LIC Yuva Term Plan 875: ₹1 Crore Cover, Premium Comparison and Complete Guide

A life insurance policy earns its keep on one day only: the day a family has to carry on without the income it relied on. Until then, the job is to choose cover that is large enough, lasts long enough and costs an amount you can keep paying. LIC Yuva Term Plan 875 is LIC’s offline pure term plan built for that job, and it is aimed squarely at people who want high cover early in their working life.

This guide explains how the plan works using LIC’s current product documents, then looks closely at real premium illustrations for ₹1 crore of cover under three payment choices: regular premium, 10-year limited premium and single premium. You will also find the eligibility rules, the two death benefit options, what happens if you survive the term, and the questions worth asking before you sign a proposal form.

A quick note on sources. Product rules below come from LIC’s sales brochure, policy document and Customer Information Sheet for UIN 512N355V02, which are linked at the end. Premium figures come from benefit illustrations prepared for one specific applicant profile, and they are labelled as such wherever they appear.

What Is LIC Yuva Term Plan 875?

LIC’s Yuva Term (Plan No. 875) is a non-participating, non-linked, individual, pure risk life insurance plan. In plain terms, it pays a death benefit to your nominee if you die during the policy term, and it pays nothing if you survive to the end. There are no bonuses, no investment returns and no maturity value. Because every rupee of premium goes towards the cost of cover, the premium for a large sum assured is far lower than it would be for an endowment or money-back plan with the same cover.

LIC launched Yuva Term on 5 August 2024 together with an online-only sibling, LIC’s Digi Term (Plan 876). Yuva Term is sold offline through LIC agents and other licensed intermediaries, while Digi Term is bought directly on LIC’s website. The plan was originally filed as UIN 512N355V01; the brochure, policy document and CIS currently published by LIC carry the revised UIN 512N355V02.

It helps to be clear about what a term plan is not. Savings-oriented plans such as LIC Jeevan Labh or LIC New Endowment Plan combine a smaller amount of life cover with a maturity payout, so a large part of the premium is effectively saved. A term plan does only the protection half of that job, which is why many families pair one with separate savings or investments.

Key Features of LIC Yuva Term Plan

The table below summarises the current product terms. Figures are taken from LIC’s published brochure and policy document for UIN 512N355V02.

Sum assured must be chosen in fixed steps: multiples of ₹1 lakh between ₹50 lakh and ₹75 lakh, ₹25 lakh between ₹75 lakh and ₹1.5 crore, ₹50 lakh between ₹1.5 crore and ₹4 crore, and ₹1 crore above ₹4 crore. ₹1 crore is therefore a valid amount.

LIC Yuva Term Plan for ₹1 Crore Life Cover

A ₹1 crore sum assured means that, under the Level option, your nominee would receive ₹1 crore if you died while the policy was in force, subject to the policy conditions. For many salaried households, that figure is a sensible starting point rather than a magic number.

The right cover is the money your family would need to stay on its feet without your income. A rough way to build that number is to add up:

• Outstanding loans, especially a home loan, that your family would otherwise have to keep servicing.
• Several years of household expenses for a spouse, children or parents who depend on you.
• Future goals that cannot be postponed, such as a child’s school and college fees.
• A cushion for inflation and medical costs over the years ahead.

From that total, subtract what is already in place: existing life cover, savings, investments and any employer group cover (which usually ends when you change jobs). A 30-year-old earning ₹12 lakh a year with a ₹50 lakh home loan may find ₹1 crore modest; a single person with no dependants may need much less. The point is to size cover to responsibilities, not to round numbers.

LIC Yuva Term Plan Premium for ₹1 Crore Sum Assured

The figures in this section come from three LIC Yuva Term premium and benefit illustrations dated 13 October 2026, prepared for one applicant. Please read the assumptions before comparing them with any other quote.

Two of these points matter. First, LIC charges different rates to smokers and non-smokers, and the illustrations do not say which applies, so they cannot be read as a non-smoker quote. Second, the illustrations are silent on tax. Individual life insurance premiums have been exempt from GST since 22 September 2025, but you should confirm the final payable amount on your own quotation.

