LIC New Term Assurance Rider Policy Benefits

techmanga June 27, 2021 0 Comments



LIC New Term Assurance Rider Plan Review


Life Insurance Corporation of India (LIC) offers Term Assurance Riders forlife cover in case of inappropriate demise of the policyholder during thecover period. LIC New Term Assurance Rider plan can be attached to a basicpolicy to provide add-on benefit at a nominal cost. It should be attached onlyto the Non-Linked plans at the inception of the base policy. These TermAssurance Riders can be added to savings plans, and the insured can enjoy thebenefits of both protection and savings. The unique identification number(UIN) for this scheme is 512B210V01. This UIN should be used in all relevantdocuments provided to the policyholders.Life Assurance is a form of insurance providing for the payment of a specifiedsum to a named beneficiary on the death of the life assured. If thepolicyholder dies during the policy term, then the Term Assurance Rider Sum ispaid. In case the insured survives till the end of the term, then no amountwill be given to their nominees or assignees.

What are the Features of Term Assurance Rider Plan?


The main features of the LIC New Term Assurance Rider Plan are mentionedbelow. * A pure term rider with only Death benefits, i.e., it offers financial protection against death throughout the term. * Assurance Rider Plans can also be chosen along with a plan and cannot be taken standalone.

Eligibility Conditions of LIC’s New Term Assurance Rider


S.No |Eligibility Conditions & Restrictions| Details —|—|— 1. | Minimum Age of Entry for Life Assured| 18 years (Completed) 2. | Maximum Age of Entry for Life Assured| 55 years (Nearest Birthday) 3. | Minimum Policy Term| 5 years 4. | Maximum Policy Term| 35 years 5. | Minimum value of Sum Assured | Rs. 1,00,000 6. | Maximum value of Sum Assured | Rs. 25,00,000 7. | Maximum Cover Ceasing age | 75 years (Nearest Birthday) 8. | Mode of Premium Payment | Same as that of Base policy 9. | Yearly Premium | Depends on the Age, Term, Sum Assured, and Premium Paying Term 10. | Revival | Within two years 11. | Grace Period | * Monthly mode – 15 days * Other modes – 30 days

LIC New Term Assurance Rider Policy Benefits


The Benefits of LIC term assurance rider plan are as follows * Death Benefit: In the case of unfortunate death of the insured during the term of the Rider, an amount equal to the Term Assurance Rider Sum Assured shall be payable to the family members. * Maturity Benefit: Nothing is payable if the policyholder survives till the end of the term of the rider. * Tax Benefit: The amount of Tax paid shall not be considered for the calculation of benefits payable under the LIC New Term Assurance Rider. * Grace Period: A Grace Period of not less than 30 days will be allowed for the payment of rider premium in yearly, half-yearly or quarterly modes. For monthly rider premiums, the grace period is within 15 days. * Cooling-off period: If the Policyholder was not satisfied with the Terms and Conditions he/she might return the policy to the corporation within 15 days. The count should be from the date of receipt of the plan. * Term Rider Benefit is available only under the policies where the term rider option has been implemented by the insured and accepted by LIC. * The extra premium meant for term assurance rider must have been received by the LIC, and the benefits may vary with the type of plan.

Rebates/ Additional Premium of Term Assurance Riders


The Rebates or Additional Premium of LIC New Term Assurance Rider Plan forMode of premium payment and High Sum Assured are * Mode rebates will be same as that of the basic plan. * High Sum Assured Rebate will be Nil.

LIC New Rider Plan Premium Calculator


LIC New Rider Plan Premium Calculator is used to calculate the premium amountin monthly, quarterly, half-yearly and yearly modes. Through LIC’s New TermAssurance Rider Plan Calculator, you can calculate the Raider Premium amountthat has to be paid to get all the benefits available under this policy. Thedata required for calculating premium rates using LIC New Term Rider PremiumCalculator are Name, Email-Id, Age, Term, Sum Assured, etc.

