On August 5, 2024, the Life Insurance Corporation of India (LIC) announced the launch of four new juvenile insurance initiatives, which are collectively known as the Yuva Bima Yojana. Customized to meet the specific requirements of each client, these plans offer comprehensive financial protection for both term insurance and loan repayments. This essay will extensively examine the primary characteristics, benefits, and objectives of these schemes.
Youth Insurance Schemes: The Life Insurance Corporation of India (LIC) launched four new insurance plans for young consumers on August 5, 2024. LIC specifically developed these initiatives to cater to the financial security and requirements of the younger generation. Through these schemes, LIC aims to give strong financial security to the younger generation for term insurance and loan repayment.
Four new projects
Under this initiative, LIC has launched four new schemes, namely ‘Yuva Term’, ‘Digi Term’, ‘Yuva Credit Life’, and ‘Digi Credit Life’. The ‘Yuva Term’ plan is available offline for customers who want to buy the policy directly from LIC. At the same time, the ‘Digi Term’ plan is only available online on the LIC website. This move gives young customers the freedom to choose a policy as per their convenience.
The plan’s key features
The biggest feature of these schemes is that they are ‘non-par’, ‘non-linked’ schemes, whose main purpose is to cover only the risk. This means that if the policyholder dies during the policy term, their family will have financial security. People between the ages of 18 and 45 can avail of these plans, and their maturity age ranges from 33 to 75 years.
Insurance premium and premium
In the ‘Yuva Term’ and ‘Digi Term’ schemes, the minimum sum insured starts at Rs 50 lakh, which can be increased to Rs 5 crore. In certain cases, even higher sums insured can be considered. These plans’ premium rates are also quite appealing, especially for women. Higher amounts of insurance also qualify for a special premium discount.
Death benefit
In these plans, if the policyholder dies, their family will get the full benefit of seven times the annual premium, or 105 percent of the total premium paid or the sum insured. In the event of a single premium payment, the beneficiaries will receive 125 percent of the single premium or the entire sum insured.
Credit Life Schemes
The ‘Yuva Credit Life’ and ‘Digi Credit Life’ schemes are also non-par and non-linked plans specifically designed for loan repayment. In these plans, the death benefit decreases gradually over the policy period. These plans are also available for people between the ages of 18 and 45, with a maturity age of 23 to 75 years.
The main objective
Through these schemes, LIC aims to encourage the youth to choose the right insurance plan for them. These programs will provide financial security and benefit individuals in a variety of aspects of their existence. For today’s younger generation, plans such as “Yuva Term,” “Digi Term,” “Yuva Credit Life,” and “Digi Credit Life” have the potential to serve as reliable foundations of financial stability.
#LIC #YouthInsurancePlan #Security #Insurance #LifeInsurancePlan
