The Life Insurance Corporation of India (LIC) has recently introduced four innovative term life insurance plans designed to offer comprehensive coverage and financial security to individuals and their families. These plans are:
- LIC Yuva Term Plan
- LIC Digi Term Plan
- LIC Yuva Credit Life Plan
- LIC Digi Credit Life Plan
These newly launched term plans not only provide life insurance coverage but also include features to cover any outstanding loans taken by the policyholder, thus ensuring that the family is not burdened with debt in the unfortunate event of the policyholder’s demise. These plans are available for purchase both online and offline, providing flexibility and convenience to potential policyholders.
The Importance of Term Life Insurance in Today’s World
In today’s fast-paced world, taking out loans has become a common practice for fulfilling various needs, such as buying a home, financing education, or purchasing a vehicle. However, if the borrower unexpectedly passes away, the responsibility of repaying the loan often falls on the family members, placing a significant financial burden on them. LIC’s new term life insurance plans are designed to mitigate this risk by providing financial protection that covers loan obligations, ensuring that the family’s financial stability is maintained during difficult times.
Details of LIC’s New Term Life Insurance Plans
1. LIC Yuva Term Plan and LIC Digi Term Plan
Plan Overview:
- The LIC Yuva Term Plan and LIC Digi Term Plan are non-participating, non-linked, individual, pure risk life insurance plans. These plans provide guaranteed financial protection to the policyholder’s family in the event of the policyholder’s death during the policy term.
Key Features:
- Lower Premium Rates for Women: These plans offer lower premium rates for female policyholders, making them more affordable.
- Flexible Premium Payment Options: The plans come with regular premium and limited premium payment options, allowing policyholders to choose a payment schedule that best suits their financial situation.
- Death Benefit: In case of the policyholder’s death, the death benefit will be the highest of the following:
- 7 times the annual premium.
- 105% of the total premiums paid up to the date of death.
- The sum assured in advance.
- Eligibility:
- Minimum Age for Death Benefit: 18 years
- Maximum Age for Death Benefit: 45 years
- Minimum Age at Maturity: 33 years
- Maximum Age at Maturity: 75 years
Basic Sum Assured:
- For sums between Rs. 50,00,000 to Rs. 75,00,000, the basic sum assured is Rs. 1,00,000.
- For sums between Rs. 75,00,000 to Rs. 1,50,00,000, the basic sum assured is Rs. 25,00,000.
- For sums between Rs. 1,50,00,000 to Rs. 4,00,00,000, the basic sum assured is Rs. 50,00,000.
- For sums above Rs. 4,00,00,000, the basic sum assured is Rs. 1,00,00,000.
Premium Payment:
- If the policyholder opts for a single premium payment, LIC will pay 125% of the single premium or the basic sum assured as the death benefit.
2. LIC Yuva Credit Life Plan and LIC Digi Credit Life Plan
Plan Overview:
- The LIC Yuva Credit Life Plan and LIC Digi Credit Life Plan are non-participating, non-linked, individual, pure risk life insurance plans where the death benefit decreases over the policy term. These plans are designed specifically to cover the policyholder’s outstanding loans, ensuring that the family is not left with any debt burden.
Key Features:
- Specially Lower Premium Rates for Women: These plans also offer lower premium rates for female policyholders.
- Flexible Premium Payment Options: Available with regular and limited premium payment options.
- Death Benefit: Similar to the Yuva and Digi Term Plans, the death benefit will be the highest of the following:
- 7 times the annual premium.
- 105% of the total premiums paid up to the date of death.
- The sum assured in advance.
- Eligibility:
- Minimum Age for Death Benefit: 18 years
- Maximum Age for Death Benefit: 45 years
- Minimum Age at Maturity: 23 years
- Maximum Age at Maturity: 75 years
- Attractive Sum Assured Rebate Benefit: Policyholders may receive rebates on the sum assured, making the plans even more beneficial.
- Loan Interest Rate Option: Policyholders have the option to choose the loan interest rate at the inception of the policy.
Basic Sum Assured:
- The basic sum assured for these plans is the same as for the Yuva and Digi Term Plans, ranging from Rs. 1,00,000 to Rs. 1,00,00,000 depending on the sum assured.
Premium Payment:
- The premium amount is calculated as a single premium, excluding taxes and any additional premium.
How to Purchase the Plans
- LIC Yuva Term Plan and LIC Yuva Credit Life Plan: These plans can be purchased offline by visiting an LIC branch or contacting an LIC agent.
- LIC Digi Term Plan and LIC Digi Credit Life Plan: These plans are available for purchase online, providing ease of access and convenience.
For more detailed information or to purchase any of these plans, you can contact your nearest LIC branch or consult with an authorized LIC agent.