Yuva Term Plan 875
LIC Yuva Term Plan 875 – is a Non-Par, Non-Linked, Life, Individual, Pure Risk Plan, which provides financial protection to the insured’s family in case of his/her unfortunate death during the policy term.
Introduction – Why India Needs Youth-Centric Term Plans
India is a young country with over 65% of its population below the age of 35. Yet, insurance penetration among youth is still very low. Most youngsters think:
- “Life insurance is for married people.”
- “I don’t need it, I’m still young.”
- “It’s a waste of money.”
But the truth is – buying life insurance early saves huge money and ensures long-term security. Recognizing this gap, the Life Insurance Corporation of India (LIC) introduced the LIC Yuva Term Plan 875, specially designed for the younger generation.
This plan not only provides affordable high coverage at an early age but also financial stability for family goals such as education, marriage, or loans.
What is LIC Yuva Term Plan 875?
LIC Yuva Term Plan (Plan No. 875) is a pure protection plan targeted at India’s youth (18–40 years entry age). It offers large life coverage at low premium rates and flexibility in choosing:
- Policy term (10–40 years)
- Premium payment modes (regular or limited)
- Additional riders for accident and disability
Unlike traditional LIC policies like endowment or money-back plans, this is a term-only policy – meaning no maturity benefit. The sole purpose is high-risk cover at low cost.
Key Features of LIC Yuva Term Plan 875
| Feature | Details |
|---|---|
| Plan Type | Pure Term Insurance |
| Plan Number | 875 |
| Entry Age | 18 to 40 years |
| Maturity Age | Up to 65 years |
| Policy Term | 10 to 40 years |
| Premium Payment | Regular Pay / Limited Pay |
| Minimum Sum Assured | ₹25 Lakhs |
| Maximum Sum Assured | No Limit (subject to underwriting) |
| Death Benefit | Lump sum payout to nominee |
| Maturity Benefit | None |
| Riders Available | Accidental Death Rider, Disability Rider, Critical Illness Rider |
| Premium Mode | Yearly, Half-yearly, Quarterly, Monthly (NACH/online) |
| Tax Benefits | 80C (Premium), 10(10D) (Death Benefit) |
Why LIC Yuva Term Plan is Different from Other LIC Policies
Unlike LIC’s savings-cum-protection plans (Jeevan Anand, Jeevan Umang, Bima Ratna etc.), the Yuva Term Plan 875 is:
- Pure protection → No returns, only life cover.
- Cheaper premiums → Youth get huge coverage at very low cost.
- Flexibility → Choose cover term, riders, and premium payment mode.
Benefits of LIC Yuva Term Plan 875
1. Affordable Premiums for Youth
Premiums are significantly lower for young policyholders (18–30 years).
2. High Sum Assured
Minimum ₹25 Lakhs, with no maximum cap – suitable for modern lifestyle expenses.
3. Family Security
In case of sudden demise, nominee receives the entire sum assured to cover debts, education, marriage, or other family expenses.
4. Flexible Policy Term
Choose 10–40 years depending on life stage (students, professionals, newly married, etc.).
5. Rider Options
Enhance cover with Accident Benefit Rider, Disability Rider, Critical Illness Rider.
6. Tax Benefits
Premiums qualify for deduction under 80C, and death benefits are tax-free under 10(10D).
How Does Yuva Term Plan 875 Work?
Example – 25-Year-Old Male, ₹1 Crore Sum Assured, 30-Year Term
- Pays annual premium ~₹12,000 (non-smoker).
- If death occurs at age 40 → Nominee gets ₹1 Crore.
- If survives full 30 years → Policy ends (no maturity).
👉 Key Point: Yuva Term Plan is for risk protection only, not investment.
Premium Illustration (Tabular Data)
Case 1: 25-Year Male, ₹50 Lakh Sum Assured
| Policy Term | Premium (Annual) | Death Benefit | Maturity Value |
|---|---|---|---|
| 20 years | ₹6,800 | ₹50 Lakhs | Nil |
| 30 years | ₹9,500 | ₹50 Lakhs | Nil |
Case 2: 30-Year Female, ₹1 Crore Sum Assured
| Policy Term | Premium (Annual) | Death Benefit | Maturity Value |
|---|---|---|---|
| 20 years | ₹11,200 | ₹1 Crore | Nil |
| 30 years | ₹15,600 | ₹1 Crore | Nil |
Real-Life Investor Scenarios
Scenario 1: Young IT Professional (Age 26)
- Buys ₹1 Crore cover for 30 years.
