LIC Accidental Death & Disability Benefit Rider Calculator
Premium Calculation Results
The LIC Accidental Death & Disability Benefit Rider is an important add-on that provides financial protection to policyholders and their families in case of unfortunate accidents resulting in death or permanent disability. This rider has been launched on April 18, 2025, and is designed to offer additional coverage alongside your basic life insurance policy.
What is the LIC Accidental Death and Disability Benefit Rider?
The LIC Accidental Death and Disability Benefit Rider is a non-linked, individual rider that provides financial support if the policyholder suffers an accident leading to death or permanent disability within 180 days of the event. This rider is available for different LIC plans and is an optional feature that enhances your basic insurance policy coverage.
Key Features of the Rider
- Definition of Accident: An unfortunate event caused by external, visible, and violent means, which results in death or disability.
- Coverage Period: The accident must occur during the policy term or until the policy anniversary when the insured turns 70 years old.
- Benefit Payment: The rider pays a sum assured in case of accident-related death or disability, spread over 10 years for disability claims.
How Does the Rider Work?
The rider provides two primary benefits:
Accidental Death Benefit
If the insured dies due to an accident within 180 days of the event, the nominee receives an additional sum assured along with the base life insurance payout.
Disability Benefit
In case of a permanent total disability caused by an accident, the insurer pays the accident benefit sum assured in monthly installments over 10 years.
Eligibility Conditions
- Minimum accident benefit sum assured: Rs. 10,000.
- The maximum sum assured depends on the base policy and the plan type.
- The rider can be attached to various LIC plans, such as Jeevan Shiromani, with certain limits.
How to Use the LIC Rider Calculator?
LIC provides an Accidental Benefit Rider Calculator that helps policyholders estimate the potential payout based on their chosen sum assured and other parameters. The calculator considers factors such as age, plan type, and sum assured to provide quick estimates.
Benefits of Using the Calculator
- Quick calculation of premium and benefit amount.
- Helps in understanding the extra coverage for accidents.
- Assists in making informed policy decisions.
Why Should You Consider This Rider?
Accidents are unpredictable, and comprehensive insurance can help your family cope financially if the worst happens. The rider offers extra safety net:
- Extra lump sum on accidental death.
- Income replacement in case of disability.
- Affordable premiums and flexible plans.
Example Benefit Calculation
If a policyholder with an Rs. 5 lakh sum assured adds a Rs. 1 lakh accidental death rider, in case of accidental death, the nominee could receive Rs. 6 lakh in total.
How to Calculate Rider Benefits Manually
While online calculators simplify the process, understanding how to estimate the rider benefits manually can be helpful:
Basic Steps
- Determine your accident benefit sum assured.
- Check the plan-specific maximum limits.
- Calculate the premium based on age, sum assured, and policy term using LIC’s premium rates.
- Use the formula for disability or death benefit payout, considering the claim occurs within the stipulated period.
Example Calculation
Suppose you have an accident benefit sum assured of Rs. 50,000, and the policyholder is 30 years old. The premium per Rs. 1,000 may be around Rs. 2.16 for a 20-year term (as per LIC’s latest rates). The total premium will be Rs. 50,000/1,000 * Rs. 2.16 = Rs. 108. (Note: This is an illustrative example, and actual premiums vary based on LIC’s rates at the time.)
Frequently Asked Questions
What is the LIC Accidental Death and Disability Benefit Rider?
It is an add-on to your LIC life insurance policy that provides extra financial protection if you die or become permanently disabled due to an accident.
Who can buy this rider?
Any LIC policyholder within the eligible age limits specified by LIC can purchase this rider along with their base policy.
What types of accidents are covered?
The rider covers accidents caused by external, visible, and violent means that occur during the policy term and result in death or permanent disability within 180 days of the accident.
What is the minimum sum assured under this rider?
The minimum accidental death and disability sum assured is Rs. 10,000, but it varies depending on the base policy.
How is the benefit paid in case of disability?
In case of permanent total disability, the sum assured under the rider is paid in equal monthly installments over 10 years.
Final Thoughts
TheLIC Accidental Death and Disability Benefit Rider is a valuable addition for anyone seeking comprehensive protection. It provides peace of mind by offering financial support in case of tragic mishaps. With the launch date being April 18, 2025, LIC has made this rider available to millions of policyholders, ensuring safety against unexpected accidents.