Linked Accidental Death Benefit Rider
LIC's Linked Accidental Death Benefit Rider is a unit-linked rider that provides financial compensation in the event of Death of the Policy Holder in case of an unfortunate event of Accident.
This rider is offered as an add-on benefit to the basic linked plan.
Benefits of Linked Accidental Death Benefit Rider:
If the accident of the Life Assured is a "sudden, unexpected and involuntary event caused by external, visible and violent means" which results in his death on the spot or within 180 days from the date of the accident. Then the insurance amount purchased under Linked Accidental Death Benefit Rider is paid by the corporation.
However, no maturity amount is payable under this rider on maturity of the policy. It is also important to note here that the Accidental Death claim under this rider will be admissible only if the policy is in-force at the time of the accident, even if the policy is not in-force at the time of death, the death claim under this rider will be admissible.
Eligibility Conditions and Other Restrictions:
(i) Minimum Sum Assured : ₹ 10000/-
(ii) Maximum Sum Assured : The maximum aggregate limit of Accident Benefit Cover shall be as under:
(A) For LIC’s Jeevan Shiromani with minimum Basic Sum Assured of ₹ 100 lakhs:
If LIC's Jeevan Shiromani plan is taken on an individual life, then in no case the amount of Accidental Cover for that life shall exceed ₹ 200 lakhs.
(B) For all other plans (excluding LIC’s Jeevan Shiromani):
If LIC's Jeevan Shiromani plan is not taken on an individual life, then in no case the amount of Accidental Cover for that life shall exceed ₹ 100 Lakhs.
Note: The Sum Assured for LIC's Linked Accidental Death Benefit Rider will be available in multiples of ₹5000.
(iii) Minimum Age at Entry : 18 years (completed)
(iv) Maximum Age at Entry: The Linked Accidental Death Benefit Rider can be availed on any policy anniversary during the policy term. But any policyholder can get this benefit only till the maximum age of 65 years of his nearest date of birth.
(v) Maximum Maturity Age :70 Years (Nearest Birthday)
(vi) Term of Linked Accidental Death Benefit Rider : The term of LIC's Linked Accidental Death Benefit Rider will depend on the term of the basic insurance policy. However, in no case this rider shall be given for a period less than 5 years and shall cease to be effective after the policyholder attains the age of 70 years to the nearest maximum.
Note : This rider of LIC can be chosen at any time during the term of the policy or at the time of inception of the policy.
Accident Benefit Charges:
It is the cost of Linked Accidental Death Benefit Rider (if opted for) and will be levied every month at the rate of ₹ 0.40 per thousand Accident Benefit Sum Assured per policy year by cancelling proportionate number of units out of policyholders fund value.
However, if the Life Assured is engaged in police duty in any police organization other than paramilitary forces and opts for this cover while engaged in police duty, then the level Accident Benefit Charge at the rate of ₹ 0.80 per thousand Accident Benefit Sum Assured per policy year shall be levied. If the Life Assured does not choose the option for this cover while engaging in police duty, then the rate of Rs.0.40 per thousand Accident Benefit Sum Assured shall remain.
Paid-up Value:
The rider shall not acquire any paid-up value.
Surrender Value:
No Surrender Value will be available under this Rider.
Revival of Rider:
LIC's Linked Accidental Death Benefit Rider can be purchased along with any LIC's basic policy, hence the premium for this rider is credited with the LIC's basic policy. If the base policy of LIC lapses for any reason, then this rider also lapses.
This rider can be revived along with the revival of the basic policy and not separately.
Taxes Rules:
Taxes, including service tax, if any, shall be as per Indian tax laws and at the rates in force from time to time.
The amount of tax as per the prevailing rates will be levied on the Accident Benefit Charges and will be deducted every month by canceling a proportionate number of units from the Policyholder's Fund Value.
Cooling-off Period:
The cooling off period for LIC's Linked Accidental Death Benefit Rider will be the same as in the base policy.
Exclusion of Rider:
Death claim is not admissible in certain circumstances under the Linked Accidental Death Benefit rider. Let us understand it in detail-
(i) If the death of the Life Assured is caused by willful injury, attempt to suicide, insanity or any immoral act. If the death of the life assured is caused by the use or influence of intoxicating liquor, narcotic drugs or psychotropic substances.
Note: If the drugs are taken for treatment as per the advice of the doctors and during the course of treatment, the life assured dies due to the drug. Then such death claim would be admissible.
(ii) If the death of the Life Assured is caused by a riot, civil commotion, insurrection, war, invasion or if he takes part in any adventure sports such as hunting, mountaineering, steeple chasing, racing, paragliding or parachuting and is involved in such sports He dies because of the injuries he sustained. Even then no claim is admissible under this rider.
(iii) result from the Life Assured committing any breach of law with criminal intent
(iv) (a) Death claim arising under this rider shall also not be admissible if the Life Assured is employed in the Armed Forces or Military Services and his death occurs as a result of such employment.
Note: Death of the Life Assured mentioned at (iv) (a) above occurs when he is not on duty, or is involved in any rescue operation while dealing with natural calamities in our country. Then the claims arising under this rider are admissible.
(b) Death claim arising under this rider shall also not be admissible if the Life Assured is employed on police duty in any police organization other than paramilitary forces and the death occurs as a result of his employment.
Note: If the Life Assured mentioned at (iv) (b) above has opted to cover accidental death benefit arising out of an accident while engaged in police duty, then the claim arising under this rider shall be admissible.
(v) If the death of the life assured occurs after 180 days from the date of accident.
Disclaimer:
All the information mentioned above has been given on the basis of the information received from the official website of LIC. We have tried to present the details of this rider in a simplified manner, so that policyholders and new customers can get complete information about this rider.
We would like to inform our website visitors that all the information given here has been given with utmost care, but there is always a possibility of human error. Therefore, we request you to check the original LIC documents or contact us before taking any decision regarding this rider.
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