- Pays only ₹12,000 annually.
- If death occurs at 35, nominee receives ₹1 Crore.
- If he survives full 30 years, policy ends (no return).
👉 Family gets financial protection at a minimal cost.
Scenario 2: Newly Married Couple (Husband 30, Wife 28)
- Husband takes ₹50 Lakhs cover for 25 years.
- Annual premium: ₹8,500.
- If death occurs at 40, wife gets ₹50 Lakhs to cover EMIs, child education, etc.
Scenario 3: Self-Employed Youth (Age 24)
- Buys ₹75 Lakhs cover for 35 years.
- Annual premium ~₹10,500.
- Long-term financial security with low-cost premiums.
Analyst Opinions on Yuva Term Plan 875
- Insurance Experts: “Buying term insurance young locks in the lowest premium rates. Yuva Term Plan addresses India’s underinsured youth segment.”
- Financial Planners: “This plan should be the foundation of financial planning for young Indians before investing in mutual funds, stocks, or ULIPs.”
- Caution: “No maturity benefit – so don’t expect returns. Treat it as pure risk cover.”
Yuva Term Plan 875 vs Other LIC Term Plans
| Feature | Yuva Term 875 | LIC Tech-Term (854) | Jeevan Kiran (870 – ROP Plan) |
|---|---|---|---|
| Coverage | ₹25 Lakh – Unlimited | ₹50 Lakh – Unlimited | ₹15 Lakh – Unlimited |
| Premium | Lowest for youth | Slightly higher | Highest (ROP feature) |
| Maturity Benefit | No | No | Yes (Return of Premium) |
| Riders | Yes | Yes | Yes |
| Best For | Young Indians (18–30) | Online term seekers | People wanting refund |
Why Yuva Term Plan 875 is Perfect for Indians Under 30
- Lowest cost, highest cover – ideal for freshers, IT employees, startup professionals.
- Future-proof protection – secures family against loans, EMIs, wedding costs.
- Tax savings + security – double benefit.
- Flexibility in riders – customize for accident/illness.
Advantages & Disadvantages
Advantages ✅
- Cheapest term insurance from LIC for young Indians.
- Large coverage starting from ₹25 Lakhs.
- Flexible policy term (up to 40 years).
- Rider benefits available.
Disadvantages ❌
- No maturity value or premium return.
- Premiums rise sharply if purchased at 35–40 years.
- Not an investment product – protection only.
Investor Insights & Planning Tips
- Buy as early as possible – premiums at 25 are 40–50% cheaper than at 35.
- Calculate coverage based on 10–15x annual income.
- Always add Accidental & Critical Illness riders for extra protection.
- Don’t treat Yuva Term as investment – it’s a safety net.
FAQs on LIC Yuva Term Plan 875
Q1. What is the minimum sum assured?
👉 ₹25 Lakhs.
Q2. Can NRIs buy LIC Yuva Term Plan?
👉 Yes, subject to LIC rules.
Q3. What happens if I survive the policy term?
👉 Policy ends; no maturity or return of premium.
Q4. Can I take a loan on this policy?
👉 No, loans are not available on pure term plans.
Q5. Which is better – Yuva Term or Jeevan Kiran?
👉 Yuva Term is cheaper, Jeevan Kiran refunds premiums.
Q6. Is medical test required?
👉 Yes, based on age, sum assured, and health history.
Q7. Does the premium stay fixed?
👉 Yes, premium is fixed for the chosen term.
Final Verdict – Should You Buy LIC Yuva Term Plan 875?
The LIC Yuva Term Plan 875 is a must-have policy for every young Indian who wants:
- High life cover at the lowest possible premium.
- Long-term financial security for family.
- Peace of mind against uncertainties.
It’s best for:
- Students starting careers.
- IT professionals & salaried youth.
- Newly married couples planning family.
👉 If you’re under 30, Yuva Term Plan 875 is one of the smartest financial decisions you can make today.
