Everything About LIC Riders

LIC Riders

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

Let’s understand What is term rider in LIC in detail:

1. LIC's Linked Accidental Death Benefit Rider

   • Under this term rider in LIC, the benefit is paid out as a lump sum amount along with the base sum assured on the death of the life assured due to 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

   • The term rider in LIC 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 the Benefits of LIC Riders in LIC Policies?

Now you have understood what is term rider in LIC, let’s move on to the benefits of LIC riders:

• 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. In case of death, the Term rider in LIC offers a financial cover and the base plan’s death benefit.

• 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 safeguard against unexpected events, providing peace of mind for both you and your loved ones.

How Does an LIC Rider Work?

When you opt for a rider, you pay an additional premium, and in return, you receive extra protection beyond what the base policy offers. This can include coverage for accidental death, critical illness, or, in the case of a term rider, additional life cover, as discussed above. Riders do not directly affect the base sum assured but add a separate benefit payout under specific conditions, offering more comprehensive financial security. Including a rider can significantly increase the overall value of your policy at a relatively low cost.

Let us understand this with the example of the term rider in LIC, 

Suppose you purchase a life insurance policy with a sum assured of ₹10 lakh. You add a term rider with an additional cover of ₹5 lakh. If you pass away during the policy term, your nominee will receive ₹10 lakh from the base policy and ₹5 lakh from the rider, totalling ₹15 lakh. The term rider in LIC rider ensures an extra layer of financial support without needing a separate insurance plan.

How to Add an LIC Rider to your Policy?

When purchasing an LIC policy, ensure it allows rider add-ons. Then follow these steps:

• Review Available Riders – Check which riders are offered with your chosen policy (e.g., term rider, accident benefit rider).

• Select the Rider – Choose the rider based on your coverage needs and eligibility.

• Fill the Rider Form—Complete the rider addition form when purchasing the base policy or during renewal (whichever is applicable).

• Submit Documents – Provide required KYC and medical documents, if applicable.

• Pay Additional Premium – Pay the extra premium calculated for the selected rider.

• Confirmation – Once approved, you’ll receive a rider endorsement along with your policy.

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