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What is accidental death insurance?

Maria Ferrante-Schepis
Financial Health
Accidental death insurance provides a payout if you die in an accidental way. This could be a car accident, workplace accident, sports accident, accidental drug overdose or any other scenario where your death is not brought on by an illness or purpose by you or someone else. Some people may get into an accident and then suffer injuries that cause illnesses that lead to death. If it is determined that the accident was the ultimate cause of death, in other words, the illness would not have happened but for the accident, then the benefit will be paid.

Accidental death insurance doesn’t pay a benefit if you die from illness, suicide, murder, war or natural disaster such as an earthquake.

Accidental death insurance is less expensive than other types of life insurance simply because it only pays a benefit under certain circumstances, whereas other life insurance doesn’t have so many exclusions. In other words, the likelihood that the company will be liable for a payout is less, so they charge you less.

Accidental death insurance policies are less common now than they once were, but many modern life insurance policies offer a feature that allows you to add on an additional benefit if you die by accident. Also, many employer benefit plans offer accidental death insurance as well.

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.