- What is an accident rider?
- Its features and eligibility
- Understand Pros and cons
Accidental Safety Net: Your Multifaceted Coverage
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!
What is Accident Rider?
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.
Features of Accidental Benefits Rider
- Accidental Death Benefits The rider provides an additional death benefit payout if the insured person passes away due to an accident. A lump sum payment along with the regular death benefit is provided by the base life insurance policy.
- Accidental Disability Benefits If there is any permanent total disability caused by the accident, this rider provides a predetermined sum assured or a regular income for a specified period, and provides financial support during the recovery phase.
- Accidental Injury Coverage The rider covers medical expenses incurred due to accidental injuries, including all the costs.
- Partial Disability Benefits If the insured suffers from partial disability due to an accident. This benefit offers a percentage of the sum assured or a static income for a defined period. It will help to manage the financial impact.
- Accidental Hospitalization Benefits It provides an allowance or a lump sum payment to help with medical expenses or other financial needs.
- Ambulance Fee Coverage The rider covers ambulance fees related to the accident, ensuring that transportation costs do not burden the insured person.
How does Accidental Death Rider work?
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.
Inclusions
- Car or Traffic Accident If the person dies due to any road accident, it is covered.
- Airplane Crash Death in an airplane crash is covered under the accidental death benefit rider.
- Fire Accident If the death happens due to fire injuries, it is covered in the accidental death benefit rider.
Exclusion
- Suicide The claim will be rejected if the policyholder dies due to suicide.
- Natural Causes Accidental riders do not cover death due to natural causes like illness, or diseases.
- High-risk Activities Some riders exclude coverage for deaths that happened from high-risk activities or hobbies, like skydiving, bungee jumping, etc.
- War and Terrorism Deaths caused by acts of war or acts of terrorism may be excluded from the coverage.
- Drug use If the insured person dies due to intoxication or drug use, it might be excluded from the coverage.
- Criminal Activity If the person was involved in any criminal activity and died on the spot, then they are not eligible for the claim.
What is the Eligibility Criteria?
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.
Documents Required to Claim for Accidental Death Rider
You need the following documents for claiming the accidental death benefit rider:
- Filled claim form
- Original policy documents
- Policyholder's Photo ID Proof, Address proof
- Policyholder's bank account details
- FIR (copy or original)
- Police Inquest Report (copy or original)
- Postmortem Report (Copy or original)
- Sub-Divisional Magistrate's Final Verdict
- Driver license of the life assured.
What are the pros and cons of Accident 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. |
Conclusion
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.
Accident Death Benefit Rider: FAQs
1. How much is accident death benefit the rider?
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.
2. What is accident benefit?
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.
3. Why accidental death insurance?
An accidental death insurance policy offers protection to the family of the beneficiary in case of severe injuries or death in an accident.
4. What is a benefit rider?
A rider is the insurance policy provision that can add benefits to or amend the terms of a basic insurance policy.
5. What is an example of an accidental death benefit rider?
Examples of accidents that are covered- are car crashes, fires, workplace accidents, falls, and accidents involving firearms, etc.
Other Term Insurance Companies
4209-1730875091.webp)
Share your Valuable Feedback
4.6
Rated by 858 customers
Was the Information Helpful?
Select Your Rating
We would like to hear from you
Let us know about your experience or any feedback that might help us serve you better in future.
Written By: Simran Saxena
An explorer and a curious person, Simran has worked in the field of insurance for more than 3 years. Travelling and writing are her only passion and hobby. Her main agenda is to transform insurance information into a piece that is easy to understand and seamlessly solves the reader’s query.
Do you have any thoughts you’d like to share?