Accidental Death Insurance is a different way to help protect your family’s financial future. Learn the ins, outs and why it might be a useful policy for your family.
Accidents are one of the leading causes of death in the United States among all adults, and the leading cause of death among adults 25-44.* With the unpredictability of life, many seek out every option to help protect their families from financial hardship, and accidental death insurance can help do just that. Simply put, Accidental Death Insurance is designed to help your loved ones financially should you die or be seriously injured in an accident.
How Does Accidental Death Insurance Work?
Accidental Death Insurance Quick Facts
- No medical exam
- No health questions
- Generally less expensive
- Guaranteed approval if you meet the age requirements
With this type of coverage, you can apply online and be approved the same day because there is no medical exam, no health questionnaire and no waiting periods. As long as you meet the age requirements, you are guaranteed to qualify for an accidental death policy.
With accidental death insurance, you can select from between $50,000 and $500,000 in coverage, and your rates could be as low as $9 per month. As long as you pay your premiums, an accidental death policy stays in effect your entire life. Premiums remain the same regardless of increasing age or changing situations.**
Accidental death insurance is typically less expensive than other types of life insurance because it is a bit more limited in what it covers. While we usually recommend a standard term life insurance policy, accidental death is a valuable supplement to a more comprehensive policy. It is also a good alternative if you cannot qualify for a standard life insurance policy, but still would like to help provide for your family financially should the unexpected occur.
Who Needs Accidental Death Insurance
Clearly, accidents happen. Accidental death insurance covers you 24 hours a day, every day as long as you continue to pay your premiums. This type of policy is especially useful for people who fall into a few different categories.
Traditional life insurance isn't an option.
If you applied for a term or permanent life insurance policy and were denied or advised that you might be denied, accidental death insurance could be a good alternative for you. This type of policy doesn't mandate you go through a stringent approval process. However, it's important to note that you won't be covered for the same breadth of events as you would be on a traditional policy.
Supplement to Standard Life Insurance
Accidental death insurance is also a beneficial supplement to the term or permanent life insurance policy you already have. Accidental death insurance is offered as a rider, providing you with more coverage and potentially more financial support for your loved ones if something were to happen to you.
The Fine Print Made Simple
As with many types of insurance, accidental death insurance too has fine print. The policy benefit, or the payout your beneficiary will receive, may change based on the type of loss or injury. Policy benefits can be broken down into a few categories - accidental death, living benefits and common carrier benefits. Let's take a look at each.
Accidental Death
Death caused by an accident will pay your beneficiary 100% of the face value of your policy.
Living Benefits
If you sustain a non fatal, but serious injury during the lifetime of your policy, you could qualify for living benefits. The following is a list of some of the injuries that are included in this type of policy:
Injury***
Fine Print
Dismemberment
Payout varies based on type of loss (includes arm, hand, leg, foot)
Paralysis
Payout varies based on type of paralysis and must last longer than 30 days
Vision Loss
Payout varies based on the severity of the loss
Hearing Loss
Often it must be a total hearing loss
Burns
Must suffer burns to at least 20% of the body
Common Carrier Benefits
A common carrier is a licensed vessel that's sole purpose is to transport fare paying passengers. An accidental death insurance policy may pay up to triple the face value of your policy for an injury or death that occurs on a common carrier. Some common carriers include the following:
- Licensed Taxi
- School Bus
- Streetcar
- Bus
- Train
- Ship
- Ferry
- Commercial Airplane
If you're ready to buy Accidental Death Insurance or you want to find out more, visit our product page for more information.
*http://www.cdc.gov/nchs/data/nvsr/nvsr65/nvsr65_02.pdf
**Premiums could change, but only on a class basis.
*** Benefits and exclusions may vary by state.
