Does Your Term Insurance Policy Provide Coverage for Accidental Death?

With uncertainties in life, term insurance is becoming an integral option for people. Term plans are important to consider to secure the future of family members and loved ones. It ensures the protected future of the policy’s beneficiaries. Moreover, it comes with death benefits; therefore, even in the case of the policyholder’s demise – beneficiaries can live their life comfortably and fulfil their dreams.

One can enhance the term insurance coverage as per their preferences. For example, initial term insurance in India base covers the death benefit; however, one can upgrade it with additional riders as well. This includes illness, accidental death or disability. With the base upgradation of the term policy, the premium will increase considerably.

What Does Term Insurance Mean?

A term insurance policy is taken for a specific period of time. The term insurance policy can be up to an age of 99 years in case of a whole life policy or a period of 10-30 as per the choice of the insured. You can buy a term plan online for a specified term period as you want it to be. Term plans provide death benefits to beneficiaries in case the policyholder accidentally dies during the policy term. You can also add extra riders like health care or financial risk relative as riders to ensure the loved one’s future security.

What is Accidental Death Cover in Term Insurance Policy?

Policyholders generally prefer to take accidental death benefits. Accidental death insurance is the additional rider in the term policy. It adds an extra layer of financial security to the beneficiaries and policyholders as well. It provides coverage for certain predicted damages outlined in the insurance agreement, including fractures, wounds, amputation, burns or impairments. In the event of accidental policyholder death, accidental life insurance pays a lump sum payment to the recipient, which is termed an accidental death benefit.

As a result, accident cover in death insurance adds an extra layer of security. One should check and learn about several term insurance plans. For example, Tata AIA insurance offers the option of accidental death riders with their term insurance policies. While finalising the policy, one should also add accidental death coverage in it. Similarly, there are different policies that can be chosen accordingly by the insured person.

What is an Accidental Disability Ride in a Term insurance policy?

One can opt for the Accidental Disability Rider with a term plan. In the event of an accident that ends in illness, the insured and their loved ones will get a lump sum payout or a monthly salary for a certain amount of time. This time is entirely determined by the length of the coverage and their financial needs.

For instance, in case the insured person meets with an accident but suffers from a disability. Then, in this case, they can be protected from disability and receive a waiver on future premium payments.

Types of Disabilities Covered

There are two types of disabilities covered in Accidental Disability Rider: Partial and Permanent disability. Here is the differentiation between both:

  • In partial accidental disability, a compensation amount is paid monthly to the insured and their family members to bear the expenditures on a monthly basis.
  • In a permanent accidental disability, a lump sum amount is paid to the insured if their family can no longer take care of the insured or their family members.

Who Should Add Accidental Death or Accidental Disability Riders in Term Insurance?

Term insurance base coverage comes with a death benefit. However, it is important to add on certain riders with the policy for some specific professions due to the high accident probability. People in professions such as mining, industrial work, relevant to heavy travelling, and construction work should consider add-on riders with the policy.

Are There Any Exceptions to Accidental Cover in Term Plan?

The accidental death cover in the term plan does have certain exceptions. For example, in case the insured person dies due to either adventure sports, drug overdose or driving under the influence (intoxication), then they are not entitled to accidental cover in the term plan.


Before choosing the term insurance plan or policy, the insured must add accidental death coverage as well.  The terms and conditions mentioned in the policy should be read properly. In case the insured person passes away, then the amount will be paid to their family members on the basis of the terms and conditions specified in the policy.

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