Accidental Benefits in Term Insurance: Overview

Learn about how accidental benefits can enhance your term insurance coverage.
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3 min
20-May-2025

When you think about term insurance, it’s really about creating a cushion of financial security for your family. Now, imagine being able to make that cushion even stronger. That’s exactly what accidental benefits in term insurance do. By adding this rider, you give your loved ones an extra layer of protection—especially in situations where life takes an unexpected turn. It’s a simple way to make your plan more comprehensive, giving you confidence that your family’s needs are well taken care of.

What is the accidental benefit in term insurance?

Think of the accidental benefit rider as an extra layer of protection. If the policyholder passes away in an accident, the family doesn’t just receive the base cover—they also get an additional payout. In case of permanent disability, it can even replace lost income through regular payments.

This rider is especially valuable for:

  • People who travel frequently
  • Professionals exposed to occupational risks
  • Anyone who wants a stronger safety net for their family

Want a plan that balances both affordability and coverage? Compare term plans, starting at Rs. 15/day* -- get quote based on your age, income and coverage requirements.

Does term insurance provide accidental death cover?

Not always. A standard term insurance policy covers death due to any cause—natural or accidental—but the accidental death rider adds an extra sum assured.

For example, if a term plan provides a base sum assured of Rs. 1 crore and the accidental death rider offers an additional Rs. 50 lakh, the nominee receives Rs. 1.5 crore in the unfortunate event of accidental death. This extra protection proves invaluable for families who may face unexpected financial challenges. It is important to verify the terms and conditions of the rider, as coverage and exclusions vary across insurers.

Difference between accidental benefit and basic term coverage

Accidental benefits enhance the scope of basic term insurance by addressing specific risks associated with accidents. Below is a comparison:

Aspect

Basic term coverage

Accidental benefit

Coverage type

Covers death due to any cause (natural or accidental).

Specifically covers death or disability caused by accidents.

Optional or mandatory

Included in standard term insurance.

Offered as an optional rider with additional premiums.

Payout amount

Fixed sum assured as per the policy.

Additional payout on top of the basic sum assured.

Cost

Lower premiums.

Higher premiums due to enhanced coverage.

Disability cover

Not included.

Provides financial support for permanent disability.

Pro Tip

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Conclusion

Accidental benefits in term insurance are a valuable enhancement to the standard policy, offering financial protection against unexpected risks. While they increase premiums, the accidental coverage benefits in term life insurance provide significant security for families dealing with accidental death or disability. Policyholders should carefully evaluate their needs and occupational risks before opting for this rider to ensure comprehensive coverage.

Ready to secure your future? Compare term plans with accidental benefits today – Get quote!

Frequently asked questions

What accidental benefits are included in term insurance?
Term insurance with accidental benefits covers accidental death and, in many cases, permanent disability. It provides an additional payout for accidental death and may offer periodic payments to replace income if the policyholder becomes permanently disabled due to an accident.

How do you include accidental benefits in your term insurance?
Accidental benefits can be added to your term insurance policy by opting for an accidental death and disability rider at the time of purchase. This optional add-on involves paying an additional premium for enhanced coverage tailored to accidents.

How do term insurance and accidental benefit coverage differ?
Term insurance covers death from all causes (natural or accidental), while accidental benefit coverage specifically provides additional financial support for death or disability caused by accidents. Accidental benefits are optional and come with extra premiums, unlike basic term insurance.

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Disclaimer

*T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Life Insurance Corporation of India (LIC), Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Company Limited, HDFC ERGO General Insurance Company, TATA AIG General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, New India Assurance Limited, Chola MS General Insurance Company Limited, Zurich Kotak General Insurance Company Limited, Star Health & Allied Insurance Company Limited, Care Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited, Aditya Birla Health Insurance Company Limited and Manipal Cigna Health Insurance Company Limited under the IRDAI composite registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure & policy wordings carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also distributor of other third-party products from Assistance service providers such as CPP Assistance Services Private Limited, Bajaj Finserv Health Limited. etc. All product information such as premium, benefits, exclusions, value added services etc. are authentic and solely based on the information received from the respective Insurance company or the respective Assistance provider company.

Note - While we have made all the efforts and taken utmost care in gathering precise information about the products, features, benefits etc. However, BFL cannot be held liable for any direct or indirect damage/loss. We request our customers to conduct their research about these products and refer to the respective products sales brochure and policy/membership wordings before concluding sales.

T&C Apply. #Above illustration is considering Male aged 25years | Non-Smoker | Policy Term(PT)– 30 years | Premium Payment Term (PPT)– 30 years | Sum Assured opted is Rs.1,00,00,000 | Offline Channel | Standard Life | Yearly Premium is Rs. 5,417. Total Premium Rs.1,62,518 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly instalments (Lumpsum Payout Percentage: 40, Income Payout Percentage: 60). Income payout instalment opted for 40 years | Premium shown above is exclusive of Goods & Service Tax/ any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only.