Exclusion Under Accidental Death Rider
Published On Jul 27, 2021 10:00 AM By InsuranceDekho
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An insurance rider contract may appear to be impenetrable protection against the covered occurrence. One might believe that if they pay the policy's premium on time, they will be guaranteed the repayment of the large sum of money in the event of a disaster. However, it is required that the policyholder read the fine print. This prevents the person from feeling tricked and reduces losses.
The fine print of a life insurance rider contract contains different exclusions. Exclusions are events or conditions that are not covered by a certain life insurance policy. Accidental Death Rider is one of the most bought riders and people should know that it is one of the most rejected claims as well. Most of the nominees face rejection in a shock because they did not read the fine prints of the inclusions and exclusions of the policy. Here we will be talking about the exclusions under the Accidental Death Rider.
What is An Accidental Death Policy?
An Accidental Death Benefit Rider is a clause in a Life Insurance policy that can make an additional payment, generally twice the amount of money, if your death occurs as a consequence of an accident. If you work in a potentially dangerous area (such as with heavy machinery) or drive more than the average person (either professionally or as a commuting driver), an accidental death benefit rider might be a smart rider to consider adding to your policy.
Exclusions Under Accidental Death Policy
Following are the exclusions under the accidental death rider which you must read carefully before buying the rider:
1. Act of Suicide
An individual may choose to buy the accidental death rider and then decide to end her/his life by committing suicide. In the event of the policyholder's death, the nominee is entitled to the promised amount, according to the policy. However, there is no such insurance in the event of a suicide. As a result, the provision forbids persons from utilising the policy as a ruse to protect their interests in the case of death by suicide.
The nominee who is the beneficiary is required to submit a death certificate issued by a licenced medical examiner in the first phase. To file a claim, the aforementioned certificate must be given to the insurance company.
2. Indulging Into Risky and Dangerous Activities
Activities that involve risk, as the saying goes, lead nowhere. When a death happens under unusual circumstances, any insurance company will conduct a thorough investigation before settling the claim. Before deciding whether or not to pay a claim, the insurance company always performs an investigation. These risky practises include:
- Consumption of alcoholic beverages or illegal drugs
- When participating in a race or a dangerous activity
- When you participate in a criminal act.
- In the event of a pregnancy, childbirth, or issues related to it
- In the event of death as a result of a pre-existing sickness
3. Previous Disease History and Lifestyle Habits
Lifestyle diseases are regarded as harmful practises. If a person dies as a result of his smoking addiction, it is considered a lifestyle disease and the insurance company is not obligated to pay for it. For example, smokers are more likely to succumb to lifestyle diseases and are classified as being in a higher risk group.
4. Exclusion of Aviation Accidents
A fine print in the policy will speak to the fact that not all plane crashes are covered. If a passenger dies in a commercial jet crash or as a result of another aviation technical failure, the passenger is well covered by the life insurance policy for which he or she has been paying premiums. However, in the instance of a private aviation disaster, the insurance company is not required to pay the guaranteed value.
An Accidental Death Benefit rider is definitely a great add on to your policy but a claim rejection on it can be devastating. As a result, we can see how critical it is for any prospective policyholder to thoroughly examine the contract's terms. An overview is never enough to ensure a financially secure future for one's nominee. The fine print always includes exceptions that may or may not apply to one's situation.
Also read - Types of Illness Covered Under Critical Illness Rider
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.