LIC launches 4 New Term Life Insurance Plans
In a significant move to cater to the evolving needs of young adults Life Insurance Corporation of India (LIC) has launched new insurance plans designed to provide life coverage and loan protection. These plans, known as LIC’s Yuva Term/Digi Term and LIC’s Yuva Credit Life/Digi Credit Life were introduced by CEO and Managing Director Siddhartha Mohanty. They became effective on August 5, 2024. The plans offer both offline and online purchasing options. This provides flexibility and convenience to the young generation.
LIC’s Yuva Term and Digi Term plans are specifically tailored for young individuals who are at the beginning of their insurance journey. The Yuva Term plan is available through intermediaries such as agents. This makes it accessible offline. The Digi Term plan can be purchased exclusively online through LIC’s website. This dual approach ensures that young adults have the freedom to choose the purchasing method that best suits their preferences and lifestyles.
The primary goal of these plans is to offer financial protection to the policyholder’s family in the unfortunate event of the policyholder’s death during the policy term. This assurance provides peace of mind. Young individuals feel reassured. They know their loved ones will be financially secure even in their absence.
Addressing Loan Liabilities
Recognizing increasing reliance on loans for various needs such as housing education and vehicles, LIC has also introduced LIC’s Yuva Credit Life and Digi Credit Life plans. These plans are designed to cover loan repayments. They ensure that the policyholder’s family is not burdened with outstanding debts if the policyholder were to pass away. Similar to Yuva Term plans Yuva Credit Life is available offline through intermediaries. Meanwhile, Digi Credit Life can be bought online.
LIC’s Yuva Term/Digi Term Plans
These plans are non-participating non-linked, life-individual, pure-risk plans that offer guaranteed benefits upon the policyholder’s death. They are designed to provide comprehensive financial protection to the insured’s family.
- Eligibility: Minimum entry age is 18 years. The maximum is 45 years. The maturity age ranges from 33 to 75 years.
- Sum Assured: The coverage amount ranges from Rs. 50 lakh to Rs. 5 crore with the possibility of higher sums on a case-to-case basis.
- Benefits: Plans offer attractive high-sum assured rebates and lower premium rates for women. Death benefits include seven times the annual premium or 105% of total premiums paid or the absolute amount assured, whichever is higher. For single premium payments death benefit is 125% of the single premium or the absolute amount assured.
LIC’s Yuva Credit Life/Digi Credit Life Plans
These plans are pure decreasing term assurance plans where the death benefit reduces over time. This aligns with the outstanding loan amount. They ensure that the insured’s family is not left with the burden of loan repayments.
- Eligibility: Minimum entry age is 18 years. The maximum is 45 years. The maturity age ranges from 23 to 75 years
- Sum Assured: Coverage amount ranges from Rs.50 lakh to Rs.5 crore.
- Benefits: Plans offer high sum assured rebates. They also provide lower premium rates for women. Policyholders have a choice of selecting an appropriate loan interest rate at the inception of the policy. The death benefit ensures sum assured on death is provided given that the policy is in force.
Introduction of LIC’s Yuva Term/Digi Term and Yuva Credit Life/Digi Credit
Life plans mark a significant step towards addressing the insurance needs of young adults and those managing substantial loan liabilities. By offering both online and offline purchasing options, LIC ensures these plans are accessible to a wider audience. This provides them with necessary financial security and peace of mind. Siddhartha Mohanty, CEO and MD of LIC emphasized these plans are designed to meet the unique requirements of today’s youth. They provide comprehensive term insurance coverage that aligns with their financial goals and responsibilities. For further details, individuals are encouraged to visit LIC’s website or contact LIC intermediary.
