LIC New Term Assurance Rider Calculator

LIC New Term Assurance Rider Calculator

What this calculator does

LIC's New Term Assurance Rider (NTAR) is an optional add-on you can attach to an eligible LIC base policy to boost your life cover without buying a separate standalone term plan. Unlike an Accident Benefit Rider - which only pays out if death is caused by an accident - the New Term Assurance Rider pays out on death from any cause while the rider is in force, exactly like the base policy's own sum assured. Because it covers the same broad mortality risk as regular term insurance, its premium rate is age-graded - it rises as the age at entry increases, unlike a flat accident-only rider rate.

The rider works alongside the base policy, not instead of it:

• On death (any cause) during the Rider Term - the full Term Assurance Rider Sum Assured is paid as a lump sum, in addition to whatever the base policy's own death benefit already pays.
• The rider premium is payable separately, on top of the base policy premium, for as long as the rider is kept in force (up to the Rider Term).

This calculator gives you an indicative estimate of:

• the age-based rate applicable to your entry age
• the rider premium for your chosen Term Assurance Rider Sum Assured, Rider Term, and payment mode
• the total rider premium payable over the full Rider Term
• the additional Death Benefit payable as a lump sum, on top of the base policy

Formula Used

Eligibility. Entry age must be between 18 and 60 years, the Rider Term between 5 and 35 years, and cover must end by age 75:

$$EntryAge + RiderTerm \le 75$$

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

Age-based rate. The rate (₹ per ₹1,000 of Sum Assured per year) is looked up from an illustrative age-band table, since mortality risk for death from any cause rises with age:

Age at Entry	Rate per ₹1,000 Sum Assured (per year)
18-25	₹1.00
26-30	₹1.30
31-35	₹1.70
36-40	₹2.30
41-45	₹3.20
46-50	₹4.50
51-55	₹6.50
56-60	₹9.00

Rider premium.

$$AnnualRiderPremium = \frac{SumAssured}{1000} \times RatePerMille(EntryAge)$$

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):

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

Death Benefit. The full Term Assurance Rider Sum Assured is paid as a lump sum, on top of the base policy's own death benefit, if death (from any cause) occurs while the rider is in force:

$$DeathBenefit = SumAssured$$

Note: this rate table, the eligibility limits, and the modal factors 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 medical underwriting. Always confirm exact figures, aggregate Sum Assured limits across all your LIC policies, and eligibility 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 Term Assurance Rider Sum Assured (₹1,00,000 to ₹50,00,000).
3. Enter the Rider Term in years (5 to 35, subject to cover ending by age 75).
4. Choose your Premium Payment Mode.
5. Click Calculate to see the applicable rate, your rider premium, total premium payable, and the additional Death Benefit.

Worked Example

Suppose a 32-year-old wants a Term Assurance Rider Sum Assured of ₹10,00,000, a Rider Term of 20 years, and yearly payment mode.

At age 32, the applicable rate is ₹1.70 per ₹1,000 (the 31-35 age band):

$$AnnualRiderPremium = \frac{10,00,000}{1000} \times 1.70 = 1000 \times 1.70 = ₹1{,}700 \text{ per year}$$

Over 20 years that's a total rider premium of 1{,}700 \times 20 = ₹34{,}000. If death occurs from any cause at any point during the Rider Term, the family receives an additional ₹10,00,000 on top of the base policy's own death benefit.