LIC Digi Credit Life Plan 878 Calculator
Online-Only Decreasing Term Plan — Loan Protection with Year-wise Risk Cover Schedule
Enter Your Loan & Policy Details
Indicative premiums based on sample data for Non-Smoker, Male, BSA ₹50 Lakh, Policy Term 25 years, Interest Rate 8%
Indicative Premium
Excluding taxes & including 18% GST | Non-Smoker, Male | PT 25 yrs, Interest 8% basis
Risk Cover Schedule — Death Cover Milestones
Year-wise decreasing death cover based on loan outstanding balance formula
Death cover at each year = loan outstanding balance computed using equated annual repayment formula. For Limited Premium: Sum Assured on Death = higher of (a) Absolute decreasing cover above or (b) 105% of total premiums paid. For Single Premium: Sum Assured on Death = Absolute decreasing cover only.
Decreasing Death Cover vs. Cumulative Premium
Year-wise death cover (bars, left axis) and cumulative premium paid (line, right axis)
Year-wise Risk Cover Schedule
Annual premium and decreasing death cover for each policy year
| Policy Year | Age | Ann. Premium (incl. 18% GST) | Cumulative Premium (incl. GST) | Death Cover (Decreasing) |
|---|
LIC Digi Credit Life Plan 878 Calculator – Details Guide
The LIC Digi Credit Life Plan 878 Calculator helps borrowers estimate premiums, understand decreasing life cover, and evaluate the protection available throughout the policy term. Before purchasing a loan protection insurance plan, most people want answers to a few practical questions. How much cover do I need? How does the cover reduce over time? What happens if I repay the loan early?
The calculator helps answer these questions quickly.
LIC Digi Credit Life Plan 878 is a pure risk insurance plan designed to protect outstanding loan liabilities if the borrower dies during the policy term. Unlike savings plans, money-back plans, or investment-linked products, this plan focuses entirely on protection. As the loan liability reduces, the insurance cover also decreases according to a predefined Risk Cover Schedule.
LIC Digi Credit Life 878 Premium Calculator
The calculator estimates premiums and displays the decreasing insurance cover available during the policy term.
Unlike a regular term insurance calculator, this tool focuses on loan-linked protection and decreasing risk cover.
Premium Calculation Results
The calculator generally estimates:
- Premium payable
- Death benefit schedule
- Risk Cover Schedule
- Coverage reduction pattern
- Premium payment comparison
Quick Plan Summary
| Feature | Details |
| Plan Name | LIC Digi Credit Life Plan 878 |
| Plan Type | Decreasing Term Assurance |
| Purchase Mode | Online Only |
| Minimum Sum Assured | ₹50 Lakh |
| Standard Maximum Sum Assured | ₹5 Crore* |
| Maturity Benefit | Not Available |
| Loan Facility | Not Available |
| Cover Type | Decreasing Life Cover |
*Higher coverage may be considered subject to underwriting and reinsurance approval.
What is LIC Digi Credit Life Plan 878?
LIC Digi Credit Life Plan 878 is a Non-Linked, Non-Participating Individual Pure Risk Plan designed specifically for borrowers.
Its objective is straightforward.
To help protect outstanding loan liabilities if the borrower dies during the policy term.
Large home loans, business loans, and long-term borrowings often create financial obligations that can continue for many years. If the earning member dies unexpectedly, the remaining loan burden can place significant pressure on the family.
This plan is designed to address that risk.
Key Features of LIC Digi Credit Life 878
- Online-only purchase
- Pure loan protection insurance
- Decreasing life cover
- Single Premium option
- Limited Premium option
- Special premium rates for women
- Separate smoker and non-smoker rates
- High Sum Assured rebates
- Interest rate selection from 6% to 12%
- Early loan repayment flexibility
This is not a savings plan or investment plan. The policy is designed purely to protect loan liabilities.
Loan Protection Insurance Overview
Loan protection insurance helps ensure that a family’s financial future is not severely affected by unpaid debt.
For example, if a borrower has a large home loan and dies during the repayment period, the insurance cover can help reduce the financial burden associated with that liability.
This is why many borrowers consider a decreasing term assurance plan alongside major loans.
Why Use a LIC Digi Credit Life Plan 878 Calculator?
The biggest advantage of using the calculator is clarity.
Many borrowers find it difficult to understand how decreasing life cover works. The calculator shows how insurance protection changes over time and helps compare different scenarios.
