Accidental death insurance
is a special type of insurance policy that provides payments when a person dies as the result of an accident. It is usually combined with a dismemberment policy and will provide benefits when a person loses certain parts of his body or the ability to use those body parts because of an accident.
Definition of Accidental Death
Accidental death refers to any death that results because of an accident rather than because of illnesses or natural causes. Accidental death can be the result of an auto accident, a fall, boating accident, drowning and any other instance that is unrelated to health issues and is not caused by suicide. Motor vehicle accidents are the most common form of accidental deaths and according to GECD Health Data, the United States had the highest number of deaths in 1999 due to motor vehicle accidents at 15.5 people per 100,000 people.
What Does Accidental Death Insurance Cover?
One of the most important things to consider about accidental death and dismemberment insurance are the provisions of coverage. While it does provide the beneficiary with a payment in the event of accidental death, many don't realize there is another provision to this insurance as well. Dismemberment covers the insured for any accident in which there is a loss of bodily function such as sight, hearing, limbs or any other loss that results because of an accident.
Coverages for Suicide and Murder
Suicide and murder are two separate issues, defined differently than accidental death and are handled differently by each insurance carrier. While some carriers will pay in the event of death or suicide, others will not. When you purchase accidental death insurance, read your policy completely so that you fully understand what it covers under the provisions of your policy. These provisions may be different among not only insurance companies but the state in which you reside.This makes it essential for you to make certain you know if your accidental death and dismemberment policy covers death that results from suicide or murder before you purchase the policy.
Accidental Death Insurance for on the Job Injuries
A major concern many people have is whether their accidental death insurance will cover them for injuries that occur on the job. Any job-related death that occurs within three months of an accident falls under the provisions of your accidental death policy. However, this does not apply to those who work in high-risk jobs such as race car driving, the military, sky diving or other similar fields where the likelihood of on the job injuries are very high. If you work in a high-risk job, where the chance of death is substantially higher than in other occupations, you should ask the insurance provider if it covers your occupation. Some providers of accidental death insurance cover activities that are considered high-risk by other carriers. In addition those insurance companies that cover those high-risk activities or occupations may do so at a much higher premium than you would pay if you were not participating in that activity or employed in that occupation.
Purchase Accidental Death Insurance
You can purchase accidental death insurance in combination with your life insurance or as a separate rider. Many people purchase accidental death and dismemberment policies through their places of employment, though sometimes these policies are limited and may only cover injuries that occur at work. The premiums are usually rather minimal and some companies offer accidental death and dismemberment insurance at no cost to their employees. Those who offer accidental death insurance free to their employees may also allow them to purchase additional insurance at a reduced rate.
