LIC’s New Term Assurance Rider
LIC’s New Term Assurance Rider provides for life cover in case of unfortunate death of the insured during the cover period. It can be attached with a Base Policy to provide add-on benefit at a nominal cost. This rider shall only be attached with Non-Linked plans at the inception of the base policy.
1. Benefits:
Death Benefit:
In case of unfortunate death of the life assured during the term of the Rider, an amount equal to the Term Assurance Rider Sum Assured shall be payable.
Maturity Benefit:
On survival to the end of the term of the Rider, nothing shall be payable.
2. Eligibility Conditions and Other Restrictions:
| Minimum age at entry | : 18 years (completed) |
|---|---|
| Maximum age at entry | : 60 years (nearest birthday) |
| Maximum Cover ceasing age | : 75 years (nearest birthday) |
| Term of this rider | : 5 to 35 years |
| Minimum Term Assurance Rider Sum Assured | : ₹100,000/- |
| Maximum Term Assurance Rider Sum Assured | : ₹25,00,000/- |
The maximum Term Assurance Rider Sum Assured shall be less than or equal to the Basic Sum Assured / Sum Assured /Sum Assured (in Health plan) under the Base Policy to which it is attached, but not exceeding the overall limit of ₹25 Lakhs taking all Term Assurance Riders under all existing policies of the life assured taken from Life Insurance Corporation of India including the new proposal under consideration.
3. Mode of Premium Payment:
Same as the Base Policy to which the Rider is attached.
4. Sample Premium Rates:
Following are some of the sample premium rates per ₹1000/- Term Assurance Rider Sum Assured exclusive of Taxes:
Annualized Regular Premium (in ₹):
| Age (Yrs) | Term of the Policy (years) | ||
|---|---|---|---|
| 10 | 20 | 30 | |
| 20 | 1.61 | 1.61 | 1.89 |
| 30 | 1.88 | 2.44 | 3.51 |
| 40 | 3.67 | 5.52 | 7.63 |
| 50 | 9.18 | 12.61 | - |
Annualized limited premium (in ₹):
| Age (Yrs.) | Term of the Policy= 10years | Term of the Policy= 20years | Term of the Policy= 30years | |||
|---|---|---|---|---|---|---|
| PPT=5 | PPT=9 | PPT=10 | PPT=15 | PPT=10 | PPT=20 | |
| 20 | 2.62 | 1.61 | 2.49 | 1.88 | 3.67 | 2.30 |
| 30 | 3.23 | 1.96 | 3.87 | 2.92 | 6.76 | 4.26 |
| 40 | 6.30 | 3.83 | 8.67 | 6.56 | 14.31 | 9.12 |
| 50 | 15.58 | 9.56 | 19.30 | 14.80 | - | - |
Single Premium (in ₹):
| Age (Yrs.) | Term of the Policy (years) | ||
|---|---|---|---|
| 10 | 20 | 30 | |
| 20 | 10.81 | 17.77 | 26.15 |
| 30 | 13.36 | 27.57 | 48.14 |
| 40 | 25.96 | 61.36 | 101.34 |
| 50 | 63.76 | 134.05 | - |
5. Rebate for Mode of premium payment and High Sum Assured:
Mode rebate : Same as the Base Plan
High Sum assured rebate : Nil
6. Grace Period:
Same as under Base Plan.
7. Paid-up Value:
The Term assurance rider will not acquire any paid-up value.
8. Surrender Value:
No surrender value will be available under this rider. However, on surrender of the Base Policy to which this rider is attached, provided all the due premiums in respect of this rider have been paid, additional rider premium charged in respect of cover after PPT shall be refunded as follows:
Regular Premium Policies:
Nothing shall be refunded.
Limited Premium Paying Policies:
Refund shall only be payable if full premiums have been paid for atleast
- first two consecutive years in case of premium paying term less than 10 years
- first three consecutive years in case of premium paying term of 10 years or more- The amount to be refunded shall be 75% of a value calculated based on duration elapsed in completed years as on date of surrender as well as on the Sum Assured, Premium Paying Term and Term of the Rider.
Single Premium Policies:
The amount to be refunded shall be 90% of single premium for the Rider multiplied by ratio of outstanding term to original term of the rider.
9. Revival:
Subject to production of satisfactory evidence of continued insurability, a lapsed Rider can be revived along with Base Policy by paying arrears of premium together with interest within a period of five years from the date of first unpaid premium but before cover ceasing age under the rider. The rider can only be revived along with the Base Policy and not in isolation. The rate of interest applicable will be as fixed by the Corporation from time to time.
10. Taxes:
Statutory Taxes, if any, imposed on such insurance plans by the Government of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax shall be as applicable from time to time.
The amount of applicable taxes as per the prevailing rates shall be payable by the policyholder on the premium including extra premium, if any payable under the rider, which shall be collected separately over and above in addition to the premium payable by the policyholder. The amount of Tax paid shall not be considered for the calculation of benefits payable under the rider.
11. 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 for this rider after deducting the proportionate risk premium (for this rider) till the date of receipt of returned policy document, charges for medical examination, special reports, if any on account of rider inclusion and stamp duty charges.
12. Exclusions:
Suicide Claim Provision : This rider can not be issued on stand alone basis and shall be attached with Base Plan. Suicide claim provision as mentioned in the Base Policy with regard to rider would apply.
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