Life insurance is the most convenient and cost-effective way to secure the financial future of your family. Moreover, insurance companies offer additional riders to enhance your coverage. Although policy riders enhance the insurance protection, many buyers tend to avoid buying them due to additional costs. However, the benefits offered by accidental death benefit rider are far more than the additional costs incurred. As per statistics, most of the untimely deaths in India occur due to accidents. Since the main purpose of a life insurance policy is to protect you from such unfortunate events, insurance companies have come up with the accidental death benefit covers in order to enhance the insurance protection in the event of accidental death.

The accidental death benefit rider provides a significant amount of additional coverage that supplements the death benefit. In case of the accidental death of the policyholder, the additional sum under the rider will be paid to the beneficiaries. Now let us explore the benefits of the Accidental Death Benefit Rider in detail.

Larger Cover at a Small Cost
When the unfortunate event of an accidental death occurs, the family of the deceased undergo immense emotional trauma. To add to that, there might be a huge financial burden that is unleashed upon the family. With an Accidental Death Benefit Rider, you can secure a higher lump sum than a standalone policy. As per the Insurance Regulatory and Development Authority of India, the rider premium is capped at 30% percent of the base premium.

Here’s an example to give you a better idea. Suppose you want a death benefit of Rs. 25 Lakhs, you just have to pay Rs. 1200 a year as a premium when you purchase a rider along with a primary policy. However, the premium varies from company to company and also depends on other factors such as policy term, sum assured and the frequency of premium payment.

Enhanced Protection
The additional protection provided by an Accidental Death Benefit Rider will be over and above the base cover. Therefore, apart from the sum assured, your family will receive an additional lump sum from the rider.

Tax Benefits
The premium paid towards an Accidental Death Benefit Rider is eligible for tax deductions under Section 80C of the Income Tax Act.

As you can see, Accidental Death Benefit Riders, offer plenty of benefits at a time when your loved ones need it the most. If you are planning to buy a life insurance, don’t forget to include riders in insurance.