Accidental Death Benefit Rider in Term Life Insurance
Riders serve as a crucial supplement to the life insurance policies. They offer an additional protection layer covering unexpected events requiring financial support.
Among the various riders in life insurance, the accidental death benefit rider stands as one of the most important ones. It provides an additional sum assured to the beneficiaries in case of accidental death of the policyholder, thus ensuring comprehensive financial protection for the future.
Read on to learn more about the accidental death benefit rider.
Table Of Contents
What is Accidental Death Benefit Rider in Term Insurance?
Accidental death benefit rider provides an additional payout to the beneficiaries of the policy if the policyholder dies due to an accident. This payment is in addition to the death benefit already provided by the base policy.
Though every death shatters the family emotionally and financially, accidental deaths hit more on every level. They are accompanied by additional financial requirements and stress for the family owing to the complex medical processes involved while trying to save a life.
The accidental death benefit rider is especially beneficial for individuals working in high-risk jobs or those who frequently travel. It covers road accidents, homicides, death due to falling from height, death from fire, plane crashes, train accidents and the like.
What is Considered as Accidental Death in Term Insurance?

What is Considered as Accidental Death in Term Insurance?
In term insurance, accidental death means when a person dies because of an unexpected and non-deliberate external event.
This typically excludes deaths caused by natural causes, illnesses, self-inflicted harm and other exclusions as mentioned in the policy.
For a death to be classified as accidental, it must be confirmed that the fatal incident was sudden, unforeseen and involuntary. For example, deaths resulting from car accidents, drowning and accidents involving machinery or equipment.
However, the specific definitions and exclusions can vary significantly across different insurance policies and insurers.
How Does Accidental Death Benefit Rider in Term Insurance Work?
Any unforeseen event that causes bodily injury to a person, ultimately resulting in the death of the person within 180 days of the accident, is covered under the ADB rider in the case of an accidental death. Here is how it works:
Purchase the Rider
When you buy a term insurance policy, you can add an accidental death benefit rider with an additional premium, depending on factors like age, occupation, and the coverage you choose.
Accidental Death
If you die as a result of an accidental covered by the policy, your beneficiaries will receive the sum assured under your term insurance policy, plus the additional amount specified in the rider.
Benefit Payout
The payout is typically a lump sum amount that can be used to cover funeral expenses, debts or provide financial support to your family.
Understanding Term Insurance with Accidental Death Benefit Rider with Illustration
Let us take the example of Mr. Rohan.
Rohan, a 30-year-old, takes a one crore term insurance for 30 years of policy tenure, and his wife is the nominee for this policy. Rohan also adds an ADB rider that promises an additional ₹20 lakhs if he dies due to an accident.
Some Relatable Real-Life Examples for Better Understanding Accidental Death Benefit Rider
Natural Death During the Policy Term
Accidental Death During the Policy Term
Outliving the Policy Term
Difference Between Death Benefit and Accidental Death Benefit in Term Insurance
A term insurance policy pays out money when the policyholder dies, no matter the cause. An accidental death benefit, however, only pays out if the death is due to an accident. If you have an accidental death benefit rider and die from natural causes or illness, this extra coverage won't apply.
But if you die from an accident, such as a car crash or a fall, your beneficiaries could get double the policy's amount, often called "double indemnity." Understanding these differences helps you choose the right coverage for your loved ones.
What is Covered in Accidental Death Benefit Rider in Term Insurance?
What is Covered in Accidental Death Benefit Rider in Term Insurance?
A term insurance with accidental death benefit provides extra coverage for unexpected, non-health-related deaths. Insurance companies define “accident” as any injury caused by an unforeseen event unrelated to illness or natural causes that result in death. Coverages include:
Car or Traffic Accidents
Death due to a car accident or similar traffic incident is covered under the accidental death benefit rider.
Aeroplane Crashes
Death in an aeroplane crash is covered under the accidental death benefit rider.
Injuries from Falls
Death from an injury sustained in a fall is included in the accidental death benefit rider.
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What is Not Covered in Accidental Death Benefit Rider in Term Insurance?

