Accidental death insurance also often referred to as accidental death and dismemberment insurance or AD&D if a form of insurance coverage that covers individuals should their death be caused by an accident or should they lose a limb. The insurance is paid out to a beneficiary or the closest relative to the policy holder.
How Much Does Accidental Death Insurance Cost?
This type of insurance can be purchased in two ways, a sole standing insurance policy not accompanied by life insurance or as an add on to a life insurance policy. When compared directly to life insurance it is often a cheaper substitute. Many individuals who work in hazardous conditions chose to use accidental death insurance as an add on to their life insurance plan.
What Is Covered?
Accidents such as car accidents, exposure to poisonous material, heavy equipment mishaps, drowning and falls are all covered by this insurance policy.
Dismemberment is also covered under these policies up to a point. Should a policy holder lose a limb or lose their site, a portion of the insurance policy would be paid out to the individual. The severity of the injury and the insurer all dictate the amount of money paid to the policy holder.
What Is Not Covered?
There are many things that can affect a human being that are self inflicted. Any injury caused by recreational use of drugs or alcohol is not covered as well as anything that is deemed ‘natural causes’ by the mortician. For example, if a professional athlete were to break their ankle during a game, this would not be covered. If a light fixture were to fall from the ceiling onto the athlete, than it would be covered.
Who Should Purchase This Product?
Not everyone who has life insurance needs this product. Should you have a job where you come in contact with hazardous material, work with heavy machinery or anything that could possible lead to accidental death then you should consider purchasing accidental death insurance. If you are just a regular guy with an office job, you may not need to have this level of insurance. If you have any doubt, it can be added onto your current life insurance plan for a nominal fee.