LIC Yuva Term: This term life insurance scheme by LIC is meant to provide broad coverage of all and sundry and financial protection to all policyholders. All the important features, eligibility, benefits, and other related vital features of this plan are discussed in detail here.
Key Features
Policy Term and Coverage: This LIC Yuva Term Plan offers flexible term periods for its customers, for a term of 10 years to 40 years, in order to provide insurance cover with a horizon according to the requirements and suitability towards fulfilling the financial goals for insurance cover.
Sum Assured: The minimum sum assured under this plan begins from Rs. 50 lakhs and can further increase up to Rs. 5 crores as per the requirements and the ability to pay the premium on time by the policyholder.
Premium Payment Options: Premiums can be paid regularly, either monthly, quarterly, half-yearly, or yearly, or as a lump sum. This helps each policyholder in a number of ways, making his finances easier to handle.
Eligibility Conditions and Restrictions
Age Criteria: The minimum entry age for this policy is 18 years, and the maximum age is 65 years. The maximum age at the time of policy maturity cannot be more than 75 years.
Medical Examination: The proposer must undergo medical examination at the time of applying for this insurance. The premium to be paid is decided based on the health conditions and lifestyle of the policyholder.
Premium Payment: If the premiums are not paid within the grace period, the policy lapses. It can, however be revived during the lifetime of the insured on payment of the outstanding premiums and interest.
Benefits
.The prescribed sum assured under the LIC Yuva Term Plan is paid to the nominee in case of the policyholder’s death during the policy term, which ensures the financial security of the family.
Benefits of Tax: Premiums paid for the LIC Yuva Term Policy can avail of tax deduction benefits under section 80C of the Indian Income Tax Act. Moreover, the sum assured paid to the nominee after the death of the policyholder is not taxed under section 10(10D).
Payment of Premiums
Premiums will be accepted without any service tax. Premiums may be paid online, through credit/debit cards, or through direct bank transfers. The option of paying by LIC’s own credit card is also available.
Grace Period
A grace period of 30 days is allowed for the payment of yearly or half yearly premiums. During this round, the policy is in force and in case of death of the insured during this grace period, the policy benefits will be payable.
Rebates
LIC gives rebates on higher sum assured amounts. These rebates help in bringing down the overall premium cost for a policyholder.
Policy Loan
One can take a policy loan on the LIC Yuva Term Plan. It is based on the sum assured and also based on the premium that one has paid. The rate of interest charged on the loan is very nominal, and thus, it does not have much burden on the pocket in times of emergency.
Taxes
Premiums paid are eligible for tax deductions, and generally, the maturity proceeds are tax-exempt. Tax laws, however, are subject to change. The customer is advised to consult his tax advisor for the latest provisions.
