Choosing the right life insurance plan is a crucial step toward financial security. The LIC Yuva Term Plan 875 is one of the latest term insurance plans launched by the Life Insurance Corporation of India. It is designed especially for the youth to provide pure life coverage at affordable rates with flexible options to suit individual needs.

What is LIC Yuva Term Plan 875?

The LIC Yuva Term Plan 875 is a pure term insurance plan offered by LIC. It provides financial protection to your family or nominees in case of your unfortunate death during the policy term. The plan is a non-linked, non-participating policy, which means it strictly offers guaranteed and fixed benefits without any bonuses or profit sharing.

This plan aims at the young working population who want to secure their family’s future with high coverage at affordable premiums. With flexible premium payment options, sum assured choices, and benefit options, it offers customizability to the policyholder.

Key Features of LIC Yuva Term Plan 875

Let’s look at the major features that make this plan attractive:

• Entry Age: Minimum 18 years and maximum 45 years (last birthday)
• Maturity Age: Minimum 33 years and maximum 75 years
• Sum Assured: Minimum ₹50,00,000 (50 Lakhs) and maximum ₹5 Crores
• Policy Term: Ranges from 15 to 40 years, depending on premium payment choice
• Premium Payment Options:
  • Regular Premium (pay throughout the policy term)
  • Limited Premium: Pay for 10 or 15 years as per the plan
  • Single Premium (one-time payment)
• Sum Assured Options:
  • Level Sum Assured: The sum assured stays fixed throughout the policy term
  • Increasing Sum Assured: Sum assured increases by 10% every year for the first 15 years, then remains constant
• Death Benefit Payout: Lump sum or in instalments over 5, 10, or 15 years (if chosen)
• Special Rates: Available for women and non-smokers at discounted premiums
• No Maturity Benefit: As it is a term plan, no maturity or survival benefits are payable.

Who Should Buy LIC Yuva Term Plan 875?

This plan is ideal for individuals who:

• Are aged between 18 and 45 years
• Want high life coverage at affordable premiums
• Need flexible premium payment options (regular, limited, or single)
• Prefer fixed and guaranteed death benefits without any bonus uncertainty
• Wish to protect the financial interests of their dependents like spouse, children, or parents
• Want the option to receive death benefits in instalments for long-term financial support to nominees

LIC Yuva Term Plan 875 is most suitable for young working professionals, businessmen, and anyone seeking pure life cover for their family.

How Does LIC Yuva Term Plan 875 Work?

Here is a simple explanation of how this pure term plan functions:

1. You select the policy term, sum assured, premium payment mode (regular, limited, or single), and sum assured type (level or increasing).
2. Pay the premiums as per your selected premium payment term.
3. If unfortunate death occurs during the policy term, your nominee receives the death benefit.
4. The death benefit depends on the sum assured option chosen (level or increasing).
5. The nominee can receive the death benefit either as a lump sum or as instalments over a few years based on your choice.
6. If you survive till the end of the policy term, no maturity benefit is payable.

Understanding LIC Yuva Term Plan 875 Death Benefit

The death benefit is the amount your nominee receives if you pass away during the policy term. There are two death benefit options:

Level Sum Assured

The sum assured remains the same throughout the policy term. For example, if you choose a sum assured of ₹1 Crore, the nominee gets ₹1 Crore on death during the policy term.

Increasing Sum Assured

The sum assured increases by 10% every year for the first 15 years. After that, it stays fixed at twice the initial sum assured for the remaining term. For example, if the sum assured is ₹1 Crore:

• At the end of Year 1, Sum Assured = ₹1.1 Crore
• At the end of Year 5, Sum Assured = ₹1.5 Crore
• At the end of Year 15 and beyond, Sum Assured = ₹2 Crores

This option provides higher coverage in later years when financial commitments may increase.

Instalment Option for Death Benefit

The nominee can also opt to receive the death benefit in instalments instead of a lump sum. Instalment options are available for 5, 10, or 15 years through which the claim amount is paid in parts for long-term financial security.

LIC Yuva Term Plan 875 Premium Payment Options

You can choose from three premium payment modes depending on your preference:

1. Regular Premium: Pay the premium every year for the entire policy term.
2. Limited Premium: Pay premium for only 10 or 15 years and get coverage for the entire policy term.
3. Single Premium: Pay the entire premium as a lump sum at the beginning of the policy.

Limited and single premium options help reduce your payment burden while giving you long-term protection.

How to Use LIC Yuva Term Plan 875 Calculator?

The simplest way to estimate your premium for this plan is to use an LIC Yuva Term Plan 875 Calculator available online. This tool helps you calculate the premium based on your age, sum assured, premium payment period, and chosen options.

Steps to Use the Calculator:

1. Enter your Age: The age at which you want to take the policy.
2. Choose Sum Assured: Decide the coverage amount you want (₹50 Lakhs to ₹5 Crores).
3. Select Policy Term: Choose the duration of coverage (minimum 15 years up to 40 years).
4. Pick Premium Payment Mode: Regular, limited (10 or 15 years), or single premium.
5. Sum Assured Option: Level or increasing sum assured.
6. Additional Riders: Some calculators may allow you to add riders like accidental death benefit.
7. Calculate: Click on the calculate button.

