The LIC Yuva Term Plan 875 is an exclusive term insurance policy from Life Insurance Corporation of India, focused on providing pure risk cover for India’s vibrant youth. It is especially suitable for those starting their careers or building a financial safety net for their families.

What Is LIC Yuva Term Plan 875?

LIC Yuva Term Plan 875 is a pure term insurance offering high life cover at an affordable premium. Unlike traditional endowment or savings plans, this policy provides only risk coverage (no maturity benefits, except in rare cases). It is designed for individuals aged 18 to 35, making it ideal for college-goers, early professionals, and newlyweds.

Key Features

• Affordable Premiums: The plan is cost-effective, designed keeping the youth in mind.
• Flexible Sum Assured: Users can choose coverage amounts as per their needs (usually starting from ₹25 lakhs).
• Policy Tenure: Terms range from 10 to 40 years, depending on entry age.
• Death Benefit: Lump sum paid out to nominee in case of unfortunate demise during policy period.
• No maturity or survival benefit unless optional riders are included.
• Additional rider options: Accidental Death Benefit and Critical Illness Cover.
• Online and offline purchase available through LIC branches or the official LIC portal.
• Tax benefits on premiums paid under Section 80C and claims under Section 10(10D).

How Does the LIC Yuva Term Plan 875 Calculator Work?

The calculator for LIC Yuva Term Plan 875 is a simple web-based tool. Users can estimate premiums and coverage for different scenarios based on their age, sum assured, tenure, and riders.

Inputs Required

• Age (entry age of the proposer)
• Sum Assured (the coverage desired)
• Policy Term (number of years)
• Gender, Smoker/non-smoker status
• Optional riders (Accident, Critical Illness, etc.)

Outputs Received

• Annual Premium: How much needs to be paid yearly.
• Death Benefit: The amount paid to the nominee if something happens to the insured.
• Breakup of rider premium (if selected).
• Premium payment frequency: annual, semi-annual, quarterly, or monthly.

Step-by-Step Guide: Using the LIC Yuva Term Plan 875 Calculator

1. Enter Basic Details: Fill in age, gender, and whether smoker/non-smoker.
2. Select Sum Assured: Choose desired coverage (e.g., ₹25,00,000 or higher).
3. Choose Policy Term: Pick tenure based on retirement age or financial goals (e.g., 30 years).
4. Add Optional Riders: Choose extra protection if needed.
5. Calculate Premium: The tool shows annual premium instantly and also gives split-up if riders are selected.
6. Compare Scenarios: Try adjusting tenure or sum assured to see how premiums change.

Example Calculation

Suppose a 25-year-old non-smoker male applies for ₹50 lakh cover for 30 years. With no riders:

• Annual Premium: ₹5,500 (example; actual figure depends on LIC’s rate card)
• Death Benefit: ₹50,00,000

If accidental death rider is added, premium may increase to ₹6,200.

Benefits of Using the LIC Yuva Term Plan 875 Calculator

• Instant calculations: No need for manual math or waiting for quotes.
• Transparency: Shows breakup of base premium and rider costs.
• Personalization: Users can test different scenarios to suit their budget.
• Ease of Comparison: Compare with other plans for the best fit.

Eligibility Criteria

Individuals need to meet certain criteria to buy the plan:

• Entry Age: 18 to 35 years
• Maximum Maturity Age: 50 to 75 years (depends on chosen tenure)
• Minimum Sum Assured: ₹25 lakhs (example; check official LIC rates for final figure)
• Maximum Sum Assured: As per LIC rules; often up to ₹2 crores or more with income proof.

Applicants must also undergo medical screening as per LIC underwriting rules, especially for higher cover ages or amounts.

Exclusions and Riders

Exclusions:
Standard exclusions apply, e.g., suicide within the first year, fraudulent claims, undisclosed health conditions.

Riders:

• Accidental Death Rider: Additional sum assured paid in case of accidental death.
• Critical Illness Rider: Lump sum paid if diagnosed with listed illnesses.
• Riders increase premium but add valuable protection.

Important Tips Before Buying LIC Yuva Term Plan 875

• Always compare premium for different tenures—longer tenure could result in marginally higher premiums, but longer protection.
• Add riders based on actual requirements, not just sales pitch.
• Use the online calculator for experimenting with premium, sum assured, and rider combinations.
• Double-check nominee details, as this affects claim settlement.

Tax Benefits

Premiums paid under LIC Yuva Term Plan 875 qualify under Section 80C of the Income Tax Act (up to ₹1.5 lakh annual limit). Claim amounts received by the nominee are generally tax-free under Section 10(10D).

Why Calculator Is Helpful

The calculator removes guesswork, helping the user identify the exact premium needed for chosen coverage. This aids in budgeting and decision-making, especially for young professionals and first-time buyers.

How to Buy LIC Yuva Term Plan 875

The plan is available both online and via LIC branches.

Online Purchase Steps:

• Visit LIC official site
• Login or register as new user
• Fill proposal form
• Submit documents online
• Make payment and complete medical tests if required

Offline Purchase Steps:

• Visit nearest LIC branch with documents
• Get proposal form, fill up details
• Submit required documents
• Complete medical screening if needed
• Make premium payment

Common Mistakes To Avoid

• Underestimating coverage required, especially with inflation and rising costs
• Not updating nominee details (it must be current and correct)
• Not disclosing medical history, which may affect claim settlement
• Ignoring rider benefits, which may be crucial during accidents or health emergencies

Frequently Asked Questions

Summary

LIC Yuva Term Plan 875 is a powerful foundation for financial protection of young earning individuals. It is simple, affordable, and flexible, making it suitable for those who want security for their loved ones without the burden of heavy premiums. Using the calculator ensures that one makes an informed decision with clarity.