Accidental Death and Dismemberment Rider

Accidental Death and Dismemberment Rider

Under this rider, the insurance company pays additional benefits if the life insured dies an accidental death or loses a limb or sight because of an accident.

The increased death benefit is typically two times the stated death benefit, which is why AD&D coverage is sometimes called Double Indemnity.

Death by accident is actually rare ( only about 8% of deaths) and the increased premium charged is usually not considered reasonable for the additional coverage. AD&D riders typically require that the death and dismemberment must result from external, violent and accidental means.

Each insurance company has its own definition of “accident” and some have exclusions

Under the dismemberment rider, the policy pays out a proportion of the accidental death benefit, based on the severity of the injuries ( e.g., loss of one limb, two limbs etc.). The dismemberment must occur within 365 days of the accident that caused the injury.

Please feel free to contact us at aman@yourinsuranceguy.ca or at 1 416 509 2540 to know how this addition can benefit your insurance planning process.

 

Waiver of Premium Rider

Under this rider, if the policy owner becomes totally disabled, he or she will not be required to pay the premiums on the life insurance policy. The policy owner must be disabled for a period specified in the rider, usually 3 to 6 consecutive months, before premiums will be waived…

 

Guaranteed Insurability Benefit Rider (GIB)

This rider gives the policy owner the right to buy additional insurance at a guaranteed price, upto a specified amount, without proving insurability, even if the life of the life insured has deteriorated…

 

Accelerated Death Benefit Riders

These riders provide for the payment of benefits before the life insured dies. These are called Living benefits. Accelerated death benefit is a pre-payment of benefits and not an additional benefit.  The death benefit paid when the life insured dies will be reduced by any accelerated benefits paid prior to death, plus accumulated interest to the date of death.

 

Prepared by:  Aman Kapur

 

Leave a Comment

Your email address will not be published. Required fields are marked *