Accidental Total and Permanent Disability Rider

Accidental Total and Permanent Disability Rider is an added coverage available with life insurance plans. This rider offers you protection against unexpected accidents which may result in a total or permanent disability. Such a disability can make you unfit for earning a living, causing an emotional and financial distress. In such a case, this rider is beneficial. 

Features of Accidental Total and Permanent Disability Rider

The common features of an Accidental Total and Permanent Disability among the various insurance providers are as follows- 

1. Entry Age - The minimum entry age under the rider is generally 18 years and the maximum entry age ranges from 60 years to 65 years based on the selected insurance provider.
2. Benefit Payout - Some insurance companies offer the benefit under this rider as a lump sum while some offer the benefit in the form of a monthly and regular income.
3. Disability Duration - The disability should last for a fixed period of time (generally consecutively 180 days) to qualify as a total and permanent disability.
4. Availability - The rider can be attached to the base life insurance plan either at the time of policy inception or at subsequent policy anniversary of the base plan.
5. Rider Premium Payment Term (PPT) and Mode: The rider PPT is generally less than or equal to the PPT of the base life insurance plan. The rider premium payment mode shall remain as the mode for the base plan.
6. Covered Physical Impairments - The rider benefit is provided in case of the following:
7. Loss of sight of both eyes
8. Loss of use of one limb and the sight of one eye
9. Loss by severance of two or more limbs at or above wrists or ankles
10. Total and irrecoverable loss of sight of one eye and loss by severance of one limb at or above wrist or ankle.

Benefits of Accidental Total and Permanent Disability Rider

Under this rider, the benefit is paid in either of the following ways 

1. Lump Sum - In the event of total and permanent disability due to accident, 100% of the rider sum assured is paid as a lump sum to the life assured.
2. Sum Assured Over a Certain Number of Years - Some life insurance companies pay out a certain percentage (generally 120%) of the Rider Sum Assured over a period, generally 5 years.
3. Monthly Income -  Under some plans, the benefit is paid as a percentage of the sum assured as a regular monthly income, which is usually 1% of the Sum Assured for a fixed period. The period can be 5 or 10 years or as per the plan.

How Accidental Total and Permanent Disability Rider Works?

Let’s understand the working of this rider with the help of an example - 

On the basis of the chosen insurance provider, the rider benefit will be paid to Mr. Shah in one of the following ways - 

1. Lump Sum - A lump sum of INR 20 Lakh will be paid to Mr. Shah in the event of a total and permanent disability.
2. 120% of Sum Assured over 5 Years - Mr. Shah will be paid the sum assured in annual equal instalments of INR 4.8 Lakh for 5 years.
3. 1% Sum Assured as Monthly Income for 10 Years - A monthly income of INR 20,000 will be paid to Mr. Shah for a fixed period of 10 years.

Accidental Total and Permanent Disability Rider Exclusions

The rider comes with the following exclusions - 

• Attempted suicide
• Self-inflicted injuries
• insanity
• Injuries due to racing, underwater activities, martial arts, hunting, mountaineering, parachuting, bungee jumping, etc.
• Injuries due to breach of law or
• Injuries due to influence of drugs, liquor etc.
• Aviation activities or aeronautics unless the life assured is a passenger on a licensed and scheduled commercial aircraft
• Injuries due to disease, infection, terrorism, war, or military duty
• Nuclear contamination

Who Should Buy an Accidental Total and Permanent Disability Rider?

1. Factory workers, construction site, and mine workers
2. Sole breadwinners of the family
3. People who commute frequently through a vehicle or train