Accidental Insurance Plans — Accidental Plans, Coverage & Quotes
Short term accident insurance is a version of temporary life insurance. When you die, short term accident insurance plans pay a lump sum to your beneficiaries. What is the difference between accident insurance and a standard short term life insurance policy? Accident insurance policies pay out higher amounts relative to their cost. This is because the accident insurance company only pays in the event that the death is caused by an accident, such as a plane or car crash. You can buy accident insurance as a rider attached to a life insurance or short term health insurance policy, or as a standalone policy.
There are two basic types of accident insurance: Accidental Death Insurance and Accidental Death and Dismemberment Insurance (AD&D). The latter pays out part of the policy’s value if if you suffer a severe injury that results in dismemberment. Qualifying injuries usually include the loss of sight in one or both eyes and the loss of a hand, foot, or limb. The entire value of the policy is paid out if you lose two or more appendages, or upon a qualifying death. Accidental death and dismemberment insurance will help provide the expensive medical care you will need after the accident; it can also replace some of your income if you can no longer work.
In contrast, accidental death insurance only covers fatal accidents. How are these policies different from standard short term life insurance plans? The payouts tend to be several times larger than what the same premiums would buy under a normal life insurance policy. Accidental death insurance policies incorporate the additional expenses associated with a sudden death; they can take care of our final medical costs incurred while attempting to save your life, as well as funeral costs.
You must be sure of what an accident insurance policy specifically covers before buying. Most companies will not pay out on accidental insurance claims which involves drug overdoses, nor will any death related to mental or physical illness be covered. Fatal surgical error, while certainly an accident, is also excluded in the majority of cases. The comprehensiveness of accident insurance plans vary, but you have to trade-off leniency for higher accident insurance premiums. Accidental death and dismemberment policies are also more expensive than accidental death plans, due to their expanded coverage. Still, you are able to find accidental insurance quotes cheaper than the same coverage would be with standard life insurance, because statistics show that most people die from medical illnesses. The downside is that if you die under non-qualifying circumstances, your beneficiaries will receive no benefit at all.
VitalOne has licensed insurance agents who are able and willing to help you compare short term accident insurance plans. They can help you determine whether a temporary AD&D or accidental death policy is best for you and your family.