Regular Premium Option

Under regular premium, you pay throughout the policy term. For a 40-year policy, that means 40 yearly premiums (or 80 half-yearly ones), and the cover stays in force for as long as you keep paying.

Limited Premium Payment Option

Limited premium lets you finish paying early while the cover continues for the full term. Yuva Term offers two limited terms: 10 years and 15 years. The illustration provided covers the 10-year option, so the cover runs for 40 years but premiums stop after the tenth payment, at around age 44.

No illustration was supplied for the 15-year limited premium option, so it is not shown here. Expect its annual premium to fall between the regular and 10-year figures; LIC’s own sample table (later in this article) shows that pattern.

Single Premium Option

With single premium, you pay once at the start and the policy runs for the full term with nothing further due. The single premium is not an annual figure and should not be multiplied by the policy term.

Premium Comparison Table

Here are the three illustrated options side by side. All three assume the same applicant, the same ₹1 crore Level cover and the same 40-year term, so they can be compared directly.

A few observations follow from these numbers.

• The half-yearly instalments work out to exactly half the yearly premium plus 2%, which matches the 2% half-yearly factor in LIC’s brochure. Paying yearly is slightly cheaper overall.
• The 10-year option costs about 1.9 times the regular premium each year, but its total outlay is less than half of the regular option’s, because payments stop after ten years.
• The single premium has the lowest nominal total, but it asks for ₹3.3 lakh on day one.
• Totals are simple sums of rupees paid at different times. They ignore inflation and what the money could earn elsewhere, so a lower total is not automatically the better deal.

Important: these premiums belong to one illustrated profile. Your premium will depend on your age, gender, smoker status, chosen term, death benefit option, sum assured and LIC’s underwriting decision. Always ask for a current, personalised benefit illustration before deciding.

LIC’s Own Sample Premiums

For a second reference point, LIC’s brochure publishes sample annual premiums for a ₹50 lakh Basic Sum Assured and a 20-year term, for a male non-smoker on standard terms, excluding taxes. These are LIC’s figures, not ours, and they use different assumptions from the illustration above.

Two things stand out. Premiums rise steeply with entry age: the regular premium at 40 is roughly double the figure at 30. And the Increasing Sum Assured option costs noticeably more than the Level option at every age.

Larger covers also earn a High Sum Assured rebate. Under Option I with regular or limited premium, LIC’s brochure lists no rebate below ₹1 crore and a rebate of 18% (entry age up to 30) or 16% (age 31 to 45) for a Basic Sum Assured from ₹1 crore to below ₹2 crore, with higher rebates for bigger covers. Different percentages apply to single premium and to Option II.

Regular Premium vs Limited Premium vs Single Premium

None of the three options is right for everyone. The choice is really about cash flow and how comfortable you are committing money in advance.

Regular premium keeps the yearly cost lowest and spreads it over the whole term. It suits people early in their careers or with tight monthly budgets, and anyone who prefers not to tie up money upfront. The trade-off is a long commitment: missing premiums in your fifties or sixties can lapse a policy you have paid into for decades, and regular premium policies have no surrender value.

Limited premium front-loads the cost into 10 or 15 years. It suits people whose income is strong now but who expect expenses to rise, or who want premiums finished before retirement. In the illustration, payments end at about age 44 while cover continues to 75. The yearly outlay is higher, so make sure it fits comfortably alongside loan EMIs and school fees.

Single premium settles everything in one payment. It can make sense for someone with a lump sum from a bonus, inheritance or asset sale who wants a policy that cannot lapse for non-payment. The risks are concentration and timing: you hand over a large amount at once, and if the life assured dies early, the family receives the same cover as under the other options despite a much larger payment upfront. The policy document does provide an Unexpired Risk Premium Value in limited cases if a single premium policy is surrendered, but there is no conventional surrender value.

A practical test: choose the option whose premiums you could still pay if your income dropped for a year or two. Cover that lapses protects no one.

Level Sum Assured vs Increasing Sum Assured

Yuva Term asks you to pick one of two death benefit options at the start. The choice cannot be changed later.