Using the calculator helps you:
- Estimate premium costs
- Compare policy terms
- Understand Risk Cover Schedules
- Compare interest rate options
- Evaluate loan protection needs
A common mistake is focusing only on the EMI amount while ignoring the financial risk created by the loan itself.
The calculator helps bring that risk into perspective.
LIC Digi Credit Life Plan 878 Eligibility Criteria
Before using the calculator, it helps to understand the plan’s basic eligibility conditions.
Entry Age, Policy Term & Sum Assured
| Criteria | Details |
| Minimum Entry Age | 18 Years |
| Maximum Entry Age | 45 Years |
| Minimum Maturity Age | 23 Years |
| Maximum Maturity Age | 75 Years |
| Minimum Basic Sum Assured | ₹50 Lakh |
The ideal sum assured generally depends on the size of the loan and the borrower’s financial responsibilities.
Single Premium and Limited Premium Options
The plan offers two premium payment structures:
- Single Premium
- Limited Premium
This allows borrowers to select a payment option that suits their financial situation.
Smoker and Non-Smoker Categories
Premium rates differ for smokers and non-smokers.
Special premium rates are also available for women.
Providing accurate information during application is important because incorrect disclosures may affect future claim settlements.
How LIC Digi Credit Life Plan 878 Calculator Works
The calculator estimates premiums and insurance cover based on the official plan structure.
Required Inputs
The calculator generally requires:
- Age
- Gender
- Smoking status
- Basic Sum Assured
- Policy Term
- Premium Option
- Selected Interest Rate
Premium Calculation Method
Premium estimates are influenced by:
- Age at entry
- Policy term
- Sum assured selected
- Smoking category
- Premium option
- Selected interest rate
Even small changes in these inputs can affect premiums significantly.
Risk Cover Schedule Calculation
One of the most important features of Digi Credit Life is the Risk Cover Schedule.
The schedule determines how the death benefit reduces during the policy term.
Available interest rate options include:
- 6%
- 7%
- 8%
- 9%
- 10%
- 11%
- 12%
The selected rate affects how quickly the insurance cover decreases.
Sample Illustration
Basic Sum Assured : ₹1 Crore
Policy Term : 20 Years
Interest Rate : 8%
The calculator generates a Risk Cover Schedule showing how the insurance cover changes throughout the policy duration.
How Does LIC Digi Credit Life Plan 878 Work?
The plan follows a decreasing term assurance structure.
Unlike a traditional term insurance plan where life cover remains fixed, the insurance cover under Digi Credit Life reduces according to a predefined schedule.
Decreasing Term Assurance Concept
The largest financial risk often exists at the beginning of a loan.
As the outstanding loan balance reduces, the insurance cover also reduces.
Initial Cover = ₹1 Crore
Outstanding Loan Reduces
Insurance Cover Reduces
This structure can help keep premiums lower than comparable level-cover protection plans.
Outstanding Loan Protection Mechanism
If the life assured dies during the policy term while the policy remains in force, the applicable death benefit becomes payable according to the Risk Cover Schedule.
The benefit can help address:
- Home loan liabilities
- Business loans
- Education loans
- Other long-term borrowings
Important: The Risk Cover Schedule is predetermined at policy inception. Actual loan outstanding and insurance cover amounts may differ during the policy term.
Risk Cover Schedule and Interest Rate Selection
At policy inception, the policyholder selects an interest rate used to generate the Risk Cover Schedule.
The selected interest rate influences how quickly the insurance cover decreases over time.
LIC Digi Credit Life Plan 878 Benefits
The plan focuses entirely on protection rather than savings or investment.
Death Benefit (Decreasing Cover)
The death benefit is payable if the life assured dies during the policy term while the policy remains in force.
At commencement:
Death Benefit = Basic Sum Assured
After that, the death benefit reduces according to the selected Risk Cover Schedule.
Protection for Home Loans and Other Liabilities
The plan is especially useful for borrowers who want dedicated protection against outstanding debt.
Many families can manage day-to-day expenses after the loss of an earning member but struggle with large loan obligations. This plan is designed to address that challenge.
Early Loan Repayment Options
If the loan is repaid before policy maturity, the policyholder may:
- Surrender the policy and receive any eligible Unexpired Risk Premium Value (URPV).
- Continue the policy subject to policy terms and conditions.
This provides flexibility for borrowers who close loans early.
Tax Benefits
Premiums paid and benefits received may qualify for tax benefits under prevailing tax laws, subject to applicable conditions.
Important Features and Limitations
No Maturity Benefit
There is no maturity benefit under this policy.
If the life assured survives until policy maturity, no amount becomes payable.
