Formula
P = (T − R) × S / 1000
T = A / (ä × (1 − λ))
Ct = S × [1 − (1 + j)−(n − t + 1)] / [1 − (1 + j)−n]
where
- P
- single premium
- T
- tabular premium per ₹1,000 of sum assured, for your age, term and premium paying term
- R
- high sum assured rebate, ₹ per ₹1,000: a percentage of T set by entry age and sum assured (nil on smaller policies)
- S
- Basic Sum Assured
- A
- present value, per ₹1,000 of sum assured, of everything the policy pays
- ä
- 1, since the premium is paid once, at the start
- λ
- expense loading, 20%
- Ct
- cover in policy year t: what is left on a loan of S repaid in equal yearly instalments
- j
- the cover schedule's interest rate, one of 6%, 7%, 8%, 9%, 10%, 11%, 12%
- n
- policy term, in years
In short (tl;dr)
Digi Credit Life is LIC's online loan protection plan. The cover starts at the sum assured you choose and falls every policy year along a schedule built from a loan interest rate you pick, so it tracks what is left on a loan.
Worked example: at 30, ₹50,00,000 of cover over 25 years costs ₹45,500 a year for 1 year.
What is LIC Digi Credit Life?
Digi Credit Life (Plan 878) is a non-participating, non-linked pure risk plan sold only on licindia.in. If the life assured dies during the policy term, LIC pays the Sum Assured on Death for that policy year. If they survive the term, nothing is paid.
The cover is not level. When you buy, you choose the Basic Sum Assured, the policy term and an interest rate from 6% to 12% in whole steps. LIC then prints a Risk Cover Schedule: the cover in year one equals the Basic Sum Assured, and each later year it equals the balance of an imaginary loan of that size repaid in equal yearly instalments at the rate you chose. On a 25-year schedule at 8%, the cover is ₹986.32 per ₹1,000 in year two, ₹433.07 in year 20 and ₹86.74 in the last year.
The schedule follows the rate you choose, not your lender. Someone whose home loan is at 7.25% can pick 7% or 8%. If the loan is prepaid, restructured or moves to a floating rate, the cover does not follow it: it can end up above or below what is actually owed.
You can pay once (single premium) or over 5, 10 or 15 years, yearly or half-yearly. The longer premium terms are only open on longer policies: 5-year pay needs a term of at least 10 years, 10-year pay at least 15 and 15-year pay at least 25.
Key features
- Sold online only, through licindia.in
- Cover reduces each year along a loan schedule at 6%, 7%, 8%, 9%, 10%, 11% or 12%, chosen at purchase
- Basic Sum Assured ₹50 lakh to ₹5 crore, higher on underwriting
- Single premium, or 5, 10 or 15 years of premiums, yearly or half-yearly
- Entry age 18 to 45, cover to age 75 at most
- Separate non-smoker rates on a urine cotinine test, and lower rates for women
Digi Credit Life at a glance
- Plan number
- 878
- Category
- Term Insurance
- Entry age
- 18 to 45 years
- Policy term
- 5 to 30 years
- Premium paying term
- 1, 5, 10, 15 years
- Sum assured
- ₹50 Lakh to ₹5 Crore
- Maximum maturity age
- 75 years
- UIN
- 512N358V01
We checked the plan number and UIN above against LIC's own page for this plan on 2026-10-02. Check it on licindia.in
What are the benefits of LIC Digi Credit Life?
What does LIC Digi Credit Life pay on death?
The Sum Assured on Death for the policy year of death, as printed in the policy's Risk Cover Schedule. On a limited premium policy it is never less than 105% of the premiums paid to the date of death.
What do you get at maturity?
None. If the life assured survives the term, nothing is paid.
Who is LIC Digi Credit Life for?
A borrower with a large home or business loan who wants the debt cleared if they die, and is comfortable buying online.
What should you watch out for?
The schedule is fixed at purchase. Prepaying the loan does not reduce the premium already paid, and a floating rate that rises will leave more owed than the schedule covers. If you repay early you can cancel and receive the Unexpired Risk Premium Value, which is a fraction of what you paid.
What does LIC Digi Credit Life cost?
Worked out on a 25-year term with premiums paid for 1 year, for a non-smoking man. Change any of these in the calculator above for your own figures.
By sum assured, at age 30
| Sum assured | Premium a year | Total paid in |
|---|---|---|
| ₹50,00,000 | ₹45,500 | ₹45,500 |
| ₹1,00,00,000 | ₹77,350 | ₹77,350 |
| ₹2,50,00,000 | ₹1,68,350 | ₹1,68,350 |
Premiums are modelled on this plan's own tabular rates. This is a pure protection plan, so there is no maturity value.
