LIC Life Insurance Riders - Features, Benefits and Details

Life insurance provides financial security and LIC has riders to increase this security. Riders are additional covers to the base policy which caters to specific needs like accidental death or waiver of premium in case of disability. Adding riders to a policy means you don’t have to buy separate insurance policies.

Types of LIC Life Insurance Riders

LIC has various riders each with its own benefits to help you create a comprehensive coverage as per your situation . Below are the key LIC life insurance riders currently available:

1. LIC's Accident Benefit Rider

This rider gives an extra payout if the insured dies due to an accident. It adds to the financial protection of the policyholder’s family by giving an extra sum assured over and above the base policy benefit.This extra coverage helps the nominee financially during an unexpected loss and eases their burden at a difficult time.

2. LIC’s Premium Waiver Benefit Rider

With the Premium Waiver Rider, the policy remains active even if the policyholder cannot pay the premium due to critical illness or disability. LIC will waive all future premium payments and the policy will continue without any additional burden on the policyholder. This rider is very useful for policyholders who are worried about the insurance during unexpected hardships.

3. LIC's Accidental Death & Disability Benefit Rider

This rider offers financial support if the insured dies or sustains a disability due to an accident. Upon accidental death, the rider sum assured is paid out alongside the base policy amount. In case of disability, LIC provides financial assistance through periodic payouts, aiding the policyholder’s recovery. This rider serves as a safety net, especially for individuals engaged in activities with an elevated accident risk.

4. LIC's New Term Assurance Rider

This rider gives additional life cover in the base policy and pays the family in the event of the policyholder’s death. It ensures the beneficiaries get a higher sum assured so that the family can manage their financial needs after losing a loved one. This rider allows policyholders to increase their life cover without requiring a separate term policy.

5. LIC's Linked Accidental Death Benefit Rider

For those seeking extra security against accidental death, this rider provides an additional payout that supplements the base policy’s sum assured. The Linked Accidental Death Benefit Rider is for policyholders who want to increase life insurance coverage for accidental risks and give more financial security to their family.

By adding these riders, LIC policyholders can customize their life insurance plans to cover specific risks and give more protection to themselves and their family.

Exclusions and Limitations of LIC Life Insurance Riders

While LIC riders are good, each has exclusions and limitations which are to be understood before you opt for one. Some of the common exclusions are:

• Pre-existing Conditions: Some riders may not cover pre-existing conditions especially for critical illnesses.
• Self Inflicted Injuries: Injuries or disability caused by self injury or suicidal attempts are not covered.
• Hazardous Activities: Skydiving and bungee jumping are not covered under accidental death and disability riders.
• Age Restrictions: Some riders may be for policyholders within a specific age bracket, not for older or younger applicants.

Knowing these exclusions will help you avoid surprises when you file a claim and choose the right riders for you.

LIC Riders in Comparison to Standalone Policies

Choosing between riders and standalone policies depends on your needs. Here are the differences:

• Affordability: Riders are cheaper than standalone policies, more coverage for less.
• Convenience: By clubbing multiple benefits in one policy, riders simplify coverage management, consolidated premium payments and renewals.
• Coverage: Riders are cost effective but have limited coverage compared to standalone policies which have more coverage and higher sum assured.

Think of these points and decide whether to add riders or go for separate policies.

Benefits of Adding Riders to LIC Life Insurance Policies

Adding riders to LIC life insurance policies has many benefits, you get customised protection and extra peace of mind.

1. Enhanced Financial Security

Riders provide extra coverage, so policyholders and their family are financially secured in case of accidents, critical illnesses or disabilities. This additional coverage can ease financial burden during emergencies.

2. Customized Coverage

LIC’s range of riders allows policyholders to choose coverage as per their personal risks, whether it’s protection against accidents or income protection during illness.

3. Cost Saving Coverage Expansion

Riders are cheaper than buying separate policies. They help you expand your coverage without the cost and hassles of managing multiple policies.

4. Flexibility for Changing Needs

LIC riders allow you to adjust your coverage as your needs change, add or modify coverage as per your financial and family situation.

Adding riders to your life insurance policy is a cost effective way to increase coverage and secure your loved ones future.

Frequently Asked Questions

Ques 1. What are LIC life insurance riders?

Ans. LIC riders are optional add-ons that extend the coverage of base life insurance policies, providing additional benefits.

Ques 2. Can I add multiple riders to my LIC policy?

Ans. Yes, you can add multiple riders as per your requirement.

Ques 3. Are riders cheaper than separate policies?

Ans. Yes, generally. Riders are cheaper than standalone policies. You get extra coverage at a lower cost.

Ques 4. What are the exclusions?

Ans. Some of the common exclusions are pre-existing conditions, self inflicted injuries, injuries from high risk activities. Each rider has its own exclusions.

Ques 5. Are there age limits for LIC riders?

Ans. Yes, most riders have age restrictions which vary from rider to rider.  These limits determine eligibility based on the policyholder’s age.

Ques 6. Can I add a rider after buying my policy?

Ans. Most riders are added when the policy is purchased, but certain riders might allow late additions within specific timeframes.

Ques 7. What happens if I cancel a rider?

Ans. Canceling a rider won’t affect the base policy, though you’ll lose the additional protection it provides.

Ques 8. Is the rider coverage transferable?

Ans. No, rider benefits are non-transferable and apply solely to the attached LIC policy.