Fatal accidents occur so often that insurance companies now offer accidental death benefit life insurance riders and policies.
What are accidental death benefit riders? What are accidental death benefit policies? It is very important to know the difference. Read on to find out.
If you have an accidental death benefit, it means that you are covered if you die due to an accident. For instance, if you were to die in a car accident or a plane crash, that sort of thing would be considered to be an accident.
Or, if you were walking across a street and were hit by a bus, or if you suddenly fell off of a ladder at work and subsequently died. Those are examples of situations that would be considered to be an accidental death.
The terms of the accidental death benefit tend to vary from company to company. However, usually, if your death were to occur within 90 days within an accident, the insurance claim would get paid to the person that you designate to be the beneficiary of your policy.
Accidental Death Rider Versus Policies
Perhaps you already have a traditional life insurance policy. If so, you are covered whether you die due to accidental causes or die due to non-accidental causes.
Granted, if you have a traditional life insurance policy, you could choose to get an accidental death benefit rider. This would double the amount of coverage in the event your death occurred due to accidental causes (up to an additional $250,000 of coverage).
For instance, say you have a traditional life insurance policy that includes death benefits of $250,000. The benefit amount would double to $500,000 if you had an accidental death benefit rider on your traditional life insurance policy.
Of course, you could also buy a life insurance policy that solely has accidental death benefits. In that case, the policy would only provide coverage in the event that you died due to accidental causes.
Why Do You Need a Policy with an Accidental Death Benefit?
There are some reasons why you should consider purchasing an accidental death benefit policy.
Inability to Get a Traditional Life Insurance Policy
If you attempted to get traditional life insurance and were rejected, you could nonetheless qualify for an accidental life insurance policy. Usually, you’re instantly issued an accidental death benefit policy.
This means that there are no health-related questions; you will be able to get the policy without delay.
The Need For Immediate Coverage
Not long ago, I received a telephone call from a woman whose spouse was going to be traveling by plane on a business trip. And she was worried about what might happen if the plane were to crash.
Instead of purchasing traditional life insurance, which would take at least one month to get, this couple instead chose to purchase an accidental death benefit policy. They obtained it within 15 minutes while on the telephone.
You may already have enough life insurance but considering having additional coverage. An accidental policy is an inexpensive way to add additional coverage without breaking the bank.
Cost of Accidental Death Policies Is Lower
Accidental death policies cost less than traditional life insurance policies. This is because traditional policies will cover you for death due to any reason. Whereas accidental policies only provide coverage if you die specifically due to accidental causes. Learn more about the different types of insurance.
At BestLifeQuote, we will listen to what you have to say. We will answer any questions you have, and assess your unique circumstances, and we will help you to find the best life insurance policy for your own particular needs.
If you would like to get more information, you can compare quotes at the top of this page or call us at 800-712-8519.