Prices Increasing soon Prices Increasing Soon

Accidental Death 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
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
+91
Secure
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

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.

Different types of Plans


Premium By Age

Term insurance articles

  • Recent Article
  • Popular Articles
22 Feb 2024

Tata AIA 50 Lakh Term Insurance

Ensuring the financial well-being of your family requires

Read more
22 Feb 2024

SBI Life 75 Lakh Term Insurance

SBI Life Insurance Company offers a variety of sum assured to

Read more
22 Feb 2024

Kotak 50 Lakh Term Insurance

Securing your family's financial future involves detailed

Read more
22 Feb 2024

SBI Life 70 Lakh Term Insurance

Many people are confused about the ideal life cover amount and

Read more
22 Feb 2024

PNB 50 Lakh Term Insurance

Securing your family's financial stability involves thoughtful

Read more
07 Mar 2014

1 Crore Term Insurance - Buy ₹1 Cr Term Insurance Plan...

Term insurance is a type of insurance plan that offers financial security to your loved ones in the event of your

Read more
27 Jun 2018

What Is Difference Between Term Insurance And Life Insurance

Life insurance plans help you create wealth, protect your family for the entire policy term, and save on your

Read more
12 Jun 2018

Claim Settlement Ratio of Term Insurance Plan Providers

Claim Settlement Ratio (CSR) is an important parameter in the selection of an insurance policy. If you are going

Read more
24 Mar 2020

LIC Term Insurance 1 Crore

LIC of India offers various plans to help you secure the financial future of your loved ones. To ensure your

Read more
20 Aug 2014

Term Insurance for Women in India

Term insurance for women is a type of life insurance specifically designed for fulfilling women’s needs and

Read more
top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL