A term insurance protection is an essential requirement these days. If something happens to you, you would want the best and the highest possible financial protection for your family. This is why many people buy term insurance plans as these plans offer a high sum assured at a very low cost. However, term insurance plans do not have too many other benefits on offer. As a result, people look for other types of life insurance plans such as endowment plans and money back plans. To help people get the multiple benefits of a life insurance plan, along with the benefits of term insurance, many large life insurance companies have now introduced the term insurance rider with life insurance. The Term Assurance Rider from LIC is one such cover. Read on to know more.
Understanding LIC’s Term Assurance Rider
The Term Assurance Rider from the Life Insurance Corporation of India is a straightforward cover to understand. Here are some features associated with it:
- How to Get - It is very easy to get LIC’s Term Assurance Rider. All you have to do is inform your insurance provider about your intent to get the rider. Choose the sum assured and get the rider. The overall premium of the plan will be adjusted accordingly. You will not have to pay a separate premium and that is another benefit you will get when you buy LIC’s Term Assurance Rider.
- Death Benefit - If you die with the policy period, your nominees will receive the death benefit stated under the rider’s clause. You can choose a minimum sum assured of INR 1 lakh and a maximum sum assured of INR 25 lakhs. The higher your sum assured, the higher your premium will also be, so you need to do your calculations and see what the ideal sum assured should be. Also, the maximum sum assured under this rider cannot be more than the sum assured of the base policy. So if your base policy has a coverage amount of INR 20 lakhs, the sum assured of the Term Assurance Rider cannot be INR 25 lakhs.
- Maturity Benefit - Since this is a term life insurance based rider, there is no maturity benefit available. If you outlive the policy period, you will not receive anything in return from the Term Assurance Rider. However, if the base plan has a return component, you will receive that.
- Payout Options - After your death, your family can receive the death benefit in one lump sum or they can have it in instalments over a period of time. You need to inform LIC about how you want the Term Assurance Rider’s payout to be. Check the financial requirements of your family and then take the call carefully to ensure they get the maximum usage out of the death benefit received.
- Features - The minimum entry age for the Term Assurance Rider is 16 years while the maximum entry age is 60 years. You can get LIC’s Term Assurance Rider for periods ranging between five years and 35 years. As stated, you do not need to pay any separate premium as the premium will be adjusted with that of the base policy.
Now that you know more about the Term Assurance Rider from LIC, go ahead and get it to enhance the scope of your existing life insurance plan.
Advantages of Choosing LIC as Your Insurer
When you buy a life insurance cover from LIC, you are assured of having excellent coverage. The company is more than half a century old and is the pioneer of life insurance in India. It has the highest claim settlement ratio in the country, it has a very efficient and helpful customer support cell and you can buy and service the plans online. This apart, with products such as the Term Assurance Rider, you get to make your life insurance plan more flexible and cater it to your exact requirements.
If you have a term insurance cover, it proves to be very beneficial for your family in the unfortunate event of your death. If you are unwilling to buy a standalone term insurance plan but still want the sum assured, just opt for the LIC’s Term Assurance Rider. You will get all the benefits of your base life insurance plan and you will also get the term cover that you need.