Term Insurance 1085 views April 19, 2021

Life Insurance Corporation (LIC) offers a wide range of rider options under its life insurance plans, and LIC New Term Assurance rider is one of them. Using a rider, you can enhance your policy coverage by paying a little extra to the insurance company. Besides, there are several other benefits that the rider plan comes with. In this post, we will learn about the features and benefits of this rider. So, continue reading this post further.

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LIC New Term Assurance Rider Death Benefit

In case of death of the life assured during the policy, provided the rider and the base policy is in force, an amount highest of the following –

  1. Rider Sum Assured
  2. 10X the annualized premium
  3. 105% of total paid premiums

will be payable to the nominee or beneficiary.

Note – The above-mentioned premium is in respect of LIC New Term Assurance Rider, excluding taxes and extra premium, if any.

LIC New Term Assurance Rider Maturity Benefit

No maturity benefit is payable to the life assured/policyholder under this rider.

LIC New Term Assurance Rider Premium Payment Clause

You need to pay the rider premium inclusive of applicable taxes along with the premium for the base policy. The premiums under this LIC rider plan are payable till the stipulated date or before the death of the life assured. Once the death claim has been made under this rider, no subsequent premium shall be charged.

If the life assured dies, provided the policy is in force wherein all the premiums due till the date of death have been paid and the mode of premium payment frequency is other than yearly, the balance premium shall be deducted from the claim amount.

Note – The rider premium shall not be taken into account to determine the surrender value of the base policy.

Documents Required for Claim Under LIC New Term Assurance Rider

The claimant shall submit the following documents to the insurer in case of death of the life assured –

  1. Original policy document
  2. Proof of death
  3. Medical treatment before the death (if any)
  4. School, college, employer’s certificate, whichever is applicable, to the satisfaction of the insurance company
  5. If the age of the life assured is not mentioned under the rider policy, the proof of age shall also be submitted

The claimant has 90 days from the date of death of the life assured to intimate the insurer about this unfortunate event in writing to the LIC office where the policy is serviced. However, if there is any delay in intimation of the claim by the claimant, it may be condoned by the insurance company, on merit, where the delay is proved to be for reasons beyond his/her control.

Note – Additional documents may be required as per law, and the same should be submitted by the claimant as soon as possible.

Revival of LIC New Term Assurance Rider

LIC New Term Assurance Rider will lapse on non-payment of due premium. And the rider policy can’t be revived solely. The rider policy revival should be considered only along with the base policy.

LIC New Term Assurance Rider Grace Period

The grace period provided to you by the insurance company for due premium payment will be the same for LIC New Term Assurance Rider as mentioned under the base policy.

LIC New Term Assurance Rider Free Look Period

If you are not satisfied with the terms and conditions of the LIC New Term Assurance Rider, the rider can be returned to the insurance company within 15 days from the date of receipt of the policy. For such cancellation, you need to submit an application form stating the reason for objections along with the policy document. On receipt of the same, the insurance company shall cancel the rider and return the paid premium to you after deducting the proportionate risk premium, charges for medical examination, special reports, if any, on account of rider inclusion, and stamp duty charges.

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