Accidental Death Benefits

What are Accidental Death Benefits?

Accidental death benefits relate to the accident of the insured person. The term often puts a condition upon a rider connected with a Life Insurance policy. The accidental death benefit is usually paid if the insured person is died in an accident or in natural cause. The issuer of the policy relies on the accidental death benefit and may extend up to a year after the initial accident.

Accidental death benefits cover can be added to the basic life insurance by the request. People choose to add accidental death benefit to their policies to protect the beneficiaries if an accident occurs. The death benefit is more important for people who work in the chemical or hazardous company.

Apart from this, people who drive at a high speed professionally or as a commuter should consider accidental death benefit. The insured party must pay more money for their regular premiums to purchase accidental death benefit. These riders benefit end once the insured person reaches the age of 70.

Special Considerations

Insurance companies determine an accidental death when the accident occurs. The death scenarios such as car crashes, slips, choking drowning, machinery etc. If the demise of the person has met with a fatal accident, then the death should occur within a specified period of time.

Some policies cover dismemberment total or partial loss of limbs, paralysis and so on, these are called as accidental and dismemberment insurance. The accidents excludes war or death caused by illegal activities. Death from illness is not considered under accidental death insurance. Apart from this, car driving, bungee jumping or any other similar activities are also excluded from this policy.

Accidental Death Benefit Example

John has Rs. 3 lakh life insurance policy with Rs. 10 lakh accidental death benefit. If John dies due to heart attack or by natural cause, then the insurance company will pay Rs. 3 lakh.

If John dies in a car accident, then the insurance company will pay Rs.3 lakh plus Rs. 10 lakh. So the total payout for John will be Rs. 13 lakh.