Premium Calculation Result
Life Insurance Corporation of India (LIC) has introduced various insurance products and riders to help policyholders strengthen their financial protection. The LIC New Term Assurance Rider is designed to provide additional life cover that can be attached to an eligible base LIC life insurance policy.
By paying an additional premium, policyholders can increase the financial protection available to their families without having to purchase a completely separate life insurance policy.
When Was LIC New Term Assurance Rider Launched?
The LIC New Term Assurance Rider was introduced in early 2025. Its policy document and sales brochure were made available from January 28, 2025.
The rider was introduced as an additional protection option that can be combined with eligible LIC life insurance products.
What is LIC New Term Assurance Rider?
LIC New Term Assurance Rider is a term insurance rider that provides additional death cover for a specified period. It is not an independent insurance policy and cannot be purchased separately.
To obtain this rider, the policyholder must attach it to an eligible LIC base policy at the time of its inception. If the insured dies during the rider’s coverage period, the rider’s applicable sum assured is paid to the nominee in addition to the benefits payable under the base policy.
Since this is a term rider, it does not provide any maturity payout if the insured survives the rider term.
Eligibility and Policy Conditions
| Criteria | Minimum | Maximum |
|---|---|---|
| Age at Entry | 18 years completed | 60 years nearest birthday |
| Cover Ceasing Age | — | 75 years nearest birthday |
| Rider Term | 5 years | 35 years |
| Rider Sum Assured | ₹1,00,000 | ₹25,00,000 |
| Premium Payment | Single, Regular, Limited | As permitted with the base policy |
The rider must be selected when the base policy is started and cannot be added to an existing policy at a later stage. The rider premium is payable along with the premium of the base policy or until the rider’s applicable expiry age, whichever occurs earlier.
Main Features of LIC New Term Assurance Rider
Additional Life Protection
The rider allows policyholders to increase their life cover by paying an additional premium. This can provide extra financial support to the nominee in case of the insured’s death.
Rider Sum Assured
The rider offers a sum assured starting from ₹1 lakh and going up to ₹25 lakh. The rider’s sum assured cannot be higher than the sum assured under the base policy.
Flexible Rider Term
The available rider term can range from 5 to 35 years, subject to the conditions and term of the underlying base policy.
Age Eligibility
The entry age is from 18 years to 60 years, while the rider cover can continue up to the specified maximum age of 75 years.
Premium Payment
The rider premium is paid along with the base policy premium and follows the applicable premium payment frequency of the main policy.
Applicable to Non-Linked Policies
The rider can be attached to eligible non-linked traditional life insurance plans and is not intended for ULIP or other linked insurance plans.
Relatively Affordable Additional Cover
Because it works as an add-on to an existing LIC policy, the rider provides an additional layer of life protection without requiring the purchase of another complete insurance plan.
Overall Rider Limit
The aggregate term assurance rider cover across eligible LIC policies held by the insured is subject to a maximum limit of ₹25 lakh.
Benefits of LIC New Term Assurance Rider
Death Benefit
The primary benefit of the rider is the additional death benefit.
If the insured dies during the rider term while the base policy remains in force, the applicable rider death benefit is payable to the nominee.
For regular and limited premium policies, the death benefit is the highest of:
- Rider Sum Assured
- 7 times the annualized rider premium
- 105% of the total rider premiums paid up to the date of death
For a single premium policy, the death benefit is the higher of:
- Rider Sum Assured
- 1.25 times the single rider premium paid
This structure is designed to ensure that the rider provides meaningful additional financial protection to the nominee.
Is There a Maturity Benefit?
No. The LIC New Term Assurance Rider does not offer a maturity benefit.
If the insured survives until the end of the rider term, no amount is payable under the rider. This is consistent with the basic structure of term insurance, which primarily provides protection against the risk of death during the coverage period.
LIC New Term Assurance Rider Calculator
The LIC New Term Assurance Rider Calculator can help policyholders estimate the additional premium required for adding this rider to an eligible LIC policy.
Instead of manually working through premium rates and policy conditions, a calculator can provide an easier way to estimate the additional cost based on the selected coverage and other relevant details.
Information Required for the Calculator
Depending on the calculator, you may need to provide:
- Age at entry
- Desired rider sum assured
- Rider policy term
- Premium payment mode
- Type of premium payment
- Relevant details of the base LIC policy
How Does the Calculator Work?