By age, on ₹50,00,000 of cover
Sum assured moves the premium almost in a straight line, so the table above is easy to read across. Age does not, and it is the input people most often want to test before filling anything in.
| Age at entry | Premium a year | Total paid in |
|---|---|---|
| 25 years | ₹39,440 | ₹39,440 |
| 30 years | ₹45,500 | ₹45,500 |
| 40 years | ₹87,973 | ₹87,973 |
Age moves this premium a long way: ₹39,440 at 25 becomes ₹87,973 at 40, 2.2 times as much. Most of it pays for the risk of dying during the term, and that risk climbs with age.
LIC's own sample premium, from the brochure
From the sourceNot modelled: this is the table LIC prints in its own brochure (Sales brochure, section 7 Sample Illustrative Premium, policy term 25, loan interest rate 8%, non-smoker male, standard lives), at ₹50,00,000 of cover, the sum assured LIC chose to illustrate. Everywhere else on this page the premium is worked out for the sum assured you enter; here it is fixed at that figure, because that is what LIC published.
These figures are taken from the document linked below. Check them there.
| Age at entry | 1 years | 5 years | 10 years | 15 years |
|---|---|---|---|---|
| 20 | ₹34,550 | ₹8,050 | ₹4,800 | ₹3,800 |
| 30 | ₹45,500 | ₹10,500 | ₹6,250 | ₹4,900 |
| 40 | ₹88,750 | ₹20,300 | ₹11,900 | ₹9,250 |
Priced on ₹50,00,000 of cover, exclusive of taxes, standard lives. Our own model is anchored on the age 30, 25-year term, 1-year premium term cell in this table; the other cells are the real test of the model, and the editorial and methodology policy publishes how far off they run.editorial and methodology policy publishes how far off they run.
Who can take LIC Digi Credit Life?
Age to start
- Minimum
- 18 years
- Maximum
- 45 years
Policy term
- Minimum
- 5 years
- Maximum
- 30 years
Age when the policy matures
- Maximum
- 75 years
Your age at entry plus the policy term cannot come to more than 75.
Years you pay for
- Terms available
- 1, 5, 10 or 15 years
Sum assured
- Minimum
- ₹50,00,000
- Maximum
- ₹5,00,00,000
The calculator applies every limit above. LIC sets them out under "Eligibility Conditions and Other Restrictions" on page 2 of the Digi Credit Life sales brochure, linked in the form above.
What Digi Credit Life pays if you surrender
No surrender value. On surrender LIC pays an Unexpired Risk Premium Value instead: on a single premium policy at any time, and on a limited premium policy only after two full years' premiums on a 5-year premium term, or three on a 10 or 15-year term. The policy document gives the formula; on a single premium policy it is 75% in year one rising to 90% from year four, times the share of the term left, times the single premium net of any high sum assured rebate.
Taken from the plan's own brochure rather than modelled, which is why there is no table here: LIC states the percentages for this plan outright, and a percentage of a number you already know needs no calculator.
Tax on LIC Digi Credit Life
Two provisions do the work, and both turn on the size of the premium rather than on the plan. The Income-tax Act, 2025 renumbered both from 1 April 2026 without changing the rules, so each is given here under its old number and its new one.
Section 80C, now Section 123, on what you pay in
Premiums count towards the ₹1.5 lakh limit, in the year they are paid, if you are on the old regime. The deduction is restricted where the annual premium is more than 10% of the sum assured.
Section 10(10D), now Schedule II, on what comes back
Maturity proceeds are exempt where the premium in every year stays inside 10% of the sum assured, and, for a policy issued on or after 1 April 2023, where the premiums on all such policies together stay inside ₹5 lakh a year. Death proceeds are exempt either way.
Where this policy sits
The ₹50,00,000 policy priced above costs ₹45,500 a year, which is 0.9% of the sum assured. That is inside the 10% test, on both provisions. A larger sum assured moves the ratio down.
GST
Nil. Individual life insurance premiums have been exempt since 22 September 2025, so the instalment the calculator shows is the amount that leaves your account.
None of this is tax advice. Which regime you are on, what else you hold and when the policy was issued all change the answer, so confirm your own position with a tax adviser before you rely on it.
How this calculator works
Digi Credit Life is priced here on its own parameters, not a generic formula. We build the plan's full cash-flow schedule, meaning the death benefit in each policy year, every survival payout and the maturity value, then discount it on a basis calibrated to a reference premium for this plan. That reference is checked two ways: against LIC's published tabular rate, and against the return the plan's own benefits imply for the policyholder.
