What is accident insurance?
Accidental death insurance pays benefits to your beneficiaries if your death is the result of an accident. This coverage is quick and easy to apply for. There are only a few questions, but no medical examination is required.
Since accident insurance only covers deaths, the premiums are quite cheap.
A traditional life insurance policy covers almost all types of deaths. For example, both accident insurance and traditional life insurance would pay out to your beneficiaries if you were to die in a car accident or by falling down a flight of stairs. However, if you have a heart attack, or lose a long battle with cancer, only a traditional life insurance policy would be paid out.
Some accident life insurance policies pay out a portion of the death benefit if the insured loses a body part or becomes paraplegic or quadriplegic. This feature is commonly referred to as a cutting and paralysis benefit.
John has $ 250,000 insurance in case of accidental death with a severance and paralysis compensation worth 50% of his face.
One day on the way to work, John has a car accident and loses sight of one eye due to a head injury.
His accident insurance will now pay out $ 1
Every accidental death . Insurance can vary depending on their range, so make sure you know what features are or are not before buying one.
It is also important to note that some life insurance companies offer optional riders who can add coverage for accidental death and cutting. on a traditional life insurance policy.
This means that if you die as a result of an accident while covered by a traditional life insurance policy with an AD&D caregiver, your beneficiaries can receive up to twice as much as your amount. A payment corresponding to your nominal amount from the traditional life insurance cover and another payment from the AD&D driver.
John has a life insurance policy of 500,000 USD with an insurance compensation of 250,000 USD in the event of an accident.
One day on the way to work, John has a car accident and dies as a result.
The life insurance company pays a total of 750 USD 1965 to John's beneficiaries.
Exemptions for joint insurance
Both accidents and traditional life insurance have exceptions. It is important to read the fine print and fully understand how you are protected when you decide to buy coverage.
Accidental death policies usually have exceptions to the following:
- Death when you do something illegal
- Death as a results of actions taken under the influence of alcohol and drugs
- Deaths due to acts of war
- Deaths due to illness (both mental and physical)
- Overdoses (even if a doctor accidentally prescribes or administers too much of a drug or medicine leading to injury or death, which may be covered)
- Death due to participation in risky activities including hobbies such as flying, skydiving or car racing
- Death by suicide
A term life insurance is much more extensive, but still has some exceptions. For example:
- Death by suicide within the first two years
- Death when doing something illegal
- Death due to acts of war (these exclusions are much less common than they used to be, but still exist in some companies &  Requirements for each insurance
Since an insurance policy in the event of an accident covers fewer ways to die, the application process is much faster and less strict. They do not cover deaths related to illness or health conditions, so these policies do not require medical records or a medical examination. You can complete an application in just a few minutes. A Quotacy Agent can help you do this quickly by phone.
Applications for traditional life insurance, on the other hand, must take into account your medical history and health status, as the insurance must also cover health-related deaths. This makes the purchase of life insurance a longer process, because you may need an examination and your doctor may need to submit your medical records.
If you prefer to avoid a medical examination, still buy an entire life insurance policy. coverage (not accidental coverage), you may be able to qualify for a life insurance policy without a degree. Many of the life insurance companies Quotacy works with offer these. These options use an accelerated insurance process that speeds up how quickly your coverage can be approved and eliminates requirements for medical examinations.
»Read more: What is automated or accelerated life insurance guarantee?
Receive payment ] Because traditional Life insurance has such thorough applications and offers comprehensive coverage, they do not often have to investigate the circumstances surrounding the insured's death. This means that the payment on your insurance comes very quickly after the insured person dies.
With an accident death insurance, the carriers only cover deaths related to accidents, so they need you to prove that the death was really an accident. to get your payout. This can also mean that carriers can dispute your payment if the circumstances surrounding the death are ambiguous or not covered by the terms of the insurance.
The Bottom Line
Traditional life insurance and accident insurance are completely different types of coverage with very different situations where you would like invest in coverage.
Deaths in the event of an accident can be a good choice if:
- Your job involves a high risk of an accident (such as if you are a truck driver or a construction worker, for example).
- You are not healthy enough to be accepted for a traditional life insurance policy, but still want to offer your family some coverage.
- You want to protect yourself with compensation in the event of an accident-related cut.
Accidents are the third most common cause of death in the United States. Therefore, accident insurance can give you peace of mind.
But according to most advisors, life insurance coverage is usually the best option if you want to protect your family. It is wise to protect your family with life insurance if you want a simple, guaranteed coverage for your family in the event of your death.
Here at Quotacy we can help you find a life insurance policy that suits your needs, and even suggest a rider of accidental death and dismemberment if you want to add accident insurance.
If you are not eligible for a traditional life insurance policy, your Quotacy agent can help you purchase a life insurance policy for accidents. However, we recommend that you try to apply for a traditional insurance first because it provides better coverage.
You can make a quick, free and anonymous quote for life insurance here. View quotes directly and in real time without giving away any contact information. You may be surprised at how little life insurance can cost.