuva Credit Life/ Digi Credit Life is a Non-Par, Non Linked, Life, Individual, Pure Risk Plan. It is a pure decreasing Term Assurance plan wherein the death benefit will reduce over the term of the policy.

Basic sum assured

The Basic Sum Assured shall be in multiples of amounts specified below:
Basic Sum Assured Range Basic Sum Assured Multiple

Rs 50,00,000 to Rs75,00,000 = Rs 1,00,000
Above Rs 75,00,000 to Rs 1,50,00,000 = Rs 25,00,000
Above Rs 1,50,00,000 to Rs 4,00,00,000 = Rs 50,00,000
Above Rs 4,00,00,000 = Rs 1,00,00,000.

Basic features

> Special lower premium rates for women
> Minimum Age at Entry is 18 year (Last Birthday). Maximum Age at Entry is 45 years (Last Birthday) 
> Minimum Age at maturity is 23 years (Last Birthday) and Maximum Age at maturity is 75 years (last Birthday).
> Benefit of attractive High Sum Assured Rebate.
> Choice of loan interest rate as appropriate to the policyholder at the inception of the policy
> The amount payable upon the death of the Life Assured under both Regular premium and Limited premium payment plans is calculated as follows:
7 times of Annualised Premium, or
105% of Total Premiums paid up to the date of death, or
The Absolute amount assured to be paid on death.
> On survival of the life assured to the end of the policy term, no maturity benefit is payable.

Death benefit 

The death benefit is payable upon the death of the life assured during the policy term after the commencement of risk but before the maturity date, given that the policy is active and the claim is deemed admissible. The amount payable in this instance shall be the "Sum Assured on Death."

Under Regular premium and Limited premium payment, the term "Sum Assured on Death" refers to the highest of the following:

Seven times the Annualised Premium; or
105% of the "Total Premiums Paid" up to the date of death; or
The absolute amount assured to be paid on death.