LIC Linked Accidental Death Benefit Rider Calculator

LIC Linked Accidental Death Benefit Rider Calculator

What this calculator does

LIC's Linked Accidental Death Benefit Rider (LABDR) is an optional add-on available only on LIC's linked (ULIP) plans. It works very differently from a rider on a traditional plan: instead of a separate premium you pay alongside your regular premium, the rider's cost is a charge deducted monthly from your policy's unit fund by cancelling units of an equivalent value - the same way fund management and mortality charges are deducted on a ULIP. It also covers only accidental death (there is no disability benefit component, unlike the accident rider offered on traditional plans).

If the life assured dies due to an accident while the rider is in force, the full Rider Sum Assured is paid as a lump sum, in addition to whatever the base ULIP policy already pays on death (the higher of the ULIP fund value or the base sum assured).

This calculator gives you an indicative estimate of:

• the monthly fund deduction (rider charge) for your chosen Rider Sum Assured
• the annual rider charge and the total charges deducted over the full policy/rider term
• the Accidental Death Benefit payable as a lump sum
• a fund deduction schedule showing how the charge accumulates over the term
• two limit checks commonly applied to linked riders: whether the Rider Sum Assured stays within the Base Sum Assured, and whether the rider charge stays within IRDAI's 30% cap on the base plan's annual premium

Formula Used

Eligibility. Entry age must be between 18 and 65 years, the Policy/Rider Term between 5 and 40 years, and cover must end by age 75:

$$EntryAge + PolicyTerm \le 75$$

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

Monthly fund deduction. The charge rate is flat, Re 0.60 per ₹1,000 of RSA per year, since accidental risk is not age-dependent the way mortality risk is. It is deducted in 12 equal monthly installments by cancelling units from the fund:

$$AnnualRiderCharge = \frac{RSA}{1000} \times 0.60$$ $$MonthlyRiderCharge = \frac{AnnualRiderCharge}{12}$$ $$TotalRiderChargesOverTerm = AnnualRiderCharge \times PolicyTerm$$

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

$$AccidentalDeathBenefit = RSA$$

Limit checks. Two commonly applied limits for a linked accident rider:

$$RSA \le BaseSumAssured$$ $$AnnualRiderCharge \le 0.30 \times BaseAnnualPremium$$

The second check reflects IRDAI's requirement that the combined premium/charge for all riders attached to a policy must not exceed 30% of the base product's annual premium.

Note: this rate, the eligibility limits, and the 30% cap check 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. Actual rider charges also depend on the specific ULIP plan, and fund deductions reduce the number of units available for investment growth. Always confirm exact figures and current terms with LIC or an authorized agent before attaching this rider.

How to Use

1. Enter your Age at Entry in years (18 to 65).
2. Enter the Policy / Rider Term in years (5 to 40, subject to cover ending by age 75).
3. Enter your Base ULIP Policy Sum Assured and Base ULIP Policy Annual Premium.
4. Enter your desired Linked Accidental Death Benefit Rider Sum Assured (₹1,00,000 to ₹50,00,000).
5. Click Calculate to see the monthly fund deduction, total charges over the term, the accidental death benefit, the limit checks, and the fund deduction schedule.

Worked Example

Suppose a 35-year-old holds a ULIP with a Base Sum Assured of ₹10,00,000 and a Base Annual Premium of ₹1,00,000, and takes a Policy Term of 20 years with a Linked Accidental Death Benefit Rider Sum Assured of ₹5,00,000.

$$AnnualRiderCharge = \frac{5,00,000}{1000} \times 0.60 = 500 \times 0.60 = ₹300 \text{ per year}$$ $$MonthlyRiderCharge = \frac{300}{12} = ₹25 \text{ per month}$$

Over 20 years, the total rider charges deducted from the fund add up to 300 \times 20 = ₹6{,}000. Since the Rider Sum Assured (₹5,00,000) is within the Base Sum Assured (₹10,00,000), and the annual rider charge (₹300) is well within 30% of the base annual premium (0.30 \times 1{,}00{,}000 = ₹30{,}000), both limit checks pass. If death occurs due to an accident at any point during the term, the family receives an additional ₹5,00,000 on top of whatever the base ULIP policy already pays.