A term life insurance provides basic insurance coverage and pays out in case the policyholder dies during the term of the policy. Riders provide additional benefits to the term life insurance. They help in covering more unforeseen life situations such as accidents, critical illnesses, and others.

What is Accidental Death Benefit Rider

An accidental death benefit# rider(optional) is one of the most important riders. The major benefit of an accidental death benefit rider is that it gives an extra payout in case of death due to an accident. Accidental deaths are often accompanied by additional financial burdens and stress to your loved ones. It can be very useful useful for people who travel regularly by transport such as bikes where the safety factor is lesser than that of cars or buses. It is also one of the most affordable rider benefits to have. An accidental death benefit rider covers fatal accidents, wrongful death, homicides, airplane crashes, falls and fire-related injuries.


How does Accidental Death Benefit Rider work?

Any bodily injury that the policyholder sustains solely and directly from the accident, independent of other causes, that results in the death of the person within 180 days is deemed as a case of accidental death.

Let’s look at an example of how the accidental death benefit rider works. Mr. Sharma is a 35-year-old man with a spouse and a child. He has a life insurance policy of ₹ 50 lakh. He has added an Accidental Death Benefit Rider of ₹ 20 lakh to his insurance policy. Mr. Sharma faces a situation of accidental death. In this circumstance, when the family claims the death benefit, the amount would be ₹ 70 lakh. Without the rider, they would have received only ₹ 50 lakh.

Inclusions of Accidental Death Benefit Rider

  • Car or traffic accidents

    Demise due to a car accident or other similar traffic incidents are covered under the accidental death benefit# rider
  • Airplane crashes

    Demise in an airplane crash is covered under the accidental death benefit# rider
  • Falls

    Demise due to an injury sustained in a fall is included in the accidental death benefit# rider
  • Firearm accidents

    Firearm accidents leading to the unfortunate demise of the policyholder are covered under the accidental death benefit# rider
  • Fire injuries

    Injuries sustained in a fire resulting in the unfortunate demise of the policyholder are included in the accidental death benefit# rider

Exclusions of Accidental Death Benefit Rider

There are a few cases that are excluded from accidental death benefit# claims. Death due to an accident should not be caused by the following:

  • Attempted suicide or self-inflicted injuries while sane or insane, or whilst the Life Assured is under the influence of any narcotic substance or drug or intoxicating liquor except under the direction of a medical practitioner; or
  • Engaging in aerial flights (including parachuting and skydiving) other than as a fare-paying passenger or crew on a licensed passenger-carrying commercial aircraft operating on a regular scheduled route; or
  • The Life Assured with criminal intent, committing any breach of a law; or
  • Due to war, whether declared or not or civil commotion; or
  • Engaging in hazardous sports or pastimes, e.g. taking part in (or practising for) boxing, caving, climbing, horse racing, jet skiing, martial arts, mountaineering, off-piste skiing, pot holing, powerboat racing, underwater diving, yacht racing or any race, trial or timed motorsport.

Why Buy Accidental Death Benefit Rider?

  • Tax Benefits

    The premium paid towards a life insurance plan qualifies for a deduction as per The Income Tax Act,1961. Accidental death benefit# rider (optional) can be added for an additional charge to your base policy. You can claim a deduction for the premiums paid under Section 80C* of The Income Tax Act, 1961.
  • Minimal Documentation

    Buying the accidental death benefit# rider is simple. You do not need any elaborate documents or complete additional formalities. You can simply purchase the rider along with the life insurance policy by filling an application form.
  • Enhanced Protection

    Riders like the accidental death benefit# enhance your plan’s coverage by offering you an additional layer of protection. They help in diverse situations and offer the necessary financial support to your loved ones.

Documents Required for Accidental Death Benefit Rider Claim

Please click here to know the about the list of documents required to intimate a claim under accidental death benefit rider.

Conclusion

With ICICI Pru iProtect Smart Term Insurance plan, you can get a life cover` with a sum assured of up to ₹ 1 crore. You also have the option to increase the life cover` at important milestones of your life. Adding an accidental death benefit rider# (optional) can enhance the value of the term insurance policy. For instance, your family can get up to ₹ 2 crore in case of an unfortunate demise due to an accident#. This can help your family get through tough times of emotional and financial loss.

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1. How does Accidental Death Benefit differ from regular life insurance?

An accidental death benefit# is an optional rider that can be added to regular life insurance to enhance its coverage. The rider offers an additional payout on top of the basic sum assured provided by life insurance in case of the life assured’s demise due to an accident. The accidental death benefit# rider provides coverage against specific accidents, such as car accidents, airplane crashes, falls, firearm accidents and fire injuries.

2. Do I need an Accidental Death Benefit rider if I already have a health insurance policy?

An accidental death benefit# rider and a health insurance policy are entirely different insurance products. The former offers an additional payout in the tragic event of death in an accident, while the latter provides financial support or reimbursement towards healthcare expenses.

Therefore, it is advised to purchase an accidental death benefit# rider even if you already have a health insurance policy.

3. Do I need an Accidental Death Benefit rider if I already have a life insurance policy?

Adding an accidental death benefit# rider is entirely optional. It can be beneficial for people who travel frequently. So you can choose to purchase it if you want to provide your loved ones with additional financial security to cope with the sudden loss of your absence.

4. Who is eligible for Accidental Death Benefit rider?

Anybody can purchase an accidental death benefit# rider. The eligibility criteria for buying an accidental death benefit# is the same as that for life insurance. You can buy the rider as long as your life insurance policy offers the option to add it.

5. Is the Accidental Death Benefit payout given in addition to the regular life insurance death benefit?

Yes, the accidental death benefit# payout is given to the nominee in addition to the death benefit from regular life insurance. The rider can be helpful in providing enhanced financial protection to families.

6. How is the Accidental Death Benefit calculated?

Insurance companies usually calculate the accidental death benefit# on the basis of the chosen life cover amount of the life insurance plan.

For example, with ICICI Pru iProtect Smart term plan, you can select the Accidental death benefit# as an add-on while purchasing the policy and the maximum amount you can receive under the benefit can be up to ₹ 2 crore.

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# Accidental Death benefit (ADB) is up to ₹ 2 crores (subjected to underwriting guidelines). ADB is available in Life Plus and All in One options. In case of death due to an accident Accidental Death Benefit will be paid out in addition to Death Benefit. Accidental Death Benefit will be equal to the policy term or (80-Age at entry), whichever is lower.

` Life cover is the benefit payable on the death of the Life Assured during the policy term.

* Tax benefits are subject to conditions prescribed under Sections 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for more details.

 

ICICI Pru iProtect Smart UIN (A Non-Linked Non-Par Life Individual pure risk premium product)

W/II/0094/2022-23

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