Life is unpredictable, and accidents can happen at any time. To safeguard families against financial distress due to sudden mishaps, accidental death cover in life insurance plays a crucial role. Accidental death life insurance provides an additional financial payout if the policyholder passes away due to an accident.
Unlike a standard life insurance policy, which covers both natural and accidental deaths, life and accidental death insurance offers extra protection in case of unforeseen incidents. This is particularly beneficial for individuals working in high-risk professions or those who frequently travel.
For policyholders, choosing accidental death cover as an add-on or standalone policy can provide greater security to their loved ones. Understanding how it works, who is eligible, and how to claim it is essential for making an informed decision.
What is accidental death cover in life insurance?
Accidental death cover is a rider or standalone policy that provides financial compensation if the insured dies due to an accident. This benefit is paid in addition to the base sum assured of a life insurance policy.
An accident is defined as an unforeseen, sudden, and external event resulting in injury or death. Common causes include road accidents, falls, drowning, workplace hazards, or fire-related incidents. However, deaths due to natural causes, suicide, or pre-existing medical conditions are not covered.
For example, if an individual has a life insurance policy with Rs. 50 lakh sum assured and an accidental death life insurance of Rs. 20 lakh, their nominee will receive Rs. 70 lakh in case of an accidental death. This ensures an extra financial cushion for dependents.
Accidental death cover is particularly useful for breadwinners of the family, self-employed individuals, and people with high-risk jobs. Many insurers offer accidental death life insurance as an optional add-on, enhancing overall life insurance benefits.
