Beyond Physical Safety: The Role Of Life Insurance In Your Safety Plan

As we mark the pages of our calendar, one date holds a unique significance - March 4, National Safety Day. It's more than a mere entry; it is a call to arms, a day that draws our attention to the vital importance of safety and well-being in our daily lives, particularly within the boundaries of our workplaces. It reminds us to acknowledge the challenges, urging us to take the proactive measures needed to protect our well-being. When we think about staying safe and being ready for emergencies, we usually focus on tangible elements - like having first aid kits, knowing escape routes, and having detailed disaster plans. But, in the midst of all these visible safety measures, there's a really important but often forgotten aspect - life insurance with accidental benefits.

Encompassing life insurance with accidental benefits in your safety plan goes beyond precaution; it proactively weaves a layer of security for you and your family. Enhancing this financial safety net are life insurance riders. They offer readiness for unexpected events, both physically and financially. Two impactful riders, the Accidental Death Benefit Rider and the Accidental Death and Disability Rider, significantly broaden the protective scope of life insurance. Let's delve into these for a more comprehensive understanding.

Understanding Riders

Life insurance riders are optional benefits that fine-tune your policy to fit your unique needs. These add-ons provide a way to enhance your coverage, addressing specific concerns beyond the standard features at a certain extra cost. It's like tailoring your policy to ensure it aligns perfectly with what matters most to you.

What Is An Accidental Death Benefit Rider?

Accidental death benefit rider serves as a powerful ally within your life insurance plan, offering a secondary layer of protection in the unfortunate event of a fatal accident. While standard life insurance broadly covers various causes of death, this rider specifically focuses on accidents, ensuring that in such unforeseen and tragic incidents, beneficiaries receive an extra payout.

This rider holds significant value for individuals involved in high-risk activities or professions where accidents are more likely. Whether it's a workplace mishap, or a car accident, the accidental death benefit rider becomes a pillar of financial support, providing reassurance to your loved ones during challenging times.

With the ABSLI Accidental Death Benefit Rider Plus [UIN: 109A024V01], if you, unfortunately, pass away due to an accident within 180 days of the incident, your nominee will be provided 100% of the rider sum assured. This is, of course, only if the rider cover is active on the date of the accident.

Moreover, the insurer will refund the premiums collected from the date of the accident until the date of death, along with the applicable interest as declared by the insurer. This refund will be in addition to the death benefit. Once the rider sum assured is paid, the rider coverage will come to an end, and there won't be any more rider premiums to be paid.

What Is An Accidental Death And Disability Rider?

Accidents can bring more than just the threat of loss of life; they can also lead to disabilities that impact your ability to work and provide for your family. The accidental death and disability rider steps in as a financial companion in such situations.

This rider doesn't just offer a safety net for fatalities but also provides financial support if you face a disability due to an accident. It typically ensures a payout or regular income to you and your family members to help cover medical expenses, rehabilitation costs, etc. and maintain some financial stability during an already challenging period.

Integrating the accidental death and disability rider into a life insurance policy is particularly beneficial for those whose income supports their families. It offers a sense of reassurance that, even in the face of a life-altering accident, there's a financial cushion. This way, you and your loved ones can focus on recovery without worrying about the finances.

In case you find yourself in such a situation, this rider ensures that you and your family receive a sum of money to manage additional lifestyle expenses. This could cover things like physiotherapy sessions, wheelchairs, medical check-ups, and more. Typically, the payout is offered as a percentage of your cover amount, and in some cases, it may even provide 100% of the sum assured.

The way the benefit is paid out depends on the severity of the disability. This way, you and your family can get the financial assistance for challenges that may arise from a disability caused due to an accident. Here's a table showing how the insurer will pay the benefit under ABSLI Accidental Death and Disability Rider [UIN: 109B018V03]

Disability	Percentage of Rider Cover
Loss or total and permanent loss of both the hands from the wrist joint Loss or total and permanent loss of both the feet from the ankle joint Total and permanent loss of sight in both eyes	100%
Total and permanent loss of speech as well as hearing in both the ears.	50%
Total and permanent loss of hearing in both the ears Loss or total and permanent loss of one hand from the wrist joint Loss or total and permanent loss of one foot from the ankle joint	25%
Total and permanent loss of speech	20%
Total and permanent loss of hearing in 1 ear	5%

If you happen to face further disabilities in the future, the benefit will persist, with a few conditions -

• The total payout over the entire policy term of the rider will not exceed 100%.
• The benefit is a one-time payment for each disability, ensuring it's available when needed during your lifetime.
• After a disability claim due to an accident, the death benefit under this rider is adjusted, reducing it by the amount already paid for the claim.

What Exactly Counts As A Disability?

Well, the specifics are outlined in your policy document, and it's crucial to take the time to read and understand it thoroughly. Here's why -

Different insurers might have their own way of defining disability. For instance, one might consider it as the inability to perform three out of six daily activities like writing, climbing, or lifting. Meanwhile, another might define it as an injury resulting in the loss of core functions of a specific body part, such as both eyes, both feet or one arm and one leg.

In essence, the definition can vary, and the details matter. So, before you make a decision, it's highly advisable to dive into the policy wordings of the rider.

How Do These Riders Help?

Here are some of the reasons why you should add these riders to your base policy - Financial Support In Case Of Uncertainties Life is an unpredictable journey, and accidents can catch us off guard when we least anticipate them. That's where these riders come into play – they're like a financial safety net. If there's a fatal accident, it's not just about coping; it's about ensuring that the people you hold dear receive that extra help. These riders step in to provide an additional layer of financial support, helping with immediate costs and keeping the financial boat steady after facing something really tough.

Financial Help During Your Time Away From Work Accidents can throw life off balance, especially when they lead to disabilities that impact your ability to work and earn. Enter the accidental disability rider – a helping hand that offers extra funds, whether in a lump sum or regular payments, to handle medical bills and living costs while you take the time to recover. This rider is like a supportive friend, easing some financial burdens off your shoulders. It's crafted to reduce stress, enabling you to focus your energy where it truly counts – on your recovery.

Adds An Extra Layer To Your Safety Plans Even if you're being cautious with a solid emergency plan, unexpected accidents can still shake things up. Life insurance riders act like an extra layer of financial protection, working hand in hand with your existing safety measures. So, it's not just about being physically safe; it's about adding that financial security blanket. Including these riders in your safety plan is like fortifying your resilience, making you less vulnerable to the twists and turns that life may throw at you.

Wrapping Up!

National Safety Day dated March 4, serves as a gentle nudge to prioritise safety in every aspect of your lives. Integrating these riders into your life insurance goes beyond preparing for the unexpected – it's a complete readiness, addressing both physical and financial aspects. It safeguards you and your loved ones, ensuring peace of mind when life throws unexpected challenges your way. Ultimately, it's about securing what's most important and knowing that, regardless of the circumstances, you're well protected.