Does Term Insurance Cover Accidental Death?

Term insurance coverage is the plan that provides you insurance cover in your lifetime and death benefit in times of eventuality. Term insurance follows a simple structure. You pay monthly premiums fixed at the time of purchase of the policy. In return, your family gets a death benefit.

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The term insurance is specifically curated to help beneficiaries with the death benefit after the policyholder's demise. Some deaths do not get covered in the term insurance plan. It is advised to carefully read the entire insurance contract to avoid complications in the future.  

How Can Term Insurance Cover Be Enhanced?

A pure term insurance plan provides death benefits, but you can enhance its benefits by adding riders like accidental death or accidental disability riders. Riders are the add-on benefits that you can add to your base policy. 

You can choose from critical illness rider, waiver of premium rider, or income benefit riders. They act as an amendment to your basic insurance policy contract. Adding insurance benefit riders could increase your premiums, but they provide benefits in specific situations.

What is the Accidental Death Benefit Rider in Term Insurance?

The accidental death benefit is most suited for the policyholders interested in providing their families with financial cover in the form of the death benefit. In the situation of fatal accidents, medical expenses are bound to be high. The accidental death benefit rider adds benefits to the base coverage. 

Let us assume you took the base coverage for Rs 8o Lacs and added the accidental death rider that provides Rs 20 lacs. In case of an eventuality, your nominee will be entitled to Rs 1 Crore as insurance money. 

It should be noted here that the accidental death benefit is a rider. It only provides extra value if it meets specified criteria. If the policyholder dies of natural causes, the insurer will not apply the accidental death benefit rider. Your beneficiary will only get the base sum assured. 

What is Accidental Disability Rider in Term Insurance?

Accidents can take a life that can leave scars on people. You may survive a nearly fatal accident but it may leave you permanently disabled. Medical expenses today are skyrocketing. 

You can get around this situation by adding the accidental disability rider to your term insurance. If an accident causes you a permanent disability, you can get a percentage of your sum assured during the policy period through the accidental disability rider. 

This rider acts as a boon for those people who lose their livelihood fully or partially because of an accident. The amount that you get under the accidental disability rider will depend upon the nature of your disability. This will vary from insurer to insurer as they will specify their terms and condition regarding the rider. 

Additional Coverage

Accidental death and disability are by default covered in the term insurance policy. After the accident is fatal or otherwise, the insurer pays the sum assured depending upon the severity of your condition. The whole purpose of add-on riders like the accidental death benefit and the accidental disability riders is to provide extra coverage for you or your family. 

Adding a rider to the base term insurance plan will increase your premiums slightly but the benefits it offers are higher. 

Who Should Add Riders in Term Insurance Plan?

It is not compulsory to add a rider to the base coverage of your term insurance plan. However, it is advised for the people who are the sole earners of their family or work in hazard-prone environments. 

People with the following job profiles should consider getting add on rider along with their term insurance plan: 

  • Mining 
  • Security personnel
  • Heavy industry worker 
  • Work that requires frequent traveling 
  • Construction worker 

Having add-on benefit riders will provide extra coverage to the family in times of eventuality. 

In Conclusion

Term insurance is a great way to have coverage in your life. With the added riders, you can extend the benefits of the term insurance coverage plan. Add-on rider is the extra benefit. It will not reduce or compromise your base sum assured in any way. 

You will have to pay slightly more premium on each rider that you add to your term plan.  It will provide monetary returns in the case of an eventuality and provide for the disabilities after the accident.


  • Q. How can claimants apply for the death benefit after the policyholder's death?

    Ans: If the policyholder passes away during the term period, then claimants need to apply for the death benefit. Claimants need to follow the below-mentioned steps: 
    • Claimants should inform the insurer about the policyholder's death either telephonically or in person. 
    • Fill up the form along with the required documents, namely proof of death, proof of nominee, nominee identification documents. In case of accidental death, provide a copy of the FIR and post mortem report along with it. 
    • Submit all the policy documents and initiate the process. 
  • Q. Can I get insurance cover for my spouse under my term insurance plan? 

    Ans: Yes, multiple policies allow coverage for both spouses under one plan. You also get various benefits along with it. While purchasing a policy, you can opt for an endowment plan. It will extend the benefits of your insurance coverage to your spouse. 
    You can also add riders like accidental death benefit, an accidental disability rider, a permanent disability rider, or a critical illness rider for both spouses under the same term insurance plan. 
  • Q. Can I cancel add-on riders on my term insurance policy during the free look period?

    Ans: The freelook period usually lasts between 10 and 15 days depending upon the insurer. Insurance companies allow policyholders to cancel add-on riders during the free look period without attracting any penalties from the insurer. 
    You can cancel the add-on rider after the free look of purchasing the policy by providing proper documentation. After the cancellation of the rider, the insurer will recalculate your premiums and set another fixed premium.
    You can also terminate the term insurance policy by providing proper documentation. After the termination of the base policy, riders will automatically get terminated. 
  • Q. What will happen if I miss my premium payments? 

    Ans: Insurance companies do not cancel the term insurance coverage if you miss one or two payments. They will provide you with the grace period to pay the due premium. After the grace period is over, the company will reevaluate the situation and take necessary action. If the policy is terminated after the grace period, the policyholder will get the premium refund minus the penalties on the due premiums.
    If the policyholder passes away during the grace period, claimants will still get the death benefit. The insurance company might reduce the penalty on account of due premiums from death benefits. The grace period often lasts up to a month, depending upon the insurer. 
  • Q. How much should I choose the sum assured for my term insurance plan?

    Ans: The sum assured of life insurance cover will vary from person to person. It is advised to consider the following factors before purchasing term insurance cover: 
    • Net annual income of you and your family
    • Number of family members
    • Standard of living/lifestyle
    • Existing loans and other financial commitments/liabilities 
    • Estimated expense on children's education or wedding
    Once you make an estimated calculation based on the above factors, you can subtract it from your finances. You will get the approximate amount of the Term Life Insurance Plan you wish to purchase. The amount of the Term Insurance plan will also depend upon the kind of plan you choose and the riders you choose to add. 
  • Q. Do I get the tax benefits on the term insurance plan?

    Ans: You can claim tax deductions on your term insurance plan. While filing an income tax return, you can claim tax rebates up to Rs. 1.5 lacs for term insurance premiums paid under Section 80 C and Section 10(10D) of the Income Tax Act 1961.

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