LIC Linked Accidental Death Benefit Rider
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LIC Linked Accidental Death Benefit Rider is an add-on coverage that policyholders can opt for with their base LIC insurance policy. It is designed to provide financial protection to the policyholder and their beneficiaries in accidents resulting in death.
LIC Accident Benefit Rider Details
The LIC Linked Accidental Death Benefit Rider offered by LIC is designed to mitigate the financial aspect of accidental death, ensuring that the grieving family is well-taken care of despite the loss. It is an added benefit that offers extra financial compensation for the death of the life assured due to an accident.
LIC defines an accident as a sudden, unforeseen, and involuntary event caused by external, visible, and violent means. Nominees of the deceased policyholder can claim the death benefit under the base insurance policy along with the rider sum assured under this accidental death benefit add-on if:
The policyholder has an insurance policy in force to which this rider is attached, and
Death due to the accident must have occurred within 180 days from the date of the accident.
Key Features of LIC Accident Benefit Rider
Understanding the features of the LIC Accident Benefit Rider is essential before deciding to add it to your life insurance policy. Here are some key characteristics of this rider:
Accidental Death Benefit: The primary feature of this rider is to provide an additional sum assured in case of the policyholder’s accidental death. This extra payout ensures the family receives an increased financial cushion to cope with the sudden loss.
Affordable Premiums: The premiums for the Accident Benefit Rider are usually quite affordable, making it an accessible option for policyholders looking to enhance their coverage without a significant increase in their overall insurance costs.
Flexible Payout Options: Policyholders can choose how the rider’s benefits are paid out. The payout can be in a lump sum, in instalments, or a combination of both, depending on the terms and conditions of the rider and the base policy.
LIC Accident Benefit Rider Benefits
Adding the LIC Linked Accidental Death Benefit Rider to your life insurance policy offers several advantages:
Comprehensive Protection: Accidents can lead to unforeseen and immediate financial burdens. This rider ensures you and your family have comprehensive protection against such contingencies.
Additional Financial Security: In the unfortunate event of an accident leading to your untimely demise, the rider provides an extra financial cushion to cover medical expenses, rehabilitation, and the family’s ongoing financial needs.
Peace of Mind: Knowing you have protection against accidents can provide you and your loved ones peace of mind.
Tax Benefits: The premiums paid for the Accident Benefit Rider may be eligible for tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961. However, tax rules may change, so it’s advisable to consult with a tax expert or LIC for the most up-to-date information.
LIC Accident Benefit Rider – Additional Eligibility Criteria
| Criteria | Minimum | Maximum |
| Entry Age | 18 years | 65 years |
| Maximum Maturity Age | 70 years | |
| Rider Term | Earlier of the premium paying term of the base policy, or 70 minus entry age | |
LIC Accident Benefit Rider Coverage
LIC’s accident benefit rider pays out the rider sum assured along with the sum assured on death if the death of the life assured occurs due to an accident. The sum assured under this rider is subject to a minimum and a maximum limit.
LIC Accident Benefit Rider – Sum Assured Criteria
Minimum Sum Assured Rs. 2 Lakhs Maximum Sum Assured For LIC’s Jeevan Shiromani Rs. 2 Crores For plans except for Jeevan Shiromani Rs. 1 Crore Note that the rider sum assured cannot exceed the basic sum assured under the insurance policy with which the rider is attached.
LIC Accident Benefit Rider – Premium Rate
The premium rate for the LIC’s accident benefit rider is affordable at a rate of Rs. 0.5 per Rs. 1,000 of the rider sum assured. The rate is higher by Rs. 0.5 for people engaged in policy, military, and naval duty given the nature of their jobs and the risks involved therewith.
LIC Accident Benefit Rider Exclusions
The rider sum assured shall not be paid to the policyholders if death occurs as a result of self-injury, attempted suicide, insanity, or under the influence of liquor, drug, or narcotics,
taking part in riots, civil commotion, rebellion, war, adventure sports, etc.,
death occurring after 180 days from the date of the accident.
The LIC Linked Accidental Death Benefit Rider is an optional add-on rider that provides enhanced financial security to policyholders in case of accidental death. When this rider is attached to an eligible LIC linked plan, it ensures that an additional lump sum amount—equal to the rider sum assured—is paid to the nominee along with the base policy benefits if the life assured dies due to an accident during the policy term. This rider is designed to offer extra protection at a nominal cost and is especially useful for individuals looking to safeguard their family’s financial future against unforeseen events. It comes with specific eligibility criteria, a minimum and maximum entry age, and is available for the duration of the base policy or a specified term.
Why Choose This Rider?
Provides financial support to family in case of accidental death
Cost-effective way to increase overall life cover
Peace of mind with enhanced risk protection.
How It Works
When a policyholder opts for this rider along with their base LIC linked policy:
An additional premium is charged.
If the life assured dies due to an accident during the policy term:
The base plan’s death benefit is paid.
Plus, the rider sum assured is paid as an extra payout to the nominee.
If the life assured survives the policy term, no maturity benefit is payable under this rider.
Tax Benefits
Premiums paid toward the rider may be eligible for tax deduction under Section 80C of the Income Tax Act.
The payout received under the rider may be tax-free under Section 10(10D), subject to conditions.
Surrender Value
This rider does not acquire any surrender value independently.
It cannot be surrendered separately unless the base policy is surrendered.
Premium Payment
Premium for the rider is paid along with the base policy premium
Frequency of payment: Single, yearly, half-yearly, quarterly, or monthly (depending on base plan)
Exclusions
Death due to suicide, self-inflicted injury, war, or participation in hazardous activities may not be covered
Full terms and exclusions are mentioned in the policy brochure.
Revival of Rider
If the rider premium is unpaid and the rider lapses, it can be revived within the revival period of the base policy by paying all dues along with interest and fulfilling LIC’s underwriting requirements.
Availability
Available only with select linked insurance policies offered by LIC.
Must be opted at the time of policy purchase or during the policy anniversary (if allowed).
