Understanding the Policy

Accidental death is one of the strongest fears most of us have. One decides to provide for their dependents for such unforeseen situations.

Accidental death life insurance also called accidental death and dismemberment life insurance (AD&D) caters to deaths by accident only and for reasons other than an accident, the tax-free death benefit cannot be claimed by the beneficiaries. This is a drawback for many, however, for people having frequent travel or high-risk jobs may find this policy lucrative.

  • It may also provide living coverage to the holders if they experience a serious workplace injury or a permanent accidental injury.
  • It can be used to pay the final expenses or medical bills at the time of the individual’s accidental death.
  • May have an attractive rate of return on investment compared to traditional policies. Our experts can explain to you better how you may benefit from such a policy.

Policy Highlights

Pros

  • Extremely affordable
  • Suited for people with high-risk jobs, extensive traveling lifestyles
  • Tax-free death benefit
  • Does not require any medical underwriting
  • Generally lower premiums

Cons

  • Limited coverage
  • Beneficiaries do not have a claim to the death benefit in case of death from other reasons

Duration

  • Variable Term period up to 30 years

Accidents Covered

  • Car accidents, bike accidents, work-related machinery, falls, suffocation, choking, drowning, and fires
  • Dismemberment policies usually cover loss of sight, speech, hearing, or a limb.
  • DOES NOT COVER death or injuries by surgery, mental or physical illness.

Cost of Accidental Life Insurance

The cost of accidental life insurance is usually lower or the same as the term life insurance that is around $30 per month. However, the coverage offered in the accidental life insurance is much limited by the cause of death. On the other hand, the term life insurance does not include any limitation and the death benefit is paid to the beneficiaries whatever the cause of your death is.

Accidental Death Rider

Some term life insurance policies cover the accidental deaths as well by offering an add-on to the actual policy. This is called a RIDER. You may benefit from the accidental death rider by purchasing a term life insurance policy and not consider buying the sole accidental death life insurance policy.

Ask our experts for comparison and make a better decision for yourself and your family!