Monday June 18, 2018
Home Business Know All Abou...

Know All About the Accidental Death Benefit Rider

The Benefit rider is eligible for tax benefits under Section 80C of the Income Tax Act and it can be attached to any policy, be it term plan or unit-linked plans

0
//
221
Representational Image. Image source: www.lifeinsurancepolicyusa.com
Republish
Reprint

It was just another Monday morning. As the clock struck 8, I kissed my one-year-old daughter, waved goodbye to my wife and set out to drive to work. Luckily for me, there wasn’t much traffic today. But as soon as I reached the highway, another car zoomed past me. The driver probably had to get to work early for a meeting with his boss. There was a “Baby-on-board” sticker at the back of the car which brought a smile to my face as thoughts went back to my daughter and the first time she called me “da-da.”

However, my thoughts were interrupted with loud horns and screeching of tires. The truck on the 2nd lane had suddenly swerved right and would have hit the car if the driver had not applied the brakes at the right time. Seeing what unfolded in front of my eyes in a matter of seconds shocked me. Soon a series of questions popped up in my mind – the answers to which were not so pleasant. Questions like – What if the driver of the car had not slammed the breaks which would have otherwise led to an accident? What about his baby? Even worse, what if it was me a little ahead who had met with the accident? Would my wife be able to take care of our one-year-old daughter on her own?

Follow NewsGram on Twitter: @newsgram1

In every four minutes, one person dies in a road accident in India, according to the NGO “Indians for Road Safety”. As per the data released by the Ministry of Road Transport and Highways, more than 1.45 lakh people lost their lives on Indian roads in 2015. Incidences of careless driving and uncertain terrains have made roads risky for a common man. Of course, under any such circumstances, the death of a loved one is a harrowing experience but with deep sorrow, the family will also need to deal with a financial crisis.

Here, the accidental death benefit rider proves beneficial for the family. A certain sum of money is paid over and above of basic sum assured to the nominee if the policyholder dies in an accident. For instance, Raj has bought a term insurance of Rs 50 lakhs and an additional accidental death benefit rider of the same amount. Now if Raj dies a natural death within the policy tenure, his nominee would be entitled to get Rs 50 lakhs. But if Raj dies in an accident, the nominee would get total Rs 1 crore.

Risks (Representational Image) Image source: livemint.com
Risks (Representational Image) Image source: livemint.com

Let’s understand what it entails.

Why should you buy the accidental death benefit rider?

How often do we see a family suffers financially because the breadwinner met with an accident? The jeopardy of permanent loss of income is devastating for the family. Therefore, it is highly recommended to buy an accidental death benefit rider so that in an event of death, the nominee gets an additional amount apart from the basic sum assured.

Further, this rider offers extra protection at a nominal premium rate. For instance, a 26-years old needs to pay Rs 7191 to get a life cover of Rs 1 crore under ICICI Pru iProtect Smart Plan. By paying an extra amount of Rs 472/month, he can enjoy triple benefits— terminal illness benefit + waiver of premium on disability + accidental death benefit.  In this way, he can give triple protection to his family.

Follow NewsGram on Facebook: NewsGram.com

Moreover, this rider is eligible for tax benefits under Section 80C of the Income Tax Act and it can be attached to any policy, be it term plan or unit-linked plans.

Key Features of the Accidental Death Benefit Rider

Most of the insurers offer accidental death benefit riders with the following features:

  • Flexibility to choose premium mode as per own convenience—Single, Limited, and Regular Pay
  • Comprehensive protection till the end of the term of the main policy
  • Option to choose the rider either at inception or policy anniversary

What does it include?

For the purpose of payout, any accidental death caused by an external, unforeseen and violent force is covered under this rider. Also, such injury shall cause the death of the policyholder, generally within 90-180 days of the occurrence of the accident.

