Accidental Insurance Plans — Accidental Plans, Coverage & Quotes
Accident insurance is closely related to health insurance plans. However, it is not the same as a health insurance plan. Accidental life insurance pays out a lump sum to the policy’s beneficiaries if the policyholder dies as a result of an accident. You can buy accident insurance plans with higher cash values for the same monthly premium compared to standard life insurance. Accident insurance policies can afford to offer such deals because relatively few claims are paid out; most people either pass away from causes not covered by the policy, or outlive the policy term entirely.
The two types of accident insurance are Accidental Death Insurance and Accidental Death and Dismemberment Insurance, also known as AD&D. The former only pays out in the event of a fatal accident, while the latter also pays partial claims for severe injuries. AD&D policies also cover dismemberment in addition to death. If the policyholder loses one eye, leg, arm, hand, or foot as a result of a covered accident, the insurance company will pay out a partial claim (usually half). In the case that he or she loses two or more members, the full cash value of the policy will be paid out. This is because extensive health care will be required for the remainder of his or her life. In addition, he or she may be unable to return to the same industry they were employed in prior to the accident. As a result, accident insurance is a good complement to a family health insurance plan.
Accidental insurance can be bought as a rider attached to a life insurance or insurance health plan. It can also be bought by itself.
When buying accident insurance, it is important to know exactly what it covers. Most insurance companies will not pay out an accidental insurance claim involving surgical errors, drug overdoses, or physical or mental illness. (Affordable health insurance plans are more suited for the latter purpose.) Some plans are more comprehensive than others, although more lenient requirements may lead to higher accident insurance premiums. Accidental death and dismemberment policies are also more expensive than accidental death plans, due to their expanded coverage. However, they are still cheap accidental insurance quotes compared to standard life insurance, because statistics show that most people die from medical illnesses. The trade-off is that you run the risk of the policy not paying out at all, if you die under non-qualifying circumstances.
VitalOne has licensed insurance agents who are able and willing to help you compare accident insurance plans. They can help you determine whether an accidental death or AD&D policy is the best choice for you and your loved ones.