accidental death insurance

Accidental Death Insurance

What is Accidental Death?

Accidental death refers to any death that is an outcome of an accident. These accidents are not expected, intended, or caused by illness. Accidental deaths include falls, motor vehicle accidents, drowning, poisoning, firearms, industrial accidents, suffocation, and fire-related accidents. Accidents are the fourth leading cause of death in the United States. According to the CDC, for every 100,000 deaths, 67.8 are caused by accidents. Motor vehicles cause a majority of these accidents.

What is considered an accident?

An accident is when a voluntary action leads to an injury or death. The cause of the injury is usually not dangerous, and it is not expected to cause severe outcomes. The injury would be caused by accidental causes or negligence, carelessness, fatigue, oversight, and miscalculation of any voluntary action.

Insurance policies define accidental death as a loss of life attributed to any reason other than natural causes, such as old age or disease. The intentional taking of life (except suicide), which may not be through accident, means that the loss is valid and insurable.

What is accidental death insurance?

Accidental death insurance is also called accidental death and dismemberment insurance (AD&D). It offers the best and most low-cost alternative to life insurance. It is also one of the options that people can take if they are worried about being rejected for traditional life insurance. However, you need to know that a few life insurance policies will cover anyone.

Accidental death insurance policies are affordable, adding more financial protection on top of the traditional life insurance policy. You need to know that some insurance companies offer accidental death policies that do not offer benefits for dismemberment; therefore, you need to choose well.

Who Needs Accidental Death Insurance?

You should know that everyone is eligible for accidental death insurance. The role of accident insurance is to support your family and help them pay expenses if you get killed or experience severe injuries in an accident. The insurance policy releases funds to your family to ensure the accident does not take a financial and emotional toll on them.

Who is eligible for Accidental Death Insurance Coverage?

You are the most eligible for coverage regardless of your full-time or part-time job. However, if you are more than 75 years of age, the maximum benefits may be lower for you and your beneficiaries. These reductions will also apply if you get coverage when you are past 74 years of age.

Your family– you may cover your lawful spouse and children, especially those not yet 18. You can also cover your children between 18-24 years old if they are full-time students in higher learning institutions. Your children depend on you for maintenance and support; therefore, it is wise to cover them.

What is covered by accidental death insurance?

Your insurance company and coverage determine what your accident death policy will cover. Some of the accidents covered by the accidental death insurance policy include:

  • Head traumas
  • Work-related machinery malfunctions
  • Motorcycle accidents
  • Automobile accidents
  • Slips and falls
  • Drowning
  • Suffocation
  • Fire accidents
  • Plane crashes
  • Pedestrian and bicycle accidents

How can you purchase Accidental Death Insurance?

You can purchase accidental death insurance from your employer, and you can easily benefit from

  • Convenient payroll deduction
  • Affordable payroll deduction

Alternatively, suppose you are self-employed or would like your own separate individual policy from your employer. In that case, you can purchase an accidental death insurance policy from your independent life insurance agent.

What Age and Amounts are covered by the insurance company?

The insurance coverage depends on the age of the policyholder. If you are between 18 and 69, you get a policy ranging from $100,000 to 500,000. If you are between the age of 70-80, you can get a cover ranging from $50,000-$250,000.

You can also add your family members, especially your spouse and children. Spousal benefits amount to 50% of the primary coverage, while the child’s benefits are 20% of the whole coverage.

Benefit Reductions

If the policyholder or insured person reaches 75 years of age, the benefits are reduced to 65% of the amount that had been selected. If you get to 80 years of age, the benefits are reduced to 50%. You can renew the policy for life, which translates to paying the premiums without defaulting. The premiums may be altered, but this depends on a class basis. You should note that the premiums cannot be changed based on your claim history.

What are the benefits of having an accidental death insurance policy?

One of the major advantages of having an accidental death insurance policy is that you and your family get protection if you pass on from an accident covered by the policy. If you die from an accident, the policy ensures that your beneficiaries will get a cash payment, also known as a death benefit.

However, you must know that an accidental death benefit plan is a stand-alone policy. You can add an optional feature, the accidental death benefit rider, to your policy if you want more coverage.

Accidental death benefit insurance can cover trauma and serious injuries which might deter you from working and living a normal life. However, you should consult extensively with Noel Insurance agents before you pick the best coverage for your family.

AD&D policies offer funds in addition to the death benefits payouts from traditional life insurance policies. The death benefit payout equals the traditional policy’s death benefit amount, which is double indemnity.

What is the process for applying for accidental death insurance?

If you have tried applying for a life insurance policy without success, you can consider accidental death insurance. Some companies allow you to complete a form online and get same-day approval. Other companies take 48 hours for approval, meaning the insurance is easy to obtain.

Types of accidental death and dismemberment policies

Before you purchase AD&D policies, you need to know that they vary depending on the cause of death and injury. Every policy lists the events that will qualify for coverage. Accidental death insurance covers only accidental death. But, the accidental death and dismemberment policy covers accidental death and severe injuries from an accident. Other accidental death and dismemberment policies offer the option of covering your dependents and spouse.

Voluntary Accidental Death and Dismemberment

Voluntary accidental death and dismemberment policies are part of an employee-paid benefit, and they are given despite traditional life insurance. These are stand-alone coverage policies for workers, spouses, and dependent children.

Travel Accident Insurance

It is a unique insurance plan that insures against accidental death and dismemberment if an individual is involved in a travel accident. Travel accident policies limit their services to emergency evacuations, accidental death and dismemberment, 24/7 travel assistance services, and repatriation.

When Can You Supplement Term Life Insurance with an AD&D Rider?

Suppose you cannot access a life insurance policy and need extra coverage to cover an accident to injury; purchasing AD&D insurance is the best option. The AD&D rider can supplement life insurance benefits if you die in a covered accident or lose your limb or eyesight. The insurance payout may rise depending on the kind of accident that a person experienced. It is essential to know that buying a rider is affordable and more effortless than purchasing a term life insurance policy.

Do You Need a Medical Exam?

You do not need a medical exam when applying for the accidental death insurance policy. Most companies do not ask questions, while others may ask a few health-related questions.

What is the Process?

You can fill out a form online and get approval in 48 hours. Alternatively, if you want the best accidental death policy coverage, you should seek an independent insurance agent who is not bound to any insurance company.

What is the cost of Accidental Death Insurance?

Accidental death insurance is affordable to most people. For a few dollars, you can get the best insurance coverage which ranges from $50,000-$500,000. Most insurance companies offer premiums that are constant for a long time. The most significant advantage of an accidental life insurance policy is that it relies on how much coverage you purchase and not on your health.

When does the policy go into effect?

The policy goes into effect immediately after it is approved. If you get approved today and get involved in a covered accident the following day, your beneficiaries get a payout.

Does the accidental death coverage accrue cash values?

You should know that accidental death coverage does not gain any cash value. However, traditional life insurances such as term, life, and whole life insurance accrue benefits over time.

Does AD&D Insurance Policy Cover Cancer?

Cancer is a natural cause of death, and traditional life insurance policies cover it. Accidental death and dismemberment insurance does not cover cancer. 

Do the insurance carriers offer any riders to the policy?

Most companies offer insurance coverage for your whole family. In addition, you can access additional death benefits above the face value if you pass on in public conveyance or an auto accident.

You can choose the following riders since they offer additional benefits and protection. These include:

  • Total Disability Rider
  • Waiver of Premium Rider
  • Disability Income Rider
  • Family Accidental Death Rider
  • ROP Rider is also known as Return of Premium.

The Top 5 Accidental Death Insurance Companies

We have gathered a listing of the top 5 insurance companies that offer accidental life, including:

  • Assurity Life
  • Gerber Life
  • Fidelity Life
  • Mutual of Omaha
  • Lloyd’s of London

Let’s break down the the “Top 5 Accidental Death” insurance policy features and avaiable riders for each company.

Assurity Life

Assurity Life’s accidental death policies can be completed online with you and your independent life insurance agent. The policy covers accidents from natural disasters, falls, drowning, and car wrecks. The beneficiaries will get a lump sum payment if the policyholder passes on from an accident.

The company offers accidental death insurance in all states except New Hampshire, the District of Columbia, New York, Massachusetts, and New Mexico.

You do not need any medical exams; you get same-day approval. No questions are asked, and it does not have smoker rates.

People aged 18-70 can apply for the accidental death benefit policy. Your premium does not change for the entire period of up to 80 years. The company’s death benefit coverage ranges from $5,000 to $350,000.

It has two free riders, which include:

Automobile seat benefit- it pays an extra 105 of the benefit if the insured person dies from a car wreck and the seatbelt was worn well.

Common carrier benefit– doubles the death benefits paid to you if you were riding on a boat, plane, bus, or other common carriers as a fare-paying person. 

However, you need to know that Assurity Life’s accidental death policies have various exclusions. You may not get coverage if you engage in the following activities:

  • Learning to operate an aircraft,
  • Driving under the influence
  • Engaging in hot-air ballooning and other high-risk sports.

Click Here for Assurity Product Brochure

Note: This product will

Gerber Life

The Gerber Life Accident Protection Pan offers accidental death insurance to applicants aged between 18-69. The coverage ranges from $50,000 to $250,000, covering a disabling injury or accidental death. The company offers affordable monthly premiums, and the rates are constant. Once the company approves your plan, the benefits begin on the first day and never decrease. Anyone is eligible regardless of age, occupation, or health. You get coverage for your children and spouse. The company offers coverage of up to $25,000 for each of your children and a 100% payout to your spouse.

The money can help your beneficiaries plan your funeral and cover lost wages and other expenses. It is also a security for your loved ones and supports them in paying bills and mortgages.

Click Here for Gerber Product Brochure

Fidelity Life

Fidelity Life offers accidental death insurance on a guarantee-issue basis, meaning you do not need any medical exam. 

Accidental death insurance coverage helps policyholders get financial protection for their families who cannot get other products. The advantage of the policy is that it offers additional coverage and supplements your current life insurance policy.

However, it would be best to read through Fidelity Life’s company policies to understand the deaths covered before you take a policy.

The first step is to apply for the policy and purchase it. Fidelity Life offers accidental death benefits ranging from $50,000 to $300,000. The company has professional and licensed agents that will help you to select the right amount for your needs. You are guaranteed approval if you are between 20-59 years old.

Once you get approval, then you are automatically covered. The policy becomes active, and you can keep it active by making regular premium payments. Once you choose the rate and lock it in, you pay the exact premium amounts for your entire life.

The accidental death benefit protects your family or loved ones. If you pass on in a covered accident, your family will receive a lump sum cash payment for the benefit amount you chose when applying for the accidental death benefit. The money will help them sort healthcare bills, pay mortgages, pay debts, plan their funeral,  pay their end-of-life costs, or save for the future.

Click Here for Fidelity Life Product Brochure

Mutual Of Omaha

Accidental death insurance products from Mutual of Omaha offer financial support for your loved ones if you pass on in a covered accident.

If you are on a tight budget or need to supplement your current life insurance coverage, Mutual of Omaha is the right company to give you the best coverage. The company also offers accidental death benefits even though you fail to qualify for life insurance due to age and other health conditions. 

Mutual of Omaha offers family coverage and covers employees in high-risk occupations who cannot qualify for life insurance. Accidental Death Insurance from Mutual of Omaha covers persons aged 18-70. The benefits are up to $1,000,000 and are guaranteed renewable for up to 80 years.

