Accidental Death Insurance

Entries Tagged as 'Accidental Death Insurance'

Choosing the Right Life Insurance Rider

“Life insurance is one of the most important purchases you’ll make to protect your family’s financial future,” says Byron Udell, founder and CEO of AccuQuote. “So naturally, there are some things you need to consider to make sure your family has enough coverage, like personalizing your coverage with life insurance riders.”

When policies are sold at AccuQuote, they usually have the option of having these three common insurance riders attached to them. These riders are a great supplement to coverage and can increase death benefit as well:

1.       Accidental Death Benefit (ADB) – Many people buy an accidental death benefit policy on its own, but attaching it as a rider to a term life insurance policy can be more effective. It provides additional coverage, up to double the amount of the original death benefit. This rider is usually available for a few extra dollars per month of coverage, which some people don't mind paying for. Many people have found that the rider came in handy when covering large hospital bills,

2.       Waiver of Premium – The great part about this rider is that it comes free, if you opt for it at the time of application. If the insured becomes disabled for more than six months (which qualifies as a long term disability), the life insurance company will waive the premium payment until they are fit enough to work again. This is a great way to keep the policy in force despite the disability, and if you have the option to add this rider on your life insurance policy for free, don't think twice! Sign up right away.

3.       Accelerated Death Benefit – This rider has come in handy at crucial moments, when a critical illness threatens to destroy not just emotionally, but also financially, by eating up into savings and investments due to the large medical bills that are usually incurred on the onset of such illnesses. If you are diagnosed with a terminal illness while the life insurance policy is still in force, this rider gives you the option to collect all or part of the death benefit while you’re still alive.

There are several other riders that come in handy while purchasing life insurance policies. You can cover your spouse and child with riders as well, which serves as a handy accompaniment solution for the whole family. Many people opt for child and spouse riders through group insurance at work. While there's nothing wrong with that (and by all means, you should get some if it's offered as a benefit paid for by the company), remember that individually owned policies work in your favor because you get to keep them for the entire term even if you switch jobs (or get fired). Some companies allow group coverage to be converted to individually owned policies, but the process is arduous and expensive.

Term life insurance policies may also allow something called the "Return of Premium" or ROP rider, which allows you to get back premiums paid into the policy at the end of the term if you are still living. This is a great way to get back what can sometimes amount to several thousands of dollars paid in premiums if you didn't end up needing the death benefit. It may hike up your premiums up to 30% more than a plain vanilla term policy, but can be worth it if you are looking for a way to be covered under a large but affordable term life policy but don't want your premiums to go down the drain.

“Choosing the right life insurance rider is important if you want to make sure your family is covered in any situation,” says Udell. “Licensed life insurance agents, like the ones at AccuQuote, can educate you on all of the life insurance riders available and help you add the right one on to your existing coverage.” Choosing the right life insurance rider to customize, increase or better define your coverage is easy with help and advice from AccuQuote.


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Accidental Death Insurance

By Byron Udell


Accidental Death & Dismemberment (AD&D) life insurance is a type of life insurance policy that pays beneficiaries a death benefit if the insured died because of an accident that was specifically covered under the policy. Accidental Death & Dismemberment life insurance is also sometimes called double indemnity life insurance and is available as a rider on a regular life insurance policy (term or permanent) which will pay out an additional amount to the beneficiaries should death occur by the accidents covered. 

Dealing with the unexpected

AD&D is usually bought by those who want to provide an extra cushion for their families especially since accidental deaths are an unexpected, untimely event. Death caused due to accidents can be emotionally crippling in how quickly and suddenly they can rip apart families. What's worse is dealing with potential medical bills that can run into the thousands, especially if the injured person succumbed to his injuries. The extra payout from AD&D life insurance can help cover such costs, and even pay for unforeseen expenses and damages like replacing a car, settling lawsuits or paying for extra costs that any other insurance did not cover. An AD&D policy sold on AccuQuote can cover up to $500,000 in coverage. 

Guaranteed Acceptance

The best part about Accidental Death & Dismemberment life insurance is that anyone aged 18 to 80 years is guaranteed to be accepted. Unlike other policies, you do not have to answer questions about your medical history or take a health examination. As long as you're paying your premiums on time, you can keep this coverage for as long as you like, which means, it doesn't run out like term life insurance. If you get a double indemnity rider for accidental death and dismemberment coverage on another life insurance policy, you may be asked to fill out questionnaires and take a medical examination, depending on the type of policy, amount of coverage and the insurer. 

Probability Statistics 

The National Safety Council is a quasi governmental agency that was set up to record data of accidental deaths; whether they were work related or otherwise. Their 2005-2006 fact sheet on injury estimates that one American dies every 5 minutes as the result of an accident. Accidents are the fifth leading cause of death in the United States, and claim the lives of 13 Americans every hour, every single day of the year. With regard to statistics on the road, one death occurs every 11 minutes as a result of motor vehicle accidents.

Don't be alarmed by these facts, be informed by them. While the probability of this happening to any one of us is distributed over a large population and varies state by state (the National Safety Council does not have data for all states yet), there are many who don't understand how close to home the reality of an accident can be until it hits a close friend, loved one or family member. 

Some Clauses
The most common exclusions in Accidental Death & Dismemberment life insurance policies are death by illness, suicide, war, exposure to noncommercial amounts of radiation (such as reactor leaks), and natural causes. If the insured were to die of these causes, the policy would not pay out. Some insurers have a longer list of exclusions that go on to include death under the influence of non-prescribed drugs or alcohol, overdosing from toxic substances or poison, and injury during a professional sporting event. You can ask your insurer to allow your policy to include some of these under the policy's coverage if necessary, but it will most likely result in you paying higher premiums. Before an AD&D policy pays out, the life insurance company will commission extensive research into making sure that the accident was a legitimate one and its circumstances were covered under the policy's contract language. This can include a long claim process, an autopsy on the client and official investigations taking the help of police reports or other agencies involved. Don't let this dissuade you; it is only the life insurance company doing its due diligence. As long as the accident was covered under the policy, you will have no reason to fear or mistrust the company paying what is rightfully due. 


Some benefits offered by policies sold on AccuQuote include:

  1. Travel Accident Benefit, which pays an additional 100% if death was caused by an accident when riding as a fare-paying passenger on public transport systems, trains or airplanes.
  2. Auto Safety Benefit, which pays an additional 10% of the death benefit if the death occurred in a car accident.

Talk to your insurer about how benefits work in the case of dismemberment. Different exclusions will come into effect that you should be informed about. Make sure to have some life insurance in place at the very least, even if you don't get an Accidental Death & Dismemberment policy. While an AD&D policy grants sustained protection, it is limiting in its protection and will not cover death due to an illness or any other cause that is not accident related. Insurance premiums also rise intermittently and some kinds of AD&D policies need to be renewed periodically.

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Insurance on a Budget

No matter what your paycheck brings in, you can't afford not to be covered


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Groundhog Day

Did he see it?


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3 Tips When Considering an ROP Term Life Policy

The popularity of return-of-premium (ROP) term life insurance policies has been steadily growing during the past few years. ROP premiums are fully refunded at the end of the level-premium term if the policyholder outlives the policy. While these premiums are more expensive than traditional term policies, they are income-tax-free and generally fully convertible to age 69 without evidence of insurability. 


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