Accidental death and disability are very common possibilities in today’s fast-paced life. Both of these contingencies result in substantial financial loss and so LIC offers an Accidental Death and Disability Benefit Rider which covers these two contingencies. The rider pays a benefit in case of accidental death or disability suffered by the insured during the term of the policy. Here are the salient features of the rider –
In case of accidental death
If the insured dies due to an accident during the policy tenure, the rider sum assured would be paid along with the death benefit of the base policy
In case of disability
If the insured suffers from a total and permanent disability due to an accident, the following benefits would be paid –
Total and permanent disability would be said to occur if the insured is unable to perform any four of the following tasks of daily life –
For both these benefits to be payable, the accident should be ‘a sudden, unforeseen and involuntary event caused by external, violent and visible means’ and death or disability should occur within 180 days of such accident.
Death or disability suffered due to the following instances would not be covered by the rider and no rider benefits would be paid in such situations –
The rider, independently, has no paid-up value or surrender value. However, if the base policy, to which the rider is attached, is surrendered, the rider premium charged for continuing the cover would be refunded. Refund would be allowed if the base policy was not a regular premium policy and according to the following calculations –
|For single premium plans||For limited premium plans|
|90% of rider single premium * (outstanding term of rider coverage / total policy tenure of rider coverage)||If the policy is surrendered during the premium payment term – 80% of (rider premium per INR 1000 rider sum assured – 1) * (Rider sum assured / 1000) * (Number of years for which rider premium has been paid)|
|If the policy is surrendered after the completion of the premium paying tenure – 80% of (rider premium per INR 1000 rider sum assured – 1) * (Rider sum assured / 1000) * (Premium paying term for the rider) * (outstanding rider term / total rider term – premium paying term for the rider)|
Under Section 80C of the Income Tax Act, the premiums that are paid towards the rider are tax deductible up to INR 1.5 lakhs and the death benefit that is received is fully tax-exempted under Section 10 (10D).
In the event of a claim under the rider, the following documents should be submitted to receive the claim amount quickly and conveniently.
In case of accidents due to other causes where police FIR is not required, eye witness report, attending physician’s report, affidavit of gram sevak or Government officials, etc. might be required
LIC’s Accidental Death and Disability Benefit Rider helps the insured individual as well as his family to deal with this difficult situation in a better way. By paying a minimal amount this rider can be added on to the basic policy.
Yes, the minimum age is 18 years.
Under Section 80 C of the Income Tax Act, the premiums that are paid towards the rider is tax deductible and the death benefit that is received is tax-exempted under Section 10 (10D).
Provided that the base policy is still in force and the insured individual is below 70 and there are still 5 years of outstanding premiums of the base policy, the rider can be attached at any time.
The minimum sum assured is INR 1 lakh whereas the maximum sum assured is INR 25 lakhs.