Why Your Insurance Plan Is Incomplete Without Riders
*This is a sponsored feature by LIC.
If you’ve bought life insurance for yourself and your family, you’re already a step ahead of most Indians. It’s a relief knowing your loved ones will be protected in the event of your premature or unexpected death. However if you wish to increase this level of protection further, you can opt for a simple add-on to the policy called a rider. There are different types of riders and by choosing one or more of the riders, your insurance coverage can become more comprehensive. These riders are a great way to enhance your insurance coverage without having to buy a separate policy. The riders can be opted at the time of taking the policy or in some cases even at a later stage by payment of an additional premium.
LIC of India, the nation’s largest insurance company, offers various riders that complement its wide range of plans. The following are some of the important and common riders, you can opt for when buying life insurance:-
This rider covers the contingency of death due to accident and provides additional sum assured if death occurs due to accident. Accident is defined by insurers as a “sudden, unforeseen and involuntary event caused by external, violent and visible means” leading to either permanent and total disability or death.
For payment of benefits under this rider, death should occur within 180 days from date of accident and the policy should be in-force for full cover by payment of all due premiums.
This rider provides similar benefit as above and can be taken for ULIP policies only.
LIC’s Accidental Death and Disability Rider covers death and disability which is the result of an accident. Disability means accidental injuries due to which policyholder is not able to perform certain activities of daily living or which results in irrecoverable loss of the entire sight of both eyes or in the amputation of both hands at or above the wrists or in the amputation of both feet at or above ankles or in the amputation of one hand at or above the wrist and one foot at or above the ankle.
In case of disability to the life assured, accident sum assured is paid in equal monthly instalments spread over 10 years. If the policy becomes a claim either by way of maturity or death before all due instalments are paid out, the remaining disability benefit instalments which have not fallen due will be paid along with the claim and the future premiums are waived under the policy to the extent of chosen Accident Benefit Sum Assured. In case of death, accident sum assured is paid.
A person diagnosed with critical illness may need to undergo regular treatment over a prolonged period of time. This treatment can not only cause a dent in the person’s existing financials but may also affect his regular income if he is not in the position to attend his occupational duties regularly.
LIC’s New Critical Illness Benefit Rider helps reduce financial burden if the policyholder is diagnosed with critical illness. This rider is allowed along with the base plan at inception of the policy. The critical illness sum assured shall be payable only once provided the base policy and the rider are in-force for full cover by payment of all due premiums on the date of diagnosis subject to certain conditions and restrictions. 15 critical illness conditions are covered under this rider including Cancer of specified severity, Open Chest CABG (Coronary artery bypass grafting), Myocardial Infarction, Major Organ/Bone Marrow Transplant (as recipient), Benign Brain Tumour, Kidney failure requiring regular dialysis etc.
Critical Illness benefit will be payable subject to production of available medical evidence and satisfactory submission of requirements. However in some illness covered under the rider, a specific deferment period applies to establish permanence of the illness covered.
There is a waiting period of 90 days from the date of commencement of the risk, during which critical illness rider claim will not be payable.
For policies taken on the lives of children, in the event of unfortunate death of the proposer, it is likely that the policy will lapse. LIC’s Premium Waiver Benefit
rider waives all future premiums under the base policy for the remaining duration of the policy on death of the proposer so that the insurance coverage for the child continues.
LIC's New Term Assurance Rider provides for life cover in case of unfortunate death of the insured during the cover period. It can be attached with a basic policy to provide add-on benefit at a nominal cost.
This article gives a broad overview of the riders offered by LIC. You may visit LIC’s website www.licindia.in or contact your nearest Branch Office/Agent/Development Officer for further details.