Accidental Death Insurance: The Basics

You may never have heard of accidental death insurance. Of course, no one would like to talk about death. But this is something that can’t be avoided and all of us will have to face it at our own destined time. What if death happens in an accident? Are you and your family ready to take the consequences? This is the logic behind accidental death insurance. It covers for any eventualities that may arise from accidental death or dismemberment.

Studies show that vehicular accidents are one of the leading causes of death especially in young drivers. In the country, a significant percentage of vehicular fatalities are attributed to the young driving population. Across the world, it was found that most of the traffic accidents leading to fatality have young drivers involved. There are also a great number of accidents that are non-fatal but nonetheless debilitating. This is the reason every driving individual should secure for himself a car insurance policy. But the coverage may not be sufficient to ensure that you and your family are protected from the consequences of accidents.

The Relevance of Accidental Death and Dismemberment Insurance

Accidental Death Insurance is an insurance coverage that every person, driving or not, should take serious consideration of. It is often referred to as Accidental Death and Dismemberment (AD&D) Insurance as it does not only cover for death arising from accidents but also include damages from dismemberment due to accidents. It is an insurance coverage that provides and pays for benefits when an insured dies from accident or suffers any dismemberment that will incapacitate him due to an accident. This insurance coverage can also come as a rider of your life insurance policy.

In the event that an insured individual dies after an accident, the benefits stipulated in his insurance policy are paid to his bona fide beneficiaries or the insured person himself in the case of dismemberment from accidents. As the name suggests, only death and dismemberment arising from accidents are covered by the policy. This means that if an insured dies from natural causes or ailments, the coverage and benefits do not apply unless that person has other insurances for such.

This brings to the question how does accidental deathins urance differ from a life insurance? Life insurance pays for benefits when an insured person dies either from accident or natural death. In an instance where a person met an accident and survive from it at the cost of losing a limb or other parts of his body, life insurance will not pay for this. It is your accidental death and dismemberment insurance that will cover and pay for the benefits when you lose your limb. It is therefore important that you read your insurance policy carefully and thoroughly and make sure that you understand the stipulations and the fine prints contained therein. It helps to be fully covered by insurance when such eventualities happen especially when your family depends heavily on you to make a living.

There are several benefits that you and your family can get from accidental death insurance. The most obvious ones are monetary benefits that can help you or your family when accident strikes. Although no one wants to meet death or incapacity due to dismemberment, you and your family will somehow be assured that whatever happens, you and your family will have something to get by.

If this insurance is a rider of your life insurance, you will enjoy double indemnity in case of accidents which means that you will receive benefits from both your life insurance as well as your AD&D coverage. Any injury that you suffer from accidents will be properly compensated, depending on the gravity, by your accidental death insurance policy,

What’s more you get to enjoy all these benefits from your accidental death and dismemberment at a very inexpensive cost. Usually, your life insurance company will offer to include this rider knowing that the life insurance does not cover for injuries arising from accidents. This is particularly important for individuals whose jobs expose them to hazards as they have the higher risks of accidents. Young drivers will also benefit much from an AD&D policy to protect them from vehicular accidents.

The specific monetary benefits of this insurance coverage vary from one insurance policy to another bit generally it can be anywhere from hundreds to thousands of dollars. The benefits also depend on the seriousness of the injury but are not affected whether you have other insurance coverage. For instance, if the insured die in an accident, the beneficiary will receive the benefit payout from the insured’s life insurance policy as well as from his AD&D coverage. Most of the times, the insurance coverage is applicable worldwide that accidents occurring outside of the country are still covered.

Aside from the payouts for being incapacitated and losing your livelihood in the process, there are additional benefits from your AD&D insurance. To mention some, you can receive benefits for home renovation or evacuation to accommodate your incapacity, waiver of premium or double indemnity as applicable. You also have an option to enroll your family to the insurance policy.

You can avail of the accidental death insurance coverage as a rider to your life insurance. As this is renewable annually, even if you already have an existing life insurance, you can get your AD&D included as a rider. As an additional insurance coverage, there are several life insurance policies that include it at no extra cost to the insured.

You may also get your AD&D insurance policy as an insurance benefit from your companies. This is often included as a group insurance where the companies enroll their work force to this insurance as a benefit. You also have the option to upgrade your insurance coverage from individual to include your family members at a very minimal cost.

As no one knows when accidents happen, an accidental death insurance coverage is relevant if not necessary. Although you cannot exercise control over the injuries or death arising from accidents, you can at least manage how you or your family can survive when you are covered by this type of accidental death insurance.