No Policy Loan Facility
Loans are not available against the policy.
No Traditional Surrender Value
The plan does not provide traditional surrender value.
Eligible policies may receive an Unexpired Risk Premium Value (URPV) according to policy provisions.
Suicide Exclusion Clause
Special suicide clause provisions apply if death occurs due to suicide within 12 months from commencement or revival, subject to policy conditions.
Documents Required to Buy LIC Digi Credit Life Plan 878
The online application process generally requires:
- PAN Card
- Aadhaar Card
- Identity Proof
- Address Proof
- Income Documents
- Photograph
- Bank Details
Additional requirements may apply depending on underwriting guidelines.
Steps to Buy LIC Digi Credit Life Plan 878 Online
- Visit LIC’s online platform.
- Select Digi Credit Life Plan 878.
- Enter personal details.
- Choose Basic Sum Assured and policy term.
- Select an interest rate.
- Upload required documents.
- Complete underwriting requirements.
- Pay the premium.
- Receive policy confirmation.
LIC Digi Credit Life Plan 878 vs Regular Term Insurance
| Feature | Digi Credit Life 878 | Regular Term Insurance |
| Life Cover | Decreasing | Usually Fixed |
| Purpose | Loan Protection | Income Protection |
| Loan Linked | Yes | No |
| Maturity Benefit | No | Usually No |
| Cover Pattern | Risk Cover Schedule | Fixed Sum Assured |
A regular term plan protects family income, while Digi Credit Life is designed specifically to protect loan liabilities.
Who Should Buy LIC Digi Credit Life Plan 878?
The plan may be suitable for:
- Home loan borrowers
- Self-employed professionals
- Business owners
- Individuals with large long-term liabilities
- Families dependent on one primary earner
It may not be suitable for people looking for maturity proceeds, investment growth, or wealth creation.
Pros and Cons of LIC Digi Credit Life Plan 878
Advantages
- Designed specifically for loan protection
- Online application process
- Flexible premium options
- Special rates for women
- Separate smoker and non-smoker rates
- Early loan repayment flexibility
Limitations
- No maturity benefit
- No policy loan facility
- No traditional surrender value
- Life cover decreases over time
- No investment component
Frequently Asked Questions (FAQs)
What is LIC Digi Credit Life Plan 878?
It is an online pure risk decreasing term assurance plan designed to protect outstanding loan liabilities.
Is there any maturity benefit in this plan?
No. No maturity benefit is payable on survival.
What is the minimum and maximum Sum Assured?
The minimum Basic Sum Assured is ₹50 lakh. Standard coverage is available up to ₹5 crore, with higher limits subject to underwriting approval.
Can I continue the policy after repaying the loan early?
Yes. Subject to policy conditions, you may continue the policy or surrender it and receive any eligible URPV.
Can co-borrowers buy this plan jointly?
LIC Digi Credit Life Plan 878 is an Individual Pure Risk Plan. Eligibility and underwriting conditions should be verified from the latest LIC guidelines before purchase.
Is medical underwriting required?
Medical requirements depend on age, health profile, sum assured, and underwriting guidelines.
Does the death benefit reduce every year?
The death benefit reduces according to the Risk Cover Schedule selected at policy inception.
Can I take a loan against the policy?
No. Loan facility is not available.
My Final Point of view on LIC Digi Credit Life Plan 878
In conclusion, I would like to state that the LIC Digi Credit Life Plan 878 Calculator can be used by the borrower to determine the premiums, risk cover schedule, and also to calculate the decreasing life cover prior to buying the product.
The plan has been designed with only one objective, and that is, protecting the borrower, along with the family members, against any financial losses arising due to unpaid loans. It does not cater to any investment objectives such as savings, maturity benefits, etc.
It is always recommended that prior to the purchase of such products, different scenarios should be compared, such as the sum assured amount, tenure of the plan, premium choices, and interest rates.
| Looking for Complete Family Protection? Try LIC Digi Term Plan 876 Calculator If you are looking for broader family income protection instead of loan-specific coverage, you may also explore the LIC Digi Term Plan 876 Calculator. Unlike Digi Credit Life 878, which offers decreasing loan-linked cover, Digi Term 876 provides high fixed or increasing life cover designed to protect your family’s long-term financial future. |
Mohibul Islam
LIC Agent & Web DeveloperMohibul Islam is an LIC agent with 7+ years of experience. He also works in web development and blogging. He creates simple tools on LIC Plan Calculator to help people understand LIC plans, calculate benefits, and make better financial decisions easily. Read More About »