LIC offers a range of life insurance policies as well as riders to its customers. Riders are additional coverage benefits which can be taken with a life insurance plan to increase the scope of coverage. LIC offers five different types of riders and LIC’s Accident Benefit Rider is one among them. Let’s understand the rider in details –
Under the coverage provided by LIC’s Accident Benefit Rider, if the life insured dies due to an accident during the coverage term, the rider sum assured would be paid in addition to the death benefit paid under the base plan. Thus, the rider enhances the death benefit in case of accidental death and provides better coverage.
An “accident” should be “a sudden, unforeseen and involuntary event caused by external, visible and violent means,” which causes death within 180 days from the date of the accident.
The rider can be bought either when buying the base policy or at any policy anniversary during the coverage tenure. However, if you are buying the rider during the policy term, the premium payment term, after choosing the rider, should continue for at least another 5 years and the insured should not attain 70 years during such premium payment term.
Moreover, the rider coverage is available only for individuals above 18 years of age. If the life insured is a minor, the coverage would start from the policy anniversary which comes after the insured attains 18 years of age.
The rider comes with a very low and affordable premium which you can easily pay.
The rider sum assured should be either equal to or less than the sum assured opted for the base policy. There are also limits to the maximum sum assured which can be taken for LIC’s Accident Benefit Rider. The maximum sum assured is calculated as the sum assured of all Accident Benefit Riders taken by the insured under multiple policies. The limits are as follows –
|Age at entry||18 years||65 years|
|Age at maturity||Not applicable||70 years|
|Sum Assured||Equal to the base policy’s sum assured||INR 1 crore or INR 2 crores depending on the plan|
|Coverage term||Equal to the term of the base policy|
|Premium payment term||Equal to the premium payment term of the base policy|
|Premium paying frequency||Same as the premium paying frequency of the base policy|
In case of death due to any of the below-mentioned conditions, the rider sum assured would not be paid –
To receive a claim under LIC’s Accident Benefit Rider, the following documents are required to be submitted to the insurance company –
LIC’s Accidental Benefit Rider has no surrender value or paid-up value. If the premiums are unpaid, the rider benefit would stop to operate.
For most life insurance plans, a grace period is given to the policyholders. During this period there is no late-fee or fine. However, if the premium is not paid then the policy will lapse. For premiums that are paid monthly the grace period is 15 days, while for premiums paid quarterly, half-yearly and yearly the grace period is for 30 days.
The cooling period is the period of 15 days that is given to a new policy buyer. During this period if he wishes to return the policy he can do so and the premium amount paid would be returned to him. Depending on the base policy, the policyholder will have a 15 day cooling off period for the rider as well.
The Accident Benefit Rider covers you against accidents that may prove very serious and stressful. The rider enhances the cover of your vanilla policy and helps you and your family cope up with the crisis in a more controlled way.
No, there is no provision of taking a loan.
As there is no paid-up value, there is also no surrender value that is acquired. Nevertheless, if the policyholder surrenders the insurance policy with which this rider is added, additional rider premium may be returned.
The grace period is the same as for making the basic policy premium payments. For premiums that are paid monthly the grace period is 15 days, while for premiums paid quarterly, half-yearly and yearly the grace period is for 30 days.
Other LIC’s Riders