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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

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Representational Image. Image source: www.lifeinsurancepolicyusa.com
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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?

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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.

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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.

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The Families Of Victims In Railway Accident Incident In India Stage Protests

Prime Minister Narendra Modi called the accident a "heart-wrenching tragedy" and asked officials to provide immediate assistance to the injured.

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People gather at the site of an accident after a train traveling at high speed ploughed through a crowd of people on rail tracks near Amritsar, India. VOA

Angry relatives of the scores of people who were killed in India when they were run over by a speeding train staged protests Saturday while one of the country’s railway officials maintains the railway is not responsible for the tragic accident.

The train was traveling at high speed when it ploughed through a crowd Friday at a religious festival on the outskirts of the northern city of Amritsar, killing 59 people, Punjab state’s Chief Minister, Amarinder Singh, told reporters Saturday. Singh said 57 others were injured and an official investigation would be carried out over the next four weeks.

The Jalandhar-Amritsar express was traveling at 90 kilometers per hour when it hit the crowd, which had gathered on the tracks to watch a fireworks display marking the Hindu festival of Dussehra.

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The Hindu festival of Dussehra.

Hundreds of relatives of the victims engaged in sporadic protests on and near the tracks Saturday, calling for action against local authorities and the train operator, who was questioned Saturday by police.

Authorities moved the protestors off the tracks and brought in reinforcements to control the crowd.

‘No lapse on our part’

The railway accident was India’s worst in years, but the junior minister who manages Indian Railways, the world’s fourth largest rail system, refused to accept responsibility.

Railway
A man mourns next to the burning pyre of a family member who died after a train traveling at high speed ploughed through a crowd of people, at a cremation site in Amritsar, India. VOA

“Railways cannot be blamed. Railways were not informed about the ceremony,” Manoj Sinha told reporters Saturday. Speaking to reporters, Sinha ruled out any punitive action against his staff, saying, “There was no lapse on our part and no action against the driver will be initiated.”

Local government officials said the festival takes place every year on the outskirts of Amritsar and that railroad authorities are alerted to run the trains at slow speeds.

Witnesses said the victims did not realize the train was coming because of the sound of the fireworks and celebrations.

‘Heart-wrenching’

Some witnesses said the train did not sound its whistle as it sped past the festival site.

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With India, Indian Railway is also digitizing, Pixels

Prime Minister Narendra Modi called the accident a “heart-wrenching tragedy” and asked officials to provide immediate assistance to the injured.

Also Read: India Continues Engaging With USA Over H-1B Passport Issue

India’s railway network remains the main form of travel in the vast country, where railway accidents are relatively common.

Millions of Hindus celebrate the Dussehra festival by burning giant effigies of the demon Ravana, symbolizing the triumph of good over evil. (VOA)