LIC launches term insurance plans for young adults with loan coverage

he sum assured ranges from Rs 50 lakh to Rs 5 crore, and the policy includes benefits such as attractive high sum assured rebates and lower premium rates for women.

The Life Insurance Corporation of India (LIC) has launched two term insurance products, LIC’s Yuva Term/Digi Term and LIC’s Yuva Credit Life/Digi Credit Life, designed to provide a safety net against loan repayments. These plans are non-participating, non-linked, pure-risk plans aimed at addressing diverse insurance needs.

LIC’s Yuva Term/Digi Term provides financial protection for the family of the insured in the event of the policyholder’s death during the policy term, the company said in a press release. According to the statement, the plan guarantees death benefits and is available both online and offline. LIC Yuva Term can be purchased through intermediaries, while LIC Digi Term is exclusively offered on LIC’s website. The product is tailored for young individuals, offering them the flexibility to choose between offline and online purchasing options.

The plan allows for a minimum entry age of 18 years and a maximum entry age of 45 years, with the maturity age ranging from 33 to 75 years. The sum assured ranges from Rs 50 lakh to Rs 5 crore, and the policy includes benefits such as attractive high sum assured rebates and lower premium rates for women. Death benefits under regular and limited premium payments include seven times the annualised premium or 105 percent of total premiums paid up to the date of death, or the absolute amount assured. For single premium payments, the benefit is 125 percent of the single premium or the absolute amount assured.

The Yuva Credit Life/Digi Credit Life covers loan liabilities with a safety net against repayments for various needs like housing, education, or vehicles. It too is available in offline and online formats, similar to the Yuva Term plans. The entry age for this product is between 18 and 45 years, with maturity age ranging from 23 to 75 years. The sum assured also ranges from Rs 50 lakh to Rs 5 crore, and the death benefit decreases over the policy term, matching the outstanding loan amount.

Siddhartha Mohanty, chief executive and managing director of LIC, stated that these new offerings are designed to meet the needs of younger policyholders and those managing significant loan liabilities, providing comprehensive term insurance coverage.