Orphan Benefit in a Health Insurance Plan

The 'Orphan Benefit' or survivor benefits is offered by health insurance companies to the surviving dependent children of a policyholder, who has passed away due to an accidental death. This benefit is offered under the accidental death cover, which is a contract between the insurance company and the insured. In case of the policyholder’s death due to an accident, the nominees receive the sum insured from the insurance company. A certain percentage of the sum insured is paid to the orphan children of the insured in case of their parents’ death. The amount of 'Orphan Benefit' paid to the children comes with a maximum limit. However, it has to be paid to all the surviving children of the insured.

A scenario might help you understand the ‘Orphan Benefit’ better. Imagine, Mr. Agarwal is a schoolteacher with two dependent daughters. He has purchased a ‘Personal Accident Cover’ to protect his family financially in case of an accidental death. One day, when traveling by car, Mr. and Mrs. Agarwal meet with an accident and lose their lives. This circumstance not only leaves their daughters as orphans but also puts them in a terrible financial crisis.

This is where the 'Orphan Benefit' can help. If Mr. Agarwal's Personal Accident Cover comes with the ‘Orphan Benefit’ facility, the children will receive a percentage of the sum insured, which can help secure their future.

Aditya Birla Capital's Activ Secure Personal Accident Plan offers 'Orphan Benefit'.