The calculator applies the applicable LIC premium rates based on the information entered by the user.
For example, if you select a rider cover of ₹10 lakh, the premium can vary depending on your age, selected rider term and premium payment structure.
The calculator then provides an estimated rider premium, allowing you to understand how much additional cost will be added to your main policy.
Indicative Premium Example
The following figures are provided as an illustration of how premium rates may differ according to age and payment type:
| Age | Rider Term | Regular Premium (₹) | Single Premium (₹) |
|---|---|---|---|
| 20 years | 10 years | 1,610 | 10,810 |
| 30 years | 10 years | 1,880 | 13,360 |
| 40 years | 10 years | 3,670 | 25,960 |
Note: These figures are indicative and should not be treated as final premium quotations. Actual premiums may vary depending on the applicable LIC rates, policy conditions, age, rider term and premium payment option.
Limited premium options may have different rates and conditions. Using a dedicated calculator can simplify these calculations and provide a quick estimate of the additional premium.
Advantages of LIC New Term Assurance Rider
Affordable Additional Protection
The rider provides extra life cover without requiring the policyholder to purchase another complete term insurance policy.
Convenient Premium Payment
The rider premium is generally paid along with the base policy premium, making premium management easier.
Choice of Coverage
Policyholders can select an appropriate rider sum assured and term within the limits permitted under the plan.
Additional Financial Security
The rider can increase the amount available to the nominee if the insured dies during the rider coverage period.
Simple Structure
As a term assurance rider, its primary purpose is straightforward—providing additional life protection for a specified period.
Limitations and Important Points
Before choosing the rider, policyholders should understand its major conditions:
- It must be selected when the base policy is purchased and cannot generally be added later.
- The rider sum assured cannot be greater than the sum assured of the base policy.
- The combined term assurance rider cover across eligible LIC policies is subject to a ₹25 lakh maximum limit.
- There is no maturity benefit under the rider.
- The rider is available with eligible non-linked traditional policies and not with ULIP or linked plans.
- The rider remains subject to the terms, conditions and eligibility requirements of the base policy and rider.
Frequently Asked Questions
What is LIC New Term Assurance Rider?
LIC New Term Assurance Rider is an additional term insurance cover that can be attached to an eligible LIC non-linked life insurance policy. It provides an additional death benefit to the nominee if the insured dies during the rider term.
When was LIC New Term Assurance Rider launched?
The rider was introduced in early 2025, with its policy documents and sales brochure available from January 28, 2025.
Can this rider be purchased separately?
No. The LIC New Term Assurance Rider is not a standalone insurance policy. It must be attached to an eligible base LIC policy at the time of policy inception.
What is the minimum rider sum assured?
The minimum rider sum assured is ₹1,00,000.
What is the maximum rider sum assured?
The maximum rider sum assured is ₹25,00,000, subject to the applicable conditions. It also cannot exceed the sum assured of the base policy.
What is the eligible age for this rider?
The entry age ranges from 18 years to 60 years, while the rider cover can continue up to the specified maximum age of 75 years.
What is the available rider term?
The rider term can range from 5 years to 35 years, subject to the conditions of the base policy.
Does LIC New Term Assurance Rider provide a maturity benefit?
No. If the insured survives the entire rider term, there is no maturity payout.
Can the rider be added to a ULIP?
No. The rider is intended for eligible non-linked traditional LIC insurance policies, rather than linked or ULIP plans.
Conclusion
The LIC New Term Assurance Rider provides an additional layer of life insurance protection that can be combined with an eligible LIC base policy. With rider coverage ranging from ₹1 lakh to ₹25 lakh, flexible terms and multiple premium payment structures, it can help policyholders increase the financial support available to their families.
The rider was introduced in 2025 and is intended to complement rather than replace the life cover provided by the main insurance policy.
Using the LIC New Term Assurance Rider Calculator can make it easier to estimate the additional premium required for the selected rider cover. By entering details such as age, rider sum assured, term and premium payment option, policyholders can get a better understanding of the potential cost and plan their insurance budget accordingly.
Note: All images and videos used on this website are sourced from Google or YouTube. If you have any issues regarding any image or video, please contact us via email through our official website.
If you find any problem with this post or wish to request its removal, please contact us through:
https://licpolicycalculator.in/contact-us
Comments 0