Complete Guide to LIC Critical Illness Health Rider (UIN: 512B227V01)
Featured Snippet
The LIC Critical Illness Health Rider (UIN: 512B227V01) is a non-linked health add-on providing fixed financial benefits upon diagnosis of covered critical illnesses. It must be attached at policy inception. It offers pure risk coverage with no maturity or death benefit.
Medical emergencies can cause severe financial strain on families. Treating a major disease often requires significant funds that standard health insurance may not fully cover. If you live in Bhadra (335501), securing an extra layer of fixed benefit support against severe medical conditions is a wise step. The solution is the LIC Critical Illness Health Rider (UIN: 512B227V01). For professional LIC assistance in structuring your life insurance, understanding how this specific rider works is essential.
What is the LIC Critical Illness Health Rider?
LIC's Critical Illness Health Rider is an Individual, Non-Linked, Health rider. It offers fixed benefits if the Life Assured is diagnosed as suffering from any of the covered critical illnesses, depending on the chosen option. This is a diagnosis-based benefit, meaning the payout is triggered directly by the medical diagnosis of a specified condition. Importantly, this rider shall only be attached at the inception with non-linked life insurance plans and provides an add-on benefit to the base plan.
Options Under the Rider
The rider provides flexibility to choose one of two available options:
(A) Option 1
This option covers 15 Major Critical Illnesses. Upon diagnosis, it provides a lump sum payout.
(B) Option 2
This option covers 40 Major Critical Illnesses. It includes a lump sum payout and an additional Assisted Living Benefit (ALB) for specific severe conditions.
Benefits of the Rider
(A) Lump Sum Benefit
Under both Option 1 and Option 2, an amount equal to the Critical Illness Sum Assured shall be payable as a lump sum upon the diagnosis of any of the covered critical illnesses. Once this lump sum is paid, the rider shall terminate.
(B) Assisted Living Benefit (ALB)
Available only under Option 2, if the diagnosed critical illness is one of 7 specified conditions (such as Alzheimer's Disease, Blindness, or Permanent Paralysis of Limbs), an additional benefit applies. The Corporation will pay monthly payouts of 1% of the Critical Illness Sum Assured for a fixed period of the next 36 months following the lump sum payment. This continues irrespective of the survival of the Life Assured. In the event of the death of the Life Assured while receiving ALB, the remaining instalments will be paid to the nominee or beneficiary as a lump sum.
Minimum Benefit Condition
The minimum Critical Illness Benefit under the rider shall not be less than 105% of the Total Rider Premiums Paid up to the date of diagnosis of the specified Critical Illness.
Important Conditions (Waiting & Survival Period)
- Waiting Period: A waiting period of 90 days applies from the date of commencement of risk or revival of risk cover to the diagnosis of the covered illness. The waiting period will not apply to conditions arising directly out of an accident.
- Survival Period: A survival period of 30 days is applicable from the date of diagnosis of the covered Critical Illness. If death occurs within this survival period, no benefit shall be payable.
Maturity Benefit
There is no maturity benefit payable under this rider.
Death Benefit
There is no death benefit payable under this rider.
Eligibility and Sum Assured Rules
- Minimum age at entry is 18 years (completed), and the maximum age at entry is 65 years (nearer birthday).
- The Minimum Critical Illness Sum Assured is Rs. 1,00,000.
- The Maximum Critical Illness Sum Assured is an amount equal to the Sum Assured under the Base Plan, not exceeding an overall limit of Rs. 1,00,00,000 (One Crore) across all existing policies.
Premium Payment Rules
The premium for the rider, including applicable taxes, is payable only along with the premium for the base policy and cannot be paid separately. If you reside in neighboring Ajitpura or Bhojasar, seeking local policy help can assist you in understanding how these combined premiums are structured within your base plan.
Paid-up Value, Surrender, and Loans
- Paid-up Value: This rider shall not acquire any paid-up value. The benefit ceases if the base policy is in a lapsed or paid-up condition.
- Surrender Value: No surrender value shall be available under this rider. However, if an in-force base policy is surrendered, a refund of the Unexpired Risk Premium Value may apply for limited premium paying policies under specific conditions. Regular premium policies offer no refund.
- Loan Availability: No loan is available under this rider.
Termination Conditions
The rider will terminate on the earliest of several events, including: the date the claim is paid, the expiry of the rider, the base policy terminating or becoming paid-up, diagnosis of a critical illness within the waiting period, or the death of the Life Assured.
Exclusions (Important)
The Corporation shall not be liable to pay any benefit if the critical illness occurs directly or indirectly due to certain exclusions. These include illnesses manifesting within the 90-day waiting period, pre-existing diseases, intentional self-injury, participation in hazardous sports, unproven or experimental treatments, and conditions caused by drug or alcohol abuse.
Taxes
Statutory Taxes imposed by the Government are payable by the policyholder on premiums and are collected separately. Tax amounts are not considered when calculating benefits.
Who Should Consider This Rider
People concerned about major medical expenses should consider adding this rider at the start of their base plan. It is specifically designed for those wanting lump sum support on diagnosis of major diseases. It provides a fixed payout to handle medical costs without draining your family's savings.
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Conclusion
The LIC Critical Illness Health Rider offers specialized fixed benefit support when major medical diagnoses occur. Understanding the 30-day survival period, the 90-day waiting period, and the strict lack of maturity or death benefits ensures you know exactly how this coverage functions. For families in Bhadi, Anupshahar, and other surrounding areas, securing accurate information is crucial. This rider provides benefit only when a covered critical illness is diagnosed. No benefit is payable otherwise. For detailed LIC guidance, contact your authorized advisor today.
This rider does not cover all medical conditions, only specified illnesses.
Frequently Asked Questions (FAQ)
1. Is there a maturity benefit if I never claim the critical illness rider?
No, there is no maturity benefit payable under this rider.
2. What happens if the insured dies immediately after the diagnosis?
A survival period of 30 days is applicable from the diagnosis. If death occurs within this survival period, no benefit shall be payable.
3. Can I attach this rider to my policy after a few years?
No, this rider shall only be attached at inception with non-linked life insurance plans.
4. Does the Assisted Living Benefit stop if the policyholder passes away?
No, in case of the death of the Life Assured while receiving ALB, the remaining instalments will be paid to the nominee or beneficiary as a lump sum.
5. Is there a waiting period before the coverage begins?
Yes, a waiting period of 90 days applies from the date of commencement of risk or revival, except for conditions arising directly from an accident.