What Is Accidental Death Insurance?


How Does Accidental Death Insurance Work?

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.

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.

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.

Comments

Post a Comment

Popular posts from this blog

Benefits of Life Insurance for Entrepreneurs

Image
Entrepreneurs may be known as natural risk-takers — after all, it takes guts to go out on your own and create something entirely from the ground up — but when it comes to life insurance, risk-taking is not an option. As an entrepreneur, you know more than anyone how integral you are to what you’ve built, and if anything should happen to you, your family and/or business can be left floundering. That’s why life insurance for entrepreneurs is essential. However, when it comes down to the wire, what kind of life insurance is best? There are a variety of policies to choose from, but for entrepreneurs, there’s one kind that stands out. What is No Exam Life Insurance? No exam life insurance is life insurance that you can get without undergoing a medical exam. This differs from traditional policies that do require a medical exam. There are many benefits of this kind of insurance. Easy approval since not much underwriting is involved Approval takes days or weeks as opposed to months You don’t h...
Read more

Top 5 Reasons to Consider Group Health Insurance

Image
Small business health insurance packs a big punch. It shows that you truly care about your team’s well-being and success — both inside and outside the workplace. And when you’re just getting started with health insurance, deciding whether to go with group insurance is one of the first choices you’ll have to make. Luckily, you’ve landed in the right place. This article will break down the main benefits of group health plans, so you can make an informed decision for your team.  How do small businesses think about benefits? Let’s first lay out how employers think about the entire benefits process. The Guardian Workplace Benefits Study found that companies view offering health insurance through three vantage points: Saving as much as possible Doing everything they can for their employees Striking a balance between the two Around one in three companies care more about cost, while one in four are more focused on the value it provides to their team. And 40 percent believe it should be a h...
Read more

Benefits of a Group Health Insurance

Image
  A group health plan offers coverage to a group of people, such as society members, employees of an organization, or a community.  Several large companies acquire group insurance plans for their employees. The company pays the premium for the policy on behalf of the covered employees. In most cases, at least 10 members are required to avail of a group health plan. There are numerous advantages of procuring group health insurance. Because a large number of individuals are covered under a single plan, the insurance companies offer significant discounts on the premium. Therefore, group insurance plans are more affordable when compared to an individual health insurance policy. Here are the benefits for the employees covered under a group plan: 1.     Default insurance coverage Every member in the group is automatically covered under this kind of a health plan. Therefore, employees are secured with some basic minimum coverage even when they do not have an individua...
Read more