Term Insurance: What are the accident death benefits one can get under the plan?

One of the most popular and simplest forms of life insurance products in the market, term insurance plans provide coverage for a certain period of time or a specified "term" of years. Under this scheme, the policyholder will need to pay a premium in exchange for assured sum coverage for a particular number of years.

However, unlike life insurance plans, term insurance covers only premature death of the policyholder. If the policyholder survives the policy period there is no survival benefit. The plan, which aims to look after your loved ones in the unfortunate event of your untimely demise, comes with a range of benefits including affordable premiums, financial support to your family and insurance coverage for a long period.

These benefits can be amplified further with the additional protection of accidental death coverage.

What is the Accidental Death Benefit in Term Insurance? 

Accidental Death Benefit is an additional protection feature that policyholders can add to their term insurance plan to enhance their plan's coverage. The family of the policyholder will receive the death benefit only if he passes away during the policy terms. Thereafter, the Accidental Death Benefit is the best way to ensure that your family receives an extra sum assured on top of the base sum. 

Why is Accidental Death Benefit important?

Those who want additional benefits for their family in case of their sudden demise can opt for an Accidental Death Benefit rider to the base plan, as it provides a number of benefits including added protection, tax benefits, minimal documentation and an easy claim settlement process. A few term insurance plans also come with tax benefits. Besides that, one can easily purchase the accidental death rider by selecting suitable add on offers without the need to submit any additional documents. 

Exclusions in Accidental Death Benefit

In case the policyholder dies under normal circumstances like age-related death, health-related illness, or due to an accident, the nominee will receive the accidental death benefit. However, in a few other cases, they may not be eligible to receive the benefits. 

No benefits will be paid out in the case of:

• Death due to accidents under an intoxicated state 
• Death due to taking part in illegal activities 
• Death caused by self-injuries 
• In cases of suicide 
• Death within the waiting period of 180 days