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How Accident Benefit Riders with Life Cover Can Help You? 

In most developed countries across the globe, personages have a propensity to be more independent and self-reliant as they adopt several financial instruments in order to live their lives with nobility, dignity and comfort. If unfortunately, the life span of the individual is cut short by unanticipated events, the dependents, too, survive with the same extent of comfort and dignity, in terms of income and expenditure capabilities.

In a world full of uncertainties, life insurance has always been a very enduring and scientific instrument to provide financial security. Mahatma Gandhi, in his autobiography, My Experiments with Truth, has cited an American Life Insurance Agent saying, “We, in America, consider it as a religious obligation to get insurance for ourselves and the family.” Gandhi Ji, himself signed up for a life insurance plan despite having experienced terrific clashes between his faith in God and insurance.

A recent investigation report reveals that, 1, 50, 000 lives have been claimed by just road accidents in 2015 in India. Shocked? But it’s true! But there’s more to it that meets the eye. This figure keeps up multiplying every passing year. Likewise, the data concerning the rail accidents are even more terrifying. More than a thousand accidents in a year are witnessed by the Mumbai suburban railway alone. These catastrophes abandon several numbers of traumatised old and young individuals, along with huge incomplete agendas.

A unique add-on benefit is provided by the life insurance providers through the accident benefit rider. Riders stand for an additional benefit that an insured can acquire together with the anticipated term, endowment, whole life or any other plan on both non-ULIP and Unit-Linked Insurance Policy (ULIP) platforms. This add-on benefit is provided at a very affordable cost as most management expenses are taken care by the original premiums.

Most insurance companies in India charge Re. 1 or lesser for every Rs. 1000 of the assured sum. Concealed by the accident benefit rider, the add-on assured sum is always equivalent to the basic assured sum, and is subject to the highest ceiling per person. The ceiling is usually Rs. 50 Lakhs. To select a rider, you must exercise an easy and simple option when signing up the proposal papers.

In case of the demise of the policyholder with a life cover of Rs. 10 Lakhs, due to an accident as verified in a hospital or police report, the beneficiary is usually allowed to the basic assured sum of Rs. 10 Lakhs and to an add-on sum of Rs. 10 Lakhs as the accident benefit as well. Accrued bonus is also to be paid under the ‘with profit endowment type policies’.

Under the accident benefit rider, most insurance companies also extend full benefit or partial benefits to the ones who meet with accidents, but survive with partial or permanent disability impeding their capabilities to earn for their family and self. Usually, the disability benefits are to be paid over a certain period of time in order to assist the victim along with the family members to come out of the trauma, fiscal loss and dislocation. 

For the accident cover’s purpose, most insurance companies describe the event as having occurred because of some visible, violent, and external means. Demise after a prolonged remedy the following catastrophe might not produce the payment of the supplementary accident benefit sum, if the instant cause of the demise cannot be accredited to the accident. Sometimes, a few disputes are stated to the Ombudsman or the courts in this regards.

Read more: Increase Your Coverage with Life and Term Insurance Riders

The problem with an accident is that it usually shatters a life and leaves an otherwise happy family in a lurch. Teenagers often tend to be audacious, chivalrous or act hastily sometimes to prove to their mates and themselves their superiority in swimming, driving, or climbing, to name a few. They ignore the saying “Better late than never” and give unwarranted invitation to a terrifying tragedy that not only causes damage to them, but also to their nearest and dearest ones.

The other harsh fact about accidents is that it is not really inevitable and somehow, everyone who is out on the road or in a rail is vulnerable to such accidents. Even someone else’s fault may cart off your life any split second. Therefore, before signing a proposal for life insurance cover , it makes sense to solicit an accident benefit rider. Remember, it may get you second chance or at least financially secure your loved ones!

Written By: PolicyBazaar - Updated: 19 August 2020
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