Every LIC plan can be enhanced with optional riders — small add-ons that give you extra cover for an extra premium. But not all riders are worth it. Here's the honest breakdown.
The Five Common LIC Riders
1. Accidental Death & Disability Benefit (ADDB)
Extra payout (typically equal to Sum Assured) on accidental death, or monthly income on total disability.
- Cost: ~₹100–₹200 per lakh SA per year (very cheap)
- Worth it for: people who drive a lot, work in hazardous jobs, or have young families with no term cover
- Skip if: you already have a separate personal accident policy or term plan
2. Accident Benefit Rider (AB)
Similar to ADDB but pays only on death, not disability. Cheaper than ADDB.
- Worth it for: very tight budgets who want at least accidental death cover
3. New Term Assurance Rider
Adds a separate term cover to your endowment plan — at a low rate.
- Worth it for: people who want a single policy with high cover (e.g., ₹15 lakh endowment + ₹10 lakh rider = ₹25 lakh total cover)
- Skip if: you have a separate term plan — the standalone term plan is always cheaper for the same cover
4. New Critical Illness Benefit Rider
Lump sum payout on diagnosis of a listed critical illness (cancer, heart attack, kidney failure, stroke, etc.).
- Cost: ~₹500–₹1,500 per lakh SA per year (varies by age)
- Worth it for: people with family history of cancer/cardiac issues
- Alternative: a standalone critical illness policy usually offers wider cover at similar cost
5. Premium Waiver Benefit (PWB)
On disability or critical illness of the policyholder, future premiums are waived. The policy continues unaffected.
- Worth it for: parents buying policies for children — protects the child's plan if the parent cannot pay
- Skip if: you're the only proposer and have alternative funds to continue premiums
What We Recommend
For most policyholders, the smartest combination is:
- Buy a standalone term plan for life cover (not a rider)
- Buy a standalone critical illness policy if you have family history (not a rider)
- Buy a standalone personal accident policy for accidental cover (not a rider)
- Buy the endowment plan clean — no riders
Why? Because standalone policies give you more coverage, more flexibility (you can keep them even if you surrender the endowment) and often cost less than the rider version.