Life insurance is essential to secure your loved ones. It is a contract between the policyholder and the insurance company, where the policyholder has to pay premiums to get a life cover. A sufficient life cover ensures that, in case of your sudden demise, there is a financial backup that your family can rely on. Life insurance takes care of the financial needs of your family and also allows them to repay your liabilities in your absence.
When buying a policy, you will come across several life insurance riders. Riders are additional benefits that you avail of by paying additional premiums. Different rides cater to the needs of different individuals. However, some riders are popular amongst several policyholders. One such rider is the accident benefit rider.
What is an accident benefit rider?
An accident benefit rider is one of the significant life insurance riders to add to your base plan. Its purpose is to help in dealing with the demise of the policyholder in case of an unfortunate accident. The financial turmoil and stress that are caused during such an event are minimised with the help of this rider. The rider compensates for losing income that possibly affected the family for months or even years.
Why buy an accidental benefit rider?
With the uncertainties of life, it is always important to have a financial backup. For an accidental benefit rider, here are some reasons you should add it to your life insurance policy:
An accident benefit rider offers extra financial protection to the policyholder and their loved ones. In case of an unforeseen circumstance where the policyholder loses their life in an accident, the rider proves to be extremely important. Irrespective of whichever life insurance plans you choose, you can add an accident benefit rider. In unexpected difficult times, this rider ensures that the policyholder’s family does not face any turmoil. The rider compensations allow the dependents of the policyholder to meet their immediate expenses, everyday expenses, maintain their current lifestyle, and fulfil their goals.
Quick and easy claim settlement
In case of an unfortunate incident where the policyholder loses their life in an accident during the tenure of the policy, their dependents are entitled to the rider’s coverage. In such cases, the nominee would want a hassle-free claim settlement with minimum paperwork. The insurance companies understand the scenario and try to settle as fast as possible. Keeping in mind the situation the policyholder’s family is in, they minimise the paperwork and avoid asking too many questions. Being a policyholder, you need to know that in such an unfortunate event, your family will receive the claim they need immediately.
No medical examination required
When you buy life insurance, a medical examination is usually required before the purchase of a life insurance policy. If you are clubbing an accident benefit add-on with your current life insurance plan, you do not have to give any medical examination for it. This is because the purpose of this rider is protection against accidents. Hence, health is not a factor that is taken into consideration.
Several payout options
With the accident benefit rider, the rider benefit amount can be paid either as a lump sum or in regular instalments. Some individuals opt for regular instalments as they can act as a regular income for the family of the policyholder. The nominee can choose the payout option according to their financial needs. Irrespective of which life insurance plans you choose, if you have this rider, your nominee will select the payout of the rider as per their convenience.
Insurance companies have created an accidental benefit rider for quite sensitive and difficult situations. The last thing that the family of a policyholder who lost their lives in an accident wants to deal with is paperwork. The reason several individuals buy this rider is that there is some amount of minimum documentation required. When the policyholder is buying the rider and when the nominee is applying for a claim, in both scenarios, the documentations needed are minimum. The quick and hassle-free process, right from the purchase of the rider to the claim, leaves the policyholder and their family feeling secure.