LIC Yuva Term Plan No. 875

Complete Guide to LIC Yuva Term Plan No. 875

If you are looking for a trusted LIC advisor in your area to help you create an unbreakable financial safety net, you are in the right place. Welcome to Ashuram Insurance Expert. As your trusted local advisor, serving since 1990, we specialize in offline term insurance solutions. Today, we are going to explore a highly reliable pure protection policy: the LIC Yuva Term Plan No. 875.

Read on to understand exactly how this pure risk plan works, the difference between its unique coverage options, and why securing offline guidance is the best way to protect your family. You can also explore our broader range of offline solutions on our LIC services page.

Understanding the Need for Pure Term Insurance

Before diving into the specific plan, it is important to understand what "pure risk" means. Many traditional insurance policies mix life cover with a savings component, which returns a lump sum at maturity. However, because a portion goes to savings, the life cover amount is usually smaller.

A pure term plan is different. It is designed solely for financial protection in the event of death. By removing the savings element, these policies can offer a massive life cover (Sum Assured) at a highly affordable premium rate. For a young earner, this means you can secure a ₹50 Lakh or ₹1 Crore safety net for your family without straining your monthly budget.

What is LIC Yuva Term Plan 875?

LIC's Yuva Term (UIN: 512N355V02) is a Non-Participating, Non-Linked, Life, Individual, Pure Risk Plan. Its singular purpose is to provide robust financial protection to the insured's family in case of his or her unfortunate death during the policy term.

Because it is a non-participating (Non-Par) product, the benefits payable on death are completely guaranteed and fixed. The payout does not depend on the actual market experience or profits of the Corporation, meaning the policy is not entitled to any discretionary benefits like bonuses or a share in the Surplus.

Key Features of LIC Yuva Term Plan

This offline term plan is packed with flexible features designed for the modern youth:

• Dual Death Benefit Options: You have the flexibility to choose between two highly effective coverage structures: Level Sum Assured and Increasing Sum Assured.
• Premium Payment Flexibility: You can choose from Single Premium, Regular Premium, and Limited Premium Payment methods depending on your financial strategy.
• Term Customization: You have the freedom to choose the Policy Term and Premium Paying Term that best fits your working years.
• Instalment Payouts: You can opt to have the death benefit paid to your family in instalments rather than a single lump sum.
• Women's Benefit: The plan offers special, lower premium rates for women, encouraging financial independence.
• High Sum Assured Rebates: The plan provides the benefit of an attractive High Sum Assured Rebate, meaning higher coverage amounts become more cost-effective.
• Health-Based Rates: Premium rates are categorized into Non-Smoker rates and Smoker rates. The application of the cheaper Non-Smoker rates is based strictly on the findings of a Urinary Cotinine test. In all other cases, Smoker rates will apply.

Deep Dive: Death Benefit Options Explained

The core of this policy is the Death Benefit. If the Life Assured passes away during the policy term (after the commencement of risk but before the date of maturity), the policy pays out the "Sum Assured on Death".

The calculation of this amount depends on how you pay your premiums:

• For Regular and Limited Premium Payment: The "Sum Assured on Death" is defined as the highest of either 7 times your Annualised Premium, 105% of the "Total Premiums Paid" up to the date of death, or the Absolute amount assured to be paid on death. (Annualised Premium excludes taxes, rider premiums, and extra loadings).
• For Single Premium Payment: The "Sum Assured on Death" is the higher of 125% of your Single Premium, or the Absolute amount assured to be paid on death.

Option I vs. Option II: Which Should You Choose?

When purchasing the policy from our Bhadra office, you must choose how the "Absolute amount assured" behaves over time. Note that the Death Benefit Option once chosen cannot be changed later.

Option I: Level Sum Assured
Under this option, the Absolute amount assured to be paid on death remains exactly equal to your Basic Sum Assured. This amount will remain the same throughout the entire policy term. If you buy a ₹50 Lakh cover, the cover stays at ₹50 Lakhs until the policy ends.

Option II: Increasing Sum Assured
This option is designed to combat inflation. The Absolute amount assured to be paid on death remains equal to the Basic Sum Assured until the completion of the fifth policy year. Thereafter, it automatically increases by 10% of the Basic Sum Assured each year starting from the sixth policy year up to the fifteenth policy year, until the cover becomes twice (2X) the Basic Sum Assured.

