Accidental Life Insurance

Accidental life insurance may be one of the many life insurance options out there. Life and accident insurance may help provide protection in case of an accident. Accident life insurance may sometimes be known as accidental death and dismemberment insurance when it includes protection in case of accidental injury.

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Accident life insurance may help provide benefits in some situations, specifically either accidental death coverage or, in some policies, injury due to an accident. There could be pros and cons to purchasing life and accident insurance.  The positive is that accidental life insurance may pay you or whomever you designate as a beneficiary a specific amount of money if you were to die, or be injured, as the direct result of an accident. However, this coverage may typically be limited since it may only cover the results of accidents. If you only had an accidental life insurance policy, then died of cancer, your beneficiaries may not be protected.

Some regular life insurance policies may offer a life and accident insurance policy rider.  The way the accident life insurance rider could work in such a case is that if you had a $250,000 life insurance policy, but died in an accident, your beneficiaries may receive twice that amount, or $500,000. That’s what is known as double indemnity.

Accident life insurance may make sense if you have a high-risk occupation, such as working in a factory, or as a coal miner, or another physical profession, because of the risk.  However, common life insurance policies may already cover all types of deaths, including those due to accidents.

There may be one caveat — if the life and accident insurance includes a dismemberment clause, which, depending on the specific policy, may cover many types of accidental injuries, not just losing a limb. The accident life insurance coverage here could also include losing your ability to see, speak or hear, as well as becoming paralyzed. That is an additional benefit from some life and accident insurance policies that a traditional life insurance policy typically may not offer.

But keep in mind that accident life insurance may not protect you if you go out and do something risky, such as skydiving. It depends on what policy you get, but many accidental life insurance policies may not include high-risk leisure activities.

Accidental life insurance may be worth purchasing, specifically one that covers dismemberment, if you are in a profession where you have a higher risk of an accident. But if your highest risk of injury at your job is a paper cut, life and accident insurance may not be worth the money for you.

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