LIC Yuva Credit Life Plan 877
Non-Participating, Non-Linked Pure Risk Premium Calculator
About LIC Yuva Credit Life Plan 877
Life Insurance Corporation of India, popularly known as LIC, has launched the Yuva Credit Life Plan 877 to offer financial security to young borrowers and their families against loan-related liabilities.
Understanding LIC Yuva Credit Life Plan 877
LIC Yuva Credit Life Plan 877 is a non-linked, non-participating pure term insurance policy created mainly for young people who have taken different types of loans. Since it is a pure protection plan, it does not provide bonus benefits, profit sharing, or returns linked to the stock market. The policy officially came into effect on August 6, 2024.
The plan is available for individuals between 18 and 45 years of age and is specially designed to help families manage outstanding loan amounts if the insured person passes away during the policy duration.
LIC Yuva Credit Life Plan 877 Details
The main objective of this plan is to reduce the financial burden on the family by helping them repay the remaining loan amount in case of the policyholder’s unfortunate death.
This insurance policy can be beneficial for salaried employees, self-employed individuals, and young professionals who have liabilities such as:
- Home loans
- Education loans
- Personal loans
- Business loans
- Other financial borrowings
With the support of this plan, family members do not have to struggle with loan repayments during difficult times, helping them maintain financial stability and peace of mind.
Main Highlights of LIC Yuva Credit Life Plan 877
Pure Protection Cover with Reducing Insurance Amount
This policy comes with a decreasing sum assured feature, which means the life cover gradually reduces during the policy period in line with the outstanding loan balance as repayments continue.
Multiple Premium Payment Choices
Policyholders can select a payment option according to their convenience. LIC offers:
- Single Premium option (one-time payment)
- Limited Premium options for 5, 10, or 15 years
Flexible Interest Rate Option
Under this plan, customers can choose an interest rate between 6% and 12% for calculating the reducing insurance cover, regardless of the actual loan interest rate charged by the lender.
Discount on Higher Insurance Coverage
LIC provides premium rebates for individuals opting for larger sum assured amounts, making higher coverage more affordable.
Lower Premium Rates for Women
Female policyholders can enjoy special premium rates under the scheme, helping reduce overall insurance costs.
Additional Savings for Non-Smokers
People who do not smoke may receive discounted premium rates after successful verification through a urinary cotinine test.
Financial Protection Against Loan Burden
The policy is designed to help families clear pending loan liabilities in the unfortunate event of the policyholder’s death, reducing financial pressure during difficult times.
No Survival or Maturity Benefit
Since this is a pure term insurance product, no maturity amount is payable if the policyholder survives until the end of the policy term.
Grace Period and Revival Facility
LIC provides a 30-day grace period for premium payments. If the policy lapses, it can generally be revived within 5 years from the date of the first unpaid premium, subject to conditions.
LIC Yuva Credit Life Plan 877 Eligibility Conditions
| Criteria | Information |
|---|---|
| Minimum Entry Age | 18 Years |
| Maximum Entry Age | 45 Years |
| Minimum Age at Maturity | 23 Years |
| Maximum Age at Maturity | 75 Years |
| Minimum Basic Sum Assured | ₹50,000 |
| Maximum Basic Sum Assured | Up to ₹25 Crore |
| Premium Payment Mode | Single Premium or Limited Premium |
| Premium Payment Terms | 5, 10, or 15 Years |
| Policy Duration | Based on loan tenure (5 to 30 years) |
How LIC Yuva Credit Life Plan 877 Functions
This insurance plan is directly connected to the borrower’s outstanding loan amount. As the loan balance decreases over time, the insurance coverage also reduces accordingly.
For example, if a person takes a home loan of ₹50 lakh and purchases this policy for the same tenure as the loan period, the plan provides financial support to the family if the insured person passes away during the policy duration. The death benefit can be used to repay the remaining loan amount and prevent financial difficulties.
The decreasing cover is calculated yearly based on the selected interest rate and repayment schedule chosen at the beginning of the policy.
Example of LIC Yuva Credit Life Plan 877
Suppose Mr. Shyam, aged 30 years, takes a loan of ₹50 lakh and purchases LIC Yuva Credit Life Plan 877 for a policy term of 10 years. He selects an 8% interest rate for calculating the reducing insurance cover.
As the loan repayment continues every year, the sum assured under the policy also gradually decreases. If Mr. Shyam unfortunately dies during the 4th policy year, LIC will pay the applicable reduced sum assured based on the outstanding loan amount at that time, helping the family settle the remaining debt.
Advantages of LIC Yuva Credit Life Plan 877
Protection Against Outstanding Loans
The policy helps family members repay pending loans without facing additional financial stress.
Budget-Friendly Premium Rates
Premiums are reasonably priced, and additional rebates are available for larger coverage amounts.
