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DEFINITION of 'Rider'
A provision of an insurance policy that is purchased separately from the basic policy and that
provides additional benefits at additional cost. Standard policies usually leave little room for
modification or customization, beyond choosing deductibles and coverage amounts. Riders help
policyholders create insurance products that meet their specific needs.
new plan): The premiums for the entire policy term is paid in fewer years limited to the premium payment term (including the
single premium option). The accident benefit rider premiums are also collected along with the basic premiums within the
premium paying term. However, the accident benefit is available during the entire policy term.
Accidental Death Benefit in respect of Smart Life 2 Plan (Table 135F - now withdrawn and Table 635 - new plan): The
rider premiums for the entire 10 year policy term are collected upfront along with the single premium. However, this benefit is
different from the general accidental benefit available under other plans; it only covers accidental death and not total and
permanent disability.
Critical Illness Rider benefit is available only under the endowment and money back policies where critical illness rider option
has been exercised by the policyholder and accepted by LICI. The extra premium meant for Critical illness rider must have been
received
(up-to-date)
by
LICI.
The Benefit: The basic sum assured under the main policy along with the vested bonuses is payable as a lump sum on the
happening of any of the 15 critical illnesses covered during the term of the policy while the Critical Illness Rider is in force. The
policy is terminated as soon as the critical illness rider benefit is paid.