From the sixteenth policy year onwards, the coverage amount remains constant at twice the Basic Sum Assured until the policy ends.
For example: If you take a Basic Sum Assured of ₹1 Crore, your cover remains ₹1 Crore for the first 5 years. In year 6, it becomes ₹1.10 Crore. In year 7, it becomes ₹1.20 Crore, increasing every year until it reaches ₹2 Crores in the 15th year. From year 16 onward, your family is protected for a flat ₹2 Crores.

Eligibility Conditions for the Policy

To qualify for the LIC Yuva Term Plan 875, applicants must meet the following strict criteria:

• Minimum Age at Entry: 18 years (Last Birthday).
• Maximum Age at Entry: 45 years (Last Birthday).
• Minimum Age at Maturity: 33 years (Last Birthday).
• Maximum Age at Maturity: 75 years (Last Birthday).
• Minimum Basic Sum Assured: ₹50,00,000 (Fifty Lakhs).
• Maximum Basic Sum Assured: ₹5,00,00,000 (Five Crores). Amounts above ₹5 Crores may be considered on a case-by-case basis subject to underwriting decisions.

The Basic Sum Assured must be chosen in specific multiples: ₹1,00,000 multiples for amounts between ₹50 Lakhs and ₹75 Lakhs; ₹25,000 multiples for amounts up to ₹1.5 Crores; ₹50,000 multiples for amounts up to ₹4 Crores; and ₹1,00,00,000 multiples for amounts above ₹4 Crores.

Premium Payment Options and Rules

You can structure your premium payments to match your financial comfort:

1. Single Premium: Pay a one-time lump sum. The minimum premium allowed is ₹30,000.
2. Regular Premium: Pay annually or half-yearly throughout the entire policy term. The minimum instalment premium is ₹3,000.
3. Limited Premium: Pay premiums for a shorter duration than the policy term (either 10 years or 15 years). The minimum instalment premium is ₹3,000.

Instalment Benefit Option for Claimants

Managing a massive lump sum like ₹1 Crore can be overwhelming for a grieving family. LIC Yuva Term offers a highly practical option to receive Death Benefits in instalments over a period of 5, 10, or 15 years instead of a lump sum.

This option can be exercised by the Life Assured during their lifetime. You can choose to have the instalments paid monthly, quarterly, half-yearly, or yearly. The minimum instalment amounts required are ₹5,000 for monthly, ₹15,000 for quarterly, ₹25,000 for half-yearly, and ₹50,000 for yearly payments. Once this option is set by the policyholder, no alteration whatsoever shall be allowed to be made by the nominee later, ensuring your financial planning is executed exactly as you intended.

Important Policy Rules: Grace, Revival, and Loans

• Grace Period: For Regular and Limited Premium payment policies, a grace period of 30 days is allowed for the payment of yearly or half-yearly premiums. During this window, the policy remains fully in-force.
• Revival: If you miss the grace period, the policy lapses. A lapsed policy can be revived within a period of 5 consecutive complete years from the date of the First Unpaid Premium, subject to continued insurability and the payment of arrears with interest.
• Paid-Up Value and Loans: Because this is a pure risk plan, there is absolutely no paid-up value available under this plan. Furthermore, no policy loan will be available under this plan under any circumstances.

Services Available in Nohar, Gogameri, Ramgarh, Barwali, and Badbiran

While our primary operations are rooted in Bhadra, Ashuram Insurance Expert proudly extends its offline advisory services to families across the region, including Gogameri, Ramgarh, Barwali, and Badbiran. If you are reviewing your LIC policy in areas such as Khachwana or Lalana, or looking for an LIC Agent in Nohar or require an LIC Office Nohar Branch equivalent consultation, we bring our expertise directly to you. We understand the specific financial dynamics of families in Nohar, Gogameri, Ramgarh, Barwali, Badbiran, and the greater Hanumangarh district. Evaluating whether to choose a Level or Increasing Sum Assured requires careful planning, and our team provides comprehensive, offline, face-to-face guidance to ensure your family gets exactly the right protection.

Who Should Buy This Plan?

The LIC Yuva Term Plan 875 is the perfect risk management tool for:

1. Young professionals entering the workforce who want to lock in extremely low premium rates.
2. Newly married couples or young parents in Bhadra and Nohar who need massive financial safety nets (₹50 Lakhs+) for their dependents.
3. Individuals looking to protect their families against inflation by utilizing the Increasing Sum Assured option.

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