There are many forms of life insurance policies in the world, and one that often throws people for a loop is an accidental death policy. This is a special form of insurance that only pays out if you did by an external accident, like a car wreck or a plane crash. This policy can be written on its own, or it can be tied into another, broader form of life insurance. Now the question is, does term life insurance cover accidental death?
Let’s take a moment to assess what accidental death insurance really is to determine if your policy already covers it.
What Accidental Death Insurance Covers
Accidental death insurance covers exactly what the name implies – death by accident. The definition of “accident” is what throws most people off. Just because you die unexpectedly or without intention doesn’t mean you died by accident. Medical issues of any kind are not considered accidents because they occur internally. It’s sort of like when your car starts having problems and eventually stops working. The insurance company won’t pay you because the car was faulty, but it will pay if the car is totaled because of a collision.
The only way an accidental death policy will cover your expenses is if something beyond your control or body kills you. This does not count for murder though because murders don’t happen “accidentally.” Is this fair? Maybe not. You of course don’t plan to get murdered in your life. Nevertheless, that is how the policies operate.
Another matter to note is that you most likely will not have coverage in war. Most insurance companies have exclusions on their policies for people who die in combat. That is because those people are at a greater risk of losing their lives to begin with. Again, this may not seem fair, but it is something that you have to be aware of. If you are a soldier out on the field, you need to understand what your policy will and will not cover in battle.
Does Term Life Insurance Cover Accidental Death?
Lucky for you, term life insurance does in fact cover accidental death, as well as all the other stipulations you may run into. With term life insurance, your expenses are covered no matter how you die, even if it is not an accident. Thus if you are ever asked to buy a separate accidental death policy, decline the offer. That is something you simply do not need. As long as you have a term life policy on hand, you should be good to go.
Accidental Death vs. Term Life Insurance
Since term life insurance policies cover accidental death, you may wonder why people buy accidental death to begin with. For some, it is simply a form of protection they don’t realize they already have. For others though, accidental death insurance is all they can afford. Life insurance is cheap on its own, but exclusive accidental death policies are even cheaper. Why? Because they offer very little coverage for the money. The chances of you actually using an accidental death policy are slim to none. That is why it is always best to invest in term life instead.
Whole life insurance will cover accidental death as well, if you feel the need to have that kind of policy. It will cost you a lot more money each month, but it will give you a chance to save for the future. Whether you choose term life or whole life to cover your final costs, you will not have to worry in an accident. That part of your coverage will kick in automatically.
Making Sure You Are Covered
It can’t hurt to look over your policy to see if you are in fact covered for accidental death insurance. There may not be an explicit clause with this label, but there should be a section of the policy plan that outlines what is and is not covered. If accidental deaths are left out of the coverage details, contact your insurance company and see what you need to do to get protection. They may be able to add a rider to the policy for a low fee.
With the right life insurance in place, your costs will always be taken care of. Make sure you are protected today.