A Handy Guide to the LIC Term Rider

An individual who has purchased life insurance is already a step ahead in securing their family's future. Insurance riders are extra benefits that can be added to the base policy for an additional amount.

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It amends the terms of the basic policy to provide additional coverage and financial security in times of need.

What is LIC Term Rider Policy?

The LIC Term Rider Policy is an add-on benefit to the base policy that provides the beneficiary with the Sum Assured in case of the sudden demise of the insured within the policy period. This can only be added to non-linked plans at the commencement of the base policy at a nominal cost. This means that the rider can be linked only to traditional insurance policies and not to ULIP’s. If the insured individual survives the term period, nothing shall be payable. The advantage is that such additional investments are subject to tax exemption or tax deductions.

Key Features of the LIC Term Rider Policy 

LIC Term Insurance Riders come packed with a wide array of salient features to offer to its buyers. Stated below are the key features of the policy:

  • The Sum assured to the base policy shall be greater than or equal to the Sum assured to the rider benefit
  • If two or more insurance policies have been purchased together, the aggregate Sum assured to the rider benefit cannot exceed Rs 25 Lakh
  • It is a nominal and affordable cost for a more extensive coverage
  • The rider can be linked only to traditional insurance policies and not to ULIP’s
  • Discounts while rider premium payment can be availed only if such discounts are attached to the base policy

Such insurance with rider benefits attached are subject to tax deductions:

  • The Sum assured ranges from a minimum of Rs 1lakhs to a maximum of Rs 25 Lakh
  • No additional documents are required for rider benefits except for the ones for the base policy 

Eligibility Criteria for LIC Term Riders

To be eligible to purchase the LIC Term Rider Policy, the minimum age at entry of the insured individual should be 18 years old (completed), and the maximum age at entry of the insured individual should be 60 years old. The maturity age of the rider policy is up to 75 years old.

Tenure, Sum Assured, and Payment

The tenure for the LIC Term Rider Policy ranges from a minimum of 5years to a maximum of 65 years. The Sum assured ranges from a minimum of Rs 1lakhs to a maximum of Rs 25 Lakh. The mode and frequency of payment are the same as the base policy. The payment for both the rider premium and the base policy is to be made together.  There is nothing as paid-up value in the policy. This means that the rider benefit would cease to exist if the premiums are not paid. No additional documents are required for the same.

Terms and Conditions for Refund

As such, there is no surrender value attached to LIC Term Rider Policy. Nonetheless, the rider premium may be refunded only if there is regularity in the rider’s premium paid and the base policy is surrendered. The terms and conditions for refund are stated below:

  • No amount is subject to refund in case of the Regular Premium Plan
  • A refund is applicable for Limited Premium Plan only if the amount has been paid for the minimum tenure of the term period. If the term period was for 10 years, the Sum should be paid for at least two years. If the term period was for more than 10 years, the amount should be paid for the tenure of 3 years. If these terms are met, 75% of a stipulated value would be refunded
  • A refund can be calculated for a Single Premium Plan by multiplying 90% of the paid rider’s premium to the outstanding policy term and dividing the amount by the original rider tenure

Revival Benefit and Free-look Period

Here is a rundown of revival benefit and free-look period under LIC Term Rider Plans:

Revival Benefit

The policy shall lapse if the policyholder does not pay the premium amount, even in the grace period. In such circumstances, the policyholder can avail of the revival benefit by making the arrear payment along with interest within two years of the first unpaid installment. The rider and the base policy co-exist and hence cannot be revived separately. 

Free-look Period

If an Indian consumer has purchased the LIC Term Rider Policy but is not satisfied with the terms attached, they can generate a refund for the same. IRDA has created a provision for such cases known as the free look period. 

Under this provision, if an individual has bought a term rider policy and they are not happy with the terms and conditions attached to the same, they can unquestionably return the plan to the respective insurer within a specified duration mentioning their reason to do so along with the original term insurance policy documents and then are subject to a refund. 

Within 15 days from the date mentioned in the receipt of the policy documents, a person can opt for a refund. By doing so, the insurance company will cancel the rider benefit and generate the refund subject to deduction of admissible expenses.

Steps to Purchase the LIC Term Rider Policy Online 

Below are the steps to purchase the LIC Term Rider Policy online:

Step 1:Visit the insurer’s site

Step 2:In the case of a new customer, the Insurance Selector tab will help choose the right option based on age, income, occupation, and insurance needs. This will help you determine the coverage period as well as the best policy term.

Step 3:Then click on Premium Calculator that can be used to calculate the premium amount for your base policy and rider.

Step 4:If everything looks favourable, the customer can go ahead with the payment via net banking, online payment modes, phone banking, etc.

Step 5:The policy documents can be mailed to the registered email-id for future references.

Step 6:In the case of an existing customer, the policy status can be checked on the insurer’s website. To check the policy status, one must complete the online registration and enroll the policy online.

Step 7:Customer care number is also mentioned on the insurer’s website to resolve any issues faced at the earliest.

Over to you!

The base policy is not subject to customization, so an individual can opt for rider benefits to increase the overall financial coverage. Always understand the terms and conditions attached to the policy before adding a rider and choosing a policy. 