Exclusions

There are certain events which are not covered by accidental death benefit rider, and these are:

  • Attempted suicide or self-inflicted injuries
  • Engaging in aerial flights
  • Death of the life assured with criminal intent
  • Death due to participation in war or engaging in hazardous sports

Conclusion

The only thing certain about life is its uncertainty. We don’t know where life will take us, who will cross our way, and which direction we will be heading. But still, it doesn’t mean we should sit idle and let our destiny decide the next course of action.

Accidents bring along dire consequences and prove to be fatal for a family. It is true that we can’t control the uncertainty of life, but nothing can stand in the way of someone who is prepared to fight against all odds. So let’s become the master of our destiny and protect our family against any hurdles and surprises which this journey, called life, has in store for us.

ALSO READ:

 

Click here for reuse options!
Copyright 2016 NewsGram

Next Story

A Vaccine Against Pneumonia And Meningitis Saves Million Children

"far too many deaths , about 900 every day, are still being caused by these two infections."

0
A child receives a meningitis vaccination at the community center in Al Neem camp for Internally Displaced People in El Daein, East Darfur, Oct. 8, 2012.
A child receives a meningitis vaccination at the community center in Al Neem camp for Internally Displaced People in El Daein, East Darfur, Oct. 8, 2012. VOA

A vaccine against bacterial pneumonia and another against meningitis have saved 1.45 million children’s lives this century, according to a new study.

The diseases the vaccines prevent are now concentrated in a handful of countries where the medications are not yet widely available or were only recently introduced, the research says.

Pneumonia is the leading cause of death among children worldwide. The bacteria targeted by the shots, Haemophilus influenzae type b (known as Hib) and Streptococcus pneumoniae (pneumococcus), are major causes of pneumonia and also cause meningitis. Together, the two bacteria claimed nearly 1.1 million lives in 2000, before the vaccines were widely available, according to the World Health Organization.

Vaccines against the bacteria are not new, but funding to provide them in low-income countries only became available recently.

A baby with parents
A baby with parents, Pixabay

To estimate their impact, the researchers started with country-by-country data from the WHO on pneumonia and meningitis cases and deaths, as well as vaccine coverage estimates. They factored in data from dozens of clinical studies on infections caused by the two bacteria to create estimates of illness and death from the diseases in 2000 and 2015.

They found deaths from Hib fell by 90 percent in 2015, saving an estimated 1.2 million lives since 2000. Pneumococcus deaths fell by just over half, accounting for approximately 250,000 lives saved.

The research appears in the journal The Lancet Global Health.

“What was interesting was to see the rate at which some of these deaths have been prevented in the last several years,” said lead author Brian Wahl at Johns Hopkins University, “largely due to the availability of funding for these vaccines in countries with some of the highest burdens [of disease].”

The study estimates that 95 percent of the reduction in pneumococcal deaths occurred after 2010, when 52 low- and middle-income countries began receiving funding from Gavi, The Vaccine Alliance, to introduce the vaccine into their national immunization programs.

“The good news is that the numbers are moving in the right direction,” wrote Cynthia Whitney at the U.S. Centers for Disease Control and Prevention in an accompanying editorial.

Pneumonia in child
Pneumonia in child, flickr

However, Whitney added, “far too many deaths — about 900 every day — are still being caused by these two infections.”

She notes that more than 40 percent of the world’s children live in countries where pneumococcal vaccine is not a routine childhood immunization.

Many of the countries with the largest number of deaths from these two bacteria have recently introduced the vaccines, but coverage is uneven.

India, Nigeria, China and South Sudan had the highest rates of death from Hib, the study says. All but China have introduced the vaccine in the past few years.

Half of the world’s pneumococcal deaths occurred in just four countries: India, Nigeria, the Democratic Republic of the Congo and Pakistan. All have recently introduced the vaccine, though in India it is a routine immunization in only three states.

Also read:AI tool accelerate diagnosis eye diseases

Lowering the global burden of these diseases will depend on improving coverage in these countries, the study says. (VOA)