Agency Owner, A1 Insurance LLC, Arizona, California Agency
Great question. Life accidental insurance works if you are involved in a car accident or any type of accident and you die the life insurance company will pay you the death benefit. But you have to remember the policy only pays if you die in an accident only..natural death your family will not get paid.
Accidental Life Insurance only covers death by accident. It does not cover death due to illness or old age. Therefore, accidental life insurance does not cost much compared to regular life insurance, because death by accident does not occur nearly as often as death by natural causes such as illness.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Accidental death insurance provides that if you die from an accident the company will play a benefit. These policies often have provisions for loss of limbs and sight. They are not a substitute for life insurance. Death by accident is very rare and should not be relied upon. Accidental death insurance is often an incentive for a credit card or travel agency.
An accidental death policy only pays a benefit if you were to die accidentally. Most all of these plans are issued without underwriting and are very inexpensive. Some plans double indemnify if you die accidentally on a common carrier such as a plane crash. The odds of dying accidentally are far less than dying of an illness or just old age, thus why the premiums are so inexpensive.
There really is not a type of life insurance called Accidental Life insurance, although that is not a bad title because many people who buy it "accidentally" believe that it is Life insurance.
Accidental Death insurance is a policy that will pay the beneficiary if the insured person dies as the result of an accident. Accidental death is death "caused by an unforeseen circumstance unrelated to the body". Therefore, an accidental death policy would not pay, e.g., for a traffic fatality that occurred due to a heart attack while driving.
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Accidental Death insurance is a policy that will pay the beneficiary if the insured person dies as the result of an accident. Accidental death is death "caused by an unforeseen circumstance unrelated to the body". Therefore, an accidental death policy would not pay, e.g., for a traffic fatality that occurred due to a heart attack while driving.