Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Accidental death insurance is never a substitute for life insurance. It is a very limited policy that provides a death benefit if an insured dies by accidental means. This insurance is often attached to a credit card as a promotional item. The policy frequently provides benefits for dismemberment as well. Many auto policies can have accidental death insurance included at a small charge. The frequency of claims is quite low but the premium is also quite low.
That is a great question! Accidental death policies are an insurance companies version of the extended warranty. It's probably a good idea to buy one, but most people will never have to use it, so it can be a waste of money. That said, if you do need it, it can be a big blessing. These policies pay when your death is the result of an accident, as strictly defined by the company. If you die from old age, natural causes, illness, a spider bite, or any disease, you do not get paid. Many insurance companies include this, and common carrier benefits to their life insurance policies to make them more attractive. I'd suggest that you ask a trusted agent before purchasing one. Thanks for asking!
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Acccidental death policies (also known as AD&D or Accidental Death and Dismemberment) are a partial type of coverage that only pays out a death benefit under certain conditions. For example, if the insured dies in a car accident, the policy would payout the proceeds to the beneficiary. However, if the insured dies of an illness (e.g. a heart attack), no proceeds will be paid to the beneficiary.
This type of coverage can be extremely cheap, however, the risk of dying by accident is very nominal compared to the risk of dying by illness, especially as you get older.
Traditional life insurance policies provide full coverage (paying out death benefit proceeds whether death occurs by illness or injury). Full coverage policies feature higher premiums than AD&D policies, but are very affordable and the ability for the policy to pay proceeds in the event of death by illness is an essential benefit to have.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.
President, Lane Independent Agency, Southern California
Accidental Life Insurance does just what it sounds like. It protects you ONLY from accidents. Meaning if you die from an accident, your beneficiaries will recover. However, if you die of natural causes, it will not pay. Is that what you really want? What are the odds of dying only from an accident, versus from natural causes? I would urge you to consider a normal life insurance policy, which will pay your loved ones, regardless of the cause of your death. Thank you. GARY LANE.
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This type of coverage can be extremely cheap, however, the risk of dying by accident is very nominal compared to the risk of dying by illness, especially as you get older.
Traditional life insurance policies provide full coverage (paying out death benefit proceeds whether death occurs by illness or injury). Full coverage policies feature higher premiums than AD&D policies, but are very affordable and the ability for the policy to pay proceeds in the event of death by illness is an essential benefit to have.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.