LIC’s Premium Waiver Benefit Rider

LIC’s Premium Waiver Benefit Rider

LIC’s Premium Waiver Benefit Rider is non-linked, non-participating, individual rider to be attached with insurance plans with which this Rider is allowed (Base Plan). This Rider provides for waiver of future premiums payable under the Base Plan till the expiry of Rider Term, in case of unfortunate death of the Proposer of Base Plan (on whose life this Rider is taken) during the Rider Term.

This Rider can be opted for along with the Base Plan at the inception or at any time during the Premium Paying Term of the Base Plan provided the outstanding Premium Paying Term of the Base Plan and Rider is at least 5 years.

1. Benefits:

Death Benefit:

In case of death of Proposer during the Rider Term, premiums payable under the Base Policy falling due after the date of death till the expiry of Rider Term shall be waived. However, premiums in respect of any riders, if opted for, other than this rider under the Base Policy, shall not be waived and continue to be paid as per respective rider conditions.

Further, if Premium Paying Term of the Base Policy exceeds the Rider Term, all the premiums due under the Base Policy from the date of expiry of this rider shall be payable by the policyholder as per the terms and conditions of the Base policy.

Maturity Benefit:

On survival to the end of the Rider Term, nothing shall be payable.

Participation in Profits:

This Rider shall not participate in the profits of the Corporation.

2. Eligibility:

Minimum age at entry	: 18 years (completed)
Maximum age at entry	: 55 years (nearer birthday)
Maximum age at maturity	: 70 years (nearer birthday)
Rider Term	: Outstanding Premium Paying Term of the base plan as on the date of opting this rider or (25 minus age of the minor as on the date of opting this rider), whichever is lower, subject to the minimum outstanding rider term of 5 years.
Minimum/Maximum Sum Assured	: Sum total of the future premiums payable under the Base Policy till the expiry of Rider Term.

Note: Rider term shall be determined as mentioned above and if (Age of Proposer plus Rider Term) exceeds 70 years then the rider shall not be allowed.

Date of commencement of risk under the plan: Risk will commence immediately on acceptance of the risk.

3. Payment of Premium:

The LIC’s Premium Waiver Benefit Rider premium, including the applicable taxes from time to time, is payable only along with the premium for the Base Policy and cannot be paid separately.

The premiums in respect of the Rider are payable till the stipulated date of payment of last premium for LIC’s Premium Waiver Benefit Rider or earlier death of the Proposer.

4. Grace Period:

As in the Base Policy.

5. Sample Premium Rates:

The specimen annual premiums to secure the benefit of cessation of ₹100/- Premium under the base plan are given below for some of the decennial ages and terms:

Rider Term	Proposer’s Age
	Upto 25 years	26-30 years	31-35 years	36-40 years	41-45 years	46-50 years	51-55 years
5	1.45	1.45	1.55	1.75	2.05	2.70	3.65
10	1.85	1.90	2.15	2.65	3.60	5.20	7.60
15	2.20	2.35	2.85	3.80	5.45	8.20	12.35
20	2.55	2.90	3.70	5.15	7.60	11.65	-
25	2.95	3.50	4.70	6.80	10.20	-	-

6. Rebates:

Mode Rebate: Same as a Base Policy
Sum Assured Rebate: NIL

7. Revival:

As in the Base Policy

8. Paid-up Value:

This rider will not acquire any paid-up value.

9. Surrender Value:

No surrender value shall be available under this Rider.

10. Policy Loan:

No loan shall be granted under this Rider.

11. Taxes:

Statutory Taxes, if any, imposed on such Rider by the Govt. of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of applicable taxes payable as per the prevailing rates shall be payable by the policyholder on total premium payable under a policy (including premium for the Rider), which shall be collected separately over and above in addition to the premiums payable by the policyholder. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.

12. Free Look Period:

If the policyholder is not satisfied with the “Terms and Conditions” of the Rider, the Rider may be returned to the Corporation within 15 days (30 days if the policy is purchased online) from the date of receipt of the policy stating the reason of objections. On receipt of the same the Corporation shall cancel the Rider and return the amount of premium deposited in respect of this Rider after deducting the proportionate risk premium (for this Rider) for the period of cover, charges for medical examination, special reports, if any, and stamp duty charges.

13. Exclusions:

Sucide: This Rider will be void if the Proposer (whether sane or insane) commits suicide anytime within 12 months from the date of commencement of this rider or within 12 months from the date of revival. The Corporation will not entertain any claim under this rider (i.e. premiums payable under the Base Policy shall not be waived), however, 80% of the premiums paid for LIC’s Premium Waiver Benefit Rider shall be refunded provided the policy is in-force.