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Basic Term And Conditions Of Accidental Death Benefit

Updated On Feb 20, 2022

Riders are optional extra coverages that can be incorporated to your normal term plan for a little fee. Even if they don't match your current needs, some riders should be taken into consideration. This rider assures that your nominee will get an extra insurance premium over and above your base sum assured if you die as a result of an accident while the policy is in effect, as long as the policy terms and circumstances specified in the rider are met.

One of the most important term insurance riders to get is accidental death benefit. The rider assists in managing with both the event of death guaranteed as well as the financial hardship that follows the tragic event. The rider is quite useful in reducing financial hardship in the case of the life assured's accidental death, since it covers the drop in income that might impact the relatives for months or years. To get to know more about accidental death benefit rider, read on.

What Is Accidental Death Benefit Rider Important?

Since it deals with an irrevocable, permanent loss - the death of the life promised - the accidental death rider is extremely significant. This implies that his or her family is forced to struggle with not just the emotional pain, but also the financial strain. Emergency medical bills are already a huge outlay, and if the situation becomes tragic, the family must cope with both the loss of a loved one as well as future income. The introduction of an accidental death benefit rider might soften the shock of this double hazard of medical bills and irreversible financial losses caused by the death of the breadwinner.

What Are The Benefits Under Accidental Death Benefit Rider?

Accidental death benefit riders are among the most common options for riders on term insurance policies. In tough circumstances, this rider gives financial assistance to the family of the assured. The rider protects the family against accidents or incidents that end in death, which might result in a loss of income for months or even years. In the case of death, the insured receives a bonus - normally twice the amount promised.

Following are the benefits under Accidental Death Benefit Rider -

  • Extra layer of protection - The accidental death benefit rider adds another layer of insurance compensation to the insured person and the life guaranteed family against life's uncertainties. In the event of the life assured's untimely death due to an accident, the family of the life assured will receive a rider benefit amount in addition to the death benefit underneath the term insurance policy. This rider can guarantee financial stability to the insured life’s family in the event that the insured life’s no longer alive. The rider benefit receivable underneath this rider could indeed offer some protection, providing funds for the family to meet their direct costs, everyday expenses, maintain their way of life, and reach their objectives.
  • Multiple Payout Option - The accidental death benefit rider provides for the payment of the rider benefit amount as a lump sum or regular payments, which can provide a regular income for the life assured's family. The nominated candidate has the option of selecting the payment choice that best suits their financial needs and circumstances. The rider benefit is given in one lump sum along with the death benefit if the nominated candidate selects lump payment; if the nominated candidate selects regular instalments, the rider allowance is given in equivalent instalments over a set period of time, along with the death benefit.
  • Minimal Documentation - One of the most common reasons why individuals contemplate obtaining an accidental death benefit rider is because it only requires little documentation. The life assured must supply basic personal information in the application form, which will be accepted by the insurance company.

Endnotes

The benefit of the rider is evident, and because adding a rider is inexpensive, it makes sense to include it in your general life insurance term insurance. It's always best to be prepared than sorry, and this rule applies to the plans you create for your family in the event of unanticipated and tragic events.

Also read - Know Everything About Rider Offered By SBI Life Insurance

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