A powerful, affordable add-on life cover that enhances your base policy.
- Death Benefit up to ₹X (highest of sum assured, 10× annual premium or 105% of premiums paid)
- No maturity benefit—but full death cover always active
- Can be attached only at policy inception
- Premium paid along with your base policy—no separate payment
LIC New Term Assurance Rider
Rider UIN: 512B210V02 – (An Individual, Life, Non-linked, Term Assurance Rider)
Why Choose LIC’s New Term Assurance Rider (TAR)?
1. Added Death Protection Without Complexity
This is a non-linked, non-participating rider meant purely for term assurance. On death of the life assured (if both rider + base policy are in force), one of three amounts is paid (whichever is highest):
- Rider Sum Assured
- 10 × Annualized Premium
- 105% of total premiums paid to date
This gives you clarity and assurance: you know your family’s claim won’t fall below these floors.
2. Simplicity & Integration with Base Policy
- Cannot be opted standalone — must be attached to a base policy at inception
- Rider premium is valid only when base policy is active; if the base policy lapses, the rider ceases
- In case of lapse, revival, etc., follow same rules as base policy
3. Affordable & Transparent Premium Structure
- No separate premium payment; rider premium is bundled with the base policy premium
- No surrender (in regular premium policies) or paid-up value
- Tax and extra premiums are treated same as base policy (excluded from benefit computation)
Real-World Backing & Market Evidence
- LIC’s strong financials: LIC reported a profit after tax of ₹48,151 crores in FY 2025, up about 18.4% year over year.
- Dominant Market Position: In India, LIC accounts for about 64.1% of life insurance premiums.
- Quarterly Growth Example: In the first quarter of FY 2025, LIC’s solvency ratio improved to 1.99 and its New Business Premium (individual) rose 13.67%.
These figures highlight that you’re relying on an insurer with scale, credibility, and financial strength.
How the TAR Rider Works
| Parameter | Values | Explanation |
|---|---|---|
| Base policy term | 20 years | Suppose you choose a base life insurance for 20 years |
| Rider term | 20 years | TAR term aligned with base policy |
| Annualized premium (for TAR) | ₹5,000 | Hypothetical |
| Rider Sum Assured | ₹1,00,000 | Chosen at inception |
| Total premiums paid (after 10 yrs) | ₹50,000 | 10 × ₹5,000 |
If unfortunate event of death happens in year 10:
- 10× annual premium = ₹50,000
- 105% of premiums paid = ₹52,500
- Rider Sum Assured = ₹1,00,000
Death Benefit paid = ₹1,00,000 (being the highest of the three)
This demonstrates how TAR provides predictable coverage, safeguards your premium investment, and guarantees a minimum floor.
Expert Commentary & Interpretive Insights
“Riders like TAR allow policyholders to layer additional death protection without complicating underlying structure. While it won’t pay at maturity, its role as a pure risk overlay is valuable.”
— (Hypothetical) Senior Actuarial Consultant, Insurance Analytics
Your interpretation: When maximising death coverage while maintaining low premiums is your top priority, use TAR. It works well if you already have a basic LIC policy and would like affordable additional death coverage.
Frequently Asked Questions (FAQs)
No. It must be opted at the inception of the base policy to attach it.
No. TAR is purely a term assurance rider. No maturity benefit is payable.
If the base policy lapses or is converted, the rider cover ceases. Revival or reactivation of TAR follows the rules of the base policy.
In regular premium policies: no surrender or refund under TAR
In limited / single premium policies: partial refund rules apply (subject to conditions)
LIC caps the aggregate rider sum assured (across policies) at ₹25 lakh for term assurance riders.
Death benefit is the highest among:
Rider Sum Assured
10 × Annualized TAR premium
105% of total TAR premiums paid
(subject to the rider being in force)
Premiums and benefits under TAR follow the same tax rules as the base policy. Taxes paid are not included in benefit computation.
All standard exclusions (e.g. suicide clause) of base policy apply. TAR’s terms must be read in conjunction with base policy provisions