Accidental Death Benefit Rider

Accidental Death Benefit (ADB) Rider is one of the most opted life insurance riders as it shields you against an irreversible loss i.e the death of the life assured due to an accident. When you opt for this rider, an additional sum assured is paid to the nominee in case of an accidental death along with the basic death benefit. 

Features of Accidental Death Benefit Rider

The common features of an Accidental Death Benefit rider among the different insurance companies are as follows- 

  1. Additional Sum Assured: In case of an unfortunate accidental death of the life assured, the rider sum assured is paid to the nominee.
  2. Coverage: The minimum coverage starts from INR 10,000 and the maximum can go up to the base plan coverage (subjected to underwriting).
  3. Eligibility: The minimum entry age is 18 years, however, the maximum entry age varies from 60 years to 65 years as per the terms of different insurers.
  4. Rider Premium Payment Term & Mode:  The minimum term of 5 years and maximum up to the base plan policy term. The premium payment mode is the same as base policy payment mode.
  5. Availability: This rider can be opted for during the policy inception as well as at the time of policy anniversary.

Benefits of Accidental Death Benefit Rider

To get the death benefit under this rider, one needs to know the definition of an accident under the rider, which is defined as “a sudden, unforeseen, and involuntary event caused by external, visible, and violent means,” and in case of accidental death, the rider death benefit is paid.

Death Benefit: In the event of the death of the life insured due to an accident (defined as per the terms of the policy) during the rider policy term, 100% of Rider Sum Assured is payable to the nominee.

How Accidental Death Benefit Rider Works?

When an Accidental Death Benefit rider is attached to a  life insurance plan, the nominee receives an additional death benefit along with  the basic sum assured. 

For instance, if the basic sum assured under term life insurance plan is INR 50 Lakh and if the life assured opts for an ADB rider of INR 10 Lakh, then a sum of INR 60 Lakh will be payable to the nominee in case of life assured’s  death due to an accident.

Accidental Death Benefit Rider Exclusions

The sum assured under this rider is payable if the life assured dies within 120 to 180 days of the accident, this range may vary from insurer to insurer. It is advisable to check the rider’s terms and conditions before opting.

Other Major Rider Exclusions: Death of the life assured due to any of the following is not eligible for any benefit under the rider - 

  • Suicide
  • Self-inflicted injury
  • Insanity
  • Influence of liquor, drug, or any narcotic
  • Pre-existing diseases/injuries
  • War, terrorism, invasion, rebellion, nuclear contamination, or civil commotion
  • Participation in naval, military or air force operation
  • Criminal/illegal activity
  • Participation in professional sport(s) or any hazardous pursuits, including martial arts, mountaineering, parachuting, and bungee jumping

Who Should Buy Accidental Death Benefit Riders?

  1. People who commute long distances on a daily basis or travel regularly
  2. People who work in the engineering and construction industry
  3. Factory workers

Accidental Death Benefit Rider FAQs

  • 1. Is it worth it to opt for an Accidental Death Benefit rider along with the life insurance policy?

    Yes, it is wise to opt for an ADB rider with your base life insurance plan as it helps you extend the financial coverage for your loved ones when they are already suffering from emotional grief.

  • 2. Is there any tax benefit of buying an Accidental Death Benefit Rider (ADB) rider?

    Yes, the premium paid towards the Accidental Death Benefit rider is eligible for a tax deduction of up to INR 1.5 Lakh under Section 80C of the Income Tax Act.

  • 3. Can I cancel the Accidental Death Benefit Rider option after purchasing the insurance policy?

    Yes, just like the base plan, an Accidental Death Benefit rider also comes with a free-look period of generally 15 days in case of offline purchases and of 30 days in case of online purchase from the date of receipt. During this free-look period, you can return the rider if you are not satisfied with its terms and conditions. However, the premium will be refunded after the deduction of statutory charges by the insurance provider. The rider can also be cancelled anytime after the expiry of the free-look period, however, after such cancellation, the option of re-opt for the rider generally remains unavailable during the policy term.