LIC's Term Rider - Everything You Must Know

A person who has obtained life insurance has already taken a step toward safeguarding the future of their family. Insurance riders are optional supplemental perks which can be incorporated to a base policy for a fee. It modifies the original policy's provisions to provide even more protection and financial stability in situations of need.

The LIC Term Rider Policy is indeed an optional benefit that pays the promised sum towards the household if indeed the insured person dies suddenly during the policy period. For a little price at the commencement of the basic policy, this can all be incorporated to that of an individual's existing plans. To get to understand and know more about the LIC term rider, read on.

About LIC Term Rider Policy

The LIC Term Rider Policy is indeed an add-on advantage to the basic policy that pays the Sum Assured to the beneficiaries if the insured dies unexpectedly during the policy period. This would only be incorporated into non-linked policies for a minimal cost at the start of the basic policy. This implies the rider may only be attached to standard insurance plans, not ULIPs. Nothing is due if indeed the insured person endures the term period. The benefit is that such extra investments are eligible for tax breaks or deductions.

What Are The Key Features Under LIC Term Rider?

LIC Term Insurance Riders comes with a slew of useful features to offer its customers.

Following are the key features under LIC term rider -

1. The base policy's sum assured must be larger than or equal to the rider benefit's sum assured.
2. It's a small price to pay for more comprehensive coverage.
3. Only regular insurance plans, not ULIPs, can indeed be linked to the rider.
4. Savings on riders premium payments are only available if they are tied to the base policy.

Eligibility Criteria Under LIC Term Rider

The insured individual's age limit at enrollment should really be 18 years old (complete), as well as the covered individual's age limit at enrollment should be 60 years old to just be qualified to acquire the LIC Term Rider Policy. The rider insurance has a maturing age of up to 75 years.

Tenure, Sum Assured & Payment

The LIC Term Rider Policy has a minimum sentence of 5 years as well as a max sentence of 65 years. The Sum Assured might be as low as Rs 1 lakh and as high as Rs 25 lakh. The payment method and frequency are just like the base policy. Both the rider premium as well as the basic policy must be paid at the same time. But there's no such thought as a compensated value in insurance. This implies that when the payments are not paid, the rider's advantage would be lost.

Terms & Conditions

As a result, the LIC Term Rider Policy has no surrender value. However, the rider premium may only be repaid if the rider's premium is paid on time and the base policy is relinquished.

Following are the terms & conditions under LIC Term Rider -

1. In the event of the Standard Premium Package, there have been no refunds.
2. Only if the payment has already been completed for the minimum length of the term period is a refund available for the Limited Premium Plan. The Amount should indeed be given with at least two years if the contract duration was ten years. If the term was more than ten years, the money shall be paid for a three-year period.
3. For just a Single Premium Plan, a refund may be computed by adding 90 percent of the paid rider's premium to the remaining financing tenure then dividing that number by the initial rider tenure.

Endnotes

Because the base policy cannot be customised, an individual can add rider benefits to boost their total financial protection. Whenever purchasing a rider or selecting a policy, knowing and understanding the policy's terms of service.

Also Read: 5 Benefits Adding Rider To Your Life Insurance Policy

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.