Accidental Death Benefit Rider And Its Benefits
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Riders are optional, extra benefits, in addition to standard insurance coverage, that you can include to your term life insurance plan. They will not only increase your payroll, they will also cover other unforeseeable conditions such as accidents, permanent and partial disability, major illnesses and more. One such rider is the Accidental Death Benefit Rider. It is a supplementary benefit to you and your family against accidental death or incapacity through the life insurance plan. It acts as a double compensation rider, whereby both the life insurance policy amount and the driver's cost is compensated for death by accident.
Why is Accidental Death Benefit Rider Important?
The accidental death rider is so significant because the death is guaranteed, because he deals with an absolute, irrevocable loss. This means that his/her family has the emotional grief to deal with and is now facing immense financial strain. Medical costs of emergencies are already a massive expense, and if deadly, the loss of life and future income must be dealt with by the family.
By implementing the accidental death benefit rider, we can cushion the blow from this simultaneous threat to hospital bills and the continued revenue loss from the bread-death. winner's The rider protects the family against accidents / deaths which can damage the income of the family for months or even years. If the insured dies, he or she gets a supplementary amount - normally twice the value.
If the life of an insured person suffers any bodily injury coming entirely and directly from an outbound, violent, and visible accident, and the injury occurs in 180 days following the accident, the death is assumed to be an accidental death exclusively, directly and independently of any other cause.
Details and Exclusions of Accidental Death Benefit Rider
The rider is excluded from some aspects. In other words, the deaths from events like war acts, self-inflicted dangers, illegals and risky pastimes are not eligible for a rider's benefit. There are also age restrictions on the rider's benefits - for example, once he reaches 75 years, the rider must not apply to the customer. After you have crossed 65 you can't enter a rider.
If you get a cost effective Term Insurance for your future and add the Accidental Death Benefit Rider to it, the minimum sum assured under the rider is Rs 50,000.
The accident is not payed if the injury, suicide, death due to alcohol and drugs, disturbance, civil distractions, war, bungee jumping, river rafting, scuba diversion, military employment, aerial or aeronautical accident, and other circumstances as set out in policy. Accidental death rider benefits shall not be paid when the occurrence is a result of the accident.
Take Away
The usefulness of the accidental death benefit rider is evident, and since the added cost of a rider is small, this addition to your entire life insurance policy makes a lot of sense given the perks it offers you in the long term. It's much better to be safe than sorry, even in the midst of unforeseen and unpleasant events that you prepare for your family.
You may also like to read - What is a disability rider in life insurance?
