Accidental Benefit In Term Insurance: A Complete Guide

Insurance companies in India offer an extensive range of life insurance policies customized as per the needs and requirements of their customers. Different additional coverage benefits are offered under different term insurance plans.
A term insurance rider is an attachment, amendment, or endorsement made in a term insurance policy that gives the policyholder supplementary coverage. Riders strengthen a term insurance policy by providing multiple additional benefits, apart from the core offering of a death benefit.

Read more
Get ₹1 Cr. Life Cover at just ₹449/month+
Term Insurance plans
Save more with upto 10% discount
Covers COVID-19
Policybazaar is
Certified platinum Partner for
Insurer
Claim Settled
98.7%
99.4%
98.5%
99%
98.2%
98.6%
98.82%
96.9%
98.08%
99.2%

+Tax benefit is subject to changes in tax laws. +Standard T&C Apply

++Discount is offered by the insurance company as approved by IRDAI for the product under File & Use guidelines

Get ₹1 Cr. Life Cover at just ₹449/month+
+91
View plans
Please wait. We Are Processing..
Get Updates on WhatsApp
By clicking on "View plans" you agree to our Privacy Policy and Terms of use
We are rated
58.9 million
Registered
Consumers
51
Insurance
Partners
26.4 million
Policies
Sold

In this article, you will know about features of accidental benefits under various Term insurance plans and features of term insurance plans in general.

What Is Term Insurance?

Term insurance is the purest form of insurance that you can buy for yourself and secure the future of your family after your untimely demise. It is a life insurance policy that provides financial coverage to the nominee in the policy if the life insured dies untimely.

Among all the life insurance policies, Term insurance offers the highest coverage with minimal premiums. Some companies also cover the partial or permanent disability of the insured. Term insurance is the only plan that comes under pure risk.

Features Of Term Insurance

Aspects

Term insurance

Type of Plan

Term insurance is a sole risk coverage plan. It protects the financial future of your family and loved ones in case of your untimely demise.

Coverage

Covers uncertainties of life

Ideal for?

An absolute must financial tool for everyone

Premiums charged

Term insurance is the most affordable life insurance product available in the market.
You can avail of term insurance with a high sum assured at nominal premiums.

Maturity benefit

No maturity benefit is associated with term insurance

Rider benefits

Coverage can be enhanced of your term insurance plan with rider benefits such as critical illness cover, accidental death benefits, the return of premium benefit, etc.

Tax benefit

Available u/s 80C and 10D

Death benefit

Only the death benefit is offered by term insurance

Sum assured

Sum assured as the death benefit is mostly 15-20 times the annual income of the policyholder

Liquidity

Term insurance does not offer any liquidity.

Rider Benefits

Riders strengthen the term insurance policy by providing multiple additional benefits. There are mainly six types of riders under a general term insurance plan

  • Accidental Death Benefit Rider
  • Accelerated Death Benefit Rider
  • Accidental Disability Benefit Rider
  • Critical Illness Benefit Rider
  • Waiver of Premium Rider
  • Income Benefit Rider

Let us know more about accidental death benefit rider

What Is Accidental Death Benefit Rider?

Under accidental death benefit rider, if the insured passes away due to an accident, it pays an additional sum assured. Additional sum assured is calculated based on the original sum assured and varies from one insurance company to another.

The premium for this rider remains fixed for the entire policy term.

It is a misconception that a policyholder can avail accidental death benefit only if an accident is the cause of death. It is not true. The accidental death benefit is paid in addition to the standard benefit payable under a term insurance plan if the insured dies of natural cause.

Example Of Accidental Death Benefit

Look at an example for better understanding:

INR 60 lakhs term insurance policy is taken and the accidental death benefit rider assures an additional INR 20 lakhs on accidental death. INR 60 lakhs will still be paid in case of death not caused by accident, and INR 80 lakhs (60+20) will be paid in case of accidental death.

Types Of Accidental Death Benefit Plans

  1. Group Life Supplement

    An accidental death benefit plan is included as a part of a group life insurance contract

  2. Voluntary

    Offered to members of a group as a separate, elective benefit. Employees are covered for accidents that take place while on the job.

