LIC’s Digi Credit Life 878
LIC’s Digi Credit Life plan is a Non-Par, Non-Linked, Individual Life Insurance policy designed to provide a safety net for the insured’s family in case of the insured’s unfortunate death during the policy term, ensuring that any outstanding loan repayments are covered. As a Non-Par product, this plan does not entitle the policyholder to any share in the surplus (profits) during the policy term.
This is a **pure decreasing term assurance** plan, where the death benefit decreases over the course of the policy term. The policyholder selects the Basic Sum Assured, Policy Term, and Interest Rate based on the terms of the loan they have availed. A **Risk Cover Schedule** is then prepared, reflecting these choices.
The available interest rates for the Risk Cover Schedule are 6%, 7%, 8%, 9%, 10%, 11%, and 12%, irrespective of the interest rate charged by the loan provider. The **Risk Cover Schedule** specifies the Sum Assured on Death (Death Benefit) for each policy year, based on the chosen interest rate, and is calculated using an **equated yearly repayment** method, regardless of the actual loan repayment schedule.
At the policy’s inception, the Sum Assured on Death is equal to the Basic Sum Assured. Each year thereafter, the Sum Assured on Death decreases in accordance with the **Risk Cover Schedule**. This means the death benefit, as specified in the schedule, may be either higher or lower than the actual outstanding loan balance at any given time.
Description
Key Features:
- Flexible Payment Options:
- Choose between Single Premium and Limited Premium Payment options.
- Select the Policy Term/Premium Paying Term according to your needs.
- Special Benefits:
- Special rates for women.
- Attractive High Sum Assured Rebate.
- Premium Categories:
- Non-Smoker Rates: Based on the results of the Urinary Cotinine test.
- Smoker Rates: Applicable in all other cases.
- Interest Rate Options:
- Select an appropriate loan interest rate at the inception of the policy.
Eligibility Conditions and Other Restrictions:
| Eligibility Criteria | Details |
|---|---|
| Minimum Age at Entry | 18 years (Last Birthday) |
| Maximum Age at Entry | 45 years (Last Birthday) |
| Minimum Age at Maturity | 23 years (Last Birthday) |
| Maximum Age at Maturity | 75 years (Last Birthday) |
| Minimum Basic Sum Assured | Rs. 50,00,000/- |
| Maximum Basic Sum Assured | Rs. 5,00,00,000/- (Higher amounts may be considered on a case-to-case basis as per underwriting policies) |
| Sum Assured Multiples | – Rs. 50,00,000 to Rs. 75,00,000: Rs. 1,00,000/- |
| – Rs. 75,00,000 to Rs. 1,50,00,000: Rs. 25,00,000/- | |
| – Rs. 1,50,00,000 to Rs. 4,00,00,000: Rs. 50,00,000/- | |
| – Above Rs. 4,00,00,000: Rs. 1,00,00,000/- | |
| Policy Term & Premium Payment Terms | – Policy Term: 5 to 30 years (Single Premium) |
| – Policy Term: 10 to 30 years (5-Year Premium Payment) | |
| – Policy Term: 15 to 30 years (10-Year Premium Payment) | |
| – Policy Term: 25 to 30 years (15-Year Premium Payment) | |
| Minimum Premium | Rs. 3,000/- for Limited Premium policies |
| Rs. 11,000/- for Single Premium policies |
Benefits:
The benefits payable under an in-force policy are as follows:
a) Death Benefit:
The death benefit is payable if the Life Assured dies during the policy term, after the commencement of risk but before the stipulated Date of Maturity, provided the policy is in force and the claim is admissible. The amount payable is the Sum Assured on Death.
- For Limited Premium Payment Policies, the “Sum Assured on Death” is defined as the higher of:
- 105% of the “Total Premiums Paid” up to the date of death, or
- The absolute amount assured to be paid on death.
Note: “Total Premiums Paid” refers to the total premiums paid under the base product, excluding extra premiums and taxes (if collected explicitly).
- For Single Premium Policies, the “Sum Assured on Death” is defined as:
- The absolute amount assured to be paid on death.
The Single Premium refers to the premium paid, excluding taxes and any extra premiums for underwriting.
The Risk Cover Schedule specifies the Sum Assured on Death for each policy year. This is calculated based on the chosen interest rate per annum, using an equated yearly repayment method, regardless of the actual loan repayment schedule.
At the inception of the policy, the Sum Assured on Death is equal to the Basic Sum Assured. Each policy year thereafter, the Sum Assured on Death will follow the schedule provided in the Risk Cover Schedule. The death benefit, as defined in the schedule, may be higher or lower than the actual outstanding loan at any given time.
b) Maturity Benefit:
No maturity benefit is payable if the Life Assured survives to the end of the policy term.
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