LIC Products, Plans and Riders
What this domain tests
Product knowledge is the highest-yield area for the LIC Assistant paper: plan numbers, what each plan pays and when, eligibility conditions, and which rider attaches to which plan.
Plan families
- Term - pure risk cover with no maturity benefit. LIC Tech Term (854) and Yuva Term (855) are the reference points.
- Endowment - sum assured plus vested bonuses at maturity, or on earlier death. New Endowment Plan (914), New Jeevan Anand (915, where whole-life cover continues after maturity) and Jeevan Labh (936) are standard.
- Money-back - periodic survival benefits plus bonuses at maturity. New Money Back 20 years (920) and 25 years (921).
- Whole life - cover to age 100 on limited premium paying terms; Jeevan Umang (945) pays 8% of the sum assured every year after the premium paying term ends.
- Children, annuity, ULIP, micro-insurance - Jeevan Tarun (934) for children, Jeevan Akshay VII (857) as an immediate annuity, and plans like New Endowment Plus in the ULIP line.
Riders
A rider is an add-on bought with a base policy and never issued alone. Common LIC riders are the Term Assurance Rider, the Accidental Death and Disability Benefit Rider, the New Critical Illness Benefit Rider, the Premium Waiver Benefit Rider and the Disability Benefit Rider. Rider sum assured cannot normally exceed the base sum assured, and the rider term cannot run beyond the base policy term.
Worked example
On a ₹5,00,000 New Money Back Plan (20 years), survival benefits are 20% of the sum assured at the end of years 5, 10 and 15 - ₹1,00,000 each. At maturity the policy pays the remaining 40% (₹2,00,000) plus vested simple reversionary bonuses and the final additional bonus. Bonuses are not added to survival benefit instalments.
Traps
Treating the survival benefit as the whole maturity value; assuming a rider premium earns bonus or loan value; forgetting that New Jeevan Anand keeps life cover alive after maturity.