Accidental death insurance pays your loved ones if your death results from an accident. Accidental death insurance will not pay out any money if death results from sickness or natural causes. Many people are not aware of the difference between an accident and a natural cause.
Common Causes of Accidental Death:
- Car crashes
- Accidental Falls
- Accidental Drowning
- Assault by Firearm
- Pedestrian accident
- Falling Objects
- Choking on Food
Common Causes of Natural Death:
- Heart Disease
- Respiratory Disease
- Kidney Disease
- “Old Age”
As you can see from the list above, those who are over the age of 40 are statistically more likely to pass away from a natural cause then an accident. However, accidents do occur. In fact, over 30,000 people die in motor vehicle crashes in the United States each year. Additionally, according to the CDC, the number one cause of death for those under 40 in America is accidents.
The Pros about Accidental Death Insurance:
Easy to Obtain
Since the policy only covers accidents, there is no underwriting and the process only takes a few minutes.
Again since the policy only covers accidental death, it is usually inexpensive.
Most accidental death policies have a build in double indemnity benefit. This means if you were to die of an accident on a common carrier such as a: subway, bus, taxi cab, airline, ferry or other public transportation the policy would payout double.
The Cons of Accidental Death Insurance:
No Natural Causes
If you were to die of natural causes such as a heart attack, cancer or “old age” then the policy won’t payout.
Can’t be doing anything illegal or reckless
If you are breaking the law while you die of an accident such as speeding or DWI then it won’t payout unlike a term or whole life insurance policy.
As you can see in out Accidental Death Insurance Review– accidental death insurance is a policy that is good for certain people and instances. If one can qualify for “regular” life insurance such as term life, then it is recommended that you apply for that. However, if you are unable to qualify for term life insurance or it’s too expensive due to a; health condition, driving history, bankruptcy, etc. then accidental death insurance can be a good bridge product until you are ready for traditional insurance. Also, those who travel a lot and or are younger are also good candidates for accidental death insurance. For those with hazardous occupations, accidental death insurance is a great option.
It’s best to talk to an experienced agent or broker who is not captive, and can shop the market for you and give you the best advice and options.