Everything About LIC Riders

LIC Riders

LIC offers a total of 6 riders that you can add to enhance the coverage of your base life insurance policy. They offer comprehensive coverage for you and your family, ensuring protection in various circumstances. The table below describes these riders.

Let’s understand them in detail:

1. LIC's Linked Accidental Death Benefit Rider

   • Rider benefit is paid out as a lump sum amount along with the base sum assured on the death of the life assured as a result of an accident. 

   • The life assured must have succumbed to death within 180 days from the date of the accident. 

   • Premiums are levied at a rate of Rs. 0.40 per Rs. 1000 of the rider sum assured. 

2. LIC's Accidental Death and Disability Benefit Rider

   • It offers financial compensation in the case of permanent disability or the death of the life assured due to an accident. 

   • The accident benefit sum assured is paid out in equal monthly installments over a period of 10 years. 

3. LIC's Accident Benefit Rider

   • It is an added benefit that offers extra financial compensation for the death of the life assured due to an accident. 

   • It pays out the rider sum assured along with the sum assured on death if the death of the life assured occurs due to an accident. 

   • The premium rate is applicable at a rate of Rs. 0.5 per Rs. 1,000 of the rider sum assured. 

4. LIC's Premium Waiver Benefit Rider

   • It waives off future premiums due on or after the death of the life assured till the end of the rider term. 

   • The base policy benefits continue despite the premiums being waived off. 

   • A minimum of 5 years in the premium paying term should be outstanding under the rider as well as the base plan.

5. LIC’s New Critical Illness Benefit Rider

   • Insurance policies with attached Critical Illness Benefit cover expenses resulting from both pre- and post-hospitalization. 

   • The rider can only be added to non-linked policies and at the time of policy inception. 

   • It offers protection against 15 critical illnesses. 

6. LIC's New Term Assurance Rider

   • It offers financial respite on the death of the life assured within the rider term in addition to the death benefit of the base policy. 

   • This rider can be attached only to non-linked plans and at the time of policy inception. 

   • If the life assured survives the rider term, no benefit is payable. 

7. LIC's Premium Waiver Benefit Rider (With Auto Cover)

   • It can be attached to insurance policies with auto cover for children or minors. 

   • Auto cover is the period for which the cover continues despite the non-payment of premiums for a period of 2 years. 

   • Auto cover benefit is only applicable if two full years’ premiums have been duly paid.

What are Benefits of LIC Riders in LIC Policies?

• Enhanced Coverage: Riders provide additional benefits and coverage options beyond the standard life insurance policy, addressing specific needs and circumstances.

• Financial Protection: They offer extra financial security in cases of critical illnesses, accidents, or disabilities, ensuring you and your family are well-protected.

• Flexibility: Riders allow you to customize your policy according to your personal needs, such as income benefits or premium waivers, making it more adaptable.

• Cost-Effective: Adding riders can be more economical than purchasing separate insurance policies for different types of coverage, offering a more comprehensive solution at a lower cost.

• Peace of Mind: With added protection and benefits, riders help ensure that you are safeguarded against unexpected events, providing peace of mind for both you and your loved ones.

Wrapping It Up:

LIC riders offer comprehensive coverage to standard LIC Policies, providing tailored protection for a variety of needs. By adding riders, policyholders can access additional benefits such as coverage for accidental death, critical illnesses, and disability, as well as premium waivers. These options not only boost the overall protection of your policy but also offer flexibility, cost-effectiveness, and peace of mind. With a range of riders available, LIC ensures that you can customize your insurance to meet your specific circumstances and secure your family's financial future.