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Average Rating
(Based on 4 Reviews)
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A Handy Guide to the LIC Term Rider Reviews & Ratings

4.8 / 5 (Based on 73 Reviews)
(Showing Newest 25 reviews)
Chalakudy, April 16, 2021
Easy claim settled
I bought the Lic India term plan from the suggestion of my family friend and he recommended me a lot of plans. He said that the claim settlement ratio is quick and easy. Also, it is protective plan.
Balasore, April 16, 2021
Child security fulfilled
I have bought a Lic India child plan online and it has been a year now. I like the way the this works. It is a nice plan I got for my child’s security.
Asifabad, April 14, 2021
Additional riders
Along with my Lic India term insurance plan I have got the additional riders too. It has been an important thing for me and can be useful at any point in time. It can be added with a minimal amount.
Mainpuri, April 14, 2021
Low premium
The premium rate of the child insurance plan of LIC India which I bought 3 years ago is best and it was under my budget. I was searching for some good plans related to child insurance. I got the way of buying this plan and loved it.
Lakhimpur Kheri, April 13, 2021
Tax rebate
I bought a Lic India term insurance policy online and it has been into my budget. Also, I like one thing that I would able to get the tax benefits under it. It is a good option and can be beneficial for all tax payers.
Babina, April 13, 2021
Maturity benefits to get
It is easy to get the maturity benefits when LIC India child plan gets matured and my child would get a better return. It would be easy for him to get the best education and can go for a higher education abroad.
Lakhimpur, April 12, 2021
I feel safe and secured for my family when I will be not around. The Lic India ULIP plan will give the better returns and maturity benefits. And will be quite helpful for my family to sustain their future.
Raghunathpur, April 09, 2021
Happy customers
I am one of the happiest customer of Lic India term plan and I have found various good deals. It is the plan which has come under my budget. And it has been a protective shield for me and my family.
Mota Chiloda, April 09, 2021
Great plan
I am happy with this plan and have recommended many people for the same. I bought the Lic India ulip plan 2 years back and It is a best kind of investment.
, April 09, 2021
Good Benefits
It is important for everyone to understand that benefit is must when you are buying a child insurance plan. I bought a beneficial child plan of LIC India.
Agra, April 07, 2021
Good plan
I like my Lic India term plan from the online market and I found the solace in this plan. It is a good thing to support yourself by getting the best term plan so secure the life.
Krishna, April 07, 2021
Dual benefit plan
I have recently bought a lic India ulip plan which is a dual benefit plan which provides with insurance and also investment. I like it and bought it. I have got various features under the same.
Adoni, April 07, 2021
Offer protection
I had recently bought a Lic India child insurance plan online and it has been a best plan for my child’s safety and security. I really like the plan and it has given me the tremendous offer so that it can be utilize for my child. Nice plan.
Namakkal, April 06, 2021
Secure future
The Lic India pension was bought by me 2 years back so that I can secure my future and my family’s future. I really love it and found the plan much impressive. I have search for various good plans at reasonable premium.
Mishrikh, April 06, 2021
A great investment
I feel that the Lic India investment plan is a great investment and had been a great thing for me. I got the benefits and will receive a certain amount after maturity. In short I saved a lot of money and also get the best investment plan.
Bairabi, April 05, 2021
A great alternative
I have found a best alternative for me along with my job. I have got the lic India pension plan policy. It is a good plan which I have bought for securing my future and it has been a wonderful plan for everyone.
Udaipur, April 05, 2021
Maturity benefits
My Lic India investment plan has given me the maturity benefits. It includes the lump sum payment of sum assured amount. That’s a perfect way to invest.
Aruppukkottai, April 01, 2021
Lot of features
In my Lic India pension plan I got to know about various features which has enhanced my future. I am future secured along with my job.
Ambur, April 01, 2021
Effective plan
I had bought a Lic investment plan online and it has been a best plan. I had been taking several actions so that to save money for me and my family in future. I like the plan and have recommended many people in my known.
Babina, March 23, 2021
Additional riders and benefits
It is a good idea for everyone to buy a LIC term plan as I have got the additional riders too under the same. The plan is very nice and much helpful.
Aushgram, March 23, 2021
Great plans
I have founded my type of investment plan and its name is LIC Ulips plans. I really like this plan and have been secured for a longer period of time. It is a product which works on market trend and is one of the best type of investment.
Anklav, March 22, 2021
Save under tax
I have saved a lot money under the name of tax. I really like this lic India child insurance and have got a good backbone for my child. It has become an easy tax. A kind of investment as well as security for my child’s future.
Anantnag, March 22, 2021
Tax benefits
With this LIC term insurance plan I received a tax rebate and tax benefits. I found it much better as compared to other plans and it’s a kind of coverage and investment for me. I am totally happy with this plan and found it worthy.
Lakhawati, March 22, 2021
Premium easy to pay
One of the best feature I like about LIC ULIP plan is that you can make the premium payment online. I bought this plan for the growth of me and my family. It will give a best result and outcome. I am happy that I bought this plan. Even the premium rates are reasonable.
B.khajuripada, March 17, 2021
Secure your child
I have recently secured my child’s future by buying a child insurance policy. It was the plan of lic India and its plans are really good. It was under my budget and I really like the plan as I want my child to fulfil all his dreams.
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