Calculators LIC plans Riders & Add-ons
Adds pure-term cover on top of a base savings plan.
LIC's New Term Assurance Rider (UIN 512B210V02) adds a pure term life cover on top of a base savings or endowment policy. If the life assured dies during the rider term, LIC pays the rider SA as an additional death benefit on top of the base-policy death benefit. This rider is a pure-protection add-on and can only be attached at policy inception — it cannot be added later. It has no maturity benefit and no surrender value. If no death occurs during the rider term, the rider expires with zero payout and your base policy maturity amount is completely unchanged.
The life assured dies for any reason (accident, illness, natural causes) during the rider term. LIC pays the rider SA as an additional lump sum to the nominee on top of the full base-policy death benefit. There are no illness exclusions — unlike CI riders, TAR pays regardless of cause of death. The rider term runs from policy inception and ends either at the same time as the base policy or when the rider SA is exhausted, whichever is earlier.
Suicide within the first year of the rider (standard LIC exclusion). Death after the rider term has expired. Fraudulent declaration at inception. There are no illness or medical exclusions beyond the standard non-disclosure rules. The ₹25L aggregate cap means the excess is not paid if other LIC term riders take the total above the cap.
For cover above ₹25L: a standalone term plan from a private insurer is the only option and is almost always cheaper. For cover below ₹25L at inception: TAR is viable if you value simplicity, but expect to pay 3–4× the premium per lakh of SA compared to private term plans. The one scenario TAR clearly wins: you are medically uninsurable for a standalone term plan but LIC has already underwritten your base policy — the rider may be attachable without fresh medical evidence.
TAR is most valuable for two groups. First: buyers who are medically borderline for standalone term plans — if LIC has already accepted your base policy after underwriting, they may attach the term rider without fresh medical examination, giving you term cover you might not otherwise qualify for. Second: buyers whose incremental death cover need is below ₹25L and who strongly prefer a single policy document and one annual premium cheque. TAR is a poor choice for anyone who can straightforwardly qualify for a private insurer's standalone term plan — the premium differential (3–4× higher per lakh) is simply not justified by the convenience benefit. Young buyers building their first protection layer should always check standalone term availability before defaulting to TAR.
Rider premiums count within the overall §80C ceiling (₹1.5L per year, shared with base policy premium). Death proceeds paid to the nominee are tax-free under §10(10D) without conditions — death benefits carry no restrictions. From 22 September 2025, individual life insurance premiums (including riders) attract 0% GST.
Asymmetrica isn't an insurance advisor. The analysis above is editorial, sourced from published LIC brochures. Verify eligibility, current rates, and plan-specific conditions with LIC or a licensed advisor before purchasing.
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