LIC New Term Assurance Rider Policy Claim Procedure


The Claimant should submit the following general documents while lodging theclaim in case of death of the Life Assured. The required documents will besame as that of the base plan chosen by the insured. 1. Duly filled claim form. 2. Original Policy Document. 3. Identification Proof. 4. Death Proof. 5. Medical treatment documents before death. 6. Age proof. 7. Employer’s Certificate.

Additional Information regarding LIC’s Term Assurance Rider Policy


Paid-up Value: No paid-up values are available under this LIC New TermAssurance Rider plan.Surrender Value: No Surrender value was acquired for this rider. However onsurrender of the underlying policy to which this rider is attached, additionalrider premium shall be refunded which was charged in respect of cover afterPPT. * Single Premium policies: The refundable amount shall be 90% of the single premium for the Rider multiplied by the ratio of an outstanding term to original term of the rider. * Limited Premium policies: The refundable amount shall be 75% of a value calculated based on duration elapsed in completed years as on date of surrender as well as on the Sum Assured, Premium Paying Term, and Term of the Rider. * Regular premium policies: Nothing will be refundable.Policy Revival: The Policy will lapse if the premium was not paid within thegrace period. The Lapsed policy along with the basic policy may be revivedwithin a period of two years. The rider can only be renewed along with thebasic policy and not in isolation but before the cover ceasing age. The rateof interest will be as fixed by the Corporation and may vary from time totime.

Sample Premium Rates of LIC New Term Rider Plan


Annualized Regular Premium (in Rs.):Age (yrs.) |Policy Term (years) —|— 10|20|30 20|1.61|1.61|1.89 30|1.88|2.44|3.51 40|3.67|5.52|7.63 50|9.18|12.61|— Annualized limited Premium (in Rs.):Age (yrs.) |Term of the Policy= 10years|Term of the Policy= 20years|Term of the Policy= 30years —|—|—|— PPT=5|PPT=9|PPT=10|PPT=15|PPT=10|PPT=20 20|2.62|1.61|2.49|1.88|3.67|2.30 30|3.23|1.96|3.87|2.92|6.76|4.26 40|6.30|3.83|8.67|6.56|14.31|9.12 50|15.58|9.56|19.30|14.80|—|— Single Premium (in Rs.):Age (yrs.) |Term of the Policy (years) —|— 10|20|30 20 |10.81|17.77|26.15 30 |13.36|27.57|48.14 40 |25.96|61.36|101.34 50 |63.76|134.05|—

FAQ’s of LIC New Term Assurance Rider Policy


1. What is Life Assurance?A. Life Assurance is a form of insurance providing for the payment of aspecified sum to the nominee/ assignee on the death of the life assured.2. Can I get any Maturity Benefits in the LIC New Term Assurance Rider Plan?A. No there are no maturity benefits available in this New Term AssuranceRider.3. Who will get the benefits of Term Rider?A. Term Rider Benefit is available only under the policies where the termrider option has been exercised by the policyholder and accepted by LIC.LIC New Term Assurance Rider Plan

LIC New Term Assurance Rider Plan


LIC’s New Term Assurance Rider is an add on benefit. It is a type of planwhich can be attached with a basic policy to provide add on benefit at anominal cost. LIC’s New Term Assurance Rider works as a protection plan whichprovides cover in case of the unfortunate death of the assured during thecover period. This rider can only be attached to non- linked plans at the timeof commencement of the base policy. This term assurance rider not only worksas a protection plan but also provides the benefit of savings as it can beadded to savings plans. If the policyholder dies during the term of thepolicy, then the term assurance rider is paid. If the assured survives tillthe end of the term, then no amount will be given to the nominees orassignees. Life Assurance is a form of insurance providing for the payment ofa specified sum to a named beneficiary on the death of the life assured.

Benefits of New Term Assurance Rider


Maturity benefitOn the survival of insured, till the end of the term of the rider, nothingpaid.Death benefitIn case of unfortunate death of the life assured during the term of the Rider,an amount equal to the Term Assurance Rider Sum Assured is paid to family ofthe assured.

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