  3. Travel Accident

    Accident protection to workers while they are traveling for business purposes.

Benefits Of Term Insurance

Here are some key features of term insurance that will help you get a better understanding of the plan and help you choose it wisely.

  1. Easy To Understand Than Other Policy Plans

    Buying a term plan is comparatively easy than any other plan. The framework of the term plan is comparatively very easy. There are no deep clauses or terms and conditions when term insurance is involved. It is an easy, hassle-free, and simple plan as there are no investments or saving clauses involved. One needs to pay the premiums on time and the insurance provides cover and benefits during that duration.

  2. Easy To Cancel

    As easy as to start, it can be canceled as well. As there are no investment or premium benefits involved in the plan, it is easy to stop anytime you want.

  3. Lower Premium

    A term plan is much cheaper than your one-time fancy restaurant bill. Believe it or not but it is true. As there are no high investment components involved, term insurance is available at very affordable premium rates as per your annual income and age.

  4. Higher Sum Assured

    Imagine putting 5% effort into your work and getting promoted by your boss. Sounds fascinating right? Term insurance is a kind of plan where at a very minimal premium you can get high coverages. If you choose the correct insurance plan, your loved one will surely benefit from it when you are not there.

  5. Financial Security

    It is big-time financial security for your loved ones once you are not around to look after them anymore. It provides financial protection to the family and takes care of the liabilities in your absence. Don’t hesitate to buy it for your family’s better future when you are not around.

  6. Customizable

    The policy period, coverage, payment options (whether monthly, annually, lump-sum) depends on you. You can customize it as per your suitability.

  7. Critical Illness Coverage

    We know that the treatment of expenses incurred during a critical illness can be exhausting physically, mentally, and most important financially. As the critical illness in life is not predictable, a term insurance plan works wonders during this testing time. It is highly recommended to avail of critical illness coverage benefit in your term plan, as you never know what lies in the future. 

  8. Ultimate Tax Benefits

    All the premiums you pay are tax-exempted under Section 80C. With critical illness cover, you can also avail additional tax benefits*.

    * Tax benefit is subject to changes in tax laws

Conclusion

Additional riders offer great coverage to the policyholder and are definitely beneficial in the long run. Term insurance rider benefits help both you and your family to plan a better life.

Indeed, accidents cannot be planned but one can very well prepare for them beforehand.

Types of Term Plans


Term insurance articles

Recent Articles
Popular Articles
LIC Relaunched A Term Assurance Plan: LIC New Jeevan Amar

25 Nov 2022

Life Insurance Corporation (LIC) of India recently relaunched...
Read more
HDFC Term Insurance Customer Care

18 Nov 2022

HDFC life insurance company offers various term life insurance...
Read more
Limited Pay Term Insurance Plans for 15 Years

04 Nov 2022

The limited Premium payment option allows you to pay the premium...
Read more
HDFC Life Click 2 Protect Elite

20 Oct 2022

HDFC Life Click 2 Protect Elite is a comprehensive term insurance...
Read more
This Bhai Dooj Gift Your Sibling Financial Security With Term Insurance

12 Oct 2022

Bhai Dooj celebrates the spirit of love and affection between a...
Read more
Zero Cost Term Insurance Plan
Zero-cost term insurance is a new variant of term plans in which the policyholder has the option to exit the term...
Read more
Life Insurance Companies in India
Top Life Insurance Companies of India With Claim Settlement Ratio Life Insurance Companies in...
Read more
Term Plan with Return of Premium - TROP 2022 | Policybazaar
Term insurance Return of Premium (TROP) is a variant of a term insurance plan in which the entire premium paid...
Read more
Term Life Insurance for NRI in India
Every bread-earner wishes to provide financial security and stability to his/her family in some way. Whether you...
Read more
LIC Term Insurance 1 Crore
If you have a LIC term insurance 1 Crore handy, you can cherish all your happy moments as you have made a fine...
Read more

top
View Plans
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL