Life Insurance may seem like an unnecessary cost to some. However, all families will benefit greatly from having a life insurance policy after their loved one has passed. While life insurance is a viable option for everyone, millions of Americans can not afford the monthly premiums. Luckily, there are some affordable plans that do offer similar stipulations to other life insurance plans. One of the plans you may want to consider is accidental death insurance.
Accidental Death Insurance
Accidental death insurance provides coverage to various fatalities due to accidents. This type of insurance covers falls, heavy machinery injury, drowning, and traffic accidents to name a few. You can purchase accidental death insurance as an individual policy or as a piggyback policy to your current life insurance.
Life insurance policies have one function. They are designed to provide financial support to your family in the event of your untimely passing. The beneficiaries of the policy can use the lump sum to help pay for funeral expenses, individual and family bills, and other expenses that could arise. Life insurance policies will pay for all types of death, with the possible exception of suicide.
Accidental Death Insurance vs. Life Insurance
Life insurance and accidental death insurance both have positive and negative aspects. While life insurance will pay the policyholder’s beneficiaries in virtually every type of death, accidental life insurance policies have slight different processing parameters. This type of insurance does not include high risk activities such as surfing, skydiving or even driving a race car. Therefore, if your lifestyle is dangerous, then another life insurance plan might be a better option for you. Keep in mind that these insurance policies can have a high premium depending on the policy amount.
Adding an accidental death and dismemberment insurance to your existing policy can give your family that extra financial support. If your employer offers this plan, you should talk to your human resource representative to understand the available policy amounts and limitation. You may also want to discuss other policies that you may take advantage of.
You can get offers for accidental death & dismemberment (AD&D) from many sources including:
credit card companies
The important thing to remember is that some policies include dismemberment. Losing a finger or toe may not necessarily be covered in this type of insurance. A third party insurance agent can answer questions you may have about additional benefits of adding an accidental death insurance.