LIC Critical Illness Rider Calculator

LIC Critical Illness Rider Calculator

What this calculator does

LIC's Critical Illness Rider is an optional add-on to an eligible base policy that pays a lump sum (the Rider Sum Assured) the moment the life assured is first diagnosed with one of a defined list of serious illnesses - for example cancer, a heart attack, stroke, kidney failure, a major organ transplant, or coronary artery bypass surgery - regardless of the actual treatment cost. The payout is independent of the base policy's death benefit: the base policy continues as usual, and this lump sum is paid in addition, to help cover treatment costs, income loss during recovery, or any other need.

Unlike a level term rider, the risk of a critical illness claim rises steeply with age, so LIC (like most insurers) prices this rider using age bands - the rate per ₹1,000 of cover increases every time you cross into the next band, rather than staying flat for the whole rider term. This calculator gives you:

• the first year's rider premium for your Age at Entry, chosen Rider Sum Assured, Rider Term, and payment mode
• the total rider premium payable over the full Rider Term
• a full year-by-year premium schedule showing how the premium increases as you move through each age band
• the waiting period and survival period conditions that apply before a claim becomes payable
• a checklist of the major illnesses typically covered

Formula Used

Eligibility. Entry age must be between 18 and 60 years, the Rider Term between 5 and 40 years, and cover must end by age 70:

$$EntryAge + RiderTerm \le 70$$

The Rider Sum Assured must be between ₹1,00,000 and ₹50,00,000.

Age-banded rate. The rate per ₹1,000 of Rider Sum Assured depends on the life assured's attained age in each policy year (age band upper limits shown):

$$Rate(age) = \begin{cases} 0.90 & age \le 30 \\ 1.40 & 31 \le age \le 40 \\ 2.60 & 41 \le age \le 50 \\ 4.80 & 51 \le age \le 60 \\ 8.50 & 61 \le age \le 70 \end{cases}$$

Annual premium for policy year k (1-indexed), where the attained age that year is EntryAge + k - 1:

$$AnnualPremium(k) = \frac{RiderSumAssured}{1000} \times Rate(EntryAge + k - 1)$$

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), and the first year's installment premium is:

$$InstallmentPremium_1 = AnnualPremium(1) \times ModeFactor$$

Total rider premium over the full Rider Term T sums every policy year's premium at its own age-band rate:

$$TotalRiderPremium = \sum_{k=1}^{T} AnnualPremium(k) \times ModeFactor \times InstallmentsPerYear$$

Claim conditions. No claim is admissible for an illness first diagnosed within the waiting period of 90 days from the rider's date of commencement, and the life assured must survive at least the survival period of 30 days after diagnosis for the claim to become payable.

Note: this rate table, the eligibility limits, and the pricing approach are illustrative approximations for planning purposes, not LIC's official IRDAI-approved rate table or policy document, which is subject to full medical underwriting. Always confirm exact figures, the exact list of covered illnesses, and eligibility with LIC or an authorized agent before attaching this rider.

How to Use

1. Enter the Age at Entry of the life assured in years (18 to 60).
2. Enter the desired Critical Illness Cover (Rider Sum Assured) in ₹ (1,00,000 to 50,00,000).
3. Enter the Rider Term in years (5 to 40, subject to cover ending by age 70).
4. Choose your Premium Payment Mode.
5. Click Calculate to see your first-year premium, total premium payable, the full year-by-year premium schedule, the claim waiting/survival periods, and the list of typically covered illnesses.

Worked Example

Suppose a 35-year-old chooses a Rider Sum Assured of ₹10,00,000 for a 20-year Rider Term, paying yearly.

In policy year 1 (attained age 35, which falls in the 31-40 band):

$$AnnualPremium(1) = \frac{10{,}00{,}000}{1000} \times 1.40 = 1000 \times 1.40 = ₹1{,}400$$

By policy year 16 (attained age 50, still in the 41-50 band):

$$AnnualPremium(16) = \frac{10{,}00{,}000}{1000} \times 2.60 = 1000 \times 2.60 = ₹2{,}600$$

So the premium roughly doubles over the term purely because of age-band increases, even though the Rider Sum Assured of ₹10,00,000 never changes. If diagnosed with a covered illness (after the 90-day waiting period, and surviving the 30-day survival period), the full ₹10,00,000 is paid as a lump sum, on top of the base policy continuing unaffected.