Aditya Birla Sun Life Insurance Company Limited

Accidental Death Benefit

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Definition:

The benefit that the life insurance company pays to the nominee in case the life insured dies due to an accident is known as the Accidental Death Benefit. The insurer will pay the benefit of the death happening anytime within 180 days of the occurrence of an accident.

Description:

To increase the coverage limits under the base policy, the life insured can choose a rider cover by paying a nominal extra premium. With this rider, the policy ensures to pay policy benefit + accidental death benefit sum assured to the nominee. In some policies, the accidental death benefit comes as an in-built policy benefit.

The rider provides financial assistance to the nominee if the life insured passes away, due to an accident, within the policy period. The benefit is payable in a lump sum or as monthly income as the life insured chooses.

The nominee will not receive any benefit if the life insured dies in an accident resulting from alcohol consumption, narcotics, dangerous sports, criminal or illegal activity, and others.

Example:

Rajeev purchased a term insurance policy for Rs.1 crore. He also enhanced the scope of policy coverage by buying an accidental benefit rider. The limit of cover under the accidental benefit rider was Rs.50 lakh.

Scenario 1: Death due to heart failure If Rajeev died due to sudden heart failure, the total claim payable to the nominee under the policy will be Rs.1 crore.

Condition 2: Death due to accident If Rajeev died due to an accident, his family/beneficiary will also be liable to receive an additional death benefit of Rs.50 lakhs under the term insurance policy. With the accidental benefit rider, the total claim payable under the policy will amount to Rs.1.50 crores.

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ABSLI Salaried Term Plan

Exclusively For Salaried Individuals

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4 Plan Options

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Life Cover upto 70 years

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Recently Added Article

ABSLI Salaried Term Plan (UIN:109N141V02) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 2 (Life Cover with ROP) this product shall be a non-linked non-participating individual savings life insurance plan.
*LI Age 21, Male, Non Smoker, Option 1: Life Cover, PPT: Regular Pay, SA: ₹ 1 Cr., PT: 10 years, Annual Premium: ₹ 6100/- ( which is ₹ 508.33/month) Premium exclusive of GST. On death, 1 Cr SA is paid and the policy terminates.
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