Life insurance is something that people purchase in order to ensure the financial security of their family in the event that something unexpected happens to them. Accidental death insurance is a type of life insurance policy that pays benefits to the beneficiary if the purchaser’s cause of death was accidental.
Four Common Coverage Types
- Voluntary – Accidental death insurance is offered to members of a group as a separate elective benefit. Premiums are usually paid via payroll deduction.
- Group Life Supplement – The benefit is included as a part of a group life insurance contract. The benefit amount is generally the same as that of the group life benefit.
- Travel Accident – The benefit is provided via an employee benefit plan. It provides accident protection to workers while they travel on company business trips. The premium is normally paid in full by the employer.
- Dependents – Some accidental death plans additionally provide coverage for dependents.
Advantages of AD Insurance
- Your family is taken care of if you are involved in a fatal accident.
- Insurance proceeds are paid out in one single lump sum after the insurance claim has been processed. You get your money all at once and don’t have to wait to receive it in payments.
- Dismemberment benefits or “living benefits” provide compensation for injuries suffered in certain types of accidents including the loss of a limb, paralysis, or blindness.
- The amount paid to you as “living benefits” is not deducted from your policy’s face amount.
- In many cases, you are entitled to double the amount of payout when you are injured in an accident while riding as a fare-paying passenger (on a bus, taxi, airplane, etc.).
Like many insurance policies, there are some exclusions to the Accidental Death Policy. Circumstances that commonly void the insured’s claim to their accidental death benefit are: death by illness, non-commercial radiation, suicide, war injury, and natural causes. Death while under the influence of alcohol or non-prescribed drugs are also usually exempt from coverage. Insurance companies may tailor policies to include some of the above mentioned circumstances, which is why it is important to sit down with a professional and formulate a policy that works best for you.
Freedom Insurance Agency, Inc. is an independent insurance agency in Maryland that has proudly provided Carroll County with auto, home, business, disability and life insurance for over 35 years. Our staff is professional and trustworthy and we are happy to help you find the policy that is best for you. To find out more information on accidental death insurance policies, contact us today!