LIC's New Term Assurance Rider Plan

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Introduction/Overview

LIC’s New Term Assurance Rider is an additional benefit clause which when added to the base policy provides double death benefit. The Rider is available at very minimal rates.

Key Feature

  • It is a pure term rider with Death Benefit only
  • This can be opted along with a plan and cannot be taken stand alone

Benefits

  • The nominee gets the Rider Sum Assured on death of the policyholder.
  • Income tax benefit on the premium paid as per Section 80C and on the claims received as per Section 10(10D) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

18 years

60 years

Maturity Age (Last Birthday)

-

75 years

Policy Term (PT) in years

5

35

Premium Paying Term (PPT) in years

Same as that of the base policy

Premium Paying Frequency

Same as in the base policy

Yearly Premium

Depends on age, Sum Assured, term and PPT

Sum Assured

100,000

25,00,000

Details About Premium

Annual premium in Rupees for a Sum Assured of 2 lakhs

Age / Term (in years)

10

20

30

20

322

322

378

30

376

488

702

40

734

1104

1526

50

1836

2522

-

Policy Details

Grace Period: 15 days grace period is allowed for payment of premium in monthly modes and 30 days in other modes.

Policy Termination or Surrender Benefit: the rider does not have any Surrender Value but the rider premium is refunded to a certain extent only in case of Single and Limited pay options where the policy can be surrendered form the 2nd year or after 2 / 3 years respectively.

Surrender Value for Single Pay plans – Single premium for rider * 90% * (remaining term / total term)

Surrender Value for Limited Pay plans – 75% of the applicable Surrender Value

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Exclusions

This being a rider only, there are no specific exclusions under this plan. The applicable exclusions would be as applicable in the base plan.

Documents Required

The documents required will that be for the base policy. No additional documents are required for the Rider.