What Is an Accidental Death Rider In Term Insurance?
Table of Contents
An extra feature you may include in a term life insurance policy or whole life insurance policy is an accidental death benefit rider. If you pass away in an accident that is covered by this rider, your loved ones will have access to a greater cash settlement, or "death benefit." That implies that your family will nevertheless be compensated fairly if you pass away suddenly as a result of one of the covered accidents.
In contrast to an accidental death benefit policy, you may typically add an accidental death benefit rider to that of an existing life insurance policy, allowing you to customise it to meet your unique needs. To know more about accidental death riders, read on.
What Exactly Is An Accidental Death Rider?
One of the most important riders for term insurance is accidental death benefit. The rider provides assistance in coping with the event of death guaranteed and the associated financial hardship. The rider covers the potential loss of earnings that might have a long-term impact on the family and is quite helpful in reducing the financial burdens in the case of an accident involving the life guaranteed. This rider gives the nominee the sum assured in addition to the standard term insurance. People who often use a personal automobile or public transit are urged to take this rider.
What Is The Importance Of Having An Accidental Death Rider?
Among the most popular riders that customers frequently select for their term insurance plan is the accidental death benefit rider. In dire circumstances, this rider offers financial assistance to the life assured's family. Following are the important reasons for having an accidental death rider:
-
Protective Layer -
By adding this rider, life is guaranteed and their families are given additional financial security against life's uncertainties. The family of the life assured will receive both the death benefit under the term insurance policy and the rider bonus amount in the case of accidental premature death of the life assured. The rider benefit claimable under this rider could indeed serve as a shield, providing money for the family to accomplish their immediate expenditures, and daily expenditures, maintain their lifestyle and accomplish their objectives in the absence of the life assured. This rider could indeed guarantee financial security for the family of the insured person under challenging circumstances.
-
Payouts -
The rider benefit amount may be given in a single lump sum or in a series of payments that the life assured's family may use as a reliable source of income. The nominee is free to select the payment choice based on their needs and circumstances in terms of money. If the nominee chooses a lump amount, the rider benefit will be delivered simultaneously with the death benefit as a lump sum, and if the nominee chooses regular installments, the nominee will receive the rider benefit in equal monthly payments over a specified period of time.
-
Medical Examination -
There is no need for a medical evaluation in order to add an accidental death benefit to a term insurance policy. This rider does not need to be medically examined because it offers extra financial protection from unforeseeable circumstances. This is also another important advantage of getting an accidental death benefit rider.
-
Claim Settlement -
The family would want a simple claim settlement without being bogged down in paperwork under trying situations like the untimely death of the life guaranteed caused by an accident during the coverage term. In these situations, the insurance companies work to resolve the claim as quickly as they can without bothering the family member. In order to achieve this, they only demand the bare minimum of paperwork. The insurance companies provide a simple and rapid claim settlement process.
Endnotes
Adding an accidental death benefit rider, it expands the coverage under your policy. And by including this layer of protection now, you can spare your family from having to cope with substantial anticipated costs in the future.
Also Read:
