The primary responsibility of every responsible individual is to ensure his family is safe even when he is not around. Millions of Indians trust insurance plans to ensure the financial safety of their family in this regard. However, many fail to understand that death is not caused by an illness but an accident may also lead to such an eventuality. This is why an accidental death insurance plan is very important to opt for. It is an inexpensive means of ensuring you have your loved ones secured completely.
This product is mostly offered by life insurance companies as a rider and happens to be one of the most essential insurance riders. Some providers offer it free as a benefit, while others would require you to pay a basic sum to attach it to your life insurance policy. As a rider in your policy, accidental death insurance offers the nominee of the policy with double the death benefits if you die of accidental causes specified within the policy. This benefit is called double indemnity. Like any insurance, accidental death insurance needs to be renewed each year.
Under accident death insurance, if the policy holder dies or suffers from dismemberment because of an accident, he and his family will receive insurance coverage against your accidental insurance policy. As this is a very limited form of insurance, it may be difficult to get adequate cover if one seeks to invest in it as a stand-alone policy. This policy is ideal for people who travel a lot, or have jobs that put them at higher risk of an accident. However, this is amongst the insurance riders that need to be included in your life insurance plan.
The policy covers death by motor accident, homicide, falls, drowning and accidents due to equipment. Some policies also cover death due to terrorist attacks and natural calamities. However, the policy excludes conditions like death due to sickness and suicide. The policy also excludes to cover death from high-risk hobbies or sports such as rock climbing, bungee jumping or para-gliding. In case an insured were to die under the influence of alcohol or drugs the policy would cease to offer cover.
Individuals need to understand that accidental death insurance should not be considered as an alternative for a regular life insurance policy. This rider offers cover only in the case of death by accident. Also, the policy has a few terms and conditions that need to be paid careful attention to before purchasing. This policy is best availed as a rider with your regular life insurance plan.
What is accidental death insurance