LIC Yuva Credit Life Plan 877 Calculator: Premium and Decreasing Loan Cover

What is LIC Yuva Credit Life Plan 877?

LIC Yuva Credit Life (Plan 877) is a non-linked, non-participating decreasing term plan built to protect a loan. The cover starts at the loan amount and reduces every year, the same way your outstanding balance shrinks as you pay EMIs. If you die during the term, LIC pays the cover for that year, and your family can close the loan instead of inheriting it.

LIC launched it in 2024. It belongs to the same family for younger buyers as Yuva Term 875 and the online plans Digi Term 876 and Digi Credit Life 878. Yuva Credit Life is the offline version: you buy it through an agent or branch.

Yuva Credit Life 877 at a glance

Feature	Details
Plan number	877
Plan type	Non-linked, non-participating decreasing term
How to buy	Offline (agents, branches)
Entry age	18 to 45 years
Maturity age	23 to 75 years
Policy term	5 to 30 years (match your loan tenure)
Initial sum assured	₹50 lakh to ₹5 crore
Cover schedule	Reduces yearly, based on a loan rate you choose (6%–12%)
Premium payment	Single, or limited for 5, 10 or 15 years
Maturity benefit	None

Eligibility

Condition	Limit
Minimum / maximum entry age	18 / 45 years
Minimum / maximum age at end of term	23 / 75 years
Policy term	5 to 30 years
Limited paying term	Must be shorter than the policy term

How the cover reduces

The sum assured in each year follows the outstanding balance of a loan repaid in equal yearly instalments at the interest rate you select. You don’t have to pick your actual loan rate; choosing a higher rate keeps the cover higher for longer and costs a little more.

For ₹50 lakh over 20 years at 8%, our calculator gives:

Policy year	Sum assured on death
1	₹50,00,000
5	₹45,07,657
10	₹36,35,596
15	₹23,54,253
20	₹4,71,538

The full schedule for your inputs appears below the calculator.

How the premium is calculated

The premium depends on age, gender, smoking status, policy term, the chosen loan rate and the payment option. The calculator follows the sample premiums in LIC’s Yuva Credit Life sales brochure: ₹50 lakh of initial cover, 25-year term, 8% loan rate, male non-smoker, at ages 20, 30 and 40, for single premium and 5, 10 or 15 years of payment. For example, LIC quotes ₹7,900 a year for 10 years at age 30, and the calculator gives exactly that. Other ages, terms and loan rates are scaled by how much cover remains each year, weighted by the risk in that year, so it always costs less than level cover of the same starting amount. LIC’s high sum assured rebate applies from ₹1 crore (17% up to age 30, 15% for 31–45 on limited pay). You can pay yearly or half-yearly (51% of the yearly premium per instalment). Women and smokers are our estimates (about 10% less and 20% more).

Worked example. A 30-year-old non-smoking man takes a ₹50 lakh, 20-year home loan and buys Yuva Credit Life with the 8% schedule:

• 10-year limited pay: about ₹6,075 a year, ₹60,750 in total
• 5-year limited pay: about ₹10,113 a year, ₹50,565 in total
• Single premium: about ₹41,181 once

A woman of the same age pays about ₹5,468 a year on 10-year pay, and a male smoker about ₹7,290. For level cover of the same ₹50 lakh and 20 years with 10-year pay, our Yuva Term 875 calculator shows about ₹8,750 a year, so the decreasing cover costs about 31% less.

A bigger loan scales the premium: a 35-year-old covering ₹1 crore for 20 years at a 9% schedule pays about ₹14,482 a year for 10 years.

Tip: finish paying well before the loan ends. With limited pay, the cover continues to the end of the term even after your last premium.

No GST is added. Term premiums were charged 18% GST until 22 September 2025; individual life policies are now exempt.

Death benefit

On death during the term, the nominee receives the sum assured for that policy year from the cover schedule. The payout goes to the nominee, not to the bank, so the family decides how to settle the loan. Nothing is paid if the policy runs its full term.

Other features

• Lower rates for women and for non-smokers.
• Rebate on larger covers.
• Grace period of 30 days for limited-pay premiums, and revival within five years of the first unpaid premium.
• Not linked to a lender: switching or prepaying your loan does not cancel the policy.

Tax benefits

Premiums qualify for deduction under Section 123 of the Income-tax Act, 2025 (earlier Section 80C) (old tax regime). The death claim is exempt under Section 11 read with Schedule II of the Income-tax Act, 2025 (earlier Section 10(10D)).

Who should consider Yuva Credit Life 877?

It fits you if you:

• have or are about to take a large home, education or business loan;
• want the loan covered without paying for a level cover you won’t need later;
• already have, or plan to add, a separate term plan for your family’s living costs.

If you want cover that stays level for your family, look at Yuva Term 875 instead, or combine the two.

Yuva Credit Life 877 vs Digi Credit Life 878

Both give reducing loan cover. Digi Credit Life 878 is the online version, bought directly on LIC’s website, and online rates are lower. For the ₹50 lakh, 20-year example above (8% schedule, 10-year pay), our Digi Credit Life calculator shows about ₹4,806 a year against ₹6,075 here, a gap of about 26%. LIC’s brochures show the same gap: ₹7,900 against ₹6,250 a year for age 30, ₹50 lakh, 25 years, 10-year pay. Yuva Credit Life suits buyers who want an agent to handle the paperwork and claim.

How to use this calculator

1. Choose gender and smoking status, and enter your age.
2. Set the policy term equal to your loan tenure.
3. Enter the loan amount as the initial sum assured.
4. Pick the loan interest rate for the cover schedule.
5. Choose single or limited pay and read the premium and the year-wise cover.

These are estimates from an independent calculator; LIC’s actual premium depends on underwriting. For level cover comparisons, use our term plan calculator.