Does Term Insurance Cover Accidental Death?
Close
Close

Buy a life insurance plan in a few clicks

Now you can buy life insurance plans completely online right here.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.

  • Kotak E-Invest Plan

    Kotak e-Invest is a comprehensive Unit Linked Life Insurance Plan that can be customized as per your goals and needs - be it protection; investment; financial security for child or retirement planning.

  • Icon for Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and insurance cover against any eventuality.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Back

Does Term Insurance Cover Accidental Death?

Buy Term Plan Now
  • 29th Oct 2021
  • 267

Does Term Insurance Cover Accidental Death?

Imagine

It’s a fine morning, and you’re commuting to work. It is a regular task for you to follow the same route to your workplace with the same travellers. However, meeting with an accident is entirely unpredictable. Thankfully, you purchased a term plan for your family’s safety and the knowledge that your family’s aspirations can continue in your absence is all we can gain solace in – in case such an unfortunate incident happens.

Accidental death either gives your family a higher sum assured (sometimes 2x cover) or you can get covered for disability and can get a waiver on paying future premiums if disabled and have no source of income. Therefore, an accidental death cover in term insurance provides you with an additional layer of protection.

Term Insurance

Given the abundance of information on how you can ensure your loved ones’ safety and build sufficient funds for them, term insurance appears to be the ideal approach. This will enable them to continue their lifestyle and live comfortably even after you are no longer around.

A term insurance plan is a form of life insurance policy that covers you for a certain period. It can last up to 85 years or 5-25 years in the case of a short-term policy. If you pass away during the tenure, your beneficiaries are entitled to a death benefit under the policy’s provisions. Also, this plan enables you to include additional benefits in the form of riders to guarantee your loved ones’ future security.

Accidental Death Cover in Term Insurance

An accidental death insurance policy in India is one of the many additional benefits that you can add to your term insurance plan. It covers some predetermined damages specified in the policy agreement, such as amputation, fractures, burns, wounds, or disabilities. Accidental life insurance gives a lump sum payout known as an accidental death benefit to the beneficiary in the case of your demise.

Term Insurance with Accidental Disability Rider

Accidents do not come knocking at your doorstep. However, such unexpected occurrences bring ambiguity, losses, temporary or permanent disabilities, etc., with themselves. Therefore, it is sensible to get term insurance with an accidental disability rider if you want to gear up for the worst.

In case of an accident that results in disability, a lump sum payment or a monthly income for a certain period is given to you and your loved ones. This period is entirely based on the length of the policy and your financial requirements.

There are two situations for disabilities in an accidental death insurance policy:

  • Permanent Disability
  • If you are no longer able to work or take care of yourself or your family due to permanent accidental disability, the rider benefit is given in a lump sum amount as compensation.

  • Partial Disability
  • If you experience a partial accidental disability where you are not completely incapable of taking care of yourself, term insurance with an accidental disability rider benefit pays the compensation amount monthly.

Find Out If You Need an Accidental Insurance Policy

You must understand the additional benefits you should add to your term insurance to manage your finances effectively. Though everyone should opt for accidental life insurance, it becomes necessary to work in hazardous and life-threatening work environments, commute daily to work, etc.

Exceptions to Accidental Death Cover in Term Insurance

Before relying on an insurance policy, you should remember that your loved ones are not eligible for accidental death benefits if you due to:

  • Adventure sports
  • Driving under intoxication
  • Drug overdose

To summarise, we do not know what the future has in store for us. Given this unpredictability, staying prepared and getting an accidental death cover in term insurance is recommended to be safe rather than sorry later. Nothing can give you better peace of mind than securing your loved ones’ future even after you’re no longer there!

- A Consumer Education Initiative series by Kotak Life

Also read

  • Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

    Term Insurance Plan – Secure your family and loved ones’ future during such hard times with Kotak e-Term Plan. Know more about Kotak e-Term during...

    Read more
    • 26th Aug 2021
    • 318

    Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

    If you are unsure if you should buy a term plan or a traditional policy, it is better to buy a term insurance plan in terms of risk coverage. Click he...

    Read more
    • 11th Oct 2021
    • 293

    How To Choose the Right Sum Assured Under a Term Plan?

    Know how to calculate your sum assured and the factors that can help in deciding the adequate amount of sum assured at the time of buying a term insur...

    Read more

Related Plans

  • Kotak e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term insurance plan that provides a holistic life protection at affordable prices. Find out the eligibility criteria, key ...

    Know more