Accidental Death Life Insurance Basics

Accidental Death Life Insurance is an important part of an individual's overall insurance package. This death life insurance is helpful in the event there is wrongful death or when an accident happens that cuts the life short for a member of a family.

According to statistics, someone dies from an accidental death about every five minutes. Because of this many people turn to a policy that can protect an entire family in the event that something should happen to create a tragedy for them.

The accidental death life insurance pays the owner of the policy when an accidental death happens. There are some policies that will also cover dismemberment when an accident takes away limbs. When a family has accidental death life insurance it will help with difficulties they may have financially after a death.

Most policies will be effective for several years after the death and if not claimed the policy can be terminated and the premiums paid back to the insured. Sometimes an accidental death life insurance is a separate policy on their regular life or health insurance. Sometimes this can be an additional rider so it will depend on the policy the individual examines.

Depending on the policy it can have limitations that make it a weaker type of insurance but for some situations it can be an additional policy to what is already available for the full instance needs.

Generally an accidental death life insurance policy will cover an accident that causes an individual to lose eyesight, their speech, a limb or their hearing. It will pay the insured person or their beneficiaries a certain amount that has been decided by the policy makers.

Most policies generally pay on a per member basis. This means if the beneficiary loses one arm, the policy will pay 50% of the full benefit. The policy will also pay 25% to 50% when an individual is partially paralyzed.

The challenge in these policies is that they are limited in the way an accident will happen. They do not cover death from a mental or physical illness, death in surgery, or bacterial infections. They will not cover death from activities they consider risky like car racing, skydiving or war.

Most experts say that accidental death life insurance can be good as an addition to regular life insurance but not as a policy by itself. When considering accidental death life insurance it is important to examine the policy clearly.