Does Term Insurance Plans Cover Accidental Death?
The most important thing to remember about term insurance is that it does not provide a reward upon maturity. This means the nominees will only be paid if the insured individual passes away. Term insurance is vital to have whether you are the head of a family or a young person thinking about starting one because of the various benefits it provides.
The best part about term insurance is that, while it’s essentially a protection plan, it may be enhanced by adding the right insurance riders. A term insurance rider is an additional benefit to your standard term life insurance policy. It’s a kind of upgrade, and because it provides additional benefits, you’ll have to pay a higher premium. However, certain riders, such as the accidental death insurance policy rider, are well worth the additional cost.
Accidental Death Benefit in Term Insurance
Because of the unpredictable nature of life, humans are susceptible to mortality for a variety of reasons. Accidents are one of the most prevalent causes of death, and a term plan with an accidental benefit can help you prepare financially for the potential.
If the insured person dies in an accident, the payout on a term insurance policy with an accidental death benefit will be enhanced. For example, if the term insurance’s base coverage is 50 lakhs and the accidental death insurance rider coverage is 15 lakhs, the insured’s nominee will get a total of 65 lakhs if the insured dies in an accident.
It is important to remember that the basic sum assured will be paid even if the insured dies from a cause other than an accident. In the case above, that is Rs. 50 lakhs. As a result, an accidental benefit term plan adds nothing to the term insurance policy.
Are Accidents Covered in Term Insurance?
Yes, a term insurance policy covers accidents. A standard term insurance policy will pay the agreed-upon amount regardless of the reason of death, whether it is due to illness or an accident.
The accidental death benefit rider, on the other hand, has the advantage of increasing the amount of money your family receives if you die in an accident. This feature is available with only a little premium increase. As a result, it proves to be a more cost-effective alternative than raising the basic term insurance coverage without this rider.
Conclusion
Accidents are unpredictable events that can occur at any time. When buying term insurance, it’s a good idea to include the accidental death benefit rider. This is because anybody might be engaged in a terrible occurrence, even if they do not work in hazardous workplaces or travel frequently. It is a wise move on your part to include this rider in your term insurance policy.
