Accidental death insurance is an easy, affordable and effective way of providing lump sum money to surviving family members in case of the accidental death of a loved one.
Though this type of insurance cannot be considered as a life insurance, yet, it is an effective means of providing cash to your family in case you succumb to an accident. The particulars of this insurance, and its many features, would differ from one insurance company to the other. However, the following five aspects serve to be the most common features of accidental death insurance.
1. Meaning of “Death by Accident”
The following events are considered as death by accidents:
- Transportation Accidents- Say, you are travelling by taxi, bus, boat, airplane or train where you are not at the wheel and an accident takes place that costs your life, then, the tragedy would be considered as an accidental death.
- Outdoor Activities- There are a few accidental death insurance policies that consider a death as ‘accidental’ if it occurs while climbing a mountain or taking part in a sport.
- On the Job- if you encounter death while on the job, then, there are some accidental death insurance policies that will provide monetary coverage to your heirs.
2. Exceptions to Accidental Death Insurance Policies
There are some exceptions with accidental death insurance. It is advisable to combine such policies with your life insurance policy and not be totally dependent on them alone. Some exceptions include the following but are not limited to:
- Deaths during surgery
- Death during war
- Death by consuming drugs and intoxication
3. Eligibility and Health Issues
If you are over the age of 25 years, then you automatically gain the eligibility of obtaining an accidental death insurance policy from your insurance company. While purchasing the policy, you will not be asked to answer any questions related to your health. The insurance company would not probe about your financial situation or ask you to furnish a credit report.
4. Costs Involved
Accidental death insurance policies serve to be less expensive proposition when compared to life insurance. This policy is often offered when one purchases a vehicle or avails a credit card. Since the probability of accidental death is quite low, the premium amount related to accidental death insurance is also very low, and is affordable by individuals and organizations alike.
5. Finding the Right Insurance Company
If you want to buy an accidental death policy, then, you should first compare the terms and conditions of the insurance companies that you would like to deal with. The best possible way of doing this is by visiting a reputed and authentic website / agency that has the expertise of making such comparisons through relevant research. Here, you may want to deal with a company that possesses either a rating of A+ (i. e., excellent) or above.
Since the chances of your accidental death are less, you should first strive for a life insurance policy. So, buying a life insurance policy, with an accidental death policy of an amount equivalent, should be the next logical step for you.
All the best.