Accidental death insurance is a specialized form of life insurance that only provides benefits if death occurs as a direct result of an accident. While it's typically less expensive than comprehensive life insurance, it's important to understand what it covers, what it doesn't, and whether it's the right choice for your situation.
What is Accidental Death Insurance?
Accidental death insurance pays a lump sum benefit to your beneficiaries if you die as the result of an accident. According to insurance definitions, an accidental death must be caused by a physical injury that results solely and directly from an unexpected, violent, and external event.
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In most instances accidental death insurance is not medically underwritten, which means people who have suffered a health problem in the past are able to get this cover without any exclusions or loadings placed on their policy. This generally means lower premiums.
Who Might Consider Accidental Death Insurance?
As Supplementary Coverage Accidental death insurance can make sense as additional coverage alongside comprehensive life insurance for:- High-risk occupations: Construction workers, electricians, truck drivers, or others in physically dangerous jobs
- Active lifestyles: People who regularly engage in outdoor activities or sports
- Frequent travelers: Those who spend significant time on the road or traveling Additional family protection: Doubling coverage in case of accidental death on top of standard life insurance