Does Term Insurance Cover Accidental Death?

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.  

Note: Know more about what is term insurance first before reading this article.

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.

Note: Check all the best term insurance plan in India.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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