Best Complete Guide For Accidental Life Insurance
Welcome to the best complete guide for accidental life insurance. The intention of this guide is to provide you with everything you need to know about accidental life insurance. That means everything from price to exactly how it works up to the fine print details.
We’ll answer questions like: How long does the coverage last? What exactly will it cover? There are a lot of rumors about this kind of policy, so it’s very important to know, from someone within the profession, how it truly works. Here’s the deal. It will only cover two things. Accidental insurance gives you cash if you get injured or die from an accident covered by your policy.
It’s going to pay out 100% cash for your medical bills or whatever you want to spend it on. The accidental payout factor includes a whole myriad of accident types that it covers:
• Motor vehicle accidents
• Fire-related injuries and deaths
• Industrial accidents
• Medical errors
• Prescription errors
• Transportation accidents
Accidental deaths are the third most common reason for dying in the United States of America. Accidental death and dismemberment insurance (AD&D) is typically a rider to a health insurance or life insurance policy. The rider covers the unintentional death or dismemberment of the insured. Dismemberment includes the loss, or the loss of use, of body parts or functions. For example, if you lose any limbs, your speech, eyesight, or hearing.
Accidental insurance is a type of insurance product that pays out a lump sum if you incur specific kinds of injury as a result of an unforeseen or unpreventable accident. This type of insurance usually complements health insurance to pay you if an accident causes you to have medical expenses that your health insurance doesn’t cover.
What are Living Benefits?
There are also some dismemberment related issues that are going to pay out as well while you’re still living. Sometimes they payout one hundred percent and other times they pay less when it involves the living benefits side. Living benefits are paid when the life insurance company pays or advances a portion of the policy’s death benefit to you in order to compensate you for care or treatment.
Again, when your accidental death occurs, the check from the insurance company goes straight to your beneficiary. However, if your injury is because of a dismemberment injury the check goes directly to you. The amount you will receive will depend on the seriousness of the injury.
So for example, if you lose a thumb, it’s a scary thing, but it’s not life-threatening. So you will receive about 50% of the payout. However, if you lose one hand, one foot, sight in both eyes, it will most likely pay you a hundred percent.
The amount of coverage you can get will ultimately depend on limits set by your insurers or by employers that offer AD&D insurance as a workplace benefit. For example, you can purchase an AD&D policy from Protect With Insurance with a benefit ranging up to $200,000.
Is it a Gamble?
Accidental life insurance is very economical. There is a debate about whether or not it is worth getting. The argument for not getting it is that it might feel like a gamble because there’s not a hundred percent guarantee that money’s going to be received upon death. So what’s the point?
Well, the point is that it’s a very inexpensive way to increase your coverage. Bear in mind that nearly 1.25 million people are killed in car crashes each year. On average, that’s 3,287 deaths a day. There’s an additional 20-50 million that are injured or disabled.
It’s dangerous out on the road, so we want to have that extra coverage. In addition, you are protected from other types of injuries as well. Most people can get a $300,000 policy for $20 to $40 a month. It’s very inexpensive for having this extensive coverage, which is usually just a rider of your full life insurance coverage.
Does Accidental Replace Full Coverage?
So accidental life insurance is not a replacement, it’s something that will add to your coverage. Now, if you are feeling financially tight, which is understandable especially right now in light of the coronavirus, this may be something that you can afford now. However, if you are really struggling financially, perhaps you should look at a full coverage type life insurance policy.
However, we highly recommend that you take a peek at an accidental policy and see what it would cost for you. Then weigh the pros and the cons. If you feel there are more pros, feel free to call us. We’ll be happy to answer your questions about it.
Who Qualifies for an Accidental Policy?
Now, accidental policies are going to be for anyone ages 20 to 70. However, if you are between the ages of 20 and under the age of 50, you can also get what’s called a return of premium accidental life insurance. That means that at approximately age 75 the accidental life insurance company will send you all your money back. That may cost you a hundred dollars a month for a return of premium policy and but you will get coverage anywhere from $400,000 to $500,000.
When you reach the age of about 75 they’re going to send you all your money back that you invested in this policy. So at 75 years old, you will receive what’s called a return of premium. You get 100% of what you paid into it.
However, if you don’t outlive the policy and it’s an accidental death, the insurance company will send your beneficiary the full coverage amount. So it’s a beautiful thing. There’s very little risk involved with that type of situation. The only time that you would not receive a payment if your death is due to a medical condition like cancer.
What is Not Covered in an Accidental Life Policy?
If it’s a medical problem, it doesn’t fall within that accidental death category. Deaths due to medical reasons are better covered by whole life insurance policies. Whole life insurance, or whole of life assurance sometimes referred to as “straight life” or “ordinary life,” is a life insurance policy that is guaranteed to remain in effect for the insured’s entire lifetime, provided required premiums are paid, or to the maturity date.
Accidental death and dismemberment insurance may not cover the following:
- Drug overdose
- Suicide or attempted suicide
- Drinking and driving
- Bungee jumping
- Car racing
- Sexually transmitted diseases
You’re not going to get anything back in that situation. Now statistically outliving your term policy is fairly common. If you do the math on that, a return of premium accidental policies is a great way to hedge your bet.
What is a Return of Premium Policy?
A return of premium (ROP) life insurance policy means that when the term of your life insurance policy expires while you’re still alive, your insurance company will return the amount you paid in as premiums. For example, if you paid $40 a month for a 10-year term, you get $4,800 paid back. The return of premiums total amount is paid back to you, tax-free!
You’re most likely going to outlive your term and reach the age of 75. But if you die from accidental death, then you’re going to have pretty good coverage there as well.
So the bottom line is, accidental insurance is an excellent means to protect your family without having to spend a lot of money. If you want to save money and you don’t opt for the return of premium policy, you can still get accidental insurance until age 70.
How long does the coverage last?
Now, if it’s not returned a premium, it will expire at age 80. So you need to understand that it’s not a full life. It’s technically a term type of insurance. Accidental term insurance expires at a certain age rather than a length of time. A traditional term life insurance policy expires in a given length of time from 10 to a 30-year term.
In the case of an accidental life insurance policy, it will term out at age 80 years of age. That is if it is not an ROP or a return of premium policy. If it has a return of premium option, there are variations to this kind of program. But typically they’re going to last until about age 75 and then they’re going to stop.
Beware of other accidental life insurance providers that are writing policies where the death benefit cuts in half at age 70. Sometimes it cuts in half again at age 75! Protect With Insurance policies do not do that. They do not decrease at any age. They are constant during the full duration of the term and then they end.
Often times these types of policies are accidental riders or supplements to an existing full coverage policy, such as whole life or a burial insurance policy.
If you decide you want the protection of accidental life insurance policy, you can buy great accidental death insurance over the phone by calling us today. There is no medical exam to take, you are guaranteed to be approved, and coverage can start today!
Give us a call or start a chat now to begin your protection.