Term insurance is a life insurance plan which covers death by any cause be it by sickness or accident. There is no saving element in it. Everyone having family responsibility must hv it before thinking of other types of plans. Accident policy is a plan which covers death only due to accident. But natural it is cheaper. Yes you must take personal accident as an add on while buying term plan. In case of death by sickness only term insurance part would trigger & basic sum assurance would be paid. In case of accidental death - both the insurance would trigger & double the cover would be paid. I assume here that that the accidental cover would be same as base policy cover. One can hv even less

Hi Hersh,

Term insurance is a pure risk only policy. Pure risk only policy means that there is no survival or maturity benefit.

Term insurance covers all kinds of deaths except suicide in the first year.

An accidental death rider in a term policy just helps in increasing the payout to the family in case of death due to accident. So in case of death due to accident the nominee will get the SA of the base term policy + the SA of the accidental death rider. Incase of death due to any other means the nominee will get only the SA of the base term policy.

Whether it is worth it??

It is a low cost rider that can be added to the policy especially if you travel often due to work or are an avid traveller.

However if you are looking at a comprehensive personal accident cover, then you should go for a stand alone personal accident policy as it covers a lot more that just death due to accident.

Hope this helps.

Cheers!