Does my life insurance policy cover accidental death benefit?

I am a Thane-based businessman, aged 50, and a frequent flyer. Every time I board a plane, I think of my wife and children. If something happens to me during the flight, does my insurance cover accidental death benefits? More importantly, how easy is it for my family to claim it without being overwhelmed by paperwork during their worst moment?

- Name withheld on request

As a frequent traveller, your concern is valid and shared by many. The good news is that most comprehensive travel insurance policies and many life insurance policies do include accidental death benefits. Specifically, travel insurance often has provisions for accidental death or dismemberment that occur during a trip, including during flights. Your existing life insurance policy would also typically cover death by accident, regardless of location, unless specifically excluded.

To ensure your family can claim easily and avoid excessive paperwork during a difficult time, here is what to look for and do:

Review Your Policies: Check the terms of your current travel insurance (especially if you have an annual multi-trip policy) and all your life insurance policies. Look for clauses related to death benefit, airline accidental death and common carrier accident.

Designate Beneficiaries Clearly: Ensure your beneficiaries are clearly named and updated in all policies. This is crucial for a smooth payout.

Keep Documents Organized: Create a single, easily accessible folder (physical and/or digital) containing all your insurance policy documents, agent contact information, and a clear list of what each policy covers. Recommend having an e-insurance account to store all policies in one place digitally through any of the designated Insurance Repositories for ease and convenience. Inform your wife or a trusted family member about its location.

Inform Your Family: Have an open conversation with your wife about your insurance coverage. Explain what policies you have, where the documents are, and who to contact (your agent or the insurance company directly) in case of an event.

Nominee/Beneficiary Details: Ensure the nominee details are accurate and up-to-date in all your policies. This simplifies the claims process significantly.

By taking these proactive steps, you can provide your family with much-needed financial protection and streamline the claims process during a challenging period.

I am a 33-year-old freelance graphic designer based in Pune. I travel often for work, and last time my flight got cancelled hours before departure. I had to pay out of pocket for a new ticket, missed my hotel reservation, and lost money on a booked tour. Will my insurer reimburse these costs? How do I make sure it is all covered in the policy?

- Name withheld on request

As a 33-year-old freelance graphic designer in Pune, your recent experience of a last-minute flight cancellation, missed hotel, and lost tour money highlights a critical need for many self-employed professionals: robust travel insurance.

The good news? A comprehensive policy can absolutely reimburse these costs. Modern travel insurance extends beyond medical emergencies to cover flight cancellations, missed connections, and losses from pre-booked hotels and tours. It even covers alternative arrangements for disruptions due to airline faults, weather, or technical issues. For frequent business travellers, an annual multi-trip policy is often the most cost-effective. These offer continuous, worldwide coverage tailored to your needs.

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To ensure adequate protection, always check your policy's trip cancellation and trip interruption clauses. Crucially, retain all receipts, booking confirmations, cancellation emails, and proof of extra expenses. These documents are vital for a successful claim. While insurance cannot prevent delays, it is an indispensable financial shield, allowing you to travel and work with confidence.

Manju Dhake is head of insurance advisory practice at 1 Finance.