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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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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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Suicide Rates On The Rise Among U.S. Workers

Promoting social interaction rather than isolation in daily tasks on the job may help with suicide prevention.

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Suicide, Life expectancy
A young volunteer helps set up lights in paper bags decorated with messages for loved ones during an Out of the Darkness Walk event organized by the Cincinnati Chapter of the American Foundation for Suicide Prevention. VOA

From 2000 to 2016, the U.S. suicide rate among those aged 16 to 64 rose 34 percent, from 12.9 deaths for every 100,000 people in the population to 17.3 per 100,000, according to the study by the U.S. Centers for Disease Control and Prevention (CDC).

The highest suicide rate among men was for workers in construction and mining jobs, with 43.6 deaths for every 100,000 workers in 2012 and 53.2 deaths per 100,000 in 2015, the analysis found.

The highest suicide rate among women was for workers in arts, design, entertainment, sports and media, with 11.7 fatalities for every 100,000 workers in 2012 and 15.6 deaths per 100,000 in 2015.

“Since most adults spend a great deal of their time at work, the workplace is an important and underutilized venue for suicide prevention,” said study co-author Deborah Stone, a behavioral scientist at the CDC in Atlanta.

Facebook, U.S., workers
A man works in the war room, where Facebook monitors election-related content, in Menlo Park, Calif. VOA

While the study wasn’t designed to prove whether or how specific types of jobs or workplace characteristics might contribute to the risk of suicide, lack of control over employment and a lack of job security can both be stressors that make suicide more likely, Stone said by email.

Many factors outside the workplace can also influence the risk of suicide, including relationship problems, substance use, physical or mental health, finances or legal problems, Stone added.

And ready access to guns and other weapons have a big impact on whether suicidal thoughts turn into actions with fatal outcomes, Stone said.

Guns may explain the higher suicide rates among men than among women, said Gary Namie, director of the Workplace Bullying Institute in Boise, Idaho.

“In America, with ready access to guns, men make the choice of death by gun, but it is the less likely choice by females,” Namie, who wasn’t involved in the study, said by email. “Hence, it is possible that in moments of despair that might pass if friends or family could intervene, with a gun handy, the decision is too quickly implemented.”

workers
To assess suicide rates by occupation, the CDC examined data collected from 17 states in 2012 and 2015.

Data from 17 states

To assess suicide rates by occupation, the CDC examined data collected from 17 states in 2012 and 2015; the results are not representative of the nation as a whole. The results were published in the CDC’s Morbidity and Mortality Weekly Report.

Although arts, design, entertainment, sports and media had the highest suicide rates among women, this category saw the biggest increase in suicide rate among men during the study. For women, the biggest increase in suicide rates was in the food service industry.

One limitation of the study is that it didn’t examine suicide methods. It also excluded two groups of Americans that typically have stressors that can increase their risk of suicide: military veterans and unemployed people.

Even so, the results suggest that employers can play a role in suicide prevention by offering worksite wellness programs, encouraging use of behavioral and mental health services, and training workers in the warning signs of suicide and how to respond, Stone said.

Also Read: Suicides Can Be Prevented, Says Expert Through Government Policies

Promoting social interaction rather than isolation in daily tasks on the job may also help with suicide prevention, along with creating a workplace culture of inclusion that does not allow for abusive conduct or bullying, Namie said.

The road to suicide begins when one employee begins a “systematic campaign of interpersonal destruction against another employee,” Namie said. “Bullying is the most preventable predictor of suicide.” (VOA)