Accidental Disability Benefit Rider in Term Insurance – A Detailed Guide

Tragedy can happen to anyone, anytime, anywhere. We cannot predict one thing but we can prepare ourselves for unexpected and unpleasant events like accidents. Term insurance helps you with this – providing financial protection in case the insured person becomes disabled in an accident. This blog is all about the Accidental Disability Benefit Rider Term Insurance Plans.

Life is unpredictable so life is about preparing for the unseen, the uncertain. We don’t know what will happen in the next moment so it makes sense to plan for the worst. This is what term insurance can help us with. This life insurance policy provides financial support against the unfortunate event of death of the life assured.

However, sometimes death may not be the only result of an unexpected disaster, say an accident. It can cause temporary or permanent disability to those affected. In this case, if the concerned also has life assured under the insurance plan, then insurance company can help them by providing them with an additional benefit called the Accidental Disability Benefit Rider.

What is a Term Insurance Accidental Disability Benefit Rider?

This rider can be purchased in conjunction with basic insurance. It helps to increase the insurance cover of the assured life plan. As mentioned above, if the owner has any kind of disability in the event of an accident, the rider can help provide financial support to them and their family during these difficult times.

Note that the rider’s benefit must also cover the total and permanent disability of the life assured in the event of an accident. This can include the loss of one hand or both legs, loss of sight, etc. In such cases, those involved lose money which can cause serious financial problems for the family.

This is where the Accidental Disability Rider comes into play, providing support to family members who have life assurance by providing money to cover the cost of the service and other financial loans. The rider also offers the policyholder the opportunity to receive the cash benefit either in cash or in installments every month.

Who Can Buy a Disabled Passenger?

Since this rider is an additional benefit provided by your insurance over and above the insurance policy you have already purchased, it can be easily purchased by the owner (insurance under the term insurance).

However, it is important to note here that in order to benefit from the Accidental Disability Passenger, the minimum age to enter the insurance plan is 18 years and the maximum entry age is 65 years. The amount guaranteed by the time of arrival under the passenger is the same as that promised in the insurance policy. Also, the premiums paid remain the same throughout the life of the insurance. However, the owner has the option of paying the premium as a lump sum or monthly, quarterly, semi-annually, or annually.

Benefits of Buying an Accidental Disability Rider and a Base Term Insurance Plan

Since the rider is an add-on, meaning it must be purchased separately from your original term insurance policy, many policyholders choose to purchase one. However, this benefit can be very useful in the future, especially in case of any unforeseen circumstances. Here are some top benefits of buying a rider in conjunction with your long term insurance:

  1. Protects against loss of income: When you are temporarily or permanently disabled as a result of an accident, life assured under the rider’s benefit is promised financial benefits and insurance. This helps to compensate the loss of income that the insured and their family face in such cases (due to inability to work). Under this plan, the owner can also choose the monthly payment as an income benefit, which will ensure them a steady income every month and help pay the full amount.
  2. Covers the cost of the treatment: Due to the inability to work, the life assured under the term insurance cannot produce the funds to pay the large sums to support their disability. By purchasing this additional rider, the owner can be assured of getting adequate financial protection for themselves and their families.
  3. They offer high quality services at affordable prices: By purchasing an Accidental Disability Rider, the life assured promises to protect themselves under the previously purchased insurance plan. Besides, the cost of this rider’s benefit is predictable and can be covered by insurance.
  4. Provides tax benefits for insurance: Sections 80(C) and 10(10D) of the Income Tax Act, 1961 provide that the insured persons have the right to increase the benefits already paid on the term insurance, if they purchase a Disability Motorist. This is done to encourage people who have insurance to protect their future by purchasing an additional passenger.

Also Read: Reasons To Add Riders To A Term Insurance Policy

What Is Excluded Under The Accidental Disability Rider’s Liability?

The rider allows the insured person to enjoy extended insurance coverage by providing cash benefits in the event of temporary or permanent disability due to an accident. However, there are some exceptions, which the rider does not cover. Some of these are:

  • The rider fails to provide insurance coverage if the owner is disabled within 6 months of the accident.
  • Disability or death due to suicide or self-inflicted injury is not included in the passenger’s benefit.
  • If the owner is involved in any kind of violence, such as war, riots, or riots and injuries, the passenger cannot provide protection to the life assured.
  • Coverage is not provided under the passenger for alcohol or drug related offenses.

By throwing a necklace

Term insurance is a must buy to protect the financial future of your loved ones in your absence. By purchasing an Accident Disability Benefit rider, you extend the financial protection to provide protection around your family in the event of disability due to an accident. This rider covers the money lost due to this event. Check out the best insurance plan in India and don’t forget to increase your insurance coverage under this plan by taking advantage of the higher benefits.

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