Accident Death
Benefit Rider
- What is an accident rider?
- It's features and eligibility
- Understand Pros and cons
Accidents are the most unfortunate incidents that can happen to anyone. Moreover, accidents are one of the leading contributors to the global mortality rate. Nobody is prepared for these kinds of incidents in life. The death of loved ones along with the loss of income creates emotional and financial burdens on the surviving ones.
The accidental death benefit rider and accidental disability rider are a perfect safeguard for you and your family. Let us understand what is it about!
Accidental rider, also known as accidental death benefit rider, is an additional feature that can be added to the life insurance policy to give extra financial protection if the insured dies due to an accident.
Any injury that results in death due to an accident of the policyholder is known as a case of accidental death. Let us understand this with an example
Ramesh is a 35-year-old man, and is married also has a child. He has a life insurance policy of Rs 50 Lakh. He added an Accidental death rider of Rs 20 lakh to his insurance policy. After a few years, Ramesh and his family met with an accident and died, but his wife and child survived. His wife went for the claim and received Rs 70 Lakh. So, without the term insurance rider, Ramesh's family would have got only Rs 50 lakh.
Accidental Benefit Rider is accessible to individuals who hold a basic life insurance policy. The coverage period aligns with the main terms of the policy's term or endures until the policyholder reaches 70 years of age. Though entry-age requirements may differ from company to company.
Eligibility conditions for acquiring the Accidental Death Benefit Rider may vary among insurers, though they must fulfill specific health criteria.
You need the following documents for claiming the accidental death benefit rider:
| PROS | CONS |
| Enhanced Final Protection: It provides an additional layer of financial security in case of accidental injuries, dismemberment. | Limited Scope: The riders only provide coverage for accidental incidents. |
| Affordability: Accidental Benefit Riders are cost-effective, making it a very affordable way to increase the coverage of a life insurance policy. | Exclusion: There might be some exclusions that have been mentioned, such as certain high-risk activities, which could limit the scope of coverage. |
| Supplemental Coverage : The rider supplements the main life insurance policy, addressing specific accidental scenarios that might not be covered by the basic policy. | Duplicative coverage: It is possible that some aspects of the accidental coverage might already be included in other insurance policies. |
| Flexibility: You can tailor your insurance coverage by adding this rider to your existing policy while adjusting the amount of coverage according to your needs. | Age Limitations: After a certain age, the rider's coverage might terminate. |
| No Health Examination : There is no need to undergo an additional health examination. |
With the accident benefit rider, you are not just purchasing coverage, but investing in the peace of mind. It is a shield that gives you numerous benefits from enhanced death coverage to disability support due to accidents. So, by adding this rider to your basic policy insurance, you are taking a crucial step toward safeguarding your family's future.
Adding an accident death benefit rider is an optional choice that can enhance the value of the term insurance policy. Your family can get up to Rs 2 crore in case of an unfortunate demise.
Accidents benefit refers to the payment made to the beneficiary of an accidental death insurance policy, which is frequently attached to a life insurance policy as a clause or rider. It is the amount paid in addition to the standard benefit if the insured dies due to an accident.
An accidental death insurance policy offers protection to the family of the beneficiary in case of severe injuries or death in an accident.
A rider is the insurance policy provision that can add benefits to or amend the terms of a basic insurance policy.
Examples of accidents that are covered- are car crashes, fires, workplace accidents, falls, and accidents involving firearms, etc.
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Simran has an experience of 3 years in insurance content writing. She transitioned from hospitality to the insurance industry after her emerging interest in how vast insurance is. With her ability to write complex insurance concepts in a simple, relatable manner she keeps her audience hooked and solves their doubts smoothly.
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