LIC Yuva Credit Life Plan 877 (Term Plan)
Plan Overview
LIC Yuva Credit Life Plan 877 is a term insurance plan specifically designed for young borrowers to cover their loan liabilities in case of unfortunate death during the policy term.
Key Features
- Pure Term Insurance: Provides death benefit only
- Loan Protection: Covers outstanding loan amount
- Flexible Term: Matches with loan tenure (5-25 years)
- Affordable Premiums: Low-cost protection
- Tax Benefits: Premiums eligible under Section 80C
Eligibility Conditions
Parameter | Details |
---|---|
Minimum Entry Age | 18 years |
Maximum Entry Age | 35 years |
Maximum Maturity Age | 60 years |
Policy Term | 5 to 25 years |
Minimum Sum Assured | ₹5 lakhs |
Maximum Sum Assured | No upper limit (subject to underwriting) |
Benefits
Death Benefit
On death of the life assured during the policy term, the Sum Assured is paid to the nominee. The Sum Assured is equal to the outstanding loan amount (decreasing term insurance option available).
Maturity Benefit
No maturity benefit is payable as this is a pure term insurance plan.
Additional Benefits
- Accidental Death Benefit Rider available
- Premium Waiver Benefit Rider available
Premium Payment
- Regular premium payment mode (yearly, half-yearly, quarterly or monthly)
- Single premium option available
- Premiums remain fixed throughout the policy term
Tax Benefits
- Premiums eligible for deduction under Section 80C of Income Tax Act
- Death benefit received by nominee is tax-free under Section 10(10D)
Example
Scenario: A 25-year-old takes an education loan of ₹20 lakhs for 15 years.
Policy Details:
- Sum Assured: ₹20 lakhs (matching loan amount)
- Policy Term: 15 years
- Premium Payment Term: 15 years
- Annual Premium: Approximately ₹4,500 (may vary)
Benefits:
- If the policyholder dies during the term, ₹20 lakhs is paid to the nominee to clear the outstanding loan
- If the policyholder survives the term, no payout is made
Why Choose This Plan?
- Protects family from loan liabilities
- Affordable premium for young earners
- Flexible to match different loan tenures
- Option for level or decreasing cover
- Peace of mind for borrowers and lenders
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