Reasons Why You Should Purchase A Term Insurance Plan With Accidental Death Benefit Rider

Term insurance plans are widely known for providing financial assistance to your family in difficult times. This is a pure protection life insurance plan which provides death benefit in case of an unforeseen demise of the life assured during the policy term. Under this plan you can add riders to increase the power of coverage under the base policy.

Riders are a type of upgrade to your existing insurance policy because it provides additional coverage and some riders such as Accidental Death Benefit riders are worth every penny.

Term Insurance Policy with Accidental Death Benefit Rider

The uncertainties of life make people vulnerable to death because of many reasons. Accidents are a common cause of deaths and purchasing a term plan with accidental death benefit can be a way to be financially prepared for such a possibility. In case of an unfortunate demise of the life assured caused in an accident during the policy tenure, a rider benefit shall be provided to the nominee along with the death benefit. This rider will help your family fulfill immediate financial requirements in your absence. 

Benefits of Purchasing Accidental Death Benefit with a Term Insurance Plan

Following are the benefits of purchasing a term insurance plan with accidental death benefit rider:

1. Additional Financial Security

Purchasing a term insurance plan with an accidental death benefit rider will provide additional financial security for you and your family. In case of your unfortunate demise caused in an accident during the policy term, your family will be provided with a rider sum assured along with the death benefit which will provide additional financial security to your family, allowing them to fulfill immediate financial requirements. 

2. Additional Coverage at an Affordable Price

When you choose to purchase an accidental death benefit rider with your term insurance plan, you get additional coverage at an additional premium rate. Usually riders are inexpensive and provide additional coverage at an affordable price.

3. Tax Benefits

You can also avail tax benefits by purchasing accidental death benefit riders. Premium paid for life insurance riders are eligible for tax benefit under section 80C and 10(10D) of the Income Tax Act, 1961.

Reasons Why You Should Purchase A Term Insurance Plan With Accidental Death Benefit Rider

Following are some reasons why you should purchase a term insurance plan with accidental benefit rider:

• Provides financial protection from accidental death
• Provides additional coverage
• Offers tax benefits
• Is a must purchase for people who travel on a daily basis

Also read:- Common Features of a Life Insurance Plan

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.