Understanding LIC's e-Term Plan
Before we delve into the specifics of accidental death coverage, it is crucial to understand what LIC's e-Term Plan is all about. The e-Term plan is an online term insurance policy offered by the Life Insurance Corporation of India (LIC). It is a pure term plan that provides the policyholder's nominee with a lump sum amount if the policyholder passes away during the policy term. This is a pure risk cover plan and is specifically designed to secure your loved ones from financial crisis in case of your untimely demise. It does not offer any maturity or surrender value.
Features of LIC's e-Term Plan
Next, let's take a closer look at the features of LIC's e-Term Plan. It offers comprehensive life coverage up to 75 years of age, with minimum policy tenure of 10 years, and the maximum being 35 years. The plan has different premium rates for smokers and non-smokers, and the premium payment mode is annual. Moreover, the policyholder can choose the sum assured starting from Rs. 25 lakhs with no upper limit.
Accidental Death Coverage in General
Now, moving on to the core topic, let's understand what accidental death coverage typically means in the insurance world. Accidental death coverage is an additional benefit that can be included in a life insurance policy. This coverage provides an additional payout on top of the base death benefit if the policyholder dies as a result of an accident.
Does LIC's e-Term Plan Cover Accidental Death?
Now, to answer the million-dollar question: Does LIC's e-Term plan cover accidental death? The straightforward answer is no, the basic e-Term plan does not include accidental death coverage. However, you have the option of enhancing your coverage by adding an accidental death benefit rider at a nominal extra premium.
What is an Accidental Death Benefit Rider?
An accidental death benefit rider is an additional feature that can be added to your base insurance policy. When you opt for this rider, the insurer will pay an additional sum assured in case of death due to an accident. This rider can provide double or triple the basic sum assured, depending on the terms of the policy.
Why Opt for an Accidental Death Benefit Rider?
Why should you consider adding an accidental death benefit rider to your LIC e-Term plan? This rider can significantly enhance your policy coverage, providing additional financial security to your loved ones in case of your accidental death. The extra payout can help cover sudden expenses and financial obligations that may arise due to an unfortunate accident.
How to Add an Accidental Death Benefit Rider to LIC's e-Term Plan
If you're interested in adding an accidental death benefit rider to your e-Term plan, you can do so at the time of purchasing the policy or at any policy anniversary during the policy term. You just need to pay a small additional premium to avail of this benefit.
Cost of an Accidental Death Benefit Rider
The cost of adding an accidental death benefit rider to your e-Term plan is relatively small compared to the additional coverage it provides. The actual cost will depend on several factors including your age, the policy term, and the sum assured.
In conclusion, while LIC's e-Term plan does not inherently cover accidental death, you have the option of enhancing your coverage by adding an accidental death benefit rider. This rider can provide much-needed financial support to your loved ones in case of your untimely demise due to an accident.