Everyone’s life is volatile, therefore financial planning must account for that. LIC know the need for extra protection from life’s uncertainties, especially accidents. To fulfill demand, LIC offers the optional Linked Accidental Death Benefit Rider to its life insurance policies. In case of accidental death, this rider helps policyholders’ families financially. This rider helps policyholders protect their families financially.
What Is LIC’s Linked Accidental Death Benefit Rider?
Accidental Death Benefit associated by LIC Rider is an exclusive unit-linked insurance plan add-on. The rider seeks to enhance the sum assured applicable at the time of death resulting from the accident. This will assist them in helping families who survived a death claim related to accidents.
The rider benefits shall be related to the unit-linked insurance policies which offer investment returns and life protection. A guaranteed death benefit increase is added to the nominee if and when the rider triggers due to accidental death. This extra cash can be used by the family for emergencies, bills, and financial security. Compensation for rider’s after an accidental death loss helps the family recover.
Rider Features Policyholders Need
Simple yet effective, the LIC Linked Accidental Death Benefit Rider. This simple unit-linked insurance contract change increases death benefits in certain cases. It’s perfect for individuals who want more protection without more insurance. The rider’s design protects the policyholder’s family against accidental death while the unit-linked plan grows money.
It pays a lump sum if the insured dies inadvertently. This means the rider instantly increases the primary insurance policy’s death benefit, providing the receiver additional money. The combined contribution may cover mortgages, children’s education, and surviving family members’ future.
The Rider Family Financial Planning Role
LIC-Linked Accidental Death Benefit Rider is key to financial planning. It fills a vacuum in life insurance by focusing on fatalities. This rider may protect single-income families from financial hardship. The rider replaces lost income, giving the family time and money to adjust.
If a policyholder with a base amount insured of ₹30 lakh selects a Linked Accidental Death Benefit Rider with an additional sum guaranteed of ₹30 lakh, the nominee receives ₹60 lakh in case of accidental death Paying off mortgages and supporting the family may improve their quality of life. An accident rider is essential to a full insurance plan, offering specialized coverage for one of life’s most unexpected dangers.
LIC Accidental Death Benefit Rider benefits
The LIC Linked Accidental Death Benefit Rider provides valuable coverage at a low cost. This rider usually costs less than accident insurance. Its modest pricing attract budget-conscious consumers seeking optimal protection.
The rider helps high-risk workers. The Linked Accidental Death Benefit Rider covers high-risk workers in construction, transportation, and other fields. It shields the policyholder’s family from financial difficulty after a job or holiday accident.
Rider flexibility allows policyholders customize it. Riders may choose their guaranteed amount based on income, lifestyle, and finances. This ensures that the rider’s benefits safeguard the policyholder’s family.
Rider Helps Families Realistically
Consider a 45-year-old with a ₹40 lakh unit-linked insurance policy who opts for a Linked Accidental Death Benefit Rider of ₹20 lakh. Upon a fatal car accident, the family gets ₹60 lakh, including ₹40 lakh from the base insurance and ₹20 lakh from the rider. This reimbursement may help the family pay off debts, cover funeral expenses, and secure their children’s future.
Such a payout may aid the family financially in hard times. It ensures the policyholder’s core goal—to provide for their family—is met even when life changes. Thus, the Linked Accidental Death Benefit Rider helps maintain financial resilience.
Finding the Right Rider Sum
Accidental Death Benefit from LIC Lifestyle, financial obligations, and future goals determine rider sum guaranteed option. To cover mortgages, children’s education, and surviving spouse retirement, choose an amount assured that matches or exceeds the regular policy’s coverage.
LIC advisers and financial planners may assess rider coverage. This protects the policyholder’s family and offers them the funds to pursue their dreams following an unexpected loss.