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-
- Additional sum assured: In case of an unfortunate accidental death of the life assured, the rider sum assured is paid to the nominee.
- Coverage: The minimum coverage starts from INR 10,000 and the maximum can go up to the base plan coverage (subjected to underwriting).
- 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.
- 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.
- 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 -
- Self-inflicted injury
- 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?
- People who commute long distances on a daily basis or travel regularly
- People who work in the engineering and construction industry
- Factory workers