LIC Riders

• Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
• Claim up to Rs. 1,50,000 deduction under section 80C**
• Choose between annual and monthly premium payment options

A rider is an add-on cover that a customer purchases at an extra cost in order to avail additional benefits, apart from the ones that are already provided by one’s base policy. Life Insurance Corporation of India or LIC offers customers various riders that can enhance the base policy’s coverage effectively. Since the benefits offered by the base policy are more or less fixed, opting for additional riders as per your requirements are highly recommended.

Benefits of Life Insurance Corporation of India (LIC) Riders

• Added Coverage: By purchasing a rider along with your base policy, you can avail additional coverage. So, if a policy buyer purchase a Critical Illness Benefit Rider, they are provided a payout upon being diagnosed with a critical illness. Thus, a rider can help reduce one’s financial burdens in case of an unfortunate eventuality.
• Cost Effective: A rider is a more affordable option than purchasing a separate insurance plan to address additional coverage needs. Thus, you are essentially managing only one policy but receiving double the benefits at the same time.
• Flexibility: Insurers usually offer a range of different riders in order to meet the varying needs of their customers. However, as a policy buyer, you are free to purchase only those riders that you really require. Thus, you can customise your policy to meet your exact requirements.
• Tax Benefits: Like your base policy, any premiums you pay for the rider and the payouts that you may receive are eligible for tax rebates under the Income Tax Act, 1961.

List of Riders offered by Life Insurance Corporation of India (LIC)

1.LIC’s New Term Assurance Rider

The New Term Assurance Rider can be purchased along with non-linked insurance plans from LIC in order to provide an additional payout in case the policyholder happens to meet with an untimely death during the policy tenure.

Benefits and Features of LIC’s New Term Assurance Rider

• Rider Benefits: A death benefit which will amount to a value equal to the rider sum assured will be paid in addition to the base sum assured, if the policyholder succumbs to an untimely death. The maximum amount that can be opted for as the rider sum assured is Rs.25 lakh. However, the rider sum assured cannot be higher than the base sum assured.
• Rider Tenure: This rider can be purchased for a period between 5 and 35 years.
• Age Range: In order to purchase this rider, one must be within 18 and 60 years of age. The maximum age at maturity for this rider is 75 years.
• Premiums: Premiums for this rider will vary as per the sum assured, age at entry, and other factors. Premiums will have to be paid as per the base policy’s mode of premium payment.

2.LIC’s Critical Illness Benefit Rider

The Critical Illness Benefit Rider from LIC can be purchased along with non-linked insurance plans. If one has purchased this rider and happens to get diagnosed with one of the critical illnesses mentioned in the rider brochure, the rider benefit will be paid by the insurer.

Benefits and Features of LIC’s Critical Illness Benefit Rider

• Rider Benefits: The full sum assured will be paid as the Critical Illness Benefit if one is diagnosed with a critical illness. Once the benefit is paid, the rider’s cover will cease to exist. The minimum and maximum sum assured for this rider are Rs.1 lakh and Rs.25 lakh, respectively. However, the Critical Illness Sum Assured cannot exceed the base policy’s sum assured.
• Admissible Critical Illnesses: The critical illnesses that are provided a cover under this rider are cancer, open chest CABG, myocardial infarction, kidney failure that requires dialysis on a regular basis, bone marrow/major organ transplant, stroke, permanent paralysis of one’s limbs, multiple sclerosis, aortic surgery, primary pulmonary hypertension, Alzheimer’s disease/dementia, blindness, third-degree burns, open heart replacement, and benign brain tumour.
• Rider Tenure: Essentially, the term of the rider will be the same as that of the base policy. For a Regular Premium Policy, the rider tenure will have to range between 5 and 35 years. And the rider tenure for a Limited Premium Policy will have to range between 10 to 35 years.

Why should you opt for Riders from the Life Insurance Corporation of India (LIC)?

Opting for a rider is a smart way to increase the level of coverage offered by one’s base policy. An unfortunate eventuality like the diagnosis of a critical illness is not only distressing both emotionally and physically, but it also leads to significant hospitalisation expenses. An accidental death, on the other hand, can be extremely hard for everyone that’s left behind and can also leave one’s dependents in a financially vulnerable state. While the base policy in itself can help reduce the financial burdens that one’s family members might have to face, purchasing additional riders can provide extra financial support during troubled times. Riders are available at a nominal cost, but offer a range of benefits that can go a long way in securing the financial independence of one's family under all circumstances.