LIC: Riders with the policy you cannot afford to ignore

Insurance is an essential part of our life for a safe and secure future. When we buy life insurance, it is also most important to buy certain key riders along with the base policy. A rider is an additional cover along with basic insurance policy. They allow policy buyer customisation and can provide several kinds of protection. You can buy a rider by paying extra cost. Generally, the additional premium is very low which a purchaser of policy can easily pay.

LIC’s riders

Life Insurance Corporation of India (LIC), the country’s largest life insurance company, offers various types of riders such as critical illness, permanent disability, accidental death and waiver of premium riders.

1) Accidental death benefit rider

It is a unit linked, non-participating, health rider. If the policyholder is involved in an accident at any time when this rider is in-force and ‘such injury shall within 180 days of its occurrence solely, directly and independently of all other causes result in death of the Life Assured’, a sum equal to the accident benefit sum assured shall be payable under this rider along with the death benefit of the base policy.

2) Accidental death and disability benefit rider

It is a non-linked, non-participating, individual health rider. The rider can be taken with a base policy either when buying the policy or during the term of the policy at any policy anniversary.

Under this policy, If the insured dies due to an accident during the policy tenure, the rider sum assured should be payable along with the death benefit of the base policy.

On the other hand, if the insured person suffers from a total and permanent disability due to an accident, the rider sum assured would be paid in equated monthly instalments over a period of 10 years. If the policy tenure ends, or the insured dies during the payout period of 10 years, the remaining instalments would be paid in lump sum along with the maturity or death benefit paid under the plan to the nominee of the policy.

The future premium payment of the policy shall be waived but the plan would continue.

3) LIC’s premium waiver benefit rider

In case of death of life assured during the rider term, premiums payable under the base policy falling due after the date of death till the expiry of rider term will be payable by the insurance company itself.

4) LIC’s accident benefit rider

It is a non-linked, non-participating, individual, health rider. If the policyholder is involved in an accident at any time when this rider is in-force and such injury shall within 180 days of its occurrence solely, directly and independently of all other causes result in death of the person, a sum equal to the accident benefit sum assured will be payable under this rider along with the death benefit of the base policy.

5) LIC’s new critical illness benefit rider

This rider will reduce the financial burden in case the policyholder is diagnosed suffering from any of the pre-specified critical illnesses. This rider can only be attached with non-linked plans at the inception of the base policy.

On first diagnosis of any one of the 15 pre-specified critical illnesses, the critical illness sum assured shall become payable. The critical illness rider shall be payable only once during the term of the policy while the policy is in force.

6) LIC’s new term assurance rider

The New Term Assurance Rider provides for life cover in case of death of the insured during the cover period. In case of death of the life assured during the term of the rider, an amount equal to the term assurance rider sum assured shall be payable.

Conclusion

There are some conditions to buy these riders along with base policy. One might not be able to purchase all the six riders in a single policy. An individual needs to check with LIC or its agents to find out the best mix for his or her needs.