The Life Insurance Corporation of India has established itself as one of the leading insurance providers over the years. The biggest mystery of life is its uncertainty, and it pays to be prepared for any unforeseen unfortunate event that may occur. Life insurance plans are a way of creating a financially protected future for oneself and their loved ones.
Simple term plans only provide protection for the policy tenure and does not offer any maturity benefits or bonuses. Generally, basic term plans are simple, have a lower premium compared to other plans, do not offer investment or a savings option, and also have far fewer intrinsic benefits compared to other plans. However, the LIC of India offers a lot of add on benefits or riders that can be bought along with a basic term plan, to obtain additional benefits or coverage.
The LIC New Term Assurance Rider Plan is an add-on benefit that can be bought along with a basic plan. This term assurance rider provides protection or cover to the policyholder, for the entirety of the policy tenure and offers a death benefit to the nominees in case of the unfortunate demise of the policyholder before the end of the policy tenure.
This is a new add-on benefit offered by the LIC that has to be bought along with a basic plan. It only provides a death benefit that will be equal to or less than the maximum sum assured that is offered for the base policy.
This option is only a rider and has to be bought as an add on, along with another plan, and cannot be bought as a standalone. The main advantage of this term assurance rider is that it offers an added death benefit to the base plan, at a very nominal cost.
It is essential to know that the LIC of India offers a "free look period" of 15 days, which means the policyholder can cancel the plan within 2 weeks of buying the policy and upon receipt of documents, provided no claims have been made within then. This provides the policyholder enough time to assess the usefulness of the chosen plan and rider with regards to their needs.
LIC New Term Assurance Rider plan comes packed with a set of key features and core benefits. These are described below:
Here is a rundown to the salient features of the New Term Assurance Rider by Life Insurance Corporation of India (LIC of India):
Benefits offered by the new term assurance rider by Life Insurance Corporation (LIC) of India are as follows:
Upon the death of the policyholder, before policy tenure ends, the nominee will get a rider sum assured, which is the death benefit. The death benefit will be 105% of the total premiums paid up to the date of death of the policyholder.
The LIC New Term Assurance Rider Plan does not offer any maturity benefits if the life assured outlives the policy term.
The premiums paid are subject to tax exemption as per Section 80C, and the claims received are exempt from taxation according to Section 10(D) of The Income Tax Act, 1961. The tax benefit is, however, subject to changes in the tax laws of the country.
The base plan is applicable for a surrender benefit, and a surrender value will be paid to the policyholder upon surrendering the plan, subject to certain terms and conditions. The LIC New Term Assurance Rider alone has no surrender value as such but the premium paid for the rider will be refunded to a certain extent, depending upon the plan type and the premium payment mode. Any plan is eligible for a surrender value only if surrendered after 2 completed years of policy term with all the premiums paid up until that point.
Surrender value for the various types of plans:
The following are the inclusions of the LIC New Term Assurance Rider Plan:
Here is a rundown to the key exclusions of the New Term Assurance Rider Plan by LIC of India:
The following table shows the eligibility criteria for applying for the LIC New Term Assurance Rider Plan. Only those fulfilling these criteria will be eligible to apply for the new term assurance rider plan of LIC.
Age at Entry
Minimum: 18 years
Maximum: 60 years
Maximum Maturity Age
Policy Term (PT)
5 years – 35 years
Premium Paying Term (PPT)
As long as the base policy term
Premium Payment Frequency
Monthly/ Quarterly/ Half-yearly/ Annually
Depends on the policyholder's age, the sum assured the policy term and the PPT.
Minimum: 1 Lakh
Maximum: 25 Lakh
The claim process for the death benefit should be started within 90 days from the date of death of the policyholder.
An intimation of death, along with the death certificate, must be sent in writing to the LIC office where the policy was bought. In case of any delay in intimation of the death of the policyholder by the claimant, the corporate office may condone the delay provided the reason for delay proved to be beyond his/ her control.
The necessary documents must also be submitted to the office of the corporation where the policy is serviced for processing the death claim.
The below-mentioned documents are necessary for submitting a claim under the LIC New Term Assurance Rider Plan:
Any LIC insurance plan can be bought either online or offline.
Online purchase of a LIC plan and the LIC New Term Assurance Rider:
Step 1: Visit the official website of the LIC of India.
Step 2: Browse through the various life insurance policies listed and choose a base plan that fits the policyholder's needs.
Step 3: Enter the required personal information when prompted by the website.
Step 4: Click on the "I agree" box provided at the end of the page.
Step 5: Enter the required policy details such as policyholder's name, age, the sum assured, policy term, etc. Upon clicking on the "calculate premium" button, the website will calculate the premium that needs to be paid and generate the result.
Step 6: Click on "proceed." On the next page, a list of the riders or add-ons offered by the LIC of India for the chosen plan will be generated. Choose the LIC New Term Assurance Rider and any other add-ons that may be required.
Step 7: Upload the necessary documents.
Step 8: Read the terms and conditions of the policy and agree to them
Step 9: Make sure that the information provided is true and correct
Step 10: Enter the bank details
Step 11: Proceed to the online payment process. Payment can be made through NEFT or credit/ debit cards or internet banking, e-wallets, etc.
Once the payment has been successfully made, the policyholder will be sent the policy documents.
Offline purchase of a LIC plan along with the LIC New Term Assurance Rider can be further done in the following two ways:
Note: Online policies come at a lower price compared to offline plans. Furthermore, most insurance providers offer additional discounts or benefits on online purchase of a plan.
*Terms and conditions are applicable for such offers.