Flexible Payment Structure
Customers can choose between one-time premium payment or limited premium payment options according to their financial planning.
Income Tax Benefits
Premiums paid under the policy may qualify for deductions under Section 80C of the Income Tax Act, while death claim benefits are generally tax-free under Section 10(10D), subject to prevailing tax rules.
Simplified Medical Process
For smaller loan amounts, medical requirements may be reduced or waived depending on LIC’s underwriting rules.
Convenient Policy Handling
The plan offers simple premium payment choices, making policy management easier for borrowers.
How to Use the LIC Yuva Credit Life Plan 877 Calculator
The LIC Yuva Credit Life Plan 877 premium calculator helps users estimate the payable premium amount based on different details such as age, loan amount, policy duration, gender, and premium payment choice. It gives a better understanding of future financial commitments before purchasing the policy.
Step 1: Enter Your Age
Applicants must enter their current age, which should fall between 18 and 45 years as per the policy eligibility rules.
Step 2: Choose Gender
Select your gender while using the calculator. Female policyholders may receive lower premium rates under the plan.
Step 3: Add the Basic Sum Assured
Enter the desired insurance coverage amount. Ideally, the sum assured should be equal to or higher than the outstanding loan amount for proper financial protection.
Step 4: Select the Policy Duration
Choose the policy term according to your loan repayment period. The available tenure generally ranges from 5 years to 30 years.
Step 5: Pick the Premium Payment Mode
You can choose from:
- Single Premium option
- Limited Premium payment options of 5, 10, or 15 years
Step 6: Select the Interest Rate
The plan allows policyholders to choose an interest rate between 6% and 12% for calculating the reducing insurance cover.
Step 7: Calculate the Premium
After entering all the details, the calculator provides an estimated premium amount. It may display yearly, half-yearly, quarterly, or monthly premium figures depending on the selected payment mode.
Using the online calculator or consulting an LIC advisor can help you understand premium costs more accurately and manage your financial planning effectively.
Important Things to Know Before Buying the Plan
No Maturity or Survival Benefit
LIC Yuva Credit Life Plan 877 is a pure protection policy, so no maturity amount is paid if the insured person survives till the end of the term.
Match the Policy Term with Loan Tenure
It is advisable to select a policy term equal to the loan repayment period to ensure complete financial protection throughout the loan duration.
Designed Mainly for Loan Security
Because the sum assured keeps reducing over time, the policy is intended specifically for loan repayment protection rather than savings or wealth creation.
Premium Depends on Multiple Factors
The premium amount can vary based on:
- Age of the applicant
- Chosen sum assured
- Policy term
- Smoking or tobacco habits
- Premium payment option
Buy Only Through Authorized Sources
Always purchase the policy through licensed LIC agents or official LIC platforms to avoid fraud and ensure authenticity.
Process to Purchase LIC Yuva Credit Life Plan 877
Visit LIC or Contact an Authorized Agent
You can apply through official LIC branches, licensed advisors, or the official website of LIC India.
Complete the Proposal Form
Fill in all required personal details, loan information, nominee details, and medical information correctly.
Select Suitable Coverage and Payment Option
Choose the required sum assured and decide whether you want to pay a single premium or limited premiums over selected years.
Make Premium Payment
Pay the premium amount according to your selected payment mode.
Receive Policy Documents
After approval, LIC provides policy documents along with the decreasing risk cover schedule showing how the insurance amount reduces over time.
Frequently Asked Questions (FAQs)
What is LIC Yuva Credit Life Plan 877?
LIC Yuva Credit Life Plan 877 is a pure term insurance policy designed to protect borrowers and their families by helping repay outstanding loans if the insured person dies during the policy term.
Who can purchase this policy?
People aged between 18 and 45 years can buy this plan. The policy duration is usually linked to the loan tenure, ranging from 5 to 30 years.
How does the reducing sum assured feature work?
The insurance coverage decreases every year according to the selected interest rate and loan repayment schedule, matching the reducing loan balance.
Are there any special benefits for women?
Yes, female policyholders may get preferential premium rates under this LIC plan.
What is the purpose of the LIC Yuva Credit Life Plan 877 calculator?
The calculator helps estimate premium amounts based on policy details such as age, sum assured, gender, term, and payment mode, making financial planning easier.
Where can this policy be purchased?
The policy can be purchased through official LIC branches, authorized LIC agents, or the official LIC website.
Final Words
LIC Yuva Credit Life Plan 877 is a simple and practical insurance solution created for young borrowers who want to secure their family against loan-related financial risks. Its reducing cover structure makes it suitable for protecting home loans, personal loans, education loans, and other liabilities.
The LIC Yuva Credit Life Plan 877 calculator further helps users estimate premium costs accurately, allowing better financial planning and informed decision-making before purchasing the policy.
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