Accidental Death Rider VS. Death Benefit
Table of Contents
An insurance policy is absolutely essential in today's world. It helps ensure that your earnings are efficiently saved up so that they can serve you as well as your family, in the future. In case of death of the policyholder, their beneficiaries are granted financial help by their insurance providers. This is especially crucial if the primary earning member of the family passes away. The insurance plan provides compensation in case of accidental deaths as well as regular deaths.
Accidental Death Rider VS. Death Benefit
Take a look at what financial help you can get for your beneficiaries whether it is for a regular death or in case of accidental death.
Accidental Death Rider |
Death Benefit |
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This is an add-on feature that is available with most insurance plans. |
This is an in-built feature that is provided in almost all types of insurance plans. |
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Provided in case the policyholder dies due to an accident before the end of the policy term. Sufficient proof has to be provided in order for the insurance provider to be convinced that it was an accident. |
Provided to the beneficiaries in case the policyholder died before the end of the policy term. Regular deaths are covered by this benefit and only valid proof of death has to be shown. |
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An additional premium has to be paid besides the regular premium of the insurance plan, for this rider to stay valid and continue to cover the policyholder. |
The regular premium covers the death benefit that has to be paid out since this is an integral feature of the insurance plan. |
The conditions of the Accidental Death Rider might differ from one insurance company to another. There might also be other rider options present for a particular plan. This is why it is important to refer to the plan brochure to know what exactly each benefit entails. Both these benefits can be paid out in lump sum or in installments according to the agreement between the policyholder and the insurer.
Conclusion
A robust and comprehensive life insurance plan will help protect you, as well as your dependents, even in your absence. An accidental death rider makes your plan more comprehensive and provides additional protection for unexpected situations. It is especially advantageous for those who work in risky occupations. The death benefit is an integral part of every life insurance plan and helps make the most use of your savings. There are no additional costs involved for it but it is paid out no matter what the cause of death is.
Also Read:
Tips for Purchasing A Term Insurance Plan Online
Tips To Reduce Term Insurance Policy Premium
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
