Accident Benefit Rider – How It Enhances Your Life Insurance Policy

Due to the constant uncertainty in life, most of us need some kind of a lifebuoy to ensure the safety of our loved ones. Amongst the various investment options, life insurance has been the choice for many such individuals who want to leave a financial backup for their families. But have you heard of rider benefits in insurance? You can add these additional components to all types of life insurance policies for extended coverage. From many such riders, accident benefit rider is a popular one that you can purchase. So, here is everything you need to know about the accident benefit rider in life insurance.

What Is Accidental Benefit Rider?

Life insurance plans offer your loved ones a financial backup in case something unfortunate happened to you. Accidental death and accidental total and permanent disability are two such add-on riders that you can combine with your policy at a nominal rate. Therefore, in the event where you meet with an accident, your family will be financially secure in case of death or disability.

How Does Accidental Benefit Rider Work?

You must buy such riders at the time of policy purchase for additional protection. This rider safeguards the financial interests of your loved ones if something were to happen to you. Apart from the medical bills of your treatment and hospitalization, the loss of a member can hurt your family emotionally as well as financially. With the accidental death rider, you can secure a lump sum benefit for your beneficiary as an income replacement in your absence.

However, not all accidents lead to death and thus, accidental total and permanent disability rider can be helpful in such cases. Due to accidental disability, you won’t be able to earn a living along with piling medical bills. The rider benefit can offer financial help and relief to your loved ones during an unfortunate event.

Advantages of Accidental Benefit Rider

Here are some key perks of adding the accidental benefit rider to your term or whole life insurance plan:

• Financial security

Though you have an insurance policy in place to offer financial cushioning to your family, some deaths are not covered by the plans. Therefore, accidental death or disability would leave your loved ones without any backup. They would have to rely on their life savings and emergency funds in case something were to happen to them. But on buying such riders, you can be worry-free about their finances.

• Cost-effective rate

Most of the insurance riders come at an affordable rate when compared to the lump sum benefit they offer. Hence, you can protect yourself from such uncertainties in life without having to spend a lot.

• Monetary benefit available under the rider

For accidental death rider, the lump sum benefit shall be paid out in full to the beneficiary. But for accidental disability, the corpus is paid out regularly as an income over a period of time. Nevertheless, it is recommended to confirm the payout system for both these insurance riders beforehand.

With this, you must have now understood the advantages of buying an accidental rider benefit. However, it is recommended to go through the exclusions of the rider before adding it to your insurance policy. There are certain terms and conditions under which any claims under the rider benefit will not be accepted. So, to avoid any last-minute claim problems, it is advised to read your policy document thoroughly before signing it.