Click Here for Mutual Of Omaha Product Brochure

Lloyd’s of London (for specific plans for certain uses)

Lloyds of London’s accidental death policy covers more accidents and persons than most accidental death policies from other companies.

The insurance covers accidental deaths and pays benefits if the policyholder experiences loss of sight, limbs, or speech. While other companies limit applicants over 70 years and only offer benefits of $500,000, Lloyd’s of London gives them cover.

The company insures people over 70 years and offers up to $100,000,000 benefits.

Other exceptional accidents that the policy covers include:

  • War Zones
  • Mountain climbing and other extreme sports
  • Car racing and motorsports
  • Terrorism

Lloyds High Limit Accident Insurance Cover

The cover offers a higher benefit to the policyholder than the traditional life insurance plan. However, you must show your financial qualifications when signing up for the underwriting process. The policy offers coverage to notable accidental deaths resulting from the following:

  • Skiing accident
  • Car wreck
  • Being in the wrong place at the wrong time
  • Death from an accident.

The major advantage that Lloyds of London offers is that one can customize the accidental death insurance policy to cover their needs. If you travel to a terror-prone area or war zone, your agents will help you get the best and most well-customized insurance coverage.

Senior Plus AD&D Coverage

For most companies, the applicant age closes at 70, but Lloyds of London offers coverage for people who are 71 years and more.

Private Pilot Policies

Traditional accidental death insurance policies do not cover private pilots. The company covers private but licensed pilots who run small operations.

Premium rates for private pilots vary depending on various factors, such as

  • Total hours flown
  • Type of aircraft flown
  • Type of pilot license and rating
  • Hours flown for the last 12 months
  • Regular occupation
  • If you fly for hire

Lloyds of London offers private pilots customized rates depending on the above requirements. You should know that before you get the high-limit accidental death policy, you must answer some questions. However, the policy comes with a catch; the premiums appreciate with age.

Click Here for Lloyd’s London Product Brochure

Sample Accidental Death Insurance Premiums

What is the difference between Accidental Death Insurance and Life Insurance?

Accidental Death InsuranceLife Insurance
It is the most affordable or cheap (it may cost you even $20 per month, but premium rates vary based on insurer, type, and coverage)Affordable (term life insurance costs vary based on your age, medical condition, insurer, and other factors)
Low-risk persons do not answer questions.Offers better rates for good health
No medical exam neededA medical exam is needed
No medical questionsLow-risk persons do not answer questions
Can add children and spouse to the policyCan add riders such as Return of Premium
Covers accidental deathsIt covers accidental deaths and deaths due to natural causes
Insurers persons up to the age of 70 yearsMay exempt people in the 70-80 age gap
Excludes death from suicide, illegal activities, alcohol, drugs, private aviation, and militaryExclusions may apply during the contestable period. It excludes military people and those in high-risk occupations/activities.
You can apply and get same-day approval.You cannot get same-day approval. It can take weeks or months to get approval.
Monthly premiums do not change.Monthly premiums may depend on your job/occupation, age, health, and family history, among other factors.
Accidental Death and Dismemberment policies compensate the policyholder when a death or injury takes place through an accident.Life insurance Makes payouts when a person dies, regardless of the cause. However, you should note that some policies have exceptions.

Key Take Away

Noel Insurance offers all our clients the best low-cost and easy coverage policies when looking for accidental death insurance. You can take accidental death insurance to supplement your regular life insurance since it does not need medical examinations. Our company has professional and experienced agents who are strategically located across the United States. If you are worried about getting rejection from life insurance policies, we can offer a customized accidental insurance policy that suits your needs.

Our company has the best insurance experts, and they understand that you need to have the correct information and access the best insurance products for you and your family at affordable prices. We compare insurance rates across companies which ultimately saves you time and money. We listen to your input and ensure you get the best product to safeguard you and your family if you get injured or pass on due to accidents.

If you have additional questions about Accidental Death Insurance that we can answer, ple