« Back

 January 15, 2020

Does Life Insurance Cover Accidental Death

does life insurance cover accidents

What Is Life Insurance?

If you have loved ones who rely on your income, life insurance may help them financially if you were to die.

Life insurance can make payments after your death to the person you designate in your application for insurance, also known as a beneficiary. It’s possible to designate more than one person as your beneficiary.

The benefit payable pursuant to your policy can go towards paying bills and living expenses, paying off debts, paying for college, etc.3

Does Life Insurance Cover Accidental Death?

Once you’ve become more familiar with the different types of insurance available, you can then determine whether accidental death insurance is right for you. In some cases, yes, accidental death is covered in a life insurance policy. However, policies vary by provider, so it’s important to note what your insurance provider considers a covered death before applying, as there may be some instances where accidental death is not covered.

About AD&D Insurance

This type of insurance usually comes as a rider, or a special provision providing different options, to an insurance policy. It can cover unintentional death of the insured.2 The most common is an Accidental Death Benefit rider.

If your death is ruled an accident, you can receive benefits through your life insurance policy, and also have an additional amount paid out to your beneficiaries through the Accidental Death Benefit included in your life insurance plan. Cover accidents typically are from exceptional circumstances, such as exposure to the elements, traffic accidents, homicide, falls, drowning, and accidents involving heavy equipment.2

The policy itself will contain a schedule that details the terms and percentages of the various benefits and covered special circumstances.

Drawbacks to Accidental Death and AD&D Insurance

While there are numerous benefits to purchasing this type of insurance policy, there can be drawbacks. For example, every provider has a list of circumstances that are excluded from coverage. You’ll want to review these circumstances carefully, because if the insured dies in any of the excluded manners, the beneficiaries won’t receive a payout.

  1. iii.org, Life Insurance Basics, 2020
  2. investopedia.com, Accidental Death and Dismemberment Insurance (AD&D), 2019
  3. tdi.texas.gov, Understanding Life Insurance, 2020

Categories: Insurance, Life Insurance

« Back