Difference Between Accidental Death Rider and Accidental Total and Permanent Disability

Accidental Death Benefit is very different from Accidental Total and Permanent Disability rider. While the former rider provides death benefit, the latter offers a lump sum in case of total and permanent disability of the life assured due to an accident. Lets understand the meaning of both of the riders and the difference between the two in detail in this article.

What is Accidental Death Benefit Rider?

Accidental Death Benefit rider provides sum assured along with rider benefit to the nominee/beneficiary in case of accidental demise of life assured. In many cases, accidents might not lead to the on the spot death of a life assured, the insurance companies provide a duration after the accident occurs to provide the given cover. For example if the life assured passes away within 120-180 days when the accident occurs the nominee/beneficiary will be provided with a sum assured amount. As you cannot predict any mishappening taking place this rider can be purchased by everyone.

Also Read:- 3 Unpopular But Useful Life Insurance Riders

What is Accidental Total and Permanent Disability Rider?

Under Accidental Total and Permanent Disability rider the insurance company provides the rider benefit to the life assured if he/she suffers total permanent disability caused by an accident, forcing the life insured to quit working. Mostly this rider comes along with the Accidental Death Benefit rider. The life assured can choose to opt for rider benefit payout as a lump or regular instalments during the policy term.

Difference Between Accidental Death Benefit and Accidental Total and Permanent Disability

The major difference between the two riders is that one of the riders provides sum assured along with the rider benefit to the nominee in case the life assured passes in an accident. The benefit of having accidental total and permanent disability is that during an medical emergency the life assured has financial resources to overcome it. 

Conclusion

Whether you purchase an accidental death benefit rider or accidental total and permanent disability rider along with your life insurance policy, it will be beneficial for yourself as both of the riders will come handy at the time of financial emergency.

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.