Accidental Death Benefit (ADB)

Accidental Death Benefit (ADB) is a supplementary rider or add-on benefit available with life insurance policies, personal accident policies, and certain credit insurance products — providing an additional lump sum payment to the nominee or beneficiary if the insured person dies as a direct result of an accidental injury, over and above the base sum assured payable upon natural death. The ADB typically pays double the base sum assured (hence also called a double indemnity benefit) when death occurs due to an accident — defined as a sudden, unforeseen external event causing bodily injury. Some ADB riders also cover permanent total disability resulting from accidents. In India, ADB riders are available with term insurance policies from insurers like LIC, HDFC Life, ICICI Prudential Life, and SBI Life — at a modest additional annual premium. For working adults with financial dependents, ADB riders provide enhanced financial protection given that accidental death can occur at any age without the income-smoothing that illness typically provides, leaving dependents in sudden financial distress. For investors taking loans — home loans, personal loans, or margin trading loans — lenders sometimes offer credit-linked accident insurance that pays outstanding loan balances in the event of the borrower's accidental death, protecting co-borrowers and family from inherited debt obligations. ADB premiums are eligible for deduction under Section 80D (if part of a health plan) or 80C depending on the specific policy structure.