LIC Rider Options

DEFINITION of 'Rider'
A provision of an insurance policy that is purchased separately from the basic policy and that
provides additional benefits at additional cost. Standard policies usually leave little room for
modification or customization, beyond choosing deductibles and coverage amounts. Riders help
policyholders create insurance products that meet their specific needs.

BREAKING DOWN 'Rider'

For example, an accelerated death benefit rider on a life insurance policy would provide the insured
with a payout while he or she was still alive, in the event of a terminal illness. The insured could use
these funds to pay for medical expenses and to increase the quality of their remaining life. When the
insured passes away, their beneficiaries will receive a reduced life insurance benefit, since the rider
allowed a portion of the policy to be used early.

1.Accident Benefit Rider

Accident Benefit Rider in respect of Plans 2F, 5F, 14F, 28F, 74F, 75F & 93F (all now withdrawn) and 612, 613, 614, 628,
674, 675, 693 (new plans): Accident Benefit (AB) is an optional benefit which is available on payment of additional premiums
@$1.00 per thousand sum assured. The AB rider is in fact a package of three benefits which the LICI policyholders (of all Whole
Life, Endowment and Money Back Plans) can enjoy at such an affordable rate. The only way one can appreciate this benefit is by
comparing it the rates and benefits offered by the competitors. The package consists of the following three benefits:
Accidental Death Benefit: An additional sum assured becomes payable if the life assured dies as a result of an accident. The
maximum limit for the accidental death benefit that is payable under all the LICI policies of the life assured put together is
$200,000.
Total & Permanent Disability (TPD) Benefit: This benefit become payable when the life assured survives an accident but
becomes totally and permanently disabled and as result that he cannot undertake any employment or any economic activity for
his livelihood. This benefit is also available when the TPD occurs due to a sickness. This benefit is payable to the life assured in
the
form
of
an
amount
equal
to
the
basic
sum
assured
in
120
monthly
instalments.
Premiums Waiver: This benefit is available along with the TPD Benefit. Where a TPD is granted, all the future premiums
falling due (from the following policy anniversary) under the policy are waived by LICI. However, the normal risk cover on the
life assured continues till the date of maturity; in case of his or her death before the maturity date the basic sum assured + vested
bonuses and all the unpaid instalments of TPD, if any also are payable. On survival of the life assured until the maturity date, the
normal
maturity
value
(sum
assured
+ vested
bonuses)
becomes
payable.
The maximum limit for the TPD Benefit and Waiver Benefit under all the LICI policies of the life assured put together is
$200,000.
Accident Benefit Rider for Target Limited Payment & Single Premium Plans (Table 48F - now withdrawn and Table 648 -

new plan): The premiums for the entire policy term is paid in fewer years limited to the premium payment term (including the
single premium option). The accident benefit rider premiums are also collected along with the basic premiums within the
premium paying term. However, the accident benefit is available during the entire policy term.
Accidental Death Benefit in respect of Smart Life 2 Plan (Table 135F - now withdrawn and Table 635 - new plan): The
rider premiums for the entire 10 year policy term are collected upfront along with the single premium. However, this benefit is
different from the general accidental benefit available under other plans; it only covers accidental death and not total and
permanent disability.

2.Disability Benefit Rider

Total & Permanent Disability (TPD) Benefit: This benefit become payable when the life assured survives an accident but
becomes totally and permanently disabled and as result that he cannot undertake any employment or any economic activity for
his livelihood. This benefit is also available when the TPD occurs due to a sickness. This benefit is payable to the life assured in
the form of an amount equal to the basic sum assured in 120 monthly instalments.

3.Premiums Waiver Rider

This benefit is available along with the Total & Permanent Disability (TPD) Benefit. Where a TPD is granted, all the future
premiums falling due (from the following policy anniversary) under the policy are waived by LICI. However, the normal risk
cover on the life assured continues till the date of maturity; in case of his or her death before the maturity date the basic sum
assured + vested bonuses and all the unpaid instalments of TPD, if any also are payable. On survival of the life assured until the
maturity date, the normal maturity value (sum assured + vested bonuses) becomes payable.

4.Term Assurance Rider

Term Rider benefit is available only under the policies where the term rider option has been exercised by the policyholder and
accepted by LICI. The extra premium meant for term assurance rider must have been received (up-to-date) by LICI. Benefits vary
with
the
type
of
plan
as
under:
Endowment Assurance and Money Back Plans. An additional sum assured (Term Rider sum assured) equivalent to the Basic
sum assured under the main policy is payable on the death of the life assured during the term of the policy while the Term Rider
benefit is in force. In case of Limited Payment plan (Table 48F), the Term Rider premiums are collected for the entire policy term
along
with
the
basic
premiums
during
the
premium
payment
term
itself.
Aspire Childrens Plans. In Aspire plans, an optional term rider benefit is available for the proposer (usually the parent of the
child assured under the policy). An amount equivalent to 20% of the basic sum assured under the plan is paid to the beneficiaries
in
the
event
of
unfortunate
death
of
the
proposer
during
the
term
of
the
policy.
Smart Life-2 Single Premium Plan. The term rider premium for the entire policy term of 10 years is payable along with the
basic (single) premium itself. An additional sum assured (Term Rider sum assured) equivalent to the Basic sum assured under the
main policy is payable on the death of the life assured during the term of the policy.

5.Critical Illness Rider

Critical Illness Rider benefit is available only under the endowment and money back policies where critical illness rider option
has been exercised by the policyholder and accepted by LICI. The extra premium meant for Critical illness rider must have been
received
(up-to-date)
by
LICI.
The Benefit: The basic sum assured under the main policy along with the vested bonuses is payable as a lump sum on the
happening of any of the 15 critical illnesses covered during the term of the policy while the Critical Illness Rider is in force. The
policy is terminated as soon as the critical illness rider benefit is paid.