What is Accidental Death Life Insurance and Why You Need It?

accidental death Insurance

Accidental death insurance is a policy that pays benefits to the beneficiary if the cause of death is an accident.  It is generally less expensive and in some cases can be an added benefit to an existing life insurance policy. The difference between Life and Accidental Death Insurance is that Life insurance will pay out if you die by accident or illness, but Accidental Death  Insurance only pays out in certain instances of death by accident, but not for natural causes or illness.

Accidental Death Insurance Policies are commonly misunderstood and they’re an important policy to have. There is good and bad news with Accidental Death Life Insurance policies in Prescott and all of Arizona. The good news is they’re larger coverage policies and they’re not very expensive. It’s the most economical route that you can take. Many of our clients need to go with an Accidental Policy because it’s what they can afford for now. Down the road, you can either add to your policy or replace it with a Full Coverage Policy.

Accidental Life Insurance is not a Full Coverage Policy. It only pays out if it’s an Accidental Death Policy.

Accidental Death applies only to deaths that are non-medical. It’s going to be an event that occurs such as a terminal accident, falling off the roof,  a car or skiing accident. All of these are awful things but they’re all non-medical. So it’s not a health problem. It’s not a stroke, it’s not cancer or anything like that. The policy pays for all of these accidental issues and sends a check to your beneficiary.

Because these policies are so affordable, most people get an Accidental Death Insurance policy in Arizona for $100,00 to a $500,000 policy.You decide what you want to pay. The prices tend to be low for this because they ONLY pay for accidental deaths so it is an important policy. Most people add accidental death insurance in addition to their other coverage.

You may ask, “Why add Accidental Death if  I have a full coverage policy that already covers accidental?”

The reason why most people do this is that it’s an inexpensive way to add hundreds of thousands of dollars in coverage additional protection for their family inexpensively. Let’s say for example that someone is currently spending about $200-300/month in a full coverage policy and for another $60 or $120, they can get additional coverage for the whole family or at least for a husband and wife.vBoth of them go on one family policy and it’s not that much more costly. Now they have a $500,000 policy in place for accidental insurance in addition to their full coverage.

So it’s a very important policy to have. I hope that helps you better understand the basics of an Accidental Death Life Insurance Policy in Prescott, Arizona.

If you are located in the Cottonwood, Sedona, Flagstaff or Prescott area and are looking for more information on affordable Life Insurance please don’t hesitate to contact us.

Use the links below or call us directly at (928) 323-0933.