LIC Linked Accidental Death Benefit Rider

About LIC Linked Accidental Death Benefit Rider

It is an additional protection that can be bought by paying an extra premium amount. On adding this rider benefit to your base LIC policy, your family gets an extra sum assured on your death, provided that it was caused by an accident.

Note - LIC defines an accident as “a sudden, unforeseen, and involuntary event caused by external, visible and violent means”

Say that you bought an insurance plan from LIC of India for a sum assured of Rs.10 Lakhs. You decide to add the LIC Linked Accidental Death Benefit Rider with a rider sum assured of Rs.5 Lakhs. Now, if you were to die as a result of an accident within the rider term, your family can claim a total of Rs.15 Lakhs as a death benefit. A proper benefit versus premium calculation can be done using the LIC calculator.

Key Features of LIC Linked Accidental Death Benefit Rider

1. Rider Conditions

   1. The benefit under this rider is only payable if death occurs due to an accident. For natural deaths, only the promised death benefit under the base plan will be paid.

   2. Death should have occurred within 180 days from when the accident happened.

2. Rider Premium Rates

   The premium for the rider is charged extra and is usually nominal. It can be bought by paying the extra premium at any point during the policy term.

3. Unit-linked Rider

   Unlike other life insurance riders such as LIC’s Accidental Death and Disability Benefit Rider & the LIC's Accident Benefit Rider, this rider is unit-linked. The premium paid for the rider may be reinvested in the equity market to generate higher returns.

4. Accident Benefit Charge

   LIC charges Rs. 0.40 per Rs. 1000 rider sum assured per year every month for this rider. This cost increases to Rs. 0.80 for individuals associated with policy duty.

Eligibility Conditions of LIC Linked Accidental Death Benefit Rider

To qualify for this rider, policyholders must be aware of the eligibility criteria set forth by LIC.

Other LIC Linked Accidental Death Benefit Rider Details

• Paid-up Value
  If you decide to stop paying premiums for this rider, your benefit shall cease. It doesn’t acquire any paid-up value.

• Surrender Value
  Surrendering will also not earn you any benefit. No surrender value will be payable to this rider.

• Revival
  Lapsed rider benefit has to be revived along with that of the base policy. The standalone rider cannot be revived.

• Tax Benefit
  The entire premium amount charged for both the policy and the rider can be claimed for tax benefits under Section 80C of the Income Tax Act of 1969.

• Exclusions The rider benefit cannot be claimed if death occurs as a result of the following -

  1. Self-injury, suicide attempt, insanity

  2. Under the influence of drugs, alcohol, narcotics

  3. Participation in riots, wars, civil commotion, criminal activities

  4. Death occurs after 180 days from the date of the accident

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