The LIC Accident Benefit Rider is a valuable add-on to your base life insurance policy that provides extra financial protection to you and your family in case of an accidental death. This rider pays a lump sum amount over and above the base policy’s sum assured, helping your loved ones manage unexpected financial burdens arising from accidents.

What Is LIC Accident Benefit Rider?

LIC Accident Benefit Rider is an optional insurance coverage that can be added to your main LIC policy for added financial security against accidental death. If the policyholder dies due to an accident (defined as a sudden, unforeseen, and involuntary event caused by external, visible, and violent means) within 180 days from the date of the accident, the nominee receives an additional lump sum amount called the Accident Benefit Sum Assured.

Key Features

• Supplementary Cover: Offers extra financial protection along with the base policy’s death benefit.
• Accident Definition: The death or disability must result from an accident as per LIC’s definition.
• Period of Cover: This benefit is payable only when the accident death occurs within 180 days from the accident date.
• Minimum and Maximum Sum Assured: The minimum sum assured starts at Rs. 10,000 to Rs. 20,000 depending on the rider version, and the maximum can go up to Rs. 1 crore or even Rs. 2 crores for certain plans like Jeevan Shiromani.
• Age Eligibility: Entry age typically ranges from 18 years to 65 years, with rider coverage ceasing by age 70.
• Premium: Additional premium is paid based on the rider sum assured and the base policy term.

Launch Date of LIC Accident Benefit Rider

The current version of LIC Accident Benefit Rider (UIN: 512B203V03) officially launched on October 1, 2024. It is available as a regular premium, limited premium, and single premium rider attached to various LIC base policies.

Additionally, LIC also offers a Linked Accidental Death Benefit Rider (UIN: 512A211V02), also effective from October 1, 2024, for unit-linked insurance plans.

Who Is Eligible for LIC Accident Benefit Rider?

• Minimum age at entry: 18 years (completed)
• Maximum age at entry: 65 years (nearest birthday)
• Rider cover ceases: Maximum age 70 years (nearest birthday)
• Minimum sum assured: Rs. 10,000 or Rs. 20,000 depending on the rider variant
• Maximum sum assured: Rs. 1 crore generally; Rs. 2 crores for Jeevan Shiromani plan holders
• Must have an in-force base policy to attach the rider
• Rider can be opted for at policy inception or during the policy term with some restrictions

How Does LIC Accident Benefit Rider Work?

If the life insured dies due to an accident during the policy term and the claim is within 180 days from the date of the accident:

• The Accident Benefit Sum Assured is paid in lump sum to the nominee.
• This amount is in addition to the base policy’s death benefit.

If the policyholder survives the accident or dies due to other causes, this rider benefit is not payable.

Understanding the LIC Accident Benefit Rider Calculator

The LIC Accident Benefit Rider Calculator helps you estimate the additional premium you need to pay for opting this rider with your existing LIC policy.

What Inputs Does the Calculator Need?

• Base policy sum assured
• Selected Accident Benefit Sum Assured (usually from Rs. 20,000 in multiples of Rs. 5,000)
• Age of the life assured
• Policy term and premium paying term
• Type of premium (regular, single, or limited)
• Rider premium rates per Rs. 1,000 sum assured

How Is the Premium Calculated?

The premium for this rider depends on:

1. The Accident Benefit Sum Assured (ABSA) chosen. It cannot exceed the base policy sum assured and must be within maximum aggregate limits.
2. The premium rate per Rs. 1,000 ABSA as per LIC’s premium tables. For example:
   • Regular premium policies typically have a rate of Rs. 1.00 per 1,000 ABSA per annum.
   • Single premium policies may have a rate of Rs. 8.00 per 1,000 ABSA.
   • Limited premium policies have rates around Rs. 1.20 per 1,000 ABSA.
3. Age and risk class: Higher age or certain occupations may result in higher rider premium rates.
4. Policy term and premium paying term.

Example Calculation

If your base policy sum assured is Rs. 10 lakhs and you select an Accident Benefit Sum Assured of Rs. 5 lakhs, the rider premium for a regular premium plan could be calculated as:

Annual Rider Premium =1000ABSA×Premium Rate=10005,00,000×1.00=Rs.500 per annum.

The LIC Accident Benefit Rider Calculator automates these calculations based on user inputs for ease and accuracy.

Benefits of Using the LIC Accident Benefit Rider Calculator

• Quick and Convenient: Instantly get a clear estimate of additional premium cost for adding accidental coverage.
• Financial Planning Aid: Helps you understand how much more you need to pay versus additional protection you get.
• Customized Quotes: Based on your age, policy term, and chosen sum assured.
• Informed Decision: Enables policyholders to make better decisions about adding riders to their life insurance products.

Important Tips While Using the Calculator

• Ensure your base policy details like sum assured and term are ready.
• Select the Accident Benefit Sum Assured according to your financial needs but within permissible limits.
• Bear in mind the rider ceases at age 70; check if your policy term aligns.
• If you have multiple LIC policies with accident benefit riders, total sum assured limits apply.

How to Opt for LIC Accident Benefit Rider?

• You can opt for the Accident Benefit Rider at the time of purchasing the base policy.
• It can also be added later during the policy term subject to underwriting rules.
• Rider premium must be paid along with base policy premiums.
• The rider cover is effective once the premium is paid and the policy is in force.

Sample Use Case of LIC Accident Benefit Rider

Suppose Mr. Singh buys a LIC Jeevan Anand policy with a sum assured of Rs. 20 lakhs. He opts for the Accident Benefit Rider with an additional coverage of Rs. 10 lakhs. If, unfortunately, Mr. Singh passes away due to an accident during the policy term, his nominee will get Rs. 20 lakhs (base sum assured) plus Rs. 10 lakhs (accident rider benefit) totaling Rs. 30 lakhs. This extra payout helps the family meet unforeseen expenses and maintain financial stability.

Frequently Asked Questions

Conclusion

The LIC Accident Benefit Rider is a smart way to add extra security against accidents to your base life insurance policy. With its affordable premiums and significant lump sum payout in unfortunate events, it can be a valuable part of your financial planning. Using the LIC Accident Benefit Rider Calculator helps you understand the cost and benefits precisely, enabling you to choose the right coverage suited to your needs.