A person does not need money after he dies, but his surviving loved ones may need some extra protection. Many insurance companies offer sturdy sounding policies, but some people may not know what policy is right for them. For example, a factory employee may need a different sort of life insurance policy than a teacher. Those who have decided to purchase life insurance, should first figure out if they might benefit from getting an "accidental death" add-on to their policy.
Life Insurance Policy
When deciding what life insurance policy to get, a person will need to decide between the two basic varieties: whole life insurance and term life insurance. Whole life insurance covers a person for life. Term life insurance covers a person for a limited period of time. Each policy varies when it comes to what is covered, what it costs, and what is included.
Accidental Death Policy
Accidental death insurance can be added to the standard life insurance policy that a person chooses. It covers events, such as fatal accidents, and it sometimes covers accidents that cause blindness or a person to lose a limb. If a person has accidental death insurance, he may qualify for two to three times the amount he has already been insured for by standard life insurance in the rare event that he becomes severely injured or succumbs to an accidental death.
The Difference Between Standard Life Insurance and Accidental Death Insurance
Both policies cover similar events, however some standard life insurance policies rule out the prospect of accidental death, paralysis, or loss of a sense, such as sight or hearing. Since death due to circumstances, such as old age and disease, is more common than accidental death, it is usually unwise to invest in just an accidental death insurance policy without the standard life insurance policy. However, some, especially people with risky jobs, such as factory and construction work, may see the added benefit in having the extra protection.
Restrictions to Accidental Death Insurance
Accidental death insurance often excludes people who are at additional risk, such as people who are in the military, parachuters, airplane pilots and professional athletes. Additionally, accidental death insurance rarely covers death or infections contracted during hospitalization, even if the cause of hospitalization was an accident. Moreover, death due to mental illness (e.g. suicide) or other physical illness and infection, is unlikely to be covered by an accidental death insurance policy.
Counter-Arguments of Accidental Death Add-On
People arguing against getting an accidental death policy added on to a standard life insurance policy claim that the beneficiary's family will get insurance money regardless of the cause of death, so buying an accidental add-on would be a waste of money. However, if the beneficiary did not achieve enough financial stability prior to accidental death, the beneficiary's family may greatly benefit from such an investment. Other opponents to the accidental death add-on claim that getting an accidental death policy may increase the likelihood of a family member "accidentally" injuring or killing a beneficiary to reap the insurance benefits, however insurance companies certainly can't take the blame in that scenario.
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