LIC Accident Benefit Rider Calculator

LIC Accident Benefit Rider Calculator

What this calculator does

LIC's Accident Benefit Rider (ABR) is an optional add-on you can attach to an eligible LIC base policy to extend it with extra protection specifically against accidents - it does not replace or change the base policy's own death or maturity benefit, it simply adds to it. Because it only covers accidental causes, the rider premium is a small flat rate per ₹1,000 of Accident Benefit Sum Assured (ABSA) - unlike a base life cover premium, it does not rise steeply with age, since accident risk does not scale with age the way mortality risk does.

The rider pays out in two situations:

• Accidental Death - if death occurs due to an accident while the rider is in force, the full Accident Benefit Sum Assured is paid as a lump sum, in addition to whatever the base policy already pays on death.
• Accidental Permanent Disability - if an accident leaves the life assured permanently disabled, a percentage of the Accident Benefit Sum Assured (depending on the type/severity of the disability) is paid out, split into 10 equal yearly installments rather than a single lump sum.

This calculator gives you an indicative estimate of:

• the rider premium for your chosen Accident Benefit Sum Assured, Rider Term, and payment mode
• the total rider premium payable over the full Rider Term
• the Accidental Death Benefit payable as a lump sum
• the Accidental Permanent Disability Benefit schedule - the percentage of the Sum Assured payable for each disability type, and the resulting 10-year installment amount

Formula Used

Eligibility. Entry age must be between 18 and 60 years, the Rider Term between 5 and 50 years, and cover must end by age 70:

$$EntryAge + RiderTerm \le 70$$

The Accident Benefit Sum Assured (ABSA) must be between ₹50,000 and ₹50,00,000.

Rider premium. The rate is flat, Re 0.50 per ₹1,000 of ABSA per year, regardless of age, since accidental risk is not age-dependent the way mortality risk is:

$$AnnualRiderPremium = \frac{ABSA}{1000} \times 0.50$$

The annual premium is split by payment mode using LIC's standard modal factors (yearly 1.00, half-yearly 0.510, quarterly 0.260, monthly 0.0875):

$$InstallmentPremium = AnnualRiderPremium \times ModeFactor$$ $$TotalRiderPremium = InstallmentPremium \times InstallmentsPerYear \times RiderTerm$$

Accidental Death Benefit. The full Accident Benefit Sum Assured is paid as a lump sum, on top of the base policy's own death benefit:

$$AccidentalDeathBenefit = ABSA$$

Accidental Permanent Disability Benefit. A percentage of the ABSA is payable depending on the disability, split into 10 equal yearly installments:

$$DisabilityBenefit(type) = ABSA \times Percentage(type)$$ $$YearlyInstallment(type) = \frac{DisabilityBenefit(type)}{10}$$

Type of Accidental Permanent Disability	% of ABSA Payable
Loss of both eyes, or both hands/feet, or one hand and one foot	100%
Loss of one hand and one eye, or one foot and one eye	100%
Permanent Total Disablement from any other accidental injury (lasting 6+ months)	100%
Loss of one hand or one foot	50%
Loss of one eye	50%

Note: this rate, the eligibility limits, and the disability percentage table are illustrative approximations for planning purposes, not LIC's official IRDAI-approved rate table or policy document, which can change over time and is subject to full underwriting. Always confirm exact figures, aggregate Sum Assured limits across all your LIC policies, and the disability definitions with LIC or an authorized agent before attaching this rider.

How to Use

1. Enter your Age at Entry in years (18 to 60).
2. Enter your desired Accident Benefit Sum Assured (₹50,000 to ₹50,00,000).
3. Enter the Rider Term in years (5 to 50, subject to cover ending by age 70).
4. Choose your Premium Payment Mode.
5. Click Calculate to see your rider premium, total premium payable, accidental death benefit, and the disability benefit schedule.

Worked Example

Suppose a 35-year-old, wants an Accident Benefit Sum Assured of ₹10,00,000, a Rider Term of 25 years, and yearly payment mode.

$$AnnualRiderPremium = \frac{10,00,000}{1000} \times 0.50 = 1000 \times 0.50 = ₹500 \text{ per year}$$

Over 25 years that's a total rider premium of 500 \times 25 = ₹12{,}500. If death occurs due to an accident at any point during the Rider Term, the family receives an additional ₹10,00,000 on top of the base policy's death benefit. If instead the life assured suffers, say, loss of one hand, 50% of the Sum Assured - ₹5,00,000 - becomes payable in 10 equal yearly installments of ₹50,000 each.