Accidental Life Policies
Accidental Life insurance may be appropriate for individuals with dangerous jobs or high risk lifestyles who are seeking low cost supplemental protection against unexpected death by accidental cause. Generally added onto other policies, these policies only result in a death claim when the insured individual dies from an accident or from injuries sustained during an accident within a predetermined timeframe afterwards. These policies sometimes also include a Dismemberment clause which may offer a living benefit if the insured suffers certain serious injuries due to an accident; such as loss of limb, sight, or hearing. Accidental Death Insurance policies will not pay out for death by illness, natural causes, or most medical conditions. Meaning it should not be considered a substitute for standard life insurance.
Accidental Life Key Points:
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Accident Only Coverage: Death benefits payable only upon death by accidental cause.
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No Cash Value: Typically does not accumulate cash value, purely protection-based.
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Dismemberment Benefits Option: Some policies may offer living benefits if serious injuries due to an accident; such as loss of limb, sight, or hearing.
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Instant or Simplified Approval: Usually requires no medical examination or health questions, making it accessible to most applicants.
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Affordable Supplemental Option: Typically lower cost than traditional life insurance, often used to enhance existing coverage.
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Limitations: Generally does not pay for deaths caused by illness, drug overdose, suicide, or natural decline; exclusions vary by policy.
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Benefits Can Decrease: Benefits may decrease after a certain age when physical decline increases the risks of accidents—depending on insurer and policy design.
Disclosure: This information is for educational purposes only and is not intended as financial, tax, or insurance advice. Policy features and availability vary by carrier and state. Guarantees, if applicable, are based on the claims-paying ability of the issuing insurer. Actual policy performance depends on funding levels, interest rates, and other factors.