- Reference premium
- ₹9.10 per ₹1,000 at age 30, 25-year term, 1-year premium term
- Discount basis
- 7.48% a year, on LIC (2012-14) Ultimate mortality scaled to 70% for this plan's underwritten pool
- GST
- Nil. Individual life insurance premiums have been exempt from GST since 22 September 2025, so the instalments shown are what you actually pay.
Bonus rates are declared annually and are not guaranteed; only the sum assured and any contractual guaranteed additions are. Read our editorial and methodology policyfor the full basis, and confirm every figure with LIC before you buy.
Check the source:Digi Credit Life on licindia.inLIC valuation and bonus declarationsIRDAI regulations
How LIC Digi Credit Life compares
The plans people weigh this one against, and what separates each from it.
| Plan | Policy term | You pay for | Cover from | What is different |
|---|---|---|---|---|
| Digi Credit LifeNo. 878 · this page | 5 to 30 years | 1, 5, 10, 15 years | ₹50 Lakh | Online-only loan cover from LIC: the death benefit falls each year in step with a loan schedule. |
| Yuva Credit LifeNo. 877 | 5 to 30 years | 1, 5, 10, 15 years | ₹50 Lakh | LIC's agent-sold loan cover: the death benefit falls each year in step with a loan schedule. |
| New Tech-TermNo. 954 | 10 to 40 years | The full term | ₹50 Lakh | LIC's online term plan: level cover from ₹50 lakh, bought direct with no agent. |
| New Jeevan AmarNo. 955 | 10 to 40 years | The full term | ₹25 Lakh | Tech-Term's agent-sold twin: the same pure cover, sold through agents until LIC withdrew it. |
| Saral Jeevan BimaNo. 859 | 5 to 40 years | The full term | ₹5 Lakh | The standard term plan every insurer must offer, with identical terms across the market. |
To price several of these against each other on the same age and sum assured, the LIC premium calculator runs every plan on the site through the same engine and puts the answers in one table.
LIC Digi Credit Life: frequently asked questions
How much is LIC Digi Credit Life for ₹50 lakh?
LIC's brochure prices a 25-year policy at an 8% schedule for a non-smoking man: ₹45,500 as a single premium at age 30, or ₹10,500 a year for 5 years, ₹6,250 a year for 10, or ₹4,900 a year for 15. At age 40 the same choices cost ₹88,750, ₹20,300, ₹11,900 and ₹9,250. Premiums exclude tax.
How does the cover reduce in Digi Credit Life?
Each policy year's cover is the outstanding balance of a loan equal to the Basic Sum Assured, repaid in equal yearly instalments over the policy term at the interest rate you chose. Year one is the full sum assured. On a 25-year schedule at 8% the cover is 80.18% of it in year 11, 43.31% in year 20 and 8.67% in year 25.
Which interest rate should I choose for the Risk Cover Schedule?
One of 6%, 7%, 8%, 9%, 10%, 11% or 12%. LIC's own example is a loan at 7.25%, where either 7% or 8% may be chosen. A higher rate keeps the cover higher for longer, because the imaginary loan is repaid more slowly at first, and costs more for that reason.
What happens if I repay my loan early?
You can keep the policy to the end of its term, with the cover still following the schedule, or surrender it and receive the Unexpired Risk Premium Value if one is due. On a limited premium policy that value is only payable once two years' premiums are paid on a 5-year premium term, or three years' on a 10 or 15-year term.
What is the difference between Digi Credit Life and Yuva Credit Life?
Both are decreasing cover plans built on the same Risk Cover Schedule. Digi Credit Life (878) is sold only online. Yuva Credit Life (877) is sold through agents, brokers and other intermediaries, costs more at every age in LIC's sample grid, and allows a ₹20 lakh to ₹35 lakh sum assured for borrowers aged 21 to 45 with a sanctioned loan.
Is there a maturity benefit or loan in Digi Credit Life?
No to both. Nothing is paid if the life assured survives the term, the policy acquires no paid-up value, and no policy loan is available.
Spot something wrong?
If a figure on this page disagrees with an LIC premium notice, bonus statement or benefit illustration, tell us and we will check it against the brochure. Anything else you think this page gets wrong is just as welcome.
Related calculators
Plans people usually weigh up against Digi Credit Life before deciding.
Yuva Credit Life
No. 877LIC's agent-sold loan cover: the death benefit falls each year in step with a loan schedule.
Open calculatorNew Tech-Term
No. 954LIC's online term plan: level cover from ₹50 lakh, bought direct with no agent.
Open calculatorNew Jeevan Amar
No. 955Tech-Term's agent-sold twin: the same pure cover, sold through agents until LIC withdrew it.
Open calculatorSaral Jeevan Bima
No. 859The standard term plan every insurer must offer, with identical terms across the market.
Open calculator