A few months ago, Ramu met with an accident which put him out of commission. The poor guy was restricted to his bed and unable to go to work. To meet the daily expenses of the family, his wife was forced to work two jobs and manage the house. Sounds like a sad state of affairs, doesn’t it?
Did you know that a situation like this could be avoided? There are steps which you can take to protect your family in the event of an unfortunate incident.
You can opt for an accidental death and disability rider along with your Term Insurance policy. Ramu was covered by Term Insurance; unfortunately, it couldn’t help him in this situation as he hadn’t opted for an accidental death and disability rider along with his insurance.
Let’s tell you more about an accidental death and disability rider and how it can help you.
What is a rider? A rider is an insurance add-on which provides the policyholder with additional benefits apart from those offered by the term policy. It is used to enhance the cover of the policy.
Accidental Death Rider – If the policyholder dies from an unfortunate accident, then his or her nominee will be provided an additional sum of money above the sum assured. For instance, you (as the policyholder) have a Term Insurance cover of Rs. 40 lakh. Along with this, you have an accidental death rider of Rs. 10 lakh. In this case, your nominee will get Rs. 50 lakh in case of your accidental death.
Accidental Disability Rider – If an accident leaves you partially or permanently disabled, then this accidental disability rider helps to substitute/replace the income which you’ll lose due to your disability. With this rider, you’ll get a percentage (pre-approved) of the assured sum for a fixed period (five or ten years). Usually, this rider is offered along with the accidental death rider.
Let’s look at a few accidental death and disability riders.
Additional Reading: 5 Online Term Plans In India.
Max Life Comprehensive Accident Benefit Rider
This rider is offered as an add-on to the Max Life Online Term Plan. It provides additional cover for policyholders in case of accidental death or impairments due to accidents. The benefits of this rider are applicable over and above the Term Plan’s benefits. The minimum age of entry for this rider is 18 years and the maximum age of entry is 60 years. The rider expires when the policyholder reaches 75 years of age. The term of the rider is usually between 10 and 35 years. However, it will always be either equal to or less than the base plan’s term.
HDFC Life Income Benefit on Accidental Disability Rider
Disability doesn’t mean that you should compromise on your family’s livelihood. Get a monthly income in the event of accidental disability with the HDFC Life Income Benefit on Accidental Disability rider. In the event of Total Permanent Disability due to an accident, this rider will pay a regular monthly income which is equal to 1% of the sum assured for a period of 10 years.
SBI Life – Smart Shield Riders
This SBI online Term Insurance plan offers the SBI Life – Accidental Death Benefit Rider and the SBI Life – Accidental Total and Permanent Disability Benefit Rider. The former rider pays the sum assured on the rider along with the base plan’s death benefits. The latter rider pays the rider sum assured if the insured is permanently disabled due to an accident.
Aegon Life iDisability Rider
Don’t let your financial liabilities become a burden for your family. Opt for the Aegon Life iDisability rider which provides comprehensive protection for your family in case of disability. What features do you get? Firstly, you can easily purchase this rider online. It is available for individual and joint plans. In addition, you’ll be provided with the lump-sum amount (sum assured on the rider) on disability (either due to an accident or any sickness). On top of this, the premiums on the base policy will be waived off.
Exide Accidental Death Disability and Dismemberment Benefit Rider
Exide Life offers an Accidental Death Disability and Dismemberment Benefit Rider which provides you and your family with financial security in the case of accident-related adversities. This rider can be added on to your existing Exide Life Insurance plans (if they’re eligible). The full sum assured is paid to the policyholder’s nominee if the policyholder dies due to an accident. If the policyholder becomes disabled due to the accident, then a percentage of the sum assured is paid (as per the policy’s clauses). The minimum entry age for this rider is 18 years and the maximum age is 65 years.
LIC Jeevan Lakshya Accidental Death & Disability Rider
The LIC Jeevan Lakshya plan offers an add-on accidental death and disability rider. The minimum age of entry for this rider is 18 years. If you have the LIC Jeevan Lakshya policy, then you can opt for this rider any time within its premium paying term. In the case of death of the policyholder due to an accident, his nominee will get the additional accident benefit sum assured. This sum is beyond the basic sum assured on the policy. In the case of permanent disability, the insured will be paid the accident benefit sum assured in equal monthly instalments over a period of 10 years. In addition, all future premiums for the rider will be waived off.
Accidents don’t come announced. But you can prepare yourself and your family for the hard times by investing in an accidental death and disability rider. Do you think it is wise to invest in an accidental death and disability rider? Leave a comment and let us know what you think!
Sir My reqrmt.as below.
1) saving of Rs.80L to 1cr.in 28 to 30yrs.
2) Trm.ins. with disability rider along with monthly income rider like (hdfc click2 protact plus with income rider) pls.advice.
3)I am looking for approxi. 1cr.of trm ins.
4)I am investing rs.4000.in 4 m/f&rs.5000.in ppf
So pls.guide me can I achieve my goal in above mentioned time period if not than what I have to do furthur.
5)I have private job& earning appr.4lacs& likly to increase in future. Thanks
. Rajender Kumar
Hi Rajender kumar,
We would love to help you but since your question is specific in nature, we suggest that you take the help of your financial planner.