LIC New Term Assurance Rider

Complete Guide to LIC New Term Assurance Rider (UIN: 512B210V02)

When building a financial safety net in Bhadra (335501), ensuring your family has adequate life cover is a primary concern. Sometimes, the base life insurance policy you choose might require a boost in its coverage amount to fully meet your family's future financial requirements. Instead of buying a separate policy, the solution is often adding a specialized rider. If you are seeking professional LIC assistance to enhance your life insurance portfolio, understanding the official rules of the LIC New Term Assurance Rider is a critical first step.

What is LIC New Term Assurance Rider?

According to official guidelines, the LIC New Term Assurance Rider is an Individual, Life, Non-linked, Term Assurance Rider. Its precise definition is to provide for life cover in case of the unfortunate death of the insured during the cover period. It is purely designed to offer a protective financial layer and is entirely focused on death benefit coverage.

How This Rider Works

This coverage does not exist on its own. It can be added to a Base Policy to provide an additional benefit. A strict rule governing this rider is that it shall only be attached with Non-Linked plans at the exact inception of the base policy. You cannot add this rider to a policy that is already running midway through its term.

Benefits Under the Rider

Understanding exactly what triggers a payout is essential for proper financial planning. This rider provides a benefit ONLY on death.

(A) Death Benefit

The benefit applies solely on death. If the Life Assured dies before the stipulated date of expiry of the Rider, and provided the Rider along with the Base Policy is in-force, an amount equal to the "Term Rider Sum Assured on Death" shall be payable.

The calculation for the "Term Rider Sum Assured on Death" depends on how you pay your premiums:

For Regular and Limited premium payment policies, it is defined strictly as the highest of:

• The Term Assurance Rider Sum Assured; or
• 7 times the Annualized Rider Premium; or
• 105% of the Total Rider Premiums Paid up to the date of death.

For Single premium payment policies, it is defined as the higher of:

• The Term Assurance Rider Sum Assured; or
• 1.25 times the Single Rider Premium.

Eligibility Conditions

To attach this rider to your base policy, the following criteria must be met:

• Minimum age at entry: 18 years (completed)
• Maximum age at entry: 60 years (nearer birthday)
• Maximum Cover ceasing age: 75 years (nearer birthday)
• Minimum Rider Term: 5 years (for Single and Regular Premium) or 10 years (for Limited Premium).
• Maximum Rider Term: 35 years.

Sum Assured Rules

The coverage amount you can select is bound by strict minimum and maximum limits:

• Minimum Term Assurance Rider Sum Assured: Rs. 100,000.
• Maximum Term Assurance Rider Sum Assured: Rs. 25,00,000.

Additionally, the maximum Term Assurance Rider Sum Assured shall be less than or equal to the Basic Sum Assured under the Base Policy. The overall limit cannot exceed Rs. 25 Lakhs when taking all Term Assurance Riders under all existing LIC policies of the life assured into consideration.

Premium Rules

The mode of premium payment for this rider is exactly the same as the Base Policy to which it is attached. Furthermore, if a mode rebate (discount) is applicable under the Base Plan, the same rebate applies to the Rider's premium. The grace period for missed payments is also the same as the Base Plan. If you need policy help to understand how these premiums are structured within your base plan, reviewing your official documentation is recommended.

Key Conditions (Paid-up and Surrender)

Policyholders must be aware of the exact operational rules:

• No Paid-up Value: The rider shall not acquire any paid-up value. If the Base policy falls into a lapsed or paid-up condition, the Rider benefit ceases to apply immediately.
• No Surrender Value: No surrender value will be available under this rider. However, if the Base Policy is surrendered and all due premiums for the rider are paid, a refund of the "Unexpired Risk Premium Value" may be applicable depending on the premium type (e.g., nothing is refunded for regular premium policies, but partial refunds exist for single or limited premium policies under specific formulas).

Termination of Rider

The coverage officially terminates on the earliest of:

• The date on which the death benefit is admitted under this Rider.
• The date of expiry of the Rider.
• The date on which the Base Policy terminates or is converted into a paid-up policy.

Taxes

Statutory Taxes imposed by the Government of India are applicable. These taxes are payable by the policyholder and collected separately over and above the premium. The amount of tax paid shall not be considered for the calculation of benefits payable under the rider.

Who Should Consider This Rider

Families seeking additional life cover without purchasing a completely new policy should consider this add-on. If you reside in nearby Farlika or Gogameri and are purchasing a new non-linked policy, adding this at the beginning provides an extra layer of financial protection for your dependents.

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Conclusion

Securing your family's future with adequate life cover is an important decision that requires fact-based planning. The LIC New Term Assurance Rider provides a simple, structured method to enhance your base policy's protective benefit, operating strictly on the condition of the insured's death. Whether you live in our primary service area or surrounding villages like Barwali, Badbiran, and Bharwana, understanding official policy rules ensures your coverage meets your expectations without any assumptions. If you require expert LIC guidance or wish to ensure your new policy is structured correctly, consult an authorized professional today.

Frequently Asked Questions (FAQ)