ULIPs provide an investor with the option to customise their ULIP by attaching several riders on top of their base plan. A permanent disability rideris an optional add-on which pays benefits to the policyholder if they become totally and permanently disabled due to any accident.
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A permanent disability rider in ULIP plan is an add-on that, if added to your base plan, provides financial protection to the policyholder and their family in case the policyholder becomes totally and permanently disabled due to an accident. Since a ULIP already combines an investment and insurance, the permanent disability rider adds another layer of protection in case the policyholder is not able to earn a sustainable income due to any disability.
The permanent disability rider acts as a safety net and pays out an extra benefit to the policyholder if they are met with an accident and are left permanently and totally disabled. Let us understand how the rider works.
The core problem that a permanent disability rider aims to solve is to replace the income-earning capacity of the policyholder, as the policyholder cannot provide for themselves due to total and permanent physical disability.
The permanent disability rider generally covers the following

While the rider aims at providing financial support to individuals who are no longer capable of earning for themselves and their families, there are certain exclusions under the rider.
| Fund Name | NAV |
AUM |
5 Yr Returns |
10 Yr Returns | |
|---|---|---|---|---|---|
| SBI Life Balanced Fund | ₹72.21 | ₹19726 Cr | 5.85% | 8.7% | |
| SBI Life Bond Fund | ₹51.58 | ₹15328 Cr | 5.22% | 6.21% | |
| SBI Life Equity Fund | ₹192.63 | ₹81746 Cr | 7.6% | 10.53% | |
| SBI Life Equity Optimiser Fund | ₹54.04 | ₹2606 Cr | 7.49% | 10.3% | |
| SBI Life Growth Fund | ₹92.99 | ₹2837 Cr | 6.59% | 9.96% | |
| SBI Life Money Market Fund | ₹37.75 | ₹482 Cr | 6.04% | 5.89% | |
| SBI Life Top 300 Fund | ₹55.02 | ₹1972 Cr | 6.56% | 10.81% | |
| SBI Life Pure Fund | ₹28.15 | ₹1251 Cr | 7.07% | 9.95% | |
| SBI Life Bond Optimiser Fund | ₹22.68 | ₹3214 Cr | 6.28% | - | |
| SBI Life Bluechip Fund | ₹9.75 | ₹3671 Cr | - | - | |
| SBI Life Midcap Fund | ₹51.54 | ₹67697 Cr | 14.92% | 16.29% | |
| SBI Life Corporate Bond Fund | ₹16.76 | ₹1009 Cr | 5.16% | - | |
| SBI Life Balanced Pension | ₹72.66 | ₹867 Cr | 6.32% | 9.56% | |
| SBI Life Equity Optimiser Pension | ₹58.4 | ₹1105 Cr | 7.82% | 11.18% | |
| SBI Life Equity Elite II | ₹50.7 | ₹11844 Cr | 6.68% | 9.93% | |
| SBI Life Index | ₹45.13 | ₹87 Cr | 6.33% | 10.2% | |
| SBI Life Index Pension | ₹47.14 | ₹24 Cr | 6.4% | 10.26% | |
| SBI Life Top 300 Pension | ₹54.42 | ₹772 Cr | 6.86% | 11.09% | |
| SBI Life Discontinued Policy Fund | ₹26.01 | ₹10931 Cr | 5.61% | 5.85% | |
| SBI Life Bond Pension | ₹45.84 | ₹552 Cr | 5.16% | 6.46% | |
| SBI Life Equity Elite | ₹85.25 | ₹12 Cr | 8.64% | 12.66% | |
| SBI Life Equity Pension | ₹74.05 | ₹13758 Cr | 7.72% | 11.26% | |
| SBI Life Growth Pension | ₹73.58 | ₹692 Cr | 7.35% | 10.56% | |
| SBI Life Money Market Pension | ₹34.89 | ₹160 Cr | 5.99% | 5.87% | |
| SBI Life P-E Managed | ₹38.42 | ₹195 Cr | 7.23% | 8.87% | |
| SBI Life Guaranteed Pension GPF070211 | ₹27.01 | ₹1 Cr | 5% | 5.86% | |
| SBI Life Bond Pension II | ₹23.88 | ₹28119 Cr | 4.97% | 5.81% | |
| SBI Life Equity Pension II | ₹40.35 | ₹11378 Cr | 6.41% | 10.49% | |
| SBI Life Money Market Pension II | ₹21.29 | ₹1488 Cr | 5.75% | 5.62% | |
| SBI Life Discontinue Pension Fund | ₹21.97 | ₹6203 Cr | 5.63% | - | |
| SBI Life Group Growth Plus Fund | ₹57.16 | ₹3 Cr | 6.45% | - | |
| SBI Life Group Debt Plus Fund | ₹41.02 | ₹115 Cr | 5.79% | - | |
| SBI Life Group Balance Plus Fund | ₹48.59 | ₹11 Cr | 6.08% | - | |
| SBI Life Group Balance Plus Fund II | ₹27.55 | ₹1273 Cr | 6.78% | - | |
| SBI Life Group Debt Plus Fund II | ₹26.7 | ₹363 Cr | 5.87% | - | |
| SBI Life Group Growth Plus Fund II | ₹26.94 | ₹291 Cr | 6.85% | - | |
| SBI Life Group Short Term Plus Fund II | ₹22.03 | ₹24 Cr | 5.98% | - | |
| SBI Life Group Money Market Plus Fund | ₹14.17 | ₹2 Cr | 3.32% | - | |
| SBI Life Group Balanced Pension Fund | ₹10.26 | ₹194 Cr | - | - |

Let us compare the permanent disability rider with some other riders to understand the best for you.
| Rider Type | Rider Coverage | Trigger Event | Payout type |
| Permanent Disability Rider | Total and permanent physical disability due to an accident | Disability caused by an accident | Waiver of premium, lump sum, or income instalments |
| Accidental Death Benefit Rider | Death caused by an accident | Accidental death | Lump sum is paid to the nominee |
| Critical Illness Rider | Diagnosis of any critical illness as specified by the insurer | Diagnosis of a critical illness | Lump sum is paid to the policyholder |
| Waiver of Premium Rider | Future premiums are waived if the policyholder is left unable to pay future premiums | Death/disability/illness of the policyholder | Future premiums waived; policy continues |
The permanent disability rider is one of the best riders you can attach to your ULIP as it protects you and your family in the event of a permanent disability. Riders can help you fully optimise your ULIPs and ensure that you and your family remain protected irrespective of the circumstances.
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˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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