LIC's New Term Assurance Rider Calculator
Premium Details
Important Information
- Minimum Entry Age: 18 years (completed)
- Maximum Entry Age: 60 years (nearer birthday)
- Maximum Cover Ceasing Age: 75 years
- Minimum Rider Term: 5 years (Single/Regular), 10 years (Limited)
- Maximum Rider Term: 35 years
- Minimum Sum Assured: ₹1,00,000
- Maximum Sum Assured: ₹25,00,000
- Death Benefit: Highest of Rider SA, 7x Annualized Premium, or 105% of Total Premiums Paid
The Life Insurance Corporation of India (LIC) launched the New Term Assurance Rider to provide an additional life cover option that can be attached to a base life insurance policy. This rider offers an affordable way to increase financial protection for your loved ones by paying an extra premium alongside your main policy.
Launch Date of LIC New Term Assurance Rider
LIC’s New Term Assurance Rider was officially launched in early 2025 with the policy document and sales brochure available since January 28, 2025. It has since become an important add-on for securing enhanced life coverage under LIC’s various life insurance plans.
What Is LIC New Term Assurance Rider?
The New Term Assurance Rider is a term insurance rider, which means it provides a death benefit during the term of the policy it is attached to. It is NOT a standalone plan; you need to have a LIC base policy to add this rider. In case of the unfortunate death of the insured during the rider term, the sum assured under the rider is paid in addition to the base policy benefits.
Key Features of the Rider
- Additional life cover: Provides extra financial protection by paying an additional premium.
- Rider Sum Assured: Minimum ₹1,00,000 and maximum ₹25,00,000. The rider sum assured cannot exceed the sum assured of the base policy.
- Term: The rider term ranges from 5 to 35 years, subject to the base policy term.
- Age Limit: Entry age is between 18 and 60 years, with the cover ceasing by age 75.
- Premium Payment: The rider premium must be paid along with the base policy premium, following the same payment frequency.
- Non-Linked Plans Only: Can be added only to non-linked traditional life insurance policies, not ULIPs.
- Affordable Premium: Premium rates are relatively low for the additional cover.
- Aggregate Limit: The total sum assured for term assurance riders across all LIC policies held by the insured has a maximum cap of ₹25 lakhs.
Benefits of LIC New Term Assurance Rider
Death Benefit
If the insured person dies during the rider term while the base policy is in force, the nominee receives the rider sum assured amount. The exact death benefit calculation depends on the mode of premium payment:
- For regular and limited premium payment policies, the benefit is the highest among:
- Rider sum assured,
- 7 times the annualized rider premium, or
- 105% of the total rider premiums paid till death.
- For single premium policies, the benefit is the higher of:
- Rider sum assured, or
- 1.25 times the single rider premium paid.
This ensures that the nominee receives a fair and significant amount in the event of the insured’s death.
Maturity Benefit
There is no maturity benefit under this rider. If the insured survives the policy term, no amount is paid at the end of the rider term (like typical term insurance riders).
Eligibility Conditions and Policy Terms
| Eligibility Criteria | Details |
|---|---|
| Minimum Age at Entry | 18 years (completed) |
| Maximum Age at Entry | 60 years (nearest birthday) |
| Maximum Age at Cover Ceasing | 75 years (nearest birthday) |
| Minimum Policy Term | 5 years |
| Maximum Policy Term | 35 years |
| Sum Assured Range | ₹1,00,000 to ₹25,00,000 |
| Premium Payment Frequency | Same as Base Policy |
| Mode of Premium Payment | Same as Base Policy |
The rider must be attached at the inception of the base policy and cannot be added later. The premium for this rider is payable throughout the premium-paying term of the base policy or till the rider cover expiry age, whichever is earlier.
How to Use LIC New Term Assurance Rider Calculator
The LIC New Term Assurance Rider Calculator helps you estimate the additional premium that you need to pay when you opt for this rider on top of your LIC base life insurance policy.
What Inputs Are Needed?
- Age at Entry: Your age when you start the policy.
- Rider Sum Assured: The additional amount of life cover you want under this rider.
- Term of the Rider: Number of years you want coverage under this rider.
- Premium Payment Mode: Whether you want to pay the premium annually, monthly, or as a single premium.
- Type of Premium Payment: Regular, limited, or single premium.
How Does It Work?
The calculator uses LIC’s prescribed premium rates and terms to calculate the rider premium based on your inputs. For example, for a rider sum assured of ₹10 lakhs, premium rates differ based on age, term, and mode of payment. The calculator instantly provides you with the amount you need to add to your base policy premium to include this additional rider cover.
Sample Premium Rates (Indicative)
| Age | Term (Years) | Regular Premium (₹) | Single Premium (₹) |
|---|---|---|---|
| 20 | 10 | 1,610 | 10,810 |
| 30 | 10 | 1,880 | 13,360 |
| 40 | 10 | 3,670 | 25,960 |
Limited premium plans have slightly different rates and terms. The LIC New Term Assurance Rider Calculator automates these complex calculations so policyholders can quickly and easily understand the cost implication for the rider.
Advantages of Using the LIC New Term Assurance Rider
- Budget-Friendly Extra Cover: You gain enhanced protection without buying a separate full-term insurance policy.
- Seamless Integration: The rider premium is paid along with the base policy, making it convenient.
- Flexible Terms: Options for different terms and sum assured amounts allow customization.
- Reliable: LIC is trusted for prompt claim settlement, making this rider a secure choice.
- No Additional Documentation: Since it is attached to an existing policy from inception, no separate underwriting process is needed.
Limitations and Important Points
- The rider can only be added at the inception of the base policy; it cannot be added to an ongoing policy later.
- The sum assured under the rider cannot exceed the sum assured of the base plan.
- Total term assurance rider cover across all LIC policies is capped at ₹25 lakhs.
- There is no maturity benefit for this rider.
- It is not available with ULIP or linked plans, only non-linked traditional policies.
Frequently Asked Questions
What is LIC New Term Assurance Rider?
It is an add-on rider that provides additional life cover to your existing LIC non-linked life insurance policy. It pays an extra sum assured to your nominee in case of your death during the policy term.
When was LIC New Term Assurance Rider launched?
This rider was launched in early 2025, with official brochures and policy documents published by January 28, 2025.
Can I buy LIC New Term Assurance Rider as a standalone policy?
No, this rider cannot be bought separately. It must be attached to a base LIC life insurance policy at the time of policy inception only.
What is the minimum and maximum Sum Assured under this rider?
The Sum Assured ranges from a minimum of ₹1,00,000 to a maximum of ₹25,00,000, and it cannot exceed the sum assured of the base policy.
What is the eligibility criteria for this rider?
The insured must be aged between 18 and 60 years at entry, and the cover can continue up to the age of 75 years. The rider term can range from 5 to 35 years.
Is there any maturity benefit under this rider?
No maturity benefit is payable. If the insured survives the rider term, no amount is paid out.
Conclusion
The LIC New Term Assurance Rider is an effective way to add an extra layer of financial security to your existing life insurance policy. It provides affordable additional cover with simple premium payment terms aligned with your base policy.
By using the LIC New Term Assurance Rider Calculator, you can easily estimate the additional premium and plan your insurance budget accordingly. The rider, launched in early 2025, continues LIC’s commitment to offering versatile and customer-friendly insurance solutions to Indian policyholders.