LIC Yuva Term Insurance: Overview
LIC Yuva Term Insurance (Plan No. 875) is a pure protection, non-linked, and non-participating term plan. It provides affordable life cover and long-term financial security for your family.
It also offers flexible premium payment options (single, limited, or regular) and allows you to choose between level or increasing sum assured options. Available for individuals aged 18 to 45 years, the plan provides high coverage up to ₹5 crores. It has the exact same features as the LIC Digi Term Plan, except it’s available for purchase through offline channels, agents, and brokers.
Introduction
If you’re looking for a no-brainer term plan that is simple, affordable, and easy to understand, the LIC Yuva Term Insurance is a good pick. It offers straightforward protection and financial security for your family, just like any good term plan should.
At Ditto, we’ve reviewed countless term plans and insurers over the years, and we know what really matters (simplicity, value, and reliability). With that experience in mind, this guide will walk you through what the LIC Yuva Term Insurance plan offers, its main features, and a few important things to keep in mind so that you can decide whether it’s the right plan for you.
If you’re unsure which plan suits you best, book a free call with our expert advisors — we’re available 24×7 to help you make the right choice.
LIC Yuva Term Insurance: Overview
LIC Operational & Claim Metrics
The table below presents the average figures reflecting how the Life Insurance Corporation of India (LIC) has performed over the past three financial years across key operational and claim-related parameters.
Key Insight: LIC significantly outperforms the industry in business scale and customer grievance management, while maintaining strong claim settlement efficiency and solvency stability.
Benefits of LIC Yuva Term Insurance
Financial Security
Provides a guaranteed sum assured to your family in case of your demise.
Choice of Death Benefit
Choose between level or increasing sum assured (SI stays flat for the first 5 years, then increases by 10% each year from the 6th to 15th year, reaching double the original amount and remaining fixed thereafter).
Special Rates for Women
Women usually get 13-15% lower premiums than their male counterparts.
Non-Smoker Rates
30-50% lower premiums for eligible non-smokers who pass the Urine Cotinine test.
Death Benefit in Instalments
Your family can choose to receive the death benefit as a lump sum or in regular instalments over 5, 10, or 15 years.
Cons of LIC Yuva Term Insurance
- No Optional Riders: You cannot add extra protection options like Critical Illness, Accidental Death, Disability, or Waiver of Premium which means fewer coverage enhancements and no extra benefits beyond basic life cover.
- Misses Modern Features: The plan lacks in-built features now commonly seen in most term plans, such as instant payout on claim intimation, auto cover continuance, and health management or wellness services.
- No Maturity Benefit. If you survive the policy term, you will not receive any money back.
- No Surrender Value: If you stop paying the premium for a regular premium plan, the policy will lapse, and no money will be returned to you. (for single and limited premium plans, a partial "unexpired risk premium value" may be payable upon surrender under certain conditions).
- No Early Exit Benefit: There’s no option to surrender or exit the plan early without losing premiums, so you must stay invested for the full term.
- No Life Stage Upgrade: You can’t increase your coverage later (e.g., after marriage, having children, or taking a home loan), so the initial cover amount remains fixed.
- No Terminal Illness Benefit: The plan doesn’t give accelerated pay out if you’re diagnosed with a terminal illness; benefits are only paid on death.
- No Special Discounts: You won’t get premium discounts available in other plans for salaried employees, online buyers, first-time policyholders, or existing LIC customers.
How to Buy LIC Yuva Term Insurance?
The LIC Yuva Term Insurance plan is currently an offline product. This means you cannot buy it directly online through the LIC website.
The purchase process typically involves:
- Contacting an Authorised Intermediary: Reach out to a licensed LIC agent, corporate agent, or broker.
- Filling the Proposal Form: Complete the detailed proposal form, providing accurate personal, financial, and health details.
- Premium Payment: Pay the first premium amount.
- Medical Examination: Based on your age, sum assured, and health declarations, LIC may require a mandatory medical test, including a cotinine test to confirm your smoking status.
- Policy Issuance: Once LIC accepts your proposal, they will issue the policy document, and your coverage will start.
