LIC unveils term insurance products for youth

The Life Insurance Corporation of India has introduced non-par, non-linked, life, individual, pure risk plans called LIC’s Yuva Term/Digi Term and LIC’s Yuva Credit Life/Digi Credit Life, which provide term insurance and safety net against loan repayments.

The Yuva Term/Digi Term will provide financial protection to the insured’s family in the event of the policyholder’s death during the policy term. It is a non-par product under which benefits payable on death are guaranteed, LIC said on Monday in a release on CEO and MD Siddhartha Mohanty unveiling the plans.

Yuva Term will be made available offline, through intermediaries, Digi Term will be available only online - on LIC’s website.

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Yuva Credit Life/ Digi Credit Life is a decreasing term assurance plan in which the death benefit will be reduced over the term of the policy. Yuva Credit Life will be marketed through intermediaries, while Digi Credit Life will be made available only online.

The plan is to cover loan liabilities such as home/education/vehicle, thus providing a safety net against loan repayments to the insured’s family.

"Under all the new plans, designed to appeal to young people who want to buy term insurance early, the minimum age to start is 18 years and the maximum is 45 years. The minimum basic sum assured is Rs 50 lakh, and the maximum is Rs 5 crore."

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Under the Yuva Term/Digi Term plan, the minimum age at maturity is 33 years and the maximum age is 75 years. Features of the plan include the benefit of attractive high-sum assured rebates and special lower premium rates for women.

The minimum age at maturity is 23 years and the maximum is 75 years under the Yuva Credit Life/Digi Credit Life. The features of the plan include choice of loan interest rate as appropriate to the policyholder at the inception of the policy.

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