Option I – Level Sum Assured. The amount assured on death stays equal to the Basic Sum Assured for the entire policy term. If you buy ₹1 crore, it remains ₹1 crore in year 1 and year 40.

Option II – Increasing Sum Assured. The amount assured on death equals the Basic Sum Assured for the first five policy years. From the sixth year it rises by 10% of the Basic Sum Assured each year until the fifteenth year, when it reaches twice the Basic Sum Assured, and then stays there for the rest of the term.

The increasing option is designed to keep pace, at least partly, with rising income and inflation. It is not free: LIC’s sample premiums for Option II are clearly higher than for Option I. The brochure also caps the maximum policy term under Option II according to entry age and sum assured, and for many applicants that cap is well short of 40 years. Ask your adviser to show both options at your age before choosing.

LIC Yuva Term Plan Eligibility and Conditions

The limits below define who can apply. Whether a particular applicant is accepted, and at what premium, is decided by LIC after underwriting.

Underwriting and medicals. Term insurance is underwritten carefully because the cover is large relative to the premium. LIC decides medical and financial requirements based on factors such as age, sum assured and your answers in the proposal form; the brochure does not publish a fixed list. Non-smoker rates are applied only on the basis of a urinary cotinine test; otherwise smoker rates apply. Disclose your health history, habits and occupation fully, because incorrect disclosures can lead to a claim being disputed later.

Other conditions worth knowing:

• Grace period: 30 days for yearly or half-yearly premiums. If a premium is still unpaid after the grace period, the policy lapses and cover stops.
• Revival: a lapsed policy can be revived within five consecutive complete years from the first unpaid premium, by paying arrears with interest and meeting LIC’s continued-insurability requirements.
• Free look: 30 days to review the policy and return it if you disagree with the terms, with a refund after the deductions specified in the policy document.
• Suicide exclusion: if death by suicide occurs within 12 months of the commencement of risk (or of revival), 80% of premiums paid, or 80% of the single premium, is payable instead of the sum assured, provided the policy is in force.
• No loan, no paid-up value and no regular surrender value.

Death Benefit Under LIC Yuva Term Plan

If the life assured dies during the policy term while the policy is in force, the nominee receives the Sum Assured on Death, which is defined as follows:

• Regular and limited premium: the highest of 7 times the annualised premium, 105% of total premiums paid up to the date of death, and the absolute amount assured on death (as per Option I or II).
• Single premium: the higher of 125% of the single premium and the absolute amount assured on death.

For large covers, the absolute amount assured is almost always the deciding figure. Take the illustrated regular premium of ₹24,528: seven times that is ₹1,71,696, and even 105% of all 40 premiums would be about ₹10.3 lakh. Both are well below ₹1 crore, so the nominee would receive ₹1 crore under Option I. The same applies to the single premium example, where 125% of ₹3,32,350 is about ₹4.15 lakh. This worked example is illustrative; the actual payout is always governed by the policy contract.

Receiving the death benefit in instalments

Instead of a lump sum, the life assured can choose, during their lifetime, to have all or part of the death benefit paid to the nominee in instalments over 5, 10 or 15 years. Instalments can be monthly, quarterly, half-yearly or yearly, subject to minimum instalments of ₹5,000, ₹15,000, ₹25,000 and ₹50,000 respectively. The nominee cannot change the choice. This option can help families who are not used to managing a large sum, though a lump sum may suit those who need to close a home loan immediately.

Does LIC Yuva Term Plan Pay a Maturity Benefit?

No. The policy document states plainly that no maturity benefit is payable if the life assured survives to the end of the policy term. In the illustration, a 35-year-old who survives to 75 receives nothing back from the policy, whichever payment option he chose.

That is not a flaw; it is the reason the premium is so low relative to the cover. You are paying for protection during the years your family depends on your income. If you also want money back at the end, you are looking for a different type of plan, and you should compare it on that basis rather than expecting a term plan to do both jobs.

Advantages and Limitations of LIC Yuva Term Plan

Whether the plan is good value for you depends on the quote you actually receive. Compare it with other term insurance options, including LIC’s Jeevan Amar term plan, on the same cover, term and smoker status before deciding.

Who Should Consider LIC Yuva Term Plan 875?

