Accidents are hard to predict, and policyholders' loved ones may need a better safety net than the payout a standard life insurance policy offers. Adding accidental death benefit riders to a life insurance policy can ensure that beneficiaries have the extra financial security they need if the event of the policyholder's unexpected passing. Here's how accidental death benefit riders work and why policyholders should consider getting this add-on to their existing life insurance plan.

What does an accidental death benefit cover?

An accidental death benefit is a payment made by the insurance company to life insurance beneficiaries if the policyholder passes away from a covered accident or within a set time period after the accident. Policyholders can add accidental death benefit riders to their existing life insurance policy for an extra cost. With the addition of this benefit, beneficiaries can often receive as much as double the amount of money from the life insurance payout. 

The accidental death benefit covers a variety of deaths that can't be controlled, such as car crashes, deaths from machinery, and drowning. Some deaths that are excluded from this benefit include death from disease, illegal activities, or hazardous hobbies like skydiving.

Policyholders should keep in mind that accidental death benefits are optional riders, so they have to purchase this benefit to add it on to their life insurance policy.

How much does an accidental death benefit rider cost?

Since the cost of an accidental death benefit rider is typically not included in life insurance plans, policyholders may have to pay extra for this benefit. Adding an accidental death benefit to a life insurance policy can increase the premiums policyholders have to pay each month or year.

Who should get an accidental death benefit rider?

Policyholders should consider purchasing an accidental death benefit rider if they want their loved ones to have more coverage than their current life insurance plan has to offer. Getting this benefit can be a smart choice for those that work in a hazardous environment, such as having an occupation operating heavy machinery. Policyholders who drive often, whether professionally or while commuting, may also want to consider adding this benefit to their existing life insurance policy. 

The bottom line

Getting an accidental death benefit rider can add an extra layer of financial protection to beneficiaries if the policyholder passes away unexpectedly. Although getting accidental death benefits can result in higher premiums, the cost can be worth it if the policyholder wants their loved ones to receive a higher payout. 

Policyholders should consider their risk of getting in an accident and the financial needs of their loved ones when deciding whether this benefit is the right choice for them.