LIC Yuva Term Insurance: Documents Required
To purchase the LIC Yuva Term Insurance, you will need to submit a few important documents.
- Identity Proof: Aadhaar Card, Passport, PAN Card, Voter's ID.
- Address Proof: Aadhaar Card, Driving Licence, Electricity Bill, Passport.
- Age Proof: PAN, Aadhaar Card, Voter ID, Passport.
- Income Proof: Latest Salary Slips, Income Tax Returns (ITR), or Bank Statements. This is important to ensure the Sum Assured is appropriate for your income.
- Proposal Form: The duly filled and signed physical application form.
- Latest Photograph
LIC Yuva Term Insurance: Key Things to Know
Here are some essential points to keep in mind before buying the policy:
- No paid-up value under the policy. If you stop paying premiums before the term ends, the policy simply lapses with no reduced coverage or benefit (a standard feature of pure term insurance plans).
- Suicide within 12 months (from commencement or revival) leads to payment of only 80% of premiums paid (excluding any extra premium, rider premium and taxes, if collected explicitly), not full sum assured.
- A grace period of 30 days is included for regular and limited premium payments (yearly/half-yearly modes). The policy remains active during this time.
- Policy terminates on payment of death benefit, maturity, surrender, lapse beyond revival period, or forfeiture due to fraud/misstatement.
Why Choose Ditto for Term Insurance?
At Ditto, we’ve assisted over 8,00,000 customers with choosing the right term insurance policy. Here’s why customers like Rahul love us:
- No-Spam & No Salesmen
- Rated 4.9/5 on Google Reviews by 15,000+ happy customers
- Backed by Zerodha
- Dedicated Claim Support Team
- 100% Free Consultation
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Conclusion
The LIC Yuva Term Insurance is a good and flexible plan, ideal for young professionals seeking simple, high-value protection. With level or increasing cover and flexible premium options, it offers good customization but lacks modern features like Return of Premium, enhanced riders, special exit benefits, income payout options, and a fully digital process. Overall, it’s reliable but fairly basic compared to newer plans.
With that in mind, we recommend checking out Ditto’s top picks for term plans in India. This will give you a detailed understanding of the best options available based on coverage, claim experience, and overall value for money.
FAQs
What are the LIC Yuva Term plan premium payment modes?
Although the LIC Yuva Term Insurance Plan must be purchased through an LIC agent or branch, policyholders can easily pay premiums online once the policy is active. Payments can be made via the LIC Portal, Mobile App, or Pay Direct using Net Banking, Debit/Credit Card, or UPI. Premium payment modes include Yearly and Half-Yearly for Regular and Limited options, while the Single Premium option requires a one-time payment.
How can I cancel my LIC Yuva Term Insurance policy and what is the process?
You can cancel your LIC Yuva Term Insurance policy either during the Free-Look period or through surrender. During the Free-Look period, you may return the policy within 30 days of receiving it for a refund after deducting applicable charges. After that, surrender is allowed, however, Regular Premium plans have no surrender value, while Single and Limited Premium plans may return a proportionate Unexpired Risk Premium Value under certain conditions.
What is the yuva term insurance claim settlement ratio?
Since this is a new-age product from LIC, it falls under LIC's overall claim settlement record. For the financial years 2022–2025 (as per IRDAI data), LIC maintained an impressive average claim settlement ratio of around 98.35%. This high ratio shows a strong commitment to honouring claims.
Is LIC Yuva Term Insurance a non-linked plan? What does that mean?
Yes, LIC Yuva Term Insurance is a non-linked and non-participating plan. This simply means that the policy's performance is not tied to the stock market or any company profits (it is not linked to Unit Linked Insurance Plans or ULIPs). The death benefit is guaranteed and fixed, so your family knows exactly how much they will receive regardless of market fluctuations.
How is the claim settled under the LIC Yuva Term Insurance Plan?
The claim process is simple. In the event of the policyholder’s death, the nominee must promptly inform the servicing LIC branch. After submitting the required claim form and documents, LIC verifies the policy details and cause of death. If the claim is within the early policy years, an investigation may be conducted. Once verified, the Sum Assured on Death is paid to the nominee, either as a lump sum or in instalments, depending on the chosen option.
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