The plan may suit:

• Young salaried professionals who want to lock in a long cover period while premiums are lower and health is good.
• Self-employed people whose families depend on business income and who have no employer cover at all.
• Parents of young children, for whom the next 15 to 25 years carry the heaviest financial responsibility.
• Home-loan borrowers who want the loan cleared if they are no longer around.
• Couples where both partners earn; each may need individual cover. Our guide to the LIC Jeevan Sathi joint life plan compares joint cover with two separate term plans.

It may not be the right fit if you are older than 45, need cover below ₹50 lakh, want a maturity payout, or prefer to buy online. People with significant health conditions should expect underwriting to affect the premium or terms, and should compare options before committing. If you are unsure how much cover you need, start with the calculation in the ₹1 crore section above.

Frequently Asked Questions About LIC Yuva Term Plan 875

What is LIC Yuva Term Plan 875?

It is LIC’s offline, non-participating, non-linked pure term insurance plan (current UIN 512N355V02). It pays a death benefit if the life assured dies during the policy term and pays nothing on survival.

What is the minimum sum assured?

The minimum Basic Sum Assured is ₹50 lakh. The maximum is ₹5 crore, with higher amounts considered case by case.

Can I get ₹1 crore life cover under this plan?

Yes. ₹1 crore is within the allowed range and is a valid multiple. Acceptance and the final premium depend on LIC’s underwriting.

How much premium is payable for ₹1 crore cover?

In the illustration for a 35-year-old man with a 40-year term and level cover, the yearly premium was ₹24,528 (regular), ₹46,620 for 10 years (limited), or ₹3,32,350 once (single). Smoker status and taxes were not shown. Your premium will differ with age, gender, smoker status, term and option.

What is the difference between regular and limited premium?

Regular premium is paid every year for the whole policy term. Limited premium is paid for 10 or 15 years only, while cover continues for the full term. Limited premiums are higher each year but stop earlier.

Is a single premium option available?

Yes. You pay one premium at the start, with a minimum single premium of ₹30,000, and no further payments are due.

Does the plan provide a maturity benefit?

No. Nothing is payable if the life assured survives the policy term.

What are the available death benefit options?

Option I (Level Sum Assured) keeps cover constant. Option II (Increasing Sum Assured) keeps cover level for five years, then raises it by 10% of the Basic Sum Assured each year until it doubles in year 15. The choice cannot be changed later.

Who is eligible to purchase this plan?

People aged 18 to 45 at entry, provided the policy ends by age 75 and the sum assured is at least ₹50 lakh. LIC’s underwriting decides individual acceptance.

Does the premium depend on age and smoking status?

Yes. Premiums rise with entry age, and LIC applies non-smoker rates only where a urinary cotinine test supports them. Women get special rates.

Is a medical examination required?

Medical and other requirements are set by LIC based on factors such as age, sum assured and your disclosures. For large covers, expect some medical tests, including the cotinine test used for non-smoker rates.

How can I obtain a personalised premium quotation?

Because Yuva Term is sold offline, ask an LIC agent or authorised intermediary to generate an official benefit illustration for your age, term and option. You can also contact us to request one.

Final Thoughts

LIC Yuva Term Plan 875 does one thing: it provides a large, fixed or increasing death benefit for a defined period at a cost well below that of savings-linked insurance. Its flexibility lies in how you pay, with regular, 10-year, 15-year and single premium options, and in how the benefit is paid out.

The illustration for a 35-year-old shows how much that payment choice matters: ₹24,528 a year for 40 years, ₹46,620 a year for 10 years, or ₹3,32,350 once, all for the same ₹1 crore of cover. Choose the option your budget can sustain, size the cover to your family’s real obligations, and read the policy wording before you sign. If you would like an official illustration for your own age and circumstances, you can request a personalised quotation.

Disclaimer: This article is for general information and is not financial or tax advice. Product details are summarised from LIC’s published documents for UIN 512N355V02; premium figures are from a benefit illustration for one applicant profile and are not a quotation for you. Benefits, terms and conditions are governed by the policy contract. Insurance is the subject matter of solicitation. LicAgent.co.in is not LIC’s official website.