Overview of Yuva Term Plan
LIC Yuva Term is a pure protection plan designed for young earners who want early, affordable life cover. It offers two death benefit options: Level Sum Assured, which remains fixed, and Increasing Sum Assured, which grows by 10 percent annually from the sixth policy year until it doubles by the fifteenth year. The plan provides cover up to age 75, with entry age capped at 45, and a minimum sum assured of ₹50 lakh. Buyers benefit from high sum assured rebates, and flexible premium payment options.
Experts' Review of Yuva Term Plan
Written by Monish Vora
Chief Editor
LIC Yuva Term Plan is built to meet the protection needs of young adults entering their earning years. It offers significant coverage early on, with eligibility from age 18 and a maximum entry age of 45. Coverage lasts until age 75, ensuring long-term protection through key financial milestones. The minimum sum assured is set at ₹50 lakh, with the option to go as high as ₹5 crore, subject to underwriting approval, making it suitable for buyers looking for meaningful financial security.
Policyholders can choose between two death benefit structures. Under the Level Sum Assured option, the cover remains constant throughout the term. Under the Increasing Sum Assured option, the cover rises by 10 percent of the base amount each year from the sixth to fifteenth year, doubling at most, and remains steady thereafter. This structure is especially useful for those expecting future financial responsibilities to grow. Payouts can be received as a lump sum or in instalments over 5, 10, or 15 years, giving flexibility to dependents.
Premium payment options include regular, limited (10 or 15 years), and single pay. Non-smokers and women benefit from preferential rates, and high sum assured rebates lower costs further. There is no maturity or survival benefit, keeping the product focused on pure protection.
Pros
LIC has decent track record with good claim and service metrics
Offers level and increasing cover options that provide steady or gradually rising life cover throughout term.
Cons
The plan is not very feature rich. Lacks a wide range of features like premium break and health management services.
Premiums are relatively high compared to other term plans from private insurers.
The plan lacks terminal illness, life stage cover increase, critical illness rider, and optional disability benefits typically provided by other insurers.
LIC-Life Insurance Corporation of India
Key Insights
Founded
1956
LIC-Life Insurance Corporation of India was established 70 years ago and has built strong credibility over time, backed by its long-standing presence in the market.
Claims Experience
98.16% CSR, calculated as a 3-year average
LIC-Life Insurance Corporation of India settles 98.16% of all claims it receives demonstrating strong credibility.
Complaints
4.34 complaints per 10,000 claims registered
LIC-Life Insurance Corporation of India maintains a low volume of complaints, reflecting strong customer satisfaction and effective service.
Amount Settled
95.48% of total claim amount settled
LIC-Life Insurance Corporation of India demonstrates excellent claim payout efficiency, settling over 95.48% of the total claim amount filed, reflecting strong financial reliability.
The aforementioned ratios have been averaged over three years (FY24-FY26)
Features of Yuva Term Plan
Option to take Death Benefit in instalments
Standout
LIC gives this option over the default lump sum payment, and can choose payouts ranging over a period of 5,10 or 15 years.
Exclusions in Yuva Term Plan
Conditions or treatments that the policy clearly says it will not cover.
Suicides are not covered in the first year.
Death due to intoxication.
If the nominee is involved in the death of the policyholder, that would not be covered.
The policyholder dies with respect to his involvement in criminal activity.
Death by suicide within the first policy year is not covered.
Disclaimer: For illustration purposes only - exact terms are in the policy wording.
Variants of Yuva Term Plan
Level Cover
Pure Term cover. The sum assured remains constant throughout the entire policy term.
Increasing Cover
The sum assured remains constant for the first 5 years, then increases annually by 10% from the 6th year onwards, up to a maximum of 200% of the base sum assured, after which it remains fixed for the rest of the policy term.
What's missing in Yuva Term Plan
No Accidental Death Benefit
No Zero Cost Option
No Terminal Illness Benefit
No Top-Up Option
No Waiver of Premium
No option to decrease your cover over time
No payout on disability
You can't recover your premiums after policy matures
No Critical Illness Benefit
No Special Exit Value
No Cover Continuance Benefit
No option to increase cover at life milestones
No Insta Payout Benefit
Reviews for Yuva Term Plan
S
Sonali S. Bhatt
Opted for this plan payout choice lump sum or income feels practical and payout choice lump sum or income feels practical Worth it ok for my
V
Vedika Fernandes
Picked Yuva payout choice lump sum or income feels practical and payout choice lump sum or income feels practical Satisfied so far ok till now
R
Rishi E. Deshmukh
Took this plan payout choice lump sum or income feels practical and payout choice lump sum or income feels practical Satisfied so far quite pract
S
Sameer Goel
Went with Yuva payout choice lump sum or income feels practical but coverage age limit feels slightly low Not bad overall In short ok felt reassu
R
Rishi Reddy
Picked this plan payout choice lump sum or income feels practical and payout choice lump sum or income feels practical Satisfied so far quite
Frequently Asked Questions
What is the LIC Yuva Term Plan?
What are the key benefits of the LIC Yuva Term Plan?
What payout options are available under the LIC Yuva Term Plan?
TALK TO OUR ADVISORS
Get real help from advisors who listen, guide and go the extra mile for you.