Accidental Death Insurance

Accidental Death Insurance provides a benefit to your family if you die in an accident.What is accidental death insurance?

Simply put, accidental death insurance is a type of life insurance that provides coverage in the event that you die as the result of an accident. In order for an accidental death benefit policy to pay the death benefit, your death must be the direct result of an accident and cannot be the result of an illness or other health issue. In addition to the death benefit, most policies also offer some benefit should you suffer a serious injury that results in the loss of a limb or loss of sight. Accidental death insurance is also know as “accidental death and dismemberment insurance (ADD)” for this reason.

Is buying an accidental death insurance policy a good idea?

It can be. Premiums for an ADD policy are very inexpensive and there is no medical exam necessary in order to get one. This makes them very easy to buy and your coverage can start almost immediately. Before you buy an ADD policy, however, you should consider several things:

  1. The death benefit is only paid if your death is the result of an accident. If you die of illness or natural causes, no death benefit will be paid.
  2. If you are young and healthy, a regular “all cause” life insurance policy will cost you little (if any) more than an accidental death policy and will pay a death benefit regardless of how you die (subject to certain exclusions for suicide, acts of war, etc.)
  3. Many regular life insurance policies have an “accidental death benefit rider” available. So if you have an existing policy but would like to add additional coverage for accidental death, you may want to explore this option.
  4. Most insurance companies require that you are between the ages of 20 and 65 and are a U.S. citizen in order to qualify.

With that said, an accidental death policy does make sense for some people. If you cannot qualify for a regular life insurance policy due to health issues, an accidental death benefit policy will provide some coverage. It’s not a perfect solution, but it is better than having no coverage at all.

How much will an accidental death insurance policy cost me?

Typically, an accidental death policy will cost around $1.00 for every $1,000 in coverage that you want to buy. So if you want $150,000 of accidental death coverage, for example, your premiums would be around $150 per year ($12.50 per month). This can be a very inexpensive way to add some life insurance coverage when other options are either too expensive or not available to you.

The process of applying for an accidental death insurance policy is very simple and only take a few minutes. Feel free to contact us by telephone at (877) 883-3561 or by using our “contact us” page. We would be happy to help you get the right life insurance coverage for your situation.

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About The Author

Richard Eddy

Founder of Rates4Term.com and Cona Financial Group Richard Eddy has been assisting clients with their life insurance needs since 2005. He is an expert helping people find the right policy to fit their specific situation. In addition to insurance planning, he is also experienced in a wide range of financial planning topics including investment and portfolio analysis, tax planning, retirement planning and estate preservation strategies. You can call Richard toll-free at (877) 883-3561.