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Why the Accidental Death Benefit rider is important?

  6/18/18 10:38 AM

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Making the most of each day and living your life to the fullest is important but at the same time you have to plan for your future too.

Just how life brings happy and joyful surprises it also brings tragic and shocking moments like illnesses, accidents and death.

Life insurance can play a role of an umbrella to save you from these tragic rainy days. Life insurance is crucial to each and every individual no matter their financial status. We all have financial dependents in one way or another.

Life insurance isn’t just making sure that your family has money in your absence; it is about providing them complete financial security even when you are either not in a position to provide for them or when you are not around. Life insurance acts as an income replacement to your family members.

Accidents happen and they happen a lot more frequently than you would like to believe. There is one death every four minutes due to accidents. Every year, more than 1.46 lac individuals lose their lives in accidents, leaving behind a trail of tears and devastation. In case of such a tragedy, your family would be forced to cope with the financial pressure in your absence. Accidents are unexpected. That’s why this must be a part of your insurance plan. Adding an Accidental Benefit Rider to your life insurance policy enables you to get the maximum advantage from your life insurance. The accidental death benefit rider ensures that your beneficiaries get additional life cover in case of your demise due to an accident. An accidental death benefit rider is advantageous because you get additional life cover at a cheaper cost as compared to purchasing another policy.

No individual is invincible nor can he predict his future. Accidents don’t come along with a warning or a sign; they just happen, and if you don’t prepare for complete protection today, then there is a high probability that it might be late to secure your family’s financial future.

You and your family have planned for various dreams and goals. Your children aspire to go abroad and study. It is your responsibility to make sure that these don’t just remain dreams but actually materialize into reality even in your absence. Accidental benefit riders provide additional cover to your family members apart from the base life cover in case of your demise due to an accident.

Let us understand the benefits of an accidental death benefit with an example:

Raj purchased a life insurance policy with a Sum Assured of Rs 50, 00,000 and an additional Accidental Death Benefit rider which will provide an additional coverage of Rs 10, 00,000. However, an additional amount is charged for the accidental death benefit of rider.

Premium without Rider – Rs.10,000 p.a.

Premium with Rider – Rs.10,000 + Rs.800 = Rs.10,800 p.a.

Now if Raj dies in an accident within the policy tenure, then his nominee would receive a sum of Rs 50, 00,000 plus Rs 10,00,000 i.e. Rs 60,00,000 in total. So Raj has got additional Rs 10,00,000 coverage by only adding Rs 800 to his premiums for the accidental death benefit rider.

An accidental death benefit rider is extremely beneficial because Incidents of reckless driving and uncertain terrains have made every day commute risky. Road accidents often lead to death. Insuring yourself against accidents is indeed a sensible option as the cost of adding the rider is nominal and it would provide the extra benefit to your family if a sudden accident occurs!

To know how much a rider would cost you, click here:


Neha Panchal - Financial Content Writer

Neha used to be an Engineer by Profession and Writer by passion, which is until she started pursuing full-time writing. She's presently working as a Financial Content Writer, with a keen interest in all things related to the Insurance Sector.

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