Accidental Life Insurance

Choosing to purchase accidental life insurance in addition to other coverage can add extra protection against an unexpected tragedy. These policies might be added as a rider to an existing policy. Such protection is generally available as a stand alone policy as well. If a policyholder should meet an untimely death due to an accident, a beneficiary would receive payment. Should the insured individual survive the accident, but end up dismembered or disabled in some way as a direct result of the accident, the policyholder would receive payment. There can be limitations that are attached to accidental life insurance policies and consumers should make sure that they thoroughly understand just what the coverage will apply to before signing on. One benefit of this type of coverage is that it is usually relatively inexpensive. But a major drawback might be found in the fact that there are limits to what policies of this nature will cover. Obviously, a policyholder would be covered should they loose their life in some kind of accident. Most of these policies are also known as accidental death and dismemberment plans. Dismemberment is generally defined as the lose of a limb, speech, eyesight, or hearing due to an accident. There may be time limits involved with some forms of coverage. Some policies will only pay out if the insured individual dies within three months of the original accident. The dismemberment aspect of these policy will pay out in a unique way. A policy holder may not receive a one hundred percent payment if only one limb was lost in an accident.



There are various pros and cons that are associated with accidental life insurance. Some consumers assume that the purchase of this coverage would mean that a policyholder would be covered if they were to be fatally injured in an accident. This may not always be the case. Many accidents and activities might be excluded from coverage. It all depends on the terms and wording of an individual policy. Risky activities such as skydiving or accidents that happen as a result of participation in certain extreme sports are often not covered. Death that occurs as a result of combat is generally not covered. A potential policyholder should take the time to read the fine print and go over the details of this coverage with an agent before signing on the dotted line. Banks and credit cards frequently offer some type of accidental life insurance. While the premiums on these policies are usually extremely affordable, the amount of coverage can be very limited. A consumer should make sure that they understand what type of coverage they are buying, otherwise they may be simply throwing money away. Policyholders should ask for a specific definition of the term accidental death as it applies to the policy that is being discussed. Is there a time limit that applies to the distance between the initial accident and the insured individual's death? Are there reasons and stipulations that could prevent a beneficiary from collecting on the policy in the event of the insured individual's death? While these questions might seem a little difficult if not downright morbid, it is necessary that they be asked.



Perhaps the best way to understand the effectiveness of accidental life insurance is to look at standard life insurance. The purpose of a basic policy is to attempt to make up for the lost income of an insured individual should that person pass away. Beneficiaries receive a sum of money upon the death of the insured person. The size of that sum will be dependant upon the size of the policy that was purchased. Standard coverage will generally apply no matter what the cause of death was, unless the death is the result of a suicide. The proceeds of these policies may also be applied to various funeral costs , probate expenses, or taxes. How this money will be spent is usually completely up to the beneficiary. A whole life policy can have a cash value on its own while term policies have no separate value. When it comes to accidental life insurance, this is generally regarded as a term insurance product. Accidental death and dismemberment policies, or AD&D, will only pay out when a death is the result of a covered accident or when an individual looses the use of a limb, speech, hearing, or eyesight. Standard policies are not limited to death that is the result of an accident.



Policies that are geared toward travelers are another type of accidental life insurance that are widely available. These products are generally temporary and will apply to travel during a specified period of time. Although no one wants to travel under a cloud of fear, the protection that is offered by this kind of coverage can take the worry out of leaving home. According to the Bible, wherever a believer goes, God is ordering that believer's steps. "The steps of a good man are ordered by the Lord: and he delighteth in his way." (Psalm 37:23)



Many consumers are attracted to accidental life insurance out of concern over the possibility of becoming disabled. A quality product can offer financial stability in the event of a disabling accident. The premiums that are paid on these policies will depend on a variety of factors. These factors will generally include age, occupation, overall health, gender, as well as other stipulations. What ever type of coverage a consumer might be interested in, careful research and a thorough understanding of the product that is being considered are necessary.