Accidental Death Insurance
Accidental death Insurance is an insurance policy that pays benefits to the beneficiary in an event where death is an accident.
If the person had life insurance as well, in an event of an accidental death, the insurance will payout benefits in regards to any other insurance taken by the same insurer. This type of policy is also known as indemnity coverage and is available as an added life insurance on a regular insurance plan.
Typically, the covered accidents include traffic accidents, homicide, drowning, heavy equipment accidents, exposure and fall.
It must be noted that accidental death insurance should not be taken as an investment but instead security for protection.
Generally, these are the accidental death insurance offered:
1. Group Life Supplement – the accidental death benefit is a part of a group life insurance.
2. Voluntary – this insurance plan is offered to individuals and premiums are to be paid monthly
3. Travel Accident – accidents occurring which you’re travelling are provided through an employee benefit plan where the company bears the premiums in an event where the employee passes away.
Accidental death must not be confused with natural death. Accidental death excludes such things such as death caused by illegal activities, acts of war etc. if an insured engages in activities which are deemed hazardous, such activities are excluded as well. In an event where the cause of death is through a fatal accident, the death must take place within the period of time which is stated in the policy.
For those who work and engage themselves around likely hazardous environments must go for accidental death insurance. However, it must be noted that the insurance ends when the insured person reaches at the age of 70.