The calculator then displays the estimated annual or monthly premium amount, total premium payable over the policy term, and death benefit amount.

Benefits of Using LIC Yuva Term Plan 875 Calculator

• Quick Estimation: Get instant premium quotes without manually calculating.
• Better Planning: Understand your premium commitment beforehand.
• Comparison: Compare premiums for different sum assured and payment options.
• Transparency: Know the exact premium based on your inputs and LIC’s rates.
• Informed Decision: Helps you choose the best plan suited to your budget and needs.

Advantages of LIC Yuva Term Plan 875

Here are some important benefits of this plan:

• Pure Life Cover: Provides pure risk cover with a guaranteed death benefit.
• Affordable Premiums: Especially affordable for younger buyers.
• Flexible Premium Payment: Multiple premium payment options to suit cash flow.
• Increasing Sum Assured Option: Helps meet growing financial needs.
• Instalment Death Benefit Payout: Ensures sustained financial support.
• Discounted Rates for Women and Non-Smokers: Encourages healthy lifestyle.
• High Sum Assured Available: Offers coverage up to ₹5 Crores.
• No Bonus Dependency: Guarantees fixed benefits exempt from market fluctuations.
• Loan and Surrender Not Allowed: Ensures full security for dependents as policy can’t be surrendered or used as collateral.

Eligibility Criteria at a Glance

Parameter	Details
Minimum Entry Age	18 years (last birthday)
Maximum Entry Age	45 years (last birthday)
Minimum Maturity Age	33 years (last birthday)
Maximum Maturity Age	75 years (last birthday)
Minimum Sum Assured	₹50,00,000
Maximum Sum Assured	₹5,00,00,000
Policy Term	15 to 40 years (varying by premium choice)
Premium Payment Term Options	Regular, Limited 10 or 15 years, Single

Important Points to Remember

• This policy can be purchased offline only through LIC agents.
• No maturity benefit if the policyholder survives the policy term.
• Choosing increasing sum assured means premiums may be slightly higher than level sum assured.
• You can switch death benefit payout mode between lump sum and instalments during policy tenure.
• Smoking status and gender affect the premium rates with smokers paying more.
• The minimum coverage sum assured is quite high (₹50 Lakhs), making it suitable for serious protection seekers.
• Flexible instalment benefit payout is unique for providing long-term financial assistance.

How Does LIC Yuva Term Plan 875 Compare With Other LIC Term Plans?

Feature	LIC Yuva Term 875	LIC Tech Term Plan (954)	LIC Digi Term (876)
Entry Age	18-45 years	18-65 years	18-65 years
Minimum Sum Assured	₹50 Lakhs	₹25 Lakhs	₹25 Lakhs
Max Sum Assured	₹5 Crores	₹5 Crores	₹5 Crores
Premium Payment Option	Regular, Limited (10/15 years), Single	Regular, Limited, Single Premium	Regular Only
Sum Assured Option	Level or Increasing	Level or Increasing	Level only
Bonus	No bonus (non-par plan)	No bonus (non-par plan)	No bonus (non-par plan)
Instalment Benefit Option	Yes	No	No

The LIC Yuva Term Plan 875 is focused on youth and offers unique features like instalment death benefit payout and increasing sum assured that distinguish it from other term plans.

Using LIC Yuva Term Plan 875 Calculator: An Example

Let’s consider a simple example of how the calculator works:

• Age: 30 years
• Sum Assured: ₹1 Crore
• Policy Term: 30 years
• Premium Payment Mode: Limited Premium (10 years)
• Sum Assured Option: Level

The calculator may show an annual premium of around ₹12,000 (this is an estimate). Total premium paid over 10 years = ₹1,20,000. If unfortunate death occurs in year 5, the nominee receives ₹1 Crore.

If the increasing sum assured was chosen, the sum assured at year 5 would be ₹1.5 Crores, meaning higher protection later in the term.

This example helps you understand how premiums and benefits change based on your choice.

Where to Find LIC Yuva Term Plan 875 Calculator?

You can find the LIC Yuva Term Plan 875 Calculator on popular insurance aggregator websites such as:

• LIC’s official website
• PolicyBazaar
• InsuranceCalculators.net
• SageCalculator.in

These calculators are free, easy to use, and reliable for premium estimations.

FAQ

Final Thoughts

The LIC Yuva Term Plan 875 is a thoughtfully designed product for young individuals who want solid life protection with flexibility. Its pure term insurance nature ensures your family gets a guaranteed amount if anything unfortunate happens. The affordable premiums, multiple payment options, and instalment payout feature make it highly attractive.

Using the LIC Yuva Term Plan 875 Calculator, anyone can quickly estimate the cost of this life cover and customize the plan as per their requirements. This helps in making an informed choice without confusion.