LIC · Term · Decreasing Term
Digi Credit Life
An online plan built to protect an outstanding loan — the death cover shrinks year by year to roughly track how much of a loan would still be owed.
Product data last fetched 26 August 2026. Features, premiums and availability may change — verify against the official brochure/policy wording before deciding.
The truth card
PurposeProtection
CategoryDecreasing Term
InsurerLIC
Life CoverNot available in the current product data
PremiumNot available in the current product data
Policy TermNot available in the current product data
Premium-Paying TermNot available in the current product data
GuaranteeNot available in the current product data
Market ExposureNot applicable — non-linked
LiquidityNot available in the current product data
Lock-inNot available in the current product data
ChargesNot available in the current product data
Maturity BenefitNot available in the current product data
Death BenefitNot available in the current product data
SurrenderNot available in the current product data
Paid-upNot available in the current product data
Tax NotesDepends on policy structure, premium amount, issue date and applicable tax law — see our tax notes
XIRRNot available in the current product data
What this product is
An online plan built to protect an outstanding loan — the death cover shrinks year by year to roughly track how much of a loan would still be owed.
You might need this if…
- You've taken a large loan (like a home loan) and want your family shielded from that specific debt if you die before it's repaid.
- You want a cheaper alternative to a level term cover, since a shrinking (decreasing) sum assured costs less than a flat one for matching loan protection.
- You're comfortable buying entirely online and don't need riders or extra features — just loan-linked protection.
How it actually works
- Minimum sum assured is ₹50 lakh, maximum ₹5 crore (higher needs case-by-case underwriting); entry age 18–45, policy term 5–30 years.
- You select a notional interest rate between 6%–12% p.a. (independent of your real loan's rate) which decides the year-by-year Risk Cover Schedule the death benefit follows.
- Premium options are a one-time Single premium or a Limited premium paid over 5, 10, or 15 years — minimums are roughly ₹11,000 (single) or ₹3,000/year (limited).
- Death benefit under limited premium is the higher of 105% of premiums paid or the amount due per the cover schedule that year; under single premium, it's simply the scheduled amount.
- No riders are offered, there's no maturity payout, and no policy loan facility.
- Larger sum assured amounts qualify for meaningful rebates, and women get preferential rates.
Worked example
For a ₹50 lakh cover at 8% notional interest over 25 years, a 30-year-old non-smoker man pays about ₹45,500 as a single premium, or roughly ₹6,250 a year over a 10-year premium term. The actual death cover shrinks steadily each year in line with the chosen interest rate, ending up a small fraction of the original ₹50 lakh by the final year.
Worth knowing before you decide
- There's no maturity benefit and no riders — this is purely a shrinking safety net tied to loan repayment, not a general-purpose term plan.
- Suicide within 12 months of starting the policy pays out only 80% of premiums paid.
- Surrender value is generally not available; only a limited 'unexpired risk premium value' applies in specific situations, such as after paying premiums for a minimum number of years.
Official source
⌟ Official product brochure
Learn about this category
Read the full term insurance explainer → · See all protection products →