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Reasons To Opt Accidental Death Benefit Rider

Published On Dec 01, 2021

What are riders? Riders are optional extra benefits that an individual can add to their term life insurance policy in addition to the standard coverage. They add on to an individual’s premium but also expand their coverage to include additional unanticipated events like accidents, permanent and partial disability, severe illness, and so on. And one such rider is the Accidental Death Benefit Rider.

It is a supplement to an insured individual’s life insurance policy that protects them and their family from accidental death or disability. It works as a double protection rider, meaning that death by accident is covered by both the life insurance policy and the rider's sum. To find out more on accidental death benefit rider, read on.

How Important Is Accidental Death Benefit Rider?

Accidental Death Benefit Rider deals with an unequivocal, irrevocable loss - the death of a life ensured. As a result,their family is left to deal with both the emotional and financial hardship. Emergency medical bills are already becoming too expensive, and if the illness proves deadly, the family must contend with the loss of a loved one as well as future earnings. Therefore, an accidental death rider is extremely essential. The introduction of an accidental death benefit rider helps soften the sting of this double hazard of medical bills and permanent loss of income resulting from the breadwinner's death.

How Do Accidental Death Benefit Rider Works?

Most accidental death benefit riders will provide an insured individual’s family with a lump sum payment in addition to the death benefit provided by their normal life insurance policy. As this additional payout may potentially double the amount of money their respective family receives, this sort of rider was once known as a double indemnity rider. An insured individual’s loved ones will get the payout if the insurance provider confirms that their death fits the rider's terms.

An accidental death benefit rider extends their respective policy's coverage, it will almost certainly raise their premiums or payments. However, adding such protection now might spare their family from having to cope with large unanticipated bills later.

Importance Of Accidental Death Benefit Rider

  • Protective Layer

The accidental death benefit rider adds an extra layer of financial protection to an insured individual’s life and their respective family against life's uncertainties. In the event of the respective individual's uncertain death due to an accident, the family of the respective individual will receive a rider benefit amount in addition to the death benefit under the term insurance policy. In the absence of the life assured, this rider can provide financial security to the family of the life assured. The rider benefit payable under this rider can act as a shield, providing funds for the family to meet their immediate expenses, daily expenses, maintain their lifestyle, and achieve their goals.

  • Payouts

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 insured individual's family. The nominee has the option of selecting the payment choice that best suits their financial needs and circumstances. If the nominee chooses lump payment, the rider benefit is paid in one lump sum together with the death benefit; if the nominee chooses regular instalments, the rider benefit is paid in equal instalments over a certain period of time along with the death benefit.

  • Tax Rebates

Tax rebates are available for premiums paid toward a term insurance policy and riders. Under Section 80C and 10(10D) of the Income Tax Act, 1961, an insured individual can get tax rebates for up to Rs. 1,50,000 lakh if the premium payment does not exceed 10% of the sum promised. The accidental death benefit rider provides a two-fold tax advantage to the life guaranteed, since premiums paid for the rider qualify for tax exclusions under Section 80D of the Income Tax Act of 1961.


Thus, adding riders to an insured individual's normal term insurance policy protects their family against financial troubles resulting from uncertain events. Individuals should always select riders based on their particular requirements in order to offer their loved ones more comprehensive security and to assist them in achieving their life goals.

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