How does accidental life insurance work

Some insurers will pay an additional benefit if you were wearing a seatbelt during an accident that led to an injury or death. Additional benefits might also be provided to help children pay for higher education. Counseling, legal and financial advising services for beneficiaries can be added benefits for a surviving spouse, too. These options will vary by insurer. Those exclusions can vary from company to company and can depend on the state where the policy is issued.

The following is a sample of exclusions in an accidental death insurance policy issued in Kansas by online insurance agency Fabric. Online companies such as Fabric make getting an accidental death policy fast and easy.

You can apply for and get coverage instantly, says Allison Kade, editorial director of Fabric. You also could work with an insurance agent that can compare policies to find the best one for your needs. Accidental death coverage also can be sold as a rider, or add-on, to life insurance policies.

The coverage can double what your life insurance payout would be if you die as a result of an accident. Because rates can vary from insurer to insurer, it can pay to shop around for the best rate. You just have to meet the age requirements. Typically, you must be between age 18 and 70 or You can get coverage quickly. Because there are no lengthy questionnaires to fill out, no medical exams to take and no waiting period, you can get approved for a policy within a matter of days or even minutes for some policies purchased online.

Coverage is limited. This limited coverage is a big drawback. For these reasons, this type of policy is often used as a supplemental benefit and not as stand-alone life insurance coverage. However, typically term and permanent life insurance policies cost more because they cover more causes of death.

Accidental death is paid if the death is accidental and qualifies in the list of causes of death outlined in the policy. Accidental death insurance can be found as a single policy, but it's more commonly packaged together as a rider on a standard life insurance policy.

Much like a standard life insurance policy, an accidental death policy pays a death benefit to your beneficiaries, but as the name suggests, only provides coverage in the event you die due to a covered accident.

The dismemberment part comes in if you were to lose a limb s as a result of an accident. With life insurance, you'll have coverage for incidences of death as outlined in your specific contract - accidents included. It may be a good idea to speak with a financial professional about your options to decide if accidental death insurance is right for you based on the larger context of your financial goals and other available coverage.

Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Dismemberment includes the loss—or the loss of use—of body parts or functions e. Because of coverage limitations, prospective buyers should carefully read the terms of the policy. Also, it is supplemental life insurance and not an acceptable substitute for term life insurance.

For example, if an insured dies from injuries sustained in an accident, the death must occur within a specified period for benefits to be paid. Benefits typically cannot exceed a certain amount. Most insurers cap the amount payable under these circumstances. Typically, accidental death covers exceptional circumstances, such as exposure to the elements, traffic accidents, homicide, falls, drowning, and accidents involving heavy equipment.

The types and extent of injuries covered are particular to and defined by each insurer and policy. Most policies are renewed periodically with revised terms.

How much such a policy pays depends not only on the amount of coverage purchased but also on the type of claim filed. Each insurance provider includes a list of exclusions. In most instances, the list includes suicide, death from illness or natural causes, and wartime injuries. Other common exclusions include death resulting from the overdose of toxic substances, death while under the influence of nonprescription drugs, and the injury or death of a professional athlete during a sporting event.

Covers injuries or paralysis due to an accident? Covers loss of digits, limbs, sight, hearing or speech? If you have dependents who would suffer financially if you died, the safe bet is to buy life insurance first. In those cases, a stand-alone policy might be worth the extra cost. Loss of a limb or finger. Loss of sight, speech or hearing.

Drinking and driving. Natural causes. Suicide or attempted suicide. Drug overdose. Set number of years.