The LIC will request a set of documents from the policyholder while purchasing an insurance policy. Depending upon the method in which the policy is being bought, these documents can either be uploaded online (for purchasing the policy online, from their official website) or couriered to the nearest corporation branch, submitted to the office in person, submitted via a LIC agent (in case of offline purchase of a plan).
These are the documents that are necessary to apply for an insurance policy:
A duly filled and signed policy form
All of these documents are accepted as address proof by the LIC of India.
These documents are essential to calculate the life cover that the insurer needs to provide the policyholder.
Renewal of a policy and revival of a policy are two slightly different things:
Renewal means, paying a premium to keep the plan and the add-on benefit in force. For example, if a policy's expiry date is July 11th, the renewal premium needs to be paid before July 11th to retain the insurance cover and benefits offered by the policy. If renewal premiums fail to get paid over a continuous period, the policy may need to be revived or may even lapse.
The revival of a plan will need to be done if the policy premiums fail to get paid and the policy lapses. Any insurance policy should be revived within 2 years of non-payment of premiums from the last due date of the premium payment. Beyond this revival period, the policy will lapse.
These can be done either online or paid directly at the LIC office.
Steps to pay renewal premiums online:
Step 1: Go to the official website of the LIC of India.
Step 2: From the drop-down menu, choose premium payment.
Step 3: Two options will be displayed: 1) Pay direct (without login)
2) Through the customer portal
Payment through the customer portal requires the policyholder to create an online account and provide login credentials.
The direct pay option does not require such login information and allows for direct payment of premiums.
Choose the more convenient option from the two.
Step 1: Under the "Pay direct" option, the policyholder will be prompted to enter the customer details and choose the policy and enter the premium details before payment can be made.
Step 2: The details need to be entered correctly and promptly, or else the page will time out, and the entire process needs to be started from the beginning again.
Step 3: Enter the ‘Captcha’ code displayed and select the "I agree" option and then click submit.
Step 4: The next page will prompt the customer to validate the details entered in the previous step. Click on "Submit".
In case premium payment needs to be done for more than one policy, the details of the other policies can be entered by scrolling down the page.
Step 5: The next page will show the total number of policies that the customer is paying premiums for and the total amount to be paid. The "Check & pay" option has to be chosen to proceed to the payment page.
Step 6: The payment page will provide 3 payment options-
Choose the payment mode and proceed to pay.
Under the "Through customer portal" option, the policyholder can register themselves as a new user if they do not already have an online LIC customer account or they can directly log in as a registered portal user by clicking on the "registered portal users" option
Step 1: Upon selecting this option, the page will prompt the policyholder to log in using their user ID and password to proceed to premium payment or to sign up or register as a new user.
To register one, certain mandatory personal details need to be entered, such as date of birth, mobile number, email ID, policy number and premium amount excluding taxes. After registering/ creating a user account, the policyholder must log in using the registered ID and password.
Step 2: Click on the "online payments" option, the page will direct the customer to the premium payment portal.
Step 3: Choose all the policies for which the premiums need to be paid and click on the "check & pay" button.
Step 4: The portal will re-confirm certain details like policy number, premium amount, mobile number, and mail ID
Step 5: Choose the preferred payment mode from the given choices and proceed to pay
The revival of the new term assurance rider involves:
Ans. No, there is no paid-up value for the LIC New Term Assurance Rider.
Ans. As this term assurance rider does not come with a maturity benefit, no amount will be payable to the policyholder if he/ she outlives the policy term.
Ans. No, there is no such provision to take out a loan under the LIC new term assurance rider.
Ans. The advantages of paying LIC premiums through net banking or phone banking are:
Ans. The LIC policyholders can avail of this facility, absolutely free of cost. The LIC of India has agreements with the banks and service providers that have been authorized to provide this facility and so the customer will not be charged for utilizing this facility.
Ans. The following are the authorized banks:
The authorized service providers are:
They are available only in certain cities.
Ans. Authorized services providers are available in the following cities:
BillDesk.com – Mumbai, Delhi, Bangalore, Chennai, Kolkata, Pune, Ahmedabad, Baroda, and Surat
They have tie-ups with certain banks like IDBI Bank, Bank of Baroda and ABN- AMRO Bank.
TimesofMoney.com – Mumbai, Delhi, and Bangalore
BillJunction.com – Mumbai, Delhi, Bangalore, Chennai, Kolkata, Hyderabad, Pune, and Ahmedabad
Ans. This needs to be done online, and the steps are as follows:
Step 1: Log in to the official website of the authorized bank or the service provider being utilized.
Step 2: The specific date on which the premium payment has to be made should be specified so that the account will be debited of the required amount exactly on that date every time.
Click on the consent for the payment option. In the case of multiple bank accounts, anyone account can be specified.
The bank will debit the amount from the account, consolidate the payments and send it to the LIC as a banker's cheque or pay the order.
Instructions will be sent to the registered bank branch, by the authorized service provider, through the Reserve Bank of India's Electronic Clearance System. The bank will debit the amount from the policyholder's registered account and credit it to the service provider's account, which will then remit the amount to the LIC.
Autopay facility and phone banking facility are offered by some service providers.
Ans. Policies that are eligible for premium payment through this facility:
Policies that are not eligible for premium payment through this facility:
Ans. Some things that need to be taken into consideration before availing of this premium payment facility are:
Ans. Basic term plans only provide financial protection to the policyholder for the policy tenure. They do not come with a savings component. The New Term Assurance Rider from LIC will offer financial protection for the policyholder's loved ones, in case of the unfortunate early demise of the life insured, before the policy term ends, in the form of a death benefit.
Ans. Yes, given the current situation, the LIC has included death due to COVID-19 under the death claim clause of its policy. The LIC of India has so far settled 16 death claims under COVID-19.