I am looking for a term insurance. Some companies offer accidental death benefit and accidental permanent disability benefit but some do not. Is there a reason behind it? Also, while selecting a term plan, should we consider claim settlement percentage given on the insurance regulator’s site?


Accidental death benefit (ADB) and accidental permanent disability (APB) benefit are optional riders, which can be attached to any policy. Of the two riders, ADB is more popular as it’s relatively inexpensive. APB is more expensive and has a long list of conditions/exclusions that makes it a less popular choice. Term insurance premiums don’t differ much between companies but the charges on riders differ for every company. This could be one of the reasons why companies do not offer any additional riders.

While selecting a term plan, it is advisable to consider claim settlement percentage as it reflects on the company’s underwriting rigour and its effectiveness in claim investigation and payout.

I am 27 years old and want to buy a term plan which has accidental death, critical illness and permanent disability riders. I am a non-smoker and my income is 5 lakh per year. Should I go for a pure term plan? Which is the best?

-Sachin V. Gadekar

I would suggest you go for a pure term plan. It is good to have a term plan at a young age since the premium is relatively low then. The coverage you choose should be in line with your liabilities. Using a human life value approach, you should have a risk cover of 10-15 times of your annual income at your age. I will suggest you go for the maximum possible policy term offered by an insurer of your choice depending on the premium and claim settlement record. You should choose riders carefully after going through the conditions and exclusions.

I have nominated my mother for a traditional policy. I want to include my wife’s name now. Also, what happens in case a nominee dies before the policyholder during the term?

-Surjit Sharma

For all insurance policies, you have an option of changing the nominee or including an additional nominee. You can approach the company and request for this change. In case a nominee dies before the policyholder during the policy term, the life assured (you) can change the nominee.

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