What is Not Covered in Accidental Death Benefit Rider in Term Insurance?
Though term insurance with an accidental death benefit rider mainly covers cases of accidental death, there are some kinds of accidental deaths that are excluded from its coverage. Though the list might differ a little across insurers, majorly, the death should not be caused by an accident due to:
- Self-inflicted injuries, including suicide attempts, irrespective of mental health status.
- Deaths related to the consumption of drugs, alcohol, or other substances.
- Deaths occur as a result of war or invasion, even in the absence of an official war declaration.
- Flying, except when you are a fare-paying passenger on a commercial airline or serving as a member of the airline’s crew.
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Features and Benefits of Accidental Death Benefits Rider in Term Insurance
An accidental death benefit rider in term insurance is an optional add-on to a life insurance policy that provides additional financial protection in case of accidental death. Here are some key features and benefits:
Minimal Documentation
Adding the accidental death benefit rider is easy. You don’t need a lot of paperwork or extra steps. Just fill out an application form when you buy your life insurance policy.
Enhanced Protection
Riders like the accidental death benefit give you extra coverage. They provide additional financial support in various situations, helping to protect your loved ones even more.
Financial Support
If the insured person dies in an accident, this rider pays a lump sum to the nominee (the person chosen to receive the money). It helps the family with immediate financial needs like bills, loans, or funeral expenses.
Quick Payout
If the insured person dies in an accident, the ADB Rider usually pays out quickly, providing much-needed financial help to the family during difficult times.

Tax Benefits
You can get a tax deduction for the premiums you pay for a life insurance plan under Section 80C of the Income Tax Act, 1961. You can add an accidental death benefit rider to your policy for extra protection, which also qualifies for a tax deduction.

Additional Coverage for Unforeseen Events
An accidental death benefit rider provides additional coverage to the policyholder's family in case of an untimely death due to an accident. Since accidents might bring unexpectedly high medical costs with them, this rider ensures that the family is provided with an additional lump sum amount to help them cope with the medical expenses.
Affordable Premiums
The accidental death benefit rider is available at an affordable premium rate. It can be purchased as an add-on to the base policy for a nominal extra premium and is a cost-effective way to add an extra layer of protection to your life insurance policy.
Flexibility
Life insurance policies have standard features, but riders allow customization based on your risk profile. If your job carries higher accident risks, an accidental death benefit rider can enhance protection. Depending on the insurer, it can be added at purchase or later, with flexible coverage options.
Peace of Mind
Adding an accidental death benefit rider to your life insurance policy can give you peace of mind, knowing that your family will be taken care of in case of an accidental death.
Factors to Consider when Buying Accidental Death Benefit Rider in Term Insurance
Factors to Consider when Buying Accidental Death Benefit Rider in Term Insurance
Here is a list of significant factors to consider while purchasing an accidental death benefit rider:
Coverage Amount : First and foremost is the coverage amount. Check if the coverage amount is aligned with your requirements. You can use a term insurance calculator to get a better understanding of the appropriate coverage for your needs. Check the risks you are trying to cover and the highest medical costs that might arise if you have an accident.
Premium: The premium amount for the accidental death benefit rider should be affordable, aligned with your requirements and must not put a strain on your finances. Compare the premium rates offered by different insurers for your required sum assured and choose the one that provides the best value for money.
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Who Should Buy a Term Insurance with Accidental Death Benefit Rider?
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Eligibility Criteria for Buying Accidental Death Benefit Rider in Term Insurance
Like all other insurance policies and riders, there are certain eligibility requirements to buy an accidental death benefit rider:
Documents Required for Buying Term Insurance with Accidental Death Benefit Rider
Here is the list of common documents required to purchase a term insurance with accidental death benefit rider:
Identity Proof
Age Proof
Address Proof
Income Proof
Photographs
Medical Reports
Step to Purchase Accidental Death Benefit Rider to Term Insurance
Adding an Accidental Death Benefit Rider to your term insurance policy typically involves the following steps:
Step 1
Check if your existing term insurance policy allows for the addition of riders.
Step 2
Reach out to your insurance provider to express your interest in adding the rider.
Step 3
Complete any necessary forms provided by your insurer.
Step 4
Submit any additional documents that may be required, such as proof of identity and medical reports.
Step 5
Riders usually come with an extra cost, so be prepared to pay an additional premium.
Step 6
Once approved, you will receive confirmation from your insurer that the rider has been added to your policy.
Documents Required for Claiming Term insurance with Accidental Death Benefit Rider
Here is the list of most common documents required to claim a term insurance with accidental death benefit rider:
Claim Form
Death Certificate
Policy Document
Identity Proof of Nominee
Address Proof of the Nominee
Medical Reports (if applicable)
Bank Account Details
Additional Documents
What are the Pros and Cons of Accidental Death Benefit Rider in Term Insurance?
Understanding the pros and cons of an Accidental Death Benefit (ADB) rider in term insurance is essential for making informed decisions. Here are some pros and cons to consider:
Tax Benefits of Term Insurnace with Accidental Death Benefit Riders in India
Tax Benefits of Term Insurnace with Accidental Death Benefit Riders in India
The Accidental Death Benefit rider can offer some tax benefits in India. Here are the key points:
Tax Exemption on Premiums
Premiums paid towards the Accidental Death Benefit rider qualify for tax exemptions under Section 80D of the Income Tax Act, 1961. This means you can deduct the amount paid for this rider from your taxable income, reducing your overall tax liability.
Tax-Free Payouts
The payout received from an Accidental Death Benefit rider is generally not considered taxable income under Section 10(10D) of Income Tax Act. This means that if the benefit is paid out due to an unfortunate accident, the amount received by the beneficiaries is usually exempt from income tax.
99.53% Claim Settlement Ratio For Digit’s Life Insurance in FY'25

99.53% Claim Settlement Ratio For Digit’s Life Insurance in FY'25
When life takes an unexpected turn, every second matters. With a 99.53% Claim Settlement Ratio (CSR), Digit Life Insurance stands as a pillar of trust and reliability. This isn’t just a statistic; it’s a promise to our policyholders.
Every claim tells a story. Whether it was a salaried parent overcoming loss, a child’s future hanging in the balance, or a spouse seeking stability, we acted fast to bring peace of mind to grieving families.
That’s why we are committed to settling genuine claims swiftly, transparently, and with compassion, ensuring that your loved ones receive the support they need when it matters most.
₹2.88 Billion Worth Claims Paid in FY'25

₹2.88 Billion Worth Claims Paid in FY'25
At Digit, we don’t just talk about protecting families; we actually do it. In the last financial year, we paid ₹2.88 billion to families who lost a loved one. That’s a big jump from ₹351.52 million a few years ago, showing how much we have grown and how seriously we take our promise.
Every payout represents a family supported, a future safeguarded, and a promise fulfilled. We make sure claims are settled quickly and clearly, with zero confusion, so families don’t have to worry during tough times.
15,000+ Claims Settled in FY'25

15,000+ Claims Settled in FY'25
Solvency Ratio for Digit's Life Insurance in FY'25 is 3.85

Solvency Ratio for Digit's Life Insurance in FY'25 is 3.85
At Digit, being financially strong isn’t just a goal; it’s how we earn your trust. Our solvency ratio has grown from 2.07 to 3.85, which means we are more than ready to keep every promise we make.
This number shows we have more than enough funds to pay claims and support families, even in tough times. In fact, our ratio is nearly double the required limit, giving you extra peace of mind.
Because when you choose life insurance, you are not just buying protection; you are trusting us with your family’s future. And we take that seriously.
FAQs about Accidental Death Benefit Rider in Term Insurance
Can you provide an example of how an accidental death benefit rider works in term insurance?
What advantages does accidental death insurance offer in term insurance?
Accidental death benefit in term insurance offers several advantages, including affordable premiums, additional financial protection in case of an unexpected accident, and peace of mind for individuals who engage in risky activities.
It ensures that beneficiaries receive extra financial support to cover expenses like medical bills, mortgages, or education, alleviating financial burdens during a difficult time. It’s particularly useful for those with high-risk jobs.
What is an accidental income benefit rider in term insurance?
Is the coverage amount of an accidental death benefit rider in term insurance taxable?
What is the difference between accidental death benefit rider and basic term insurance plan?
Basic term insurance provides financial protection to your family in case of your death, whether due to natural causes or accidental.
Accidental death benefit, on the other hand, provides additional financial protection in case of your accidental death.
How much does an accidental death benefit rider cost in term insurance?
Can I claim from two accident insurance policies?
Is there an age limit for buying the accidental death benefit rider in term insurance?
How much does an ADB Rider cost in term insurance?
Is an term insurance with accidental death benefit rider a good fit for me?
What does an accidental death benefit rider cover in term insurance?
What is the limit of accidental death benefit rider in term insurance?
Should we take an accidental rider with term insurance?
Can an accidental death rider increase the death benefit in term insurance?
What is the difference between death benefit and accidental death benefit in term insurance?
What is the claim period for an accidental death benefit rider in term insurance?
What is considered accidental death for insurance purposes in term insurance?
Is there any government benefit for accidental death in term insurance?
Who is the beneficiary for accidental death benefit in term insurance?
What are the exclusions of an accidental death benefit rider in term insurance?
Is purchasing an accidental death benefit rider a worthwhile investment in term insurance?
What are the key reasons to consider investing in an accidental death benefit plan in term insurance?
Key reasons to invest in an accidental death benefit plan include added financial protection in case of an unexpected accident, affordability compared to other coverage options, and peace of mind for individuals with high-risk jobs or activities.
This plan ensures that beneficiaries receive a larger payout to cover financial obligations, such as debts, education, or family support, if an accidental death occurs.
Is there a difference between Accidental Death Benefit (ADB) and Accidental Death and Dismemberment Insurance (AD&D) in term insurance?
How frequently can one claim insurance under term insurnace with accidental death rider?
Do term insurance and health insurance offer the same type of accidental coverage?
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