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Loan-protection term plan for younger borrowers.
LIC Yuva Credit Life (Plan 877) is an online decreasing-term loan protection plan for borrowers aged 18–40. It mirrors Digi Credit Life (Plan 878) in structure — SA decreases with the notional outstanding loan balance — but is priced specifically for the younger risk pool. Entry ages 18–40, policy term 5–35 years, single or regular premium. If you are under 40 and need to cover a home loan, education loan, or car loan and your age qualifies, compare this against Digi Credit Life — the younger-pool pricing should result in a lower premium.
Age cap at 40. SA tracks outstanding loan — for younger borrowers.
Death of the life assured during the policy term. Nominee receives the current (decreasing) sum assured as a lump sum — approximately equal to the notional outstanding loan principal at date of death. The SA decreases on a schedule set at policy inception and may not perfectly track your actual loan amortisation, especially if you make prepayments.
Suicide in the first 12 months. Death after lapse (regular-pay). Income replacement — if you die with ₹50L loan remaining and your family needs ₹80L to maintain their standard of living, this plan pays only ₹50L. Pre-existing health conditions not disclosed at inception could lead to claim rejection.
A 25-year-old buying ₹1 crore of level-SA term cover via Digi Term for 30 years might pay ₹8,000–10,000/year. Yuva Credit Life for the same SA over 30 years (decreasing) might cost ₹6,000–8,000/year. The ₹2,000–3,000/year difference is a meaningful saving — but the level-SA plan covers both the loan and your family's ongoing living costs. The rational choice for a 25-year-old with a ₹1Cr home loan and no other term cover: buy ₹1Cr level-SA Digi Term as the primary plan, and skip the credit life product.
Yuva Credit Life is ideal for two specific profiles: a young borrower who already holds separate income-replacement term cover and wants a lean, cheap loan-cancellation product; and a borrower whose bank has made credit life a condition of loan approval — in which case, Yuva Credit Life at LIC's online rate is far cheaper than the bank's bundled group credit life product. Age eligibility up to 40 means a buyer taking on a 25-year home loan at 38 would mature at 63 — within the policy's 35-year term limit.
Premiums deductible under §80C. Death benefit tax-free under §10(10D). Same note as Digi Credit Life: if the lender pays the premium and bundles it into the EMI, ensure the tax receipt is in your name to claim the §80C deduction.
LIC does have an online premium calculator — it's their Quick Quote tool on the eBiz portal. Enter your name, date of birth, gender, and mobile number, then pick this plan on the next screen to see the actual premium for your profile.
This is an online-only plan — the quote and purchase flow are fully on LIC's website. No agent or branch visit needed.
Open LIC's Quick Quote tool ↗Or browse the official plan page ↗ for brochures and policy documents.
Asymmetrica isn't an insurance advisor. The analysis above is editorial, sourced from published LIC brochures. Verify eligibility, current rates, and plan-specific conditions with LIC or a licensed advisor before purchasing.
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