LIC Linked Accidental Death Benefit Rider Calculator

When it comes to life insurance, protecting your family against unforeseen events is crucial. Accidents can happen anytime, and the financial impact can be overwhelming for the family left behind. To help families in such situations, LIC (Life Insurance Corporation of India) offers the Linked Accidental Death Benefit Rider, a rider product designed to provide additional financial security in case of accidental death.

What is the LIC Linked Accidental Death Benefit Rider?

The LIC Linked Accidental Death Benefit Rider is an add-on (or optional) cover that can be attached to your existing LIC linked life insurance policy. This rider provides an additional sum assured to your nominee in the unfortunate event of your accidental death happening during the term of the rider.

Definition of Accident by LIC

LIC defines an accident as “a sudden, unforeseen, and involuntary event caused by external, visible, and violent means.” This definition is important because the additional benefit from the rider will only be paid if death occurs due to such an accident.

Launch Date of LIC Linked Accidental Death Benefit Rider

The LIC Linked Accidental Death Benefit Rider was launched by LIC recently in 2024, expanding its range of rider products to offer more financial protection options. It has since become a popular choice for policyholders who want to enhance their life insurance coverage against accidental death risks.​

Why Consider the LIC Linked Accidental Death Benefit Rider?

Adding this accidental death rider to your base policy can provide several benefits:

• Extra Financial Protection: Your nominee will receive a higher death benefit payout including the base policy sum assured plus the rider sum assured, helping the family manage the sudden financial burden.
• Affordable Premium: The premium for this rider is generally nominal compared to the security it offers.
• Peace of Mind: Knowing that your family will be financially protected even in case of serious accidents brings peace of mind.
• Coverage Till Age 70: The rider can be availed till the policyholder reaches 70 years of age, subject to policy terms.

How Does the LIC Linked Accidental Death Benefit Rider Work?

This rider acts as an extra layer of financial protection. Here is an example to understand how it works:

Assume Mr. Sharma purchases a LIC linked life insurance policy with a base sum assured of ₹20 Lakhs. He also opts for the Linked Accidental Death Benefit Rider with an additional sum assured of ₹5 Lakhs. If Mr. Sharma unfortunately suffers an accidental death covered under the rider conditions during the term, the death benefit paid to his nominee will be ₹25 Lakhs (₹20 Lakhs base policy + ₹5 Lakhs rider).​

If the death is due to any natural causes, only the base sum assured of ₹20 Lakhs will be paid.

Eligibility Criteria for the Rider

To add the LIC Linked Accidental Death Benefit Rider to your base policy, the following eligibility conditions apply:

• Minimum age at entry: 18 years
• Maximum age to opt for rider: On or before the policy anniversary nearest to 65 years of age
• Minimum rider term: 5 years
• Coverage will continue till the policy matures or until the policyholder reaches 70 years of age, whichever is earlier
• This rider is not available on the life of minors until completion of 18 years, unless specific underwriting approvals are obtained.​

Key Features of LIC Linked Accidental Death Benefit Rider

• The rider can be added at policy inception or at any policy anniversary within the eligibility limits.
• No maturity benefit is payable under the rider.
• The accident must result in death within 180 days from the date of the accident for the benefit to be paid.
• The base policy should be in force at the time of the accident.
• The rider can be cancelled anytime during the policy term, but once cancelled, it cannot be re-added.​

Understanding the LIC Linked Accidental Death Benefit Rider Premium

The premium charged for this rider depends on the rider sum assured you choose and the term for which you want coverage. The premium rate is usually calculated per thousand sum assured. For instance, LIC may charge approximately ₹0.40 per ₹1000 of the rider sum assured as an annual premium, but it can vary depending on plan specifics and underwriting factors.

To help you estimate the premium amount, LIC provides a Linked Accidental Death Benefit Rider Calculator on its official platforms. Using this calculator, you can input details like your age, sum assured, and policy term, and the calculator will provide the estimated rider premium.​

How to Use the LIC Linked Accidental Death Benefit Rider Calculator?

The calculator is a simple and reliable tool to estimate the extra premium you need to pay for the rider. Here is a step-by-step guide:

1. Enter Your Age: Input your current age.
2. Select the Base Policy Sum Assured: Enter the sum assured amount of your base LIC policy.
3. Choose Rider Sum Assured: Decide the amount of additional coverage you want under the accidental death rider.
4. Policy Term Details: Provide the remaining policy term to match with eligibility criteria.
5. Calculate: Click on the calculate button to get the annual premium payable for the rider.

The calculator instantly shows the premium amount, helping you make informed choices without manual calculations. It enhances transparency and quick decision-making for policyholders.​

Benefits of Using LIC Linked Accidental Death Benefit Rider Calculator

• Easy to use with no hidden formulas.
• Saves time and effort in manual premium calculations.
• Helps in planning your insurance portfolio efficiently.
• Clear visibility on additional costs for added protection.
• Enables quick comparisons with other riders or insurance plans.

Important Considerations

• The rider sum assured can be the same or less than the base plan sum assured.
• The maximum limit of the accidental death benefit sum assured may be capped depending on the base policy and LIC’s underwriting policies.
• The rider offers no maturity benefit or surrender value.
• The policyholder must ensure the base policy is active; otherwise, the rider cover automatically terminates.
• Claims must be supported by accident reports and necessary documents as required by LIC.

FAQs About LIC Linked Accidental Death Benefit Rider

Conclusion

The LIC Linked Accidental Death Benefit Rider is an excellent add-on for those seeking extra financial security for their loved ones in case of an accidental death. With a nominal extra premium, you can increase the death benefit significantly, ensuring your family faces fewer financial worries during difficult times.

The availability of the LIC Linked Accidental Death Benefit Rider Calculator makes it easy to estimate the premium cost and decide on the sum assured without hassle.