LIC Digi Credit Life Plan 878 Calculator

LIC Digi Credit Life Plan 878 is a digital, term insurance plan offered by LIC India, aimed at protecting borrowers by covering their outstanding loan amounts in case of the policyholder’s untimely death. It is a pure risk plan without any maturity benefit, designed for ages 18 to 45, with flexible policy terms and premiums tailored to loan repayment durations.

What is LIC Digi Credit Life Plan 878?

The LIC Digi Credit Life Plan 878 is a non-linked, non-participating life insurance product that provides financial protection to the insured’s family by covering the outstanding loan amount if the policyholder dies during the policy term. This insurance ensures that the family or co-borrowers are not burdened with the repayment of the loan.

Unlike traditional life plans, this policy is a decreasing term assurance plan, meaning the sum assured decreases over the loan tenure, matching the reducing loan balance. The plan is offered digitally, enabling paperless application and quick issuance.

Key Features of LIC Digi Credit Life 878

• Loan Protection: Covers outstanding loans like home loans, personal loans, or other financial liabilities.
• Decreasing Term Assurance: sum assured decreases over the policy tenure in line with the loan repayment.
• Policy Term Flexibility: Terms range from 5 to 30 years, suiting various loan tenures.
• Entry Age: Minimum 18 years and maximum 45 years.
• Sum Assured Range: Rs. 50 lakh minimum to Rs. 5 crore maximum (higher sum assured subject to underwriting).
• Premium Payment Options: Choices include single premium or limited premium payment with terms of 5, 10, or 15 years depending on policy tenure.
• Digital Process: Completely online application, minimal paperwork, and fast issuance.
• No Maturity Benefit: Pure risk cover with no payouts on survival of the policy term.
• Joint Life Option: Available for joint borrowers to cover both individuals under one plan.

Eligibility Criteria

The policy is suited for lending amounts starting from Rs. 50 lakhs, making it ideal for high-value loans that require protection.

How Does LIC Digi Credit Life Plan Work?

Consider an example with a policyholder, Mr. Mohan, who takes a loan and the LIC Digi Credit Life plan as coverage.

• If Mr. Mohan passes away during the policy term, the plan pays the higher of:
  • The sum assured (the outstanding loan amount as of date).
  • 105% of the total premiums paid till the date of death.
• Since the sum assured decreases as the loan is repaid over time, the death benefit also decreases accordingly, matching the outstanding loan balance.
• Premium Calculation: Premiums depend on the sum assured, policy term, age, and smoking status. Premiums can be single or limited payments spread over years.

This plan acts as a safety net to ensure that the family or co-borrowers aren’t forced to repay the outstanding loan in case of death.

Benefits of LIC Digi Credit Life Plan 878

• Financial Security for Borrowers: Ensures that families are not burdened by outstanding loans if the borrower dies.
• Affordable Premiums: Compared to other life insurance plans, premiums are economical due to the risk cover nature.
• Digitally Convenient: Entire process from application to issuance is paperless and hassle-free.
• Flexible Terms: Customizable terms match loan duration to provide adequate coverage.
• Joint Coverage: Suitable for co-borrowers applying together for loans.
• Tax Benefits: Premiums paid are eligible for tax deductions under Section 80C of the Income Tax Act.

These features make LIC Digi Credit Life Plan a practical choice for borrowers seeking loan protection.

How to Use LIC Digi Credit Life Plan 878 Calculator?

The LIC Digi Credit Life Plan calculator helps prospective buyers estimate the premiums payable according to their loan amount, age, and policy term. Here’s a simple guide:

1. Enter Your Age: Your current age must be between 18 and 45.
2. Enter Loan Amount: The sum assured should be equal to or greater than your outstanding loan amount (minimum Rs. 50 lakh).
3. Select Policy Term: Choose a term between 5 to 30 years matching your loan tenure.
4. Choose Premium Payment Term: Single premium or limited premium (5, 10, or 15 years depending on selected policy term).
5. Calculate Premium: The calculator provides an estimated premium amount for the selected inputs.

Using this tool helps borrowers plan their budget and understand the costs involved before taking the policy. It also ensures they get a coverage amount adequate to protect their loans.

Sample Premium Illustration

To provide perspective, here are sample premium amounts for a non-smoker male aged 30, with a sum assured of Rs. 50 lakh and a policy term of 25 years:

These figures show the flexibility for customers who want to either pay a lump sum upfront or spread premiums over a defined time.

Note: Premiums vary depending on age, health, and smoking status.

Who Should Consider LIC Digi Credit Life Plan 878?

• Borrowers who have taken a substantial loan and want to safeguard their family from the loan repayment burden.
• First-time loan takers who want straightforward, loan-linked term insurance.
• Co-borrowers seeking joint coverage for loan protection.
• Individuals looking for cost-effective, pure risk term cover aligned with their loan tenure.
• Those preferring a digital purchase experience with fast policy issuance.

Important Points to Remember

• LIC Digi Credit Life Plan 878 does not provide any maturity benefit; it only pays on death.
• It is a decreasing term plan, meaning coverage reduces as the loan is repaid.
• The plan is available only online through LIC’s official website.
• No surrender or loan facilities are available under this term insurance.
• Policies are non-participating, so no bonuses or profit shares apply.
• It is advisable to disclose all existing insurance coverage and income details during application for eligibility evaluation.

For more detailed policy document and terms, official LIC website can be referred at licindia.in.

Applying for LIC Digi Credit Life Plan 878

The digital, paperless process makes buying this policy easy and quick:

1. Visit the LIC India website and navigate to the Digi Credit Life Plan 878 page.
2. Fill in personal and loan-related details.
3. Upload necessary documents like ID proof, income proof, and address proof.
4. Calculate your premium using the online calculator.
5. Complete the online payment.
6. Receive the policy document digitally after approval.

This completely online method saves time and simplifies loan protection insurance purchase.

FAQ on LIC Digi Credit Life Plan 878

Conclusion

The LIC Digi Credit Life Plan 878 is an effective, affordable, and digitally convenient way to secure outstanding loans against untimely death. Its pure risk coverage, decreasing sum assured linked to loan tenure, and digital-first approach make it a preferred choice for loan borrowers in India.

While it does not offer investment returns or maturity benefits, its key advantage lies in eliminating the financial burden of loans on the family, providing peace of mind.