What Benefits does an Accidental Death Rider Provide?

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When you buy an insurance policy, you must note that your insurance policy provides you with a combination of different features that offer comprehensive coverage. Sometimes, to avoid getting a plan with inadequate coverage, you may end up opting for a plan with high coverage thinking you are getting the best permanent life insurance. However, a high level of coverage will lead to you paying higher amounts of premium. 

To avoid such a situation, you can include riders to your insurance policy. A rider is an additional coverage which will cover a specific problem and provide you with other features at affordable rates. You can enhance the coverage you are liable to get from your policy by including riders to your plan. While you have to pay an additional premium amount for the inclusion of these riders, the costs for these riders are relatively low. However, make it a point to check the rider quotes before adding one to your policy. With the help of riders, you can include different circumstances like disability, critical illness, and the most important of them all, Accidental Death Benefit. 

What Is An Accidental Death Benefit Rider

The accidental death rider is essential because it provides coverage if the policyholder meets their untimely demise or loses the use of their limbs because of an accident. This rider will help the policyholder’s family deal with the financial stress during a time when the earning member is unable to provide for the family. The rider will also help the policyholder’s beneficiary deal with the medical expenses and hold the household’s financial stability. 

What Constitutes an Accidental Death? 

The policyholder’s death must come under an event that the insurance company will label as an accident for the rider to be used. If the policyholder sustains any injuries solely because of an accident and the insured’s death occurs exclusively because of the injuries sustained from the accident within 180 days, it would be deemed an accident. 

 

Exclusions under the Accidental Death Benefit Rider:

While the accidental death rider is immensely beneficial for a policyholder, it has specific exclusions:

  • A death caused by events like an act of war, illegal activities, hazardous activities, self-inflicted injuries, etc. will not be deemed as an accidental death.
  • Death by events like drug/alcohol overdose, adventure sports, war, civil commotion and suicide will not be deemed an accident by the insurance company.

Apart from these exclusions, there are specific age limits for availing the benefits from this rider as well. For example, an individual may not be able to apply for the rider benefits if they have reached 75 years of age. You also cannot opt for the accidental death rider if you have crossed 65 years of age. 

Benefits of adding this rider to your death insurance policy:

  1. The rider provides your family with financial security in the event of your death from an accident/mishap. 
  2. This add-on to the plan is provided at an affordable cost since most of the management expenses are taken care of by the original premiums. 
  3. The accidental death benefit rider assured sum is generally equal to the necessary sum assured. 

Thus, if you want to enhance the coverage and convert your coverage into the best insurance policy you could own, then you can opt for the accidental death rider. The accidental rider can be a useful addition to a policyholder’s insurance policy, in case of accidental death or dismemberment.