Imagine you have a life insurance policy for ₹1 crore (10 million rupees). This protects your loved ones financially if you pass away. But what if you want to provide even more security in case of an accidental death? This is where an accidental death benefit rider comes in.

Think of a rider like an add-on feature for your life insurance. For a small extra premium, you can add accidental death benefit coverage. Here's how it works:

• Increased Coverage: If you die due to an accident during the policy term, your beneficiary receives both the original policy benefit (₹1 crore in this case) and the accidental death benefit amount (specified in the rider, e.g., ₹50 lakh).
• Financial Assistance: This additional benefit provides a significant financial cushion for your family in the unexpected event of your accidental death.
• Flexible Payout: Some policies allow you to choose how the accidental death benefit is paid out - a lump sum or monthly installments.

Important Note: Accidental death benefit riders typically exclude deaths caused by:

• Alcohol consumption
• Drug use
• Dangerous activities
• Criminal acts

Scenario Breakdown:

• Rohit's Policy: Rajeev buys a term insurance policy for ₹1 crore and adds an accidental death benefit rider for ₹50 lakh.
• Scenario 1: Natural Death: If Rajeev dies from a heart attack, his beneficiary receives the ₹1 crore policy benefit.
• Scenario 2: Accidental Death: If Rajeev dies in an accident, his beneficiary receives both the ₹1 crore policy benefit and the ₹50 lakh accidental death benefit, for a total of ₹1.5 crore.

By adding a rider, you can significantly increase the financial support